marketing 350 final
case: anki
building a team - A complex AI robotics-based consumer electronic product company requires a sophisticated combination of: - Technology - Creative design - Manufacturing - SCM - Sales and marketing - Leadership and admin skills
process of SEO B2B
consumer types in search engine > they click on one of the 1st listings > link takes consumer to listing website (conversion) > "landing page" attempts to gather info about potential customer > "lead" gets passed to sales rep > sales rep contacts "hot" lead > billed for the click (pay per click)
who creates ads for entrepreneurs
creative mind: Ad agencies, freelance, advertising local art students strategic mind: employees, owner, ad agencies scientific: marketing students
PR agencies
creative: helping to define the message execution: getting the message out rolodex: knowing whom to go to and having the ability to get them to listen Measuring the effectiveness of PR is something that should be done in as quantitative a manner as possible!
event marketing
excitement of an event To have the press say about the company and product/service. To have customers come and participate in the event. To have influencers experience the new product and say about it to their followers. hold industry conferences
Types of salesforce
financial burden with direct with salary
freemium
free users do not pay. paying users do pay. 2-5% of users will buy (conversion rate)
freebies (tchotchke)
freebies, given at trade shows, fairs, public events and so on. key factors: longevity visibility cleverness
AOL
gave CDs to almost every household in US for 10 free hours --- Conversion rate: 1% Customer Life: 42-months (3.5 years) CLV: Over $400 Cost of a CD: $0.75 --- 100 giveaways =$75 did they make money? if conversion rate is 1% out of 100, the CLV of one subscriber is $400 yet it cost $75 for 100 tries
inbound lead generation
getting found my prospects Organic search traffic Website conversion Social media interaction Customer videos - "Hot leads" are direct inquiries on the phone or email for demo requests for proposal
ways to improve viral marketing
give promotions for you and your friend to create traffic (free stuff)
give it away
in today's internet world, giving away the product has become a long-term strategy, not just a short-term promotion-sales boost (freebies). - Building customer relationships - Creative business model creation
what is pr?
managing the spread of information to the public
franchising
new store/business expands by franchising Franchises are a big part of business in US. About 1 in 10 businesses is a franchise. Business format franchise is the most popular form. The franchisor provides the franchisee with a name, an identity, and a complete "proven" way of operating business
case: Pebble Technology
smart watch crowdfunding 1: 10.3 mill crowdfunding 2: 20 mil
Apple App store
smartphone software apps are a unique, and extreme example of exclusive distribution. Gain access to 100's of millions of iOS owners, facilitates search & categorization of your app, Apple charges 30% of all app revenue for access to iOS market
successful entrepreneurial ad?
strategic, creative, and scientific minds - Strategic Mind - ad campaigns should be supportive and consistent with positioning strategy - Clear audience, objective, call-to-action and measurable outcome - Creative Mind - have the most widely varied copies generated and evaluated - Scientific Mind - Adaptive experimentation in advertising can provide large returns for modest investment
viral coefficient
the number of new users who sign on for each additional user. = # of invites x conversion rate ex: If each person invites 5 people and the conversion rate is 50%, the viral coefficient is 2.5 (= 5 x 50%). (instagram)
free forever
users do not pay - someone else does Browsers (Netscape, Chrome, FireFox) Free morning newspapers (local newspapers) Google search
retention rate
# of retained customers/customer base sales = trials + purchases (repeats) proportion of customers you have retained at the end of the period out of the customer base at the beginning of the period
to fuel high growth
(one transaction) x N (price - unit cost) x N 1. ideas 2. HR 3. financial resources
Telling a compelling story
- About you and product - About your customer and his/her problem - Focus of the story should be the customer's problem. Main actor should be the customer - Facts, functions, features and the basic commercial pitch - Connect with audience, emotional memorable story
compensation
- Be fair - Pay little or nothing and combine equity compensation - "Avoid paying with equity as much as possible"
the reason for the coolest cooler success
- Clear value proposition - Focus on how features enhance fun - Good timing - Viral Marketing (call to action)
selective distribution
- Conceptual middle between exclusive and intensive distribution - Control mechanism of selective distribution is the implied threat to take away product from those re-sellers who do not follow rules - EXAMPLE - Amazon
how pr?
- Enter business plan competitions - Meet people and network (elevator pitch) - Gurus (influencers) - PR Agencies EXAMPLES: PayMyBills.com, Innovation challenge
looking for the talent
- Every employee from founder down, must keep watch for any good talent and encourage those who qualify to apply, even when a specific job is not open - Tell the story through media and all your stakeholders to portray why your company is a winner - Deliver and provide fair compensation
intensive distribution
- Extreme opposite of exclusive, anyone who wants to see the offering is encouraged to do so - EXAMPLE - food products, fads no control mechanism
founders, key talents, others
- Founders: Boris, Mark, Hanns - Provide a compelling product, vision and culture that attracted and engaged the right team - Led the team to execute on a plan to build and scale the company key talents: Harald Belker on board to design the Anki DRIVE cars.
franchiser and franchisees
- Franchisor - best way to grow your business and multiply small business success - Advantages - rapid expansion without large investment - Buying power - Scales economics - Franchisees are usually more motivated than employed managers - Franchisors become profitable even though franchisees are not - Franchises are easier to sell than the equivalent business that is not a franchise - Disadvantages - Limited control written explicitly on franchise agreement - Can no fire bad franchisee who damages firm image or positioning - Difficult to ensure franchisees pay correct amount of ongoing fees and royalty - Different incentives for pricing (franchisor=revenue, franchisee=profit) - May be creating a new set of competition that learn your business through franchise
exclusive distribution case: Anki Drive
- Gives a retailer or other intermediary exclusive right to sell product in a defined area for defined time period - Case: Anki Drive had exclusive distribution for apple for 6 months - Take advantage of a reputable distribution center - Get reliable service from exclusive distributor - Public exposure
effective rep management
- In general reps allocate their time to maximize their commission income - They also allocate time if principles have similar goals, good communication, mutual trust and active involvement in reps activities
compensation
- Matching incentives: salespeople do what they think will make them the most money for the time they spend on the job - Commission: based on sales revenue, based on gross margin or based on points
case: metricstream
- MetricStream is a market leader in enterprise-wide governance risk and compliance and quality management solutions - In early 2013, they were growing fast. Their value proposition, target market segments and positioning were defined - Growing sales on a limited budget
choosing the right talent
- Mission statement and positioning CLEAR - More responsibilities than what the job description says - be a winner Integrity, Customer orientation, Passion and commitment, Accountability, responsibility, trust, Teamwork, and Communication
social media - organic
- Monitor social media sights - Encourage happy customer to participate - Respond to negative feedback
email campaign
- More than one-shot email - Don't spam the customer - Give ability to subscribe and unsubscribe - Address recipients by name - Short and concise email - CALL TO ACTION - Test 10% each with - Different subject lines - Different call to actions - Different content design
why pr?
- No money required - Can build a good impression - Help with fund-raising
close the deal
- Proofread! - Include logo and company graphic - Print the proposal in color and have it bound!
pull vs push
- Pull = getting found - Push = finding clients - Getting found vs finding
direct vs reps
- Reps: agents, brokers and representatives - Reps are independent companies or individuals who sell your product offering on your behalf - Usually commission based and bear all of their own sales expenses - Direct: You closely manage your whole sales process (sales funnel) with your own employees. direct over rep Where it's difficult to evaluate the salesperson's results "by the numbers" •Where product and application knowledge are difficult to learn, important, and/or complex. •With highly confidential information •Where support activities are critical
understanding of sales function
- Sales= N* x awareness x preference x affordability x availability - Sales= Market potential x market development x market share - Sales= trial sales + repeat sales - Sales= site visits x conversion rates N* is the maximum possible number of demand
website - organic
- Simple to navigate, enticing and interesting - Contains important information - Dynamic content, change content frequently - Mobile friendly - video clips
culture
- Strong culture espouses the core values of the company in all aspects of the business and helps employees who make decisions consistent with the goals of the company - At the start of the company, the culture is set by founders - Vision and mission - How you decide and what you care about
qualifying & identifying prospects
- The sooner prospects are qualified from sales process the better - Fewer resources are consumed - less money is wasted - More realistic the sales pipeline is - Marketing needs to provide as clear and precise a definition as possible to target prospects
proposal
- Truly differentiated competition in the sales process - Keep in mind: the focus and perspective of the proposal must be the prospects business not yours! - Proposals should demonstrate that you have listened and reflected the proposals specific needs
handling objections - pricing
- customers who believe the product or service is too expensive - Know the comparative framework of pricing - Demonstrate the total cost of the product, implementation, training is comparable or cheaper than competition - benefits are greater than costs
handling objections - viability
- if your company is a new or small, a prospect might be concerned with the company's viability - Show the strength of the company, growth history and plans, customer satisfaction data, customer case study, bios of key implementation personnel
case: metacreators corp
- small computer graphics software company. It searched for a method of getting lots of press attention at Comdex - John Wilczek, the CEO, decided to hold a large party (500 key people from the industry) at a location like the Hard Rock Cafe or House of Blues. - He created the Digital Media Players Party, costing $250,000. He called on big players in the industry and sold them on being "sponsors" of the party. When the invitations went out, they read "MetaCreations Corporation (in big letters) invite you to the Digital Media Players Party, sponsored by Adobe, Kodak, and so on (in small letters)" This party was held at 3-5 major conferences a year for the next several years.
Elevator pitch
30 sec to 2 minutes, focus on your positioning in the most clear, compelling, and concise manner possible!
customer life
= 1/(1-retention rate)
customer lifetime value (clv)
= m x L - CAC m: contribution margin generated from customer in a year L: expected purchasing life of a customer CAC: customer acquisition cost
entrepreneurial promotion
Crowdfunding campaign Give it Away Viral marketing Event marketing Product placement {be creative! be tested and adapted be a long-term strategy be consistent with positioning}
case: outback
Each store manager invests $25,000 in his or her store. They get 10% of the profits that store generates.
field sales - oriented sales process
First things to do! Define all the stages of the sales process Propose the delivery vehicle Estimate the cost Estimate the success rate each activity As you begin your operations, experiment with the alternative sales processes You need to improve! Improve success rate, shorten the sales cycle, and/or reduce activity cost
for new customers
Have different rates of commission for generating new accounts than for maintaining the business.
case: hotmail, instagram
Hotmail was a free email service that added the text, "P.S. Get your free email at Hotmail," to the bottom of every email sent through its service. This is a give-it-away as well as viral! Hotmail grew to more than 30 million users within three years! Finally, Hotmail was bought by Microsoft for $400 million.
case: Rita's Water Ice
In 1989, the company decided go franchise, and by 1996 Rita's had more than 100 locations in nine states. Each franchises invested between $135K-$242K initially to start a new Rita's outlet: •Initial franchise fee •finding and leasing a site •store layout • working capital
influencers pt 2
Influencer let you aware of Influencer get you interested in Influencer evaluate Influencer tries on behalf of you Influencer marketing is much more effective than traditional advertising and promotion
gurus
Key industry insiders You have to build personal one-to-one relationships with the gurus It is a two-way street; the guru can't be a guru without being in on the lasted product entries
influencers
Key trade and business press Industry analysts Active in social network Have followers Influencers are not just as targets for getting a message out, but highly knowledgeable users who can help to improve the product or service.
entrepreneurial business needs financing
Need financing: to start (start-up equity investment), to survive (operating expenses) and to grow (scale-up investment) the venture
case: flip flop shops
One-line pitch that highlights your unique selling proposition •Stage, industry, location, year founded, number of employees, Website Management Team Customer Problem Product/Service Target Market Customers Sales and Marketing Strategy Business Model Competitors/Advantages Funding Annual Finances
getting found by prospects. how?
Online media presence -Website -Social media, blogs -Articles in online news papers and magazines •Story telling
gurus, influencers
Public Relation generally focuses more on gurus and influencers. they target the decision makers, naysayers, and mass buyers
demo
Recording of an actual demonstration PowerPoint slides Live demos "Be prepared." A failed demo, or irrelevant one, can hurt far more than no demo at all.
case: synygy
Synygy, Inc. improved its advertising dramatically by testing alternative ads and choosing the best performer, rather than developing and committing to a single campaign
the importance of keep track of ad spending and sales
T/F For entrepreneurial companies, the incremental revenue produced by advertising is not worthwhile to measure, so don't even try. FALSE
choosing reps
The first criterion is the rep's market position. The second criterion is whether the rep will have enough resources and use them to push your product or service. It is almost always productive to invest some time and money to find the best rep.
viral marketing
The rise of the Internet has given rise to even faster and cheaper forms of promotion — and the term viral marketing.
crowdfunding campaign case: the coolest cooler kickstarter campaign
Used Kickstarter campaign to raise target funding of $125,000. Failed the 1st time but succeeded raising over $13,000,000 non-dimlutive in the 2nd campaign from more than 60,000 backers.
free trial
User needs experience to value product! Many brokerage-only firms give first few trades free.
webinars
Webinars can be excellent lead-generation vehicles. MetricSteam offers weekly webinars.
marketing for financial activities
When marketing to potential investors, your product is a share of stock (or debt), not the product or service the company hopes to sell Position the company as a (the) winner, leader, most advanced world-class competitor in its space. Create a sense of urgency Use crowdfunding Create an investor presentation
product placement
advertising technique used by companies to subtly promote their products through a nontraditional advertising technique, usually through appearances in film, television, or other media.
every entrepreneurial marketing tactic should have a clear sense of
audience, objective, call-to-action
customer adaption process
Awareness> Interest> Evaluation> Trial> Purchase >> (repurchase) strong personas allow us to understand which stage we need to focus on - Heard about it> are interested in it> have evaluated it> have tried it> have purchased it
building a profile
Build a profile and share it with investors to get funding!
process of SEO B2C
Business to Consumer: consumer types in a search engine a (impression) > a consumer clicks on one of the first listings (click-through) > a link takes consumer to listing's website (conversion) > a web transaction billed for the click (pay per click)
what is sales promotion in general?
A short-term tactic to boost sales, ex. free gift, free samples, discounted prices, coupon, BOGO
