Demand Creation

8/2/2019 Demand Creation

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E245 Demand Creation Ann Miura-Ko

January 2011



Agenda

Demand Creation Definition

Direct customer relationship

Indirect customer relationship

Metrics and Experimentation



3images by JAM

customer

segments

key

partners

cost

structure

revenue

streams

channels

customer

relationships

key activities

key

resources

value

proposition



Test

Hypotheses:

Problem

Customer

User

Payer

Test

Hypotheses:

Demand

Creation

Test Hypotheses:

Channel

Test

Hypotheses: Product

Market Type

Competitive

Test Hypotheses:

Pricing Model / Pricing

Test Hypotheses:

Size of Opportunity/Market

Validate Business Model

TestHypotheses:

Channel

(Customer)

(Problem)Customer

Development

Team

Agile

Development



CUSTOMER RELATIONSHIPS

what relationships are you establishing with each segment?

personal? automated? acquisitive? retentive?



Demand Creation

How will customers segments hear about

your product?

How does market type impact my strategy?

How much will it cost to acquire a customer using these strategies?



Market TypeExisting Resegmented New

Customers Known Possibly Known Unknown

Customer Needs Performance Better fit Transformational

improvement

Competitors Many Many if wrong,

few if right

None

Risk Lack of branding,

sales and

distribution

ecosystem

Market and

product re-

definition

Evangelism and

education cycle

Examples Google Southwest Groupon

Market Type determines:

Rate of customer adoption

Sales and Marketing strategies

Cash requirements

How does market type influence demand creation?



Demand Creation by

Market Type

Create, drive demand into

your sales channelExisting

Resegmented

New

Educate the market aboutwhat¶s changed

Drive demand into your sales

channel Educate the market

Identify and drive early

adopters into your sales

channels



Who needs to hear about you?

Suppliers

Channels

Government

Partners

End User

Influencer /

Recommender

Economic Buyer

Decision Maker



Demand Creation Feeds

the Sales Funnel

Paying

Customers

$

DemandCreation

Acquisition



Agenda







Getting Free Users

SEO (without consultants)

Blogging / Sharable content

Social Media / Gaming

Mechanics

Communities Proven viral coefficient > 1

NOTE: ³Viral´ isn¶t a strategy, it¶s a product feature you either

have or you don¶t

DemandCreation



Paid Channels

PR

Demand Capture- SEM

- ³Free´ products (e.g. widgets)

- Biz Dev- Affiliate Marketing

Market Education- Webinars

- Email marketing- Trade Shows

- Analyst Reports

- Direct Sales

- TV / Radio

Demand

Creation



How many come

through the first step?

How much does that

cost?What is the

conversion between

each level?

How much inrevenues can you get

out of each acquired

customer?



Agenda







Example: Healthcare



Healthcare ± system requirements

FDA

Payer Approval of product category

Compelling clinical benefits

and cost reduction

Product approval

Manufacturing approval

Quality control process

approval



Healthcare & Marketing

Free samples

Professional papers

Speeches by leading academics andinfluential doctors

Leading institution as referencecustomer

Conference presentation

Continuing medical education

Product

Champions

FDA

Restrictions on user generated

content

- Adverse event postings

- Off label use postings

Restrictions on direct selling to

doctors



Critical questions

What are critical regulations and approval

processes that need to happen prior to

launch of product?

- Industry

- Federal / State

Are there regulations on marketing efforts

as well?

Who influences the purchasing decisionand how can they become an ally?

- What is required to be endorsed?



Agenda







Customer Acquisition Cost

Paying

Customers

$

DemandCreation

Acquisition

To get onecustomer here

How much do you haveto spend here



The Sales FunnelEnterprise Software

Leads

PayingCustomers

$

Q

u a l i f i e d L e a d

F

i r s t S a l e s C a l l

D

e m o n s t r a t i o n

F e a s i b i l i t y

P r o p o s a l

Purchase Order



Other Sales Funnels

What does your funnel look like?

How long does each part of the funnel

take?

What % converts between each section?

Visit Sign Up Activate Upgrade

InformationalMeeting

Trial ContractNegotiation

SignedContract

1.

2.



Cost of Customer Acquisition

Calculation

David Skok



Cost of Customer Acquisition

Calculation



Demand Creation Pivot

Demand Creation

Documents

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