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
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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), , ( )
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Corporate Strategy Strategy Defined
“what” questionwhat question
a bstarting point destination
environment/terrainresources/capabilitiesp
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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…
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g
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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
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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
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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)
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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
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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
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Competitive Environment
Application Infrastructure, 2007
Gartner Magic Quadrant
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Internal Environment Process Overview
© 2004-2011 Cendix
Hitt, Ireland, Hoskisson (2007)
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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
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Internal Environment
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
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Internal Environment
• 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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Corporate Strategy Analytical Tools
Three Circles of Hedgehog Concept
© 2004-2011 Cendix
Source: Good to Great, Jim Collins, 2001
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Corporate Strategy Analytical Tools
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
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Boston Consulting Group (www.bcg.com)
g p
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Corporate Strategy Analytical Tools
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
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(Completeness)
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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, …
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Importance Varies by Size, Stage, Market, …
Brand Concepts What is a Brand?
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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
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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
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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
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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
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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…
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One Matrix for Each Decision Maker or Influencer
Promotion Select Optimal “Mix”
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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
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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
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Promotion Marketing Execution Plan
Assign Owners Execute and Track Progress!
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Assign Owners, Execute, and Track Progress!
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
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