KLAIPEDA 2018.04 - ku · EXPERIENCE WITH STARTUPS 1.447 startups global research 500 in-depth...
Transcript of KLAIPEDA 2018.04 - ku · EXPERIENCE WITH STARTUPS 1.447 startups global research 500 in-depth...
KEY PRINCIPLES OF STARTUP MARKETING
KLAIPEDA 2018.04.26
INTRODUCTIONWho am I and why should you trust
EXPERIENCE WITH STARTUPS
1.447 startups global research
500 in-depth interviews with founders
23 startups mentored
AMAZON BEST SELLER
Elon Musk
Eric Ries
Donatas Jonikas
I am an MBA student at California State University, LongBeach, where we use your Startup Evolution Curvebook as the textbook for a new class called "Technologyand Start-ups"
Al Barlevy2017.10.21
BASED ON GLOBAL RESEARCH
SCOPE OF THE RESEARCH
Western Europe 19,2%
North America 18,7%
Africa 0,6%
Australia & Oceania 2,5%
Asia 14,9%
Central & Eastern Europe 23,6%
South America 10,3%
Middle East 6,1%
7 MAIN REASONS OF MISERABLE SALES
1. PRODUCT – building the product that nobody wants
2. SEGMENT – targeting wrong clients
3. PRICING – choose wrong revenue model and pricing
4. MESSAGE – lack of clear and appealing communication
5. PROCESSS – don’t know how to sell and don‘t have a plan
6. ATTITUDE – passive mindset and negative attitude
7. EFFORTS – insufficient efforts or waiting for miracle to happen
CORE PRINCIPLES4 core startup marketing principles
4 CORE STARTUP MARKETING PRINCIPLES
Research matters
Focus on building value
Fail fast in marketing
Start marketing
with a small budget
#1 #2 #3 #4
#1 RESEARCH MATTERS
Research matters
Focus on building value
Fail fast in marketing
Start marketing
with a small budget
#1 #2 #3 #4
#1 RESEARCH MATTERS
Ready to go or already on the
market
80,9%Have evaluated their business environment
33,9/%Did it in the right way and had the
needed data
18,2%
Market research is like a diagnosis before cure
“ “
#1 RESEARCH MATTERS
▶ MARKET SIZE How many potential customersthere are in the market?
Is it realistic to reach all of them? Is it profitable enough?
#1 RESEARCH MATTERS
▶ COMPETITORS – How unique and appealing is your offer? Customers ALLWAYS have alternatives – your direct and indirect competitors!
#1 RESEARCH MATTERS
▶ PRICE LEVEL – Are customers used to pay such amount? Do you have proofs they have money? Are they ready to spend?
#1 RESEARCH MATTERS
▶ CHANNELS - How to sell, through which channels? How much it will cost for us to acquire new customer?
#1 RESEARCH MATTERS
▶ MARKET SIZE ▶ COMPETITORS▶ PRICE LEVEL▶ CHANNELS
IS IT FEASIBLE?
#1 RESEARCH MATTERS
GOSTOP
#2 FOCUS ON BUILDING VALUE
Research matters
Focus on building value
Fail fast in marketing
Start marketing
with a small budget
#1 #2 #3 #4
#2 FOCUS ON BUILDING VALUE
Were trying to address serious problems and create amazing value but didn’t test it in the market or did it in
the wrong way
42,6%
Customers buy value, not products or features!
“ “
Run out of funds... and was closed!
#2 FOCUS ON BUILDING VALUE
▶ $11 million fundraised▶ Entered into 13 country markets▶ Team of more than 150 people▶ Millions of users!
#2 FOCUS ON BUILDING VALUE
▶ CUSTOMER JOURNEY – Howwell do you know your potentialcustomers? What is their usualjourney without your product?
If you don’t, how are you going tocreate value for them?
#2 FOCUS ON BUILDING VALUE
▶ VALUE PROPOSITION – Doyou address what is really importantfor customers, not just fun orinteresting to build?
Will you avoid the trap of “nice tohave benefit”?
X10 RULE
#2 FOCUS ON BUILDING VALUE
▶ CUSTOMER EXPERIENCE –How does customer journey andexperience look like using yoursolution? Is it significantly better?
#2 FOCUS ON BUILDING VALUE
▶ IRRESISTIBLE OFFER -You need to “wrap up” andcommunicate your offer in themost appealing way. Use theformula of irresistible offer.
#3 FAIL FAST IN MARKETING
Research matters
Focus on building value
Fail fast in marketing
Start marketing
with a small budget
#1 #2 #3 #4
#3 FAIL FAST IN MARKETING
Experiments made startup development more structured, saved money, reduced risk, and helped to see new
possibilities
98,6%
#3 FAIL FAST IN MARKETING
▶ PROBLEM – are you solvingreally important problem or justbuilding something “nice to have”?Do they look for solution of thisproblem?
#3 FAIL FAST IN MARKETING
▶ SOLUTION – Is your solutionbetter than current alternatives? Arecustomers willing to switch to yoursolution?
#3 FAIL FAST IN MARKETING
▶ PRICE – Saying is not thesame as paying! 3F doesn‘tcount either.
#3 FAIL FAST IN MARKETING
▶ DISTRIBUTION - Do youhave effective communicationand distribution channels? Howmuch it will cost you to get onecustomer?
EXAMPLE#3 FAIL FAST IN MARKETING
▶ tested search engine marketing (SEM) ▶ found out that acquiring new customer cost $230 ▶ while their product costs only $99▶ focused on viral marketing (referral program) that
finally worked well
#4 START MARKETING WITH A SMALL BUDGET
Research matters
Focus on building value
Fail fast in marketing
Start marketing
with a small budget
#1 #2 #3 #4
#4 START MARKETING WITH A SMALL BUDGET
of those who were already on the market had a consistent marketing plan while most of others were
waiting for...
36,3%
#4 START MARKETING WITH A SMALL BUDGET
▶MVP – Real marketing startswith low fidelity MVP, customerinterviews and real marketexperiments.
#4 START MARKETING WITH A SMALL BUDGET
▶TESTIMONIALS – get realcustomer testimonials evenbefore the launch! Just imaginehow that could change yoursales…
#4 START MARKETING WITH A SMALL BUDGET
▶MARKETING PLAN –Crafting positioning statement,marketing strategy, andmarketing plan requires effort,not money!
#4 START MARKETING WITH A SMALL BUDGET
▶SALES & FEEDBACK –you have to do things that don’tscale: personally reach out potentialcustomers, get the feedback, andadjust your sales process
#4 START MARKETING WITH A SMALL BUDGET
▶ Started a blog about the problems intended to solve▶ Instead of beta testing they asked for a feedback▶ Built a list of 14.000 interested buyers before even
the product was created
Success doesn’t just come and find you. You have to go and get it!“ “
TIME FOR Q&AReady to take your questions