Otbc strategic marketing - 0911

Strategic Marketing for New VenturesOpen Technology Business Center (OTBC)Open Technology Business Center (OTBC)

Wilson Zehr, CEO, CendixAdjunct Professor Portland State UniversityAdjunct Professor, Portland State University

September 16, 2011

Strategic Marketing FundamentalsIntroduction

• Competitive Pressure has never Been Greaterp• Management Expectations are High

– Annual Growth– Wins/LossesWins/Losses– Visibility

• Budgets are Tight• Must Do More With Less• Must Do More With Less• Produce Results Right Away

Strategic Marketing can Help…… We’ll Show You How!

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Strategic Marketing FundamentalsThe Marketing Function

Big M

little m


Strategic Marketing Model Components & Relationship

Core

5 P’s5 P s

Positioning

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Corporate Strategy Strategy Defined

“An integrated and coordinated set ofAn integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.”

- Hitt, Ireland, Hoskisson (2007), , ( )


Corporate Strategy Strategy Defined

“what” questionwhat question

a bstarting point destination

environment/terrainresources/capabilitiesp


Corporate Strategy Bias Towards Action

“Some people watch things happenSome people make things happenSome people make things happenSome people have to ask “what happened?”Which do you want to be?”

Les SchwabLes Schwab Tire CentersFounder & CEO

Better to ask for forgiveness…

© 2004-2011 Cendix

g

Apr-03-09 Slide 7

Corporate Strategy

• Vision / Mission

Align Organization, Brand, Goals

Vision / Mission• Corporate Values• Goals/objectives (short/long-term)• Goals/objectives (short/long-term)• Organizational Structure

T El t t A Ali t


Tune Elements to Assure Alignment

Corporate Strategy Continuous Process

MIA

PDX ORD

MIA

vigilant forSFOdisruptivechange

Auto Pilot:Spends Most of the Time Correcting Back to the Right Course


Spends Most of the Time Correcting Back to the Right Course

External Environment

environmental scanning

Environmental Analysis

General Environmentscanning

Industry EnvironmentIndustry Environment

Enterprise

Competitive Environment

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External Environment General Environment

© 2004-2011 Cendix

Hitt, Ireland, Hoskisson (2007)

Apr-03-09 Slide 11

Industry EnvironmentFive Forces Model

Threat of New Entrants

Power of Suppliers

Power of Buyers

Competitive Rivalry

Government

Threat of Substitution

© 2004-2011 Cendix

Michael Porter, Professor, Harvard University

Apr-03-09 Slide 12

Competitive EnvironmentCompetitive Analysis

Significant Competitors

• Capture & rank• Size/Growth (employees clients markets )

Significant Competitors

• Size/Growth (employees, clients, markets, …)• Financial (sales, margins, trends, funding)• Products (features, pricing, positioning, wins/losses)Products (features, pricing, positioning, wins/losses)• Channels (retail, direct, online, partners, …)• Other (age, brand, stability, credibility, …)

Elements Vary – Company/Industry

© 2004-2011 CendixApr-03-09 Slide 13

Competitive Environment

Application Infrastructure, 2007

Gartner Magic Quadrant

© 2004-2011 CendixApr-03-09 Slide 14

Internal Environment Process Overview

© 2004-2011 Cendix

Hitt, Ireland, Hoskisson (2007)

Apr-03-09 Slide 15

Internal Environment

Cluster people with similar needs into

Market Segment(s)

Cluster people with similar needs into individual and identifiable groups

All CustomersAll CustomersBusinessBusinessMarketsMarkets

ConsumerConsumerMarketsMarkets don’t forget..

B to C B to B

c1 c2 … cn b1 b2 … bn

B to G

© 2004-2011 CendixApr-03-09 Slide 16


Outsource: Contract with outside suppliers to

Strategic Outsourcing

Outsource: Contract with outside suppliers to provide internal company functions

• Reduce distractions (focus)Reduce distractions (focus)• Best of class resources• Reduce costs

– Differential cost basis– Focused efficiency– Shared economies

• Release capital

© 2004-2011 CendixApr-03-09 Slide 17


• OWN the STRATEGIC

Strategic Outsourcing

• OWN the STRATEGIC• Consider everything else• AVOID outsourcingg

– Single points of failure– Strategic functions that create value– Tasks that neutralize external threats– Sources of internal innovation– Points of differentiation

Actively Manage Vendor Relationships

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Corporate Strategy Analytical Tools

Strengths, Weaknesses, Opportunities, Threats (SWOT)

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Three Circles of Hedgehog Concept

© 2004-2011 Cendix

Source: Good to Great, Jim Collins, 2001

Mar-05-08 Slide 20


Boston Consulting Group (BCG) Model

10% is often used as distinction between high/low growthSize of circle is relative size of business unit in revenuesMarket share is relative to largest competitor

© 2004-2011 Cendix

Boston Consulting Group (www.bcg.com)

g p

Apr-03-09 Slide 21


Natural Selection Model

$$$competitive pressure:Cost of

mainframe: IBMmainframe: Unisysfocused: Tandem

$$

competitive pressure:volumes drivedown unit cost

Sequent

Solutionfocused: Tandem

$ CompaqSun

HP

Dell

Value(Completeness)

0

Dell

© 2004-2011 Cendix

(Completeness)

Apr-03-09 Slide 22

Corporate Strategy

• Environmental Analysis

Supporting Research

– Industry Research, Analysis, & Trends– Strengths, Weaknesses, Opportunities, Threats (SWOT)

• Historical InformationFinancial Res lts & Anal sis (3 5 ears)– Financial Results & Analysis (3-5 years)

– Performance by product/segment• Current Sales Materials

– Corporate brochures– Corporate brochures– Product brochures– Promotions– Web site

Just Scratched the SurfaceImportance Varies by Size, Stage, Market, …

© 2004-2011 CendixMar-05-08 Slide 23

Importance Varies by Size, Stage, Market, …

Brand Concepts What is a Brand?

© 2004-2011 CendixMar-05-08 Slide 24

Brand Concepts Brand Defined

Your Brand is NOT Your Logo. Your Brand is…

Everything that you communicate about your company product or service atyour company, product, or service at every “touchpoint”.

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Brand Concepts Automotive Examples

Wh t D E h B d R t t Y ?What Does Each Brand Represent to You?

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People

• Who are your customers?

Know Your Prospects

y Current customers Target prospects Demographicsg p Market size (addressable) ROI

• Where is their pain?• Where is their pain?• When do they need to act?• Who is the decision maker?Who is the decision maker?• Who are the key influencers?• What are their buying behaviors?

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Product Primary Elements

• Product Benefits• Distinctive features• Competitive differentiation

– Unique– Meaningful– Sustainable

• Product requirements• Production cost• Market window

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People & Product Synchronize

S ti

productpeople

S ti Ulti t l

productpeople

Sometimes…Start with Product

Sometimes…Start with People

Ultimately…Synchronize Both

productpeople

productpeople

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Price

• Cost of Goods

Three Key Factors

• Value ROI (value produced – cost)/cost

• reduce expenses• grow revenue• save time

Personal UtilityI t ibl Intangibles

Elasticity• Competition

Comparative value Discounting Response

© 2004-2011 CendixMar-05-08 Slide 30

Price

• Pricing “Strategy”

Other Discussion Points

c g S a egy– Market penetration– Skimming the Cream

B d t/Fi i• Budget/Financing• Discounting

Vol me p rchasing– Volume purchasing– Seasonal demand– Revenue targetsRevenue targets– Old inventory– Cash flow

© 2004-2011 CendixMar-05-08 Slide 31

Place

Understand Customer Special RequirementsExisting Strength

Channel Selection

Understand Customer& Buying Behavior

Special RequirementsImposed by Product

Existing Strength& Role of Brand

Maturity and InvestmentExisting ChannelsExisting Channels

Channel Cost &Margin Available

Supported by Promotion

© 2004-2011 Cendix Slide 32Apr-03-09

Place “Process” of Selling

Prospect

Data Depends on Industry, Product,

and Customer

Opportunity

Qualified Lead

Sales

Marketing

Sales Opportunity

Proposal

Cli t

SalesCycle

Sales

SalesClient

© 2004-2011 CendixApr-03-09 Slide 33

note: retail talks more about inventory “turns”

PromotionMessaging Matrix

Audience Concerns Message Focus Key MessagesCXO Minimize

OperatingCost

Reduce the cost of getting to market with high quality product

Acme offers lower rates than onshore resources and Indian firms with greater workforce stability Competitive forces require outsourcing; the blended

model and process control reduce risk and assuremodel and process control reduce risk and assure high quality products

Strategic Advantage

Become the most cost effective producer in your market segment

Leverage your core team to do strategic work and use low cost offshore resources for the routine Acme offers an army of experts on tasks that can

support the most effective use of internal talentsupport the most effective use of internal talent

Operating Flexibility

Scale up or down quickly based on business requirements

Acme has a staff of thousands waiting to go to work for you on-demand Offshore staff can be reduced without any of the

complications associated with actual employees

One Matrix for Each Decision Maker or Influencer

Add more rows as needed…

© 2004-2011 CendixMar-05-08 Slide 34

One Matrix for Each Decision Maker or Influencer

Promotion Select Optimal “Mix”

© 2004-2011 CendixApr-03-09 Slide 35

Promotion

• ReachOnline: Factors to Consider

• Active vs. Passive• Objective

Build rapportu d appo Generate leads Close sales

• Choose tools• Choose tools Web site SEO/PPC email Banners Webinars Blog’s/RSS Webinars Blog s/RSS Affiliates newsgroups Articles

© 2004-2011 CendixMar-05-08 Slide 36

Promotion Determine Budget / Select Mix

• Sales Collateral (3 pieces) $ 10 000• Sales Collateral (3 pieces) $ 10,000• Sales presentation $ 5,000• Assessment campaign depends on capacity• Speaking engagements time & materials• Web site (optimized) $12,000• SEO/PPC $ 3,500 + $1,000/mo

– Optimized press releases– Whitepapers (placement & linking) content developed internally– Articles (placement & linking)

• Newsletter $ 1,000/mo• Webinar(s) opportunistic

© 2004-2011 CendixMar-05-08 Slide 37

Promotion Marketing Execution Plan

Assign Owners Execute and Track Progress!

© 2004-2011 CendixMar-05-08 Slide 38

Assign Owners, Execute, and Track Progress!

www.cendix.com

P: (888) 889-0066F: (503) 210-6479E: [email protected]

Wilson ZehrCEO

Cendix

Wilson is the CEO of Cendix (www.cendix.com) the leading provider of Web-to-print solutions that increase sales both online and offline. Cendix also provides strategic and tactical marketing consulting services for emerging growth companies in the Pacific Northwest. In addition, Wilson serves as an adjunct Professor for Portland State University (www pdx edu)

Wilson Zehr

adjunct Professor for Portland State University (www.pdx.edu).

Wilson Zehr has 25 years experience in high technology and telecom – over a decade of experience working with Internet-related products and services He has created numerous newrelated products and services. He has created numerous new products/brands and successfully brought them to market. In addition, he has crafted and managed strategic alliances with many (20+) of the largest technology and communications firms i th ld M Z h i i l t h h i din the world. Mr. Zehr is a serial entrepreneur who has raised over $60 million from investors; returned over $160 million; and bought/sold a number of enterprises.

More detailed background information on Wilson can be foundMore detailed background information on Wilson can be found at http://www.cendix.com/about/management.html

References are available on request

© 2004-2011 CendixMar-05-08 Slide 40