Marketing 2.0 Models, Tools and Processes

Bob Sullebargerrfsully@gmail.com / @bsullebarger / 978-500-1635

Brand

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Brand according to Me• Brand Strategy flows from, and supports Business Strategy

• “Brand" is the full experience and the associations that result from interactions of all kinds with our company.

• Brand Management is not limited to the logo and look and feel of collateral.

• It is communicated in every touch point any given person has with us, regardless of whether he is a prospect, a customer, an analyst, blogger, competitor, vendor, investor or even a casual observer. It encompasses management of communication and full brand experience processes across the full customer journey / lifecycle (awareness, prospect, customer, upsell, upgrade, retirement).

• The tone and manner in which the receptionist answers the phone, the visual appearance and helpfulness of our website, the focus of the support team on solving the problem for the customer rather than deflecting blame to competitors, the ease of use of our solutions, the professionalism of our sales staff, the logo and our collateral, our marketing programs and content, and our predictable and consistent delivery on our promises are all supportive of the brand. Consequently, everyone in the company participates in Marketing.

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B2B Brand Strategy• Define the desired Brand

attributes• Focus the Brand

definition on– business value, not

features– Identify an “emotional

hook “

• Pricing is set based on Brand Equity (the premium a customer will pay for your offering)

• Goal is to move your prospects from Brand Awareness to Brand Insistence

http://www.marketingmo.com

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BrandRicardo Guimares, Thymus BrandingSão Paulo, Brazil

“Your brand is what your customers say it is.”

“The value of a brand belongs to the market, and not to the company. The company in this sense is a tool to create value to the brand…Brand in this sense lives outside the company, not in the company… Brand is an open structure”

6Source: The Blake Project

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B2B Technology Brand Components

Business Value: The decision to deploy this product is justified and proven by metrics. (low professional risk.)

Thought Leadership: The vendor is the (perceived) innovation leader.

Momentum: The business is growing and accelerating.

Job Effectiveness: This solution helps me do my job better.

Credibility(Proof Points)

Value Delivered: The business and functional promises made were realized.

NPS/Customer Sat: Their customers are happy; proactively recommend.

Value Prop(Promises)

Business Buyer

Technical Evaluator / User

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NPS

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It all comes down to this:Successful Businesses Rest on the Golden Rule

• In business as in life, you must treat others (customers, prospects, and colleagues) the way you wish to be treated. Strong, positive human relationships are essential.

• There is nothing more powerful that the word of mouth effect spread by happy and passionate customers who will eagerly recommend your company to others. It is the source of all market momentum.

• Well performing, customer-driven organizations are committed to elating their customers, so that they come back for more, and evangelize to others on your behalf.

• Companies that do this well are able to scale back marketing costs, and become unbeatable in their markets.

• This is what being “customer led” is all about.

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Fred ReichheldFellow, Bain & Co.Father of NPS (Net Promoter Score)

The Ultimate Question is this:

“On a scale of 1 to 10, how likely is it that you would recommend this company to a friend or colleague?”

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Good Profits or Bad Profits?

• Bad Profits– Profits earned at the expense of customer relationships– Whenever a customer feels misled, ignored, or coerced, then profits from that customer are “bad”.– Bad profits arise when companies save money by delivering a lousy customer experience.– Bad profits are often driven by the relentless focus of management on making the numbers in the short

term, and the incentives they consequently drive into the organization.– Bad Profits create a legion of “Detractors” who tell others not to do business with you, which is

impossible to overcome.• Good Profits

– Profits earned with customers enthusiastic cooperation by delighting them so they willingly come back for more, and tell others

– Satisfied customers become strong “Promoters”. They are in effect part of your marketing organization.• Net Promoter Score (NPS) works because (unlike other metrics) it is linked to both market share

and profitability. – It is therefore the only measure of customer satisfaction that matters. – NPS needs to be a part of every executive’s bonus. It is a business-critical priority, and your most

important metric.

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Why NPS matters

• In a socially connected world, there is no substitute for positive word of mouth– Detractors are far more vocal than Promoters

• Without customers happily willing to support your brand, it is difficult to achieve rapid growth

• NPS has to be a way of life. Make it part of your bonus and incentive structure.– Business Unit GMs at GE who have falling NPS for two

consecutive quarters are fired.

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Business Planning

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Geoffrey Moore Positioning Statement

• For (target customers)Who (have the following problem)Our product is a (describe the product or solution) That provides (cite the breakthrough capability) Unlike (reference competition),Our product/solution (describe the key point of competitive differentiation)

• http://newsletter.beaupre.com/e_article000209887.cfm

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customer segments

key partners

cost structure

revenue streams

channels

customer relationshipskey

activities

key resources

value proposition

Business Model Generation

• which customers and users are you serving?

• which jobs do they really want to get done?

• what are you offering them? what is that • getting done for them? do they care?

• how does each customer segment want to be reached?

• through which interaction points?

• what relationships are you establishing with each segment?

• personal? automated? acquisitive? retentive?

• what are customers really willing to pay for? how?

• are you generating transactional or recurring revenues?

• which resources underpin your business model? • which assets are essential?

• which activities do you need to perform well in your business model?

• what is crucial?

• which partners and suppliers leverage your model?

• who do you need to rely on?

• what is the resulting cost structure?

• which key elements drive your costs?

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Don Thorston’s “Whole Product” ConceptThe solution must solve the customer’s whole problem, not be

an interchangeable a piece of the solution

The Rules:1. Does It Solve A Problem? - Have you solved a problem the customer recognizes. Have you identified the customers pain. If not, you have a vitamin and not a pain killer. You want a pain killer.2. Is It Easy To Understand? - Seriously, 5 words should do it. 2 words is better. Do the "mom test”: If mom doesn't understand it, change something until she does.3. Is It Easy To Get? - Have you removed the barriers between you and having your customers use your product? In a 2.0 world we are talking free trials, no cost, fast, easy. Get it in their hands or nothing good will happen.4. Is It Easy To Use? - At Apple the rule was, "1 minute after they start to use it , they feel like calling their friends”. " You will not believe what I just got".5. Is It Easy To Share? - In this ultra-connected world, your customers are your marketing department. If your customers are not marketing your product, you have problems. We used to call it evangelism, now we call it sharing. Your product needs to have "embedded viral components" - active mechanisms built directly into the application that assume your customers will want to tell everyone they know. Make it easy for them to do so.

Source: Don Thorston, Marketing 2.0http://donthorson.typepad.com/don_thorson/2006/10/whole_product.html

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Product Strategy & Management• Managing Existing Products

– “Simple” Wins. Investing in Ease of Use tends to be your most powerful lever– EOU is more appreciated by customers than new features (“The Excel Effect”)– Focus on making your existing products simpler and more intuitive to install and use– Get a User Experience (UX) specialist involved

• Finding New Growth Opportunities– Starts with intimacy with customers, and developing a deep understanding of their most

pressing problems effecting their ability to get things done – The thought process should be independent of bias from your existing product set. Don’t

approach it by first asking, “How can we extend what we already have to sell more of it?”

• Make plans that are aligned with the broad trends of our time– The Cloud : Data and Applications are being drawn there; Internal IT is going away, evolving

away from management of plumbing to management of data, applications– Mobile: The PC/Desktop as we’ve known it is going away– Analytics: Extracting business value and intelligence from data– Collaboration: The next source of competitiveness , internally and with customers– SaaS and Managed Services: There is little interest in deploying new enterprise software

apps on prem

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High Tech DifferentiationDifferentiation Strategy Description

Unique Features • Most commonly used; an ”easy” strategy• Endlessly adding new features does not give sustained

differentiation (”trench warfare”)• Can contradict ease of use

Measurable Benefits • Reduced electricity bill• Longer recording time• Faster Internet access

Ease of Use • A very important vector of differentiation• Sometimes technology advances do not deliver enhanced

productivity, because of usability problems• A big challenge in an era when everything is integrated in a

single device (mobile phone)Unique Fundamental Characteristics

• Longer battery life• Better quality• More responsive UI• Technology advances complemented with good usability• Often a crucial factor in buyer’s decision making process

Design • More and more important in maturing markets• Hardware Design & User Interface Design (Apple)

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First to Market, or Fast Follower?First to Market

• Market share advantage• Earlier market & customer

experience• Influence on markets and

standards• Possibility to build entry barriers• Image benefits, a glamorous

strategy• Big risks!

Fast Follower

• Wait until market is clarified• Avoid market education costs• Nearer in time to eventual

market, easier to predict• Ability to use newer technology• Fast means fast! • Advantages of being fast:

Jump ahead and stay ahead• Managed risk

Key Question: How confident are you that you have the market timing right?

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Product Management

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Pragmatic Marketing FrameworkProduct Marketing

Product Management

Inbound/Outbound Marketing

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Product Portfolio Management:Where to Invest

• Program States

• Resource Maps: invest in growthResource Map

Product/Program Posture 2011 2012 2013 2014 3-Yr CAGR Resources $/HeadProduct A Invest 100 1,000 2,000 3,000 67% 25 240 Product B Sustain 4,800 5,100 4,800 4,800 -2% 8 1,238 Product C Sunset 2,500 2,250 2,000 1,750 -7% 2 2,125 Product D Invest 100 1,000 2,500 5,000 133% 25 140 Product E Sustain 2,800 3,100 3,200 3,000 -1% 7 900 Product F Sunset 1,500 1,200 900 600 -17% 2 1,050 Product G Invest 1,000 2,500 5,000 133% 12 292

11,800 13,650 15,400 18,150 11% 81 359

Bookings

State Revenue Resources ObjectiveInvest Future Growth Heavy StrategicSustain Current Moderate Make the numbersSunset Decline Light or Zero EOL

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Evaluating Product Opportunities

• Checklist for making the “Go / No Go Decision”: Do we need an Offering in this (new) space? Market Opportunity (e.g. size, growth)? Unresolved problems that the product will address? Is the problem urgent and pervasive? Are there buyers who are willing to pay to have them resolved ? Does the product fit the strengths and competencies of the organization? Does this product provide the organization with a sustainable competitive

advantage?• Then decide HOW to address it: the BUY/BUILD/PARTNER Decision

Time to Market Need Expertise Strategic ValueBUY Urgent Weak HighBUILD Moderate Strong HighPARTNER N/A None Low

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Product Management Software Tools

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Customer Acquisition Process

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Marketing Process

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Components of Lead Gen and Management

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Building a Sales & Marketing Machine

David SkokMatrix Partners

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Diagram the Buying Process

Example: Tech ChampionBuying Process

David SkokMatrix Partners

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Tech Champion Buying Process with Company Steps

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Metrics

• Funnel Behavior– Conversion Rates: between deal stage– Close Rate– Duration of deals in each stage

• Win/Loss Ratio• ACV: Annual Contract Value

– by segment, vs time• Margin• CAC: Customer Acquisition Cost• LTV: Lifetime Value

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The Social Web

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The Emerging Social Enterprise

• The existence of relationships between people that drive mutual benefit are what defines “a society”

• The Social Web is enabling human relationships and the ways we communicate• It is set to turbo-charge productivity and innovation through ubiquitous and effective

collaboration. It is the next major driver of competitiveness.• Enterprises will become increasingly transparent• Customers Relationships become personal and intimate• Those who nurture and develop the deepest, most intimate relationships will win• Those who collaborate well will get a big velocity advantage• Everyone will participate

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David Meerman Scott• Marketing is more than Advertising

• PR is for more than just a mainstream media audience

• You are what you publish

• People want authenticity, not spin

• People want participation, not propaganda

• Instead of causing one-way interruption, marketing is about delivering content at just the precise moment your audience needs it

• Marketers must shift their thinking from mainstream marketing to the masses to a strategy of reaching vast numbers of underserved audiences via the web

• PR is not about your boss seeing your company on TV. It’s about your buyers seeing your company on the web.

• Marketing is not about your agency winning awards. It’s about your organization winning business.

• The Internet has made public relations public again, after years of almost exclusive focus on media.

• Companies must drive people into the purchase process with great online content.

• Blogs, online video, e-books, news releases, and other forms of online content let organizations communicate directly with buyers in a form they appreciate.

• On the web, the lines between marketing and PR have blurred.

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Personas• Developing an understanding

of the personal motivations and professional goals of all those who influence decisions about your solution is key to understanding how to best communicate with them in a way that (a) is welcome, and (b) has impact.

• “Know the goals, and let content drive the action.”

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Inbound Marketing• Search Engine Optimization &

Inbound Marketing– Blog Platform– Social Media Integration– Content Management– SEO Tools– Email Manager

• Lead Nurturing

• Newsletter & Media Room– Content Curation– Thought Leadership

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Linking Social Media to Business Objectives

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Social Media StrategyClear Objectives are Key to Successful Social Media Strategy

Charlene LiJosh BernoffForrester Research

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The Social Technographics Ladder

Social Media users tend to follow these behavior profiles

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Forrester Social Technographics Toolhttp://www.forrester.com/empowered/tool_b2b.html

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Listening: Surveys

• They can answer any question you can think up• But they can’t tell you what you never thought to ask• What you never thought to ask might be the most

important question for your business• You only hear from people willing to respond; You can’t

assume the results are truly representative

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Roles and their Groundswell Objectives

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Criteria for selecting new social technologies

1. Does it enable people to connect with each other in new ways?

2. Is it effortless to sign up for?3. Does it shift power from institutions to people?4. Does the community generate enough content to

sustain itself?5. Is it an open platform that invites partnerships?

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Participation in Social Web Activities(at least monthly)

Watch video from another user 29%Read online forums 28%Visit social networking sites 25%Read customer ratings/reviews 25%Read blogs 25%Update/maintain a profile on a social networking site 20%Add comments to someone's page on a social networking site 18%Contribute to online forums 18%Listen to or download audio 18%Comment on someone else's blog 14%Upload photos to a public website 13%Post ratings/reviews 11%Post/update/maintain a blog 11%Listen to podcasts 11%Use a desktop widget 10%Upload video 8%Use RSS 8%Upload audio you produced 8%Tag webpages, photos 7%Contribute to a wiki 6%Use Twitter 5%

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Blogging Program• Pre-requisite: Writers have to want to engage in dialogue. You need drive.• Know who you want to reach and what you want to accomplish

1. Start by listening2. Identify the goal for the blog3. Estimate ROI4. Develop a plan: One blog or many?5. Rehearse: Write 5-10 posts before going live6. Develop an Editorial Process: For Planning & Review of Content7. Design the Blog and it’s connection to your site8. Marketing plan: to help people find the blog9. Authenticity: Be honest, even when things go wrong10. Write in first person; be helpful, not partisan

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Social Media Management SystemsEnable social media teams to manage multiple accounts and workflow across

cross-functional teams

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Social CRM• Allows teams to organize customer data into one repository across the enterprise• It’s more than just adding fields to an existing database. • SCRM requires corporations to connect APIs from brand monitoring and customer

databases, like e-mail marketing and CRM systems

Apparent Leaders

Start-Ups

Incumbents

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Listening Strategies• Objectives

– Find out what your brand stands for as perceived from the outside– Understand how buzz is shifting– Save research money– Find sources of influence– Manage PR crises– Generate new product and marketing ideas

• Private communities

• Brand Monitoring & Analytics

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The Social Web, Step1: TalkingBrian Haven, former Forrester Analyst“The funnel has outlived its usefulness as a metaphor. Face it: Marketers no longer dictate the path people take, nor do they lead the dialogue.”Once people are aware of you product, a new dynamic kicks in: people learning from each other

Good methods for Talking to the Social Web1. Post a viral video: Great for punching through the noise

• Tap an emotional thread based on Personas2. Engage in social networks and user-generate content sites

• Best solution for word of mouth problems3. Join the blogosphere

• Good fit for complex solutions, technologies4. Create a community

• When customers insist on depending on each other, not you

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Step 2: EnergizingTrust in Sources of Information

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Step 3: Energizing Passionate Advocates

• The most honest form of marketing is word of mouth from rabid fans

• Can’t be faked, but can be encouraged

• Techniques:– Tap into enthusiasm with Ratings & Reviews: Works best in retail and

others with direct customer contact

– Create a community: For customers who are truly passionate• ConstantContact “ConnectUp” gets 10% customer participation. 30%

generate referrals for $60 credit: Customer LTV is $1,500

• High failure rate overall

– Participate in and energize online communities of your brand enthusiasts

• Consider propensities of the customer base first. Design strategies that match existing relationships, an provide ways for customers to extend those relationships.

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Step 4: Embracing• Embracing means making customers an integral part of the way

you innovate, with both products/services and process improvements

• Borders of the Enterprise become porous• Passionate fans and SME’s get directly involved• A “customer advisory board on steroids”• Leading Authors

Eric von HippelMIT

Democratizing Innovationlink

Patricia B. SeyboldPatricia Seybold Group

Outside Innovationlink

Don Tapscott & Anthony WilliamsMoxie Insight / New Paradigm

Wikinomicslink

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The Lean Start-Up Model

Lean Start-Up ModelLean Start-Up Model• Steven Gary Blank: “The Four Steps to the Epiphany”• Eric Ries: “Lessons Learned: The Lean Start-Up”

– www.startuplessonslearned.com; HBS EIR• Marty Cagan: “Inspired: How to create products customers love”

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CustomerDiscovery

CustomerDiscovery

CustomerValidation

CustomerCreation

CompanyBuilding

Customer Development Model (Build concept, test, validate before scaling the company)

The (broken) Product Development Model (An “all in” bet on nailing the plan up front)

Concept/Seed

ProductDevelopment

Alpha/BetaTest

Launch& FCS

Pray yougot itright

The Customer Development Process

• Customer Discovery– Find out who the customers for your offering really are; Whether the problem you believe you are

solving is important to them; No guesswork, “get out of the building”; Confirm there are customers and a market for the vision.

• Customer Validation– Build a repeatable, field-tested sales roadmap for the sales/mktg team to follow later– Prove the model by taking money from customers (confirm the “willingness to pay”)

• Customer Creation– Create end user demand and drive it into the sales channels

• Company Building– Transition out of informal, learning, discovery-oriented mode, to formal departments with VPs of Sales,

Marketing and BusDev.

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CustomerDiscovery

CustomerDiscovery

CustomerValidation

CustomerCreation

CompanyBuilding

CustomerDevelopment

ProductDevelopment

Scale the Company