A brian teaser for while you
settle in
University of Washington Winter 2012 | Mktg 555
Marketing 555Entrepreneurial Marketing
Session 1January 4, 2012
University of Washington Winter 2012 | Mktg 555
Today’s Schedule• Section 1– Introduction to Class
• Resources, Blog, Highlighter, etc…
– Brainstorming – Entrepreneur “Hackathon”– Voting / Team Set up process
• Break• Section 2– Class Topic: Market Analysis, Segmentation and
Audience Identification– Assignment– Group Formation
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• Class Intro• Idea “Hackathon”• Group Voting• Class Lecture• Group Set up
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University of Washington Winter 2012 | Mktg 555
Introductions• Contact Info– [email protected] | [email protected]– Will be on campus 1-2 hours before each class
• My Resume– UW MBA 2006– Have worked for/with RealNetworks, Microsoft,
Spring Creek Group, GotVoice, Imagekind, other startups
– Currently manage small agency called Social3i, and co-founder of new software company called Relaborate
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University of Washington Winter 2012 | Mktg 555
Grading
• 5-6 blog posts to MKTG 555 blog.
Individual Semi-Weekly Assignments (20%)
• 2-3 page report, solving a problem for an entrepreneur
Individual Entrepreneur Project (20%)
• As an entrepreneur, how are you perceived when an investor, employer, or partner looks you up online
Participation / Individual Personal Branding (10%)
• Q+A with weekly guest speaker
Group Entrepreneur Interview (20%)
• 5 minute presentation• 2 Page Executive Summary
Group Final Marketing Plan (30%)
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University of Washington Winter 2012 | Mktg 555
A Typical Class Session
• Discussion of the topic studied during the week. • Group and individual presentations will be the base of conversations.6:00 – 6:45*
• One or more guest speakers who are expert in the topic studied during the week will come to class.
• One group will be responsible for a Q+A session/ moderated discussion.
6:45 – 7:45
• Break7:45 – 8:05
• Topic Begins. We will discuss the next topic of study for the upcoming week.8:05 – 9:15
• Wrap Up / Q+A9:15 – 9:30
* All times “-ish”
University of Washington Winter 2012 | Mktg 555
Assignments
University of Washington Winter 2012 | Mktg 555
Individual Entrepreneur Project
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• 2-3 page paper solving a specific marketing problem for a entrepreneurial company
• Opportunity for you to reach out to an entrepreneur of your choice or have me help connect you
University of Washington Winter 2012 | Mktg 555
Guest Speakers (sample)• Richard Tait,
Cranium/Golazo• Kelly Smith, Curious
Office/Zapd• Wil Merritt, Zoopa• Elizabeth Bowman,
iOrganize• Kristen Knight, Filter
Talent• RealNetworks
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• Rob Newton, Ontela/Google
• Marty Roberts, thePlatform/Comcast
• Paul Owen, Owen Media• Geekwire• SeoMoz• Adam Schoenfled,
Simply Measured• More….
University of Washington Winter 2012 | Mktg 555
Resources• Blackboard– http://foster.blackboard.com
• Highlighter– http://highlighter.com
• Blog– http://marketing555.wordpress.com/
• Twitter Feed– @Mktg555– PW: Paccar291
• LinkedIn– UW MKTG 555: Email to come with invite
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University of Washington Winter 2012 | Mktg 555
What the Quarter Will Look LikeMODULE 1 Identifying Market Opportunities • Assessment of market potential | How large is the market |
Evaluating Market Attractiveness• Targeting Markets and Customer• Low-budget or no-budget market research. Who are you? -- Mission/Values/Positioning/Branding• Mission / Values / Positioning• Pricing: Because pricing will affect who adopts your product• Branding: Establishing and Managing the Brand: • Partner evaluation matrix• Creation of successful distribution relationships
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University of Washington Winter 2012 | Mktg 555
What the Quarter Will Look LikeMODULE 2How do you raise initial awareness • Entrepreneurial Communication Strategy• How do you reach out to the community through PR • PR / Community outreach / 1st Buzz
How do you apply sales/-marketing tools effectively in an entrepreneurial environment? • Outbound marketing tactics: Advertising, public relations, trade shows, viral
marketing, internet marketing, etc…• Executing a web / seo / sem /social / email strategy• Blending in Social Media• Building Customer RelationshipsTeam building• Roles in a marketing org
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University of Washington Winter 2012 | Mktg 555
What the Quarter Will Look LikeMODULE 3Crossing the chasm• From early adopters to mainstream • Entrepreneurial Distribution Strategy Retention and Referral• Turning a large number of rabid fans into a volunteer sales force on behalf of your
company, product, or cause. • How do you retain customers• Building tribes and followers Customer feedback into development• How do you get customer feedback into product dev?• Managing Market Evolution and Change:
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• Class Intro• Idea “Hackathon”• Group Voting• Class Lecture• Group Set up
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University of Washington Winter 2012 | Mktg 555
Group Project: The Marketing Plan• Split into teams of 2. You will have 15 minutes to come up with an
idea for a startup. Your task is simple. If you were given $1000 dollars today, how could you make the most money by March 9. – The only rules: No gambling. It must be legal. It must adhere to the
laws of physics (ie no time machines.)• Each group will propose their idea off the top of their head (you
can use one you are already working on.) • After all presentations you will have 15 minutes to mingle with
each other and talk to the people about their ideas. Every student will then place one of their 5 poker chips into 5 of the boxes. (Or we will set up a survey monkey.) The 12 companies with the most chips will be the projects we work on for our final group project.
• At the end of class we’ll announce the 12 ideas, and the students will be left to form into groups.
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• Class Intro• Idea “Hackathon”• Group Voting• Class Lecture• Group Set up
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• Class Intro• Idea “Hackathon”• Group Voting• Class Lecture• Group Set up
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University of Washington Winter 2012 | Mktg 555
MARKET ANALYSIS, SEGMENTATION, IDENTIFICATION
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Before we build a better mousetrap, we need to figure
out if there are any mice – Yogi Berra
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University of Washington Winter 2012 | Mktg 555
Sample Market Planning Task List
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University of Washington Winter 2012 | Mktg 555
Measuring a Market• Potential Market– Set of consumers who possess some interest in a
product or to whom the product is potentially relevant
• Available Market– Set of consumers who have interest in, income for
and market access to a particular product• Target Market– Part of the available market that the company
decides to pursue with marketing budget
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University of Washington Winter 2012 | Mktg 555
Measuring a Market
Economic Possibility
Potential Market
AvailableMarket
TargetMarket
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University of Washington Winter 2012 | Mktg 555
Market Size
Market Size =
# of Potential
Customers
Avg Size of Transaction
# of Transactions
per customer per year
X X
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University of Washington Winter 2012 | Mktg 555
Sources of Info• Trade, professional, and social associations and groups: • Government sources:
– Census Bureau– FedStats Web site.)
• University professors: In addition to your library, don't dismiss the possibility that the exact data you need is sitting in a research report on an academic shelf. Talk to professors who have an academic interest in your e-business industry
• Market analysis firms: – Jupiter Research– International Data Corporation– eMarketer
• Direct data collection: If feasible, go directly to representatives of the target market.
• The Internet: – Nua Internet Surveys– Yahoo's Internet Statistics and Demographics Surveys page.
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University of Washington Winter 2012 | Mktg 555
Market Analysis Discussion
• Apple• Facebook• Google Plus• Dove Skin Care for Men• Others?
University of Washington Winter 2012 | Mktg 555
Estimating Market Demand• Market demand: Total volume that – would be bought by a particular customer group– in a particular time period– in a particular marketing environment– under a particular marketing program.
• When estimating market demand, qualify estimation as appropriate given a certain level of marketing investment.– If you slash your marketing budget, you have to adjust
demand opportunity appropriately– The market demand corresponding to a certain level of
marketing expenditures is called the market forecast.
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University of Washington Winter 2012 | Mktg 555
Estimating Market Demand• When we estimate market demand, assume that
marketing expenditures will increase market demand. • 3 constraints:– There is a certain level of demand for the product that
would occur without any marketing spending, which we call the market minimum
– At some point, marketing expenditures become ineffective at generating incremental demand because we have tapped out the market; this point is called the market potential
– The market potential is dependent on a given external market environment.
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University of Washington Winter 2012 | Mktg 555
Market Identification
Identify Your Target Market & Assess Market Conditions• Size, growth rate and maturity• Niche market or large market• What segment exists• What are their basic needs• What channels do they consider
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University of Washington Winter 2012 | Mktg 555
Assessing Market Opportunity
Compelling Unmet Need
Uniqueness
Market Size and Growth
Competition
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Revenue Opportunity
University of Washington Winter 2012 | Mktg 555
Market Validation
• Conduct 20-30 interviews with representative customers.– Would they buy?– What would they expect to pay?– Who in their org would buy?– What are they buying like this already?
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University of Washington Winter 2012 | Mktg 555
PEST vs SWOT Analysis• PEST is an acronym for Political, Economic, Social
and Technological factors, which are used to assess the market
• Completing a PEST analysis is helpful prior to completing a SWOT analysis (a SWOT analysis - Strengths, Weaknesses, Opportunities, Threats - is based broadly on half internal and half external factors).
• PEST analysis most commonly measures a market; a SWOT analysis measures a business unit, a proposition or idea.
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University of Washington Winter 2012 | Mktg 555
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University of Washington Winter 2012 | Mktg 555
Estimating Market Share
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University of Washington Winter 2012 | Mktg 555
Market Share
Unit Share = Product Unit Sales
Market Unit Sales
Dollar Share = Product Demand in Dollars
Market Demand in Dollars
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University of Washington Winter 2012 | Mktg 555
Choosing where to compete
Market DevelopmentMarket Penetration
DiversificationProduct Development
New Markets
Current Products
Current Markets
New Products
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University of Washington Winter 2012 | Mktg 555
Apple
http://radar.oreilly.com/2010/09/apple-segmentation-strategy-an.html
University of Washington Winter 2012 | Mktg 555
Apple
http://radar.oreilly.com/2010/09/apple-segmentation-strategy-an.html
University of Washington Winter 2012 | Mktg 555
http://radar.oreilly.com/2010/09/apple-segmentation-strategy-an.html
University of Washington Winter 2012 | Mktg 555
Improvised User Behavior
Twitter Tumblr
Dodgeball Foursquare
Hipstamatic Instagram
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University of Washington Winter 2012 | Mktg 555
Market Segmentation
• Dividing People into groups based on similar characteristics
• Can segment on age, income, education, etc….• Once target is chosen, analyze needs/wants
and purchase motivations
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University of Washington Winter 2012 | Mktg 555
http://www.slideshare.net/colleencar/increasing-social-media-roi-using-gladwells-tipping-point-framework-4539106
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University of Washington Winter 2012 | Mktg 555
Korrio
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University of Washington Winter 2012 | Mktg 555
Competitive Analysis
• Direct vs Indirect Competitors• What do they do well/poorly• How/Where do we compete• How will they react to what we do
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University of Washington Winter 2012 | Mktg 555
Example: Google for research
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University of Washington Winter 2012 | Mktg 555
Getting into the Pet Business
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University of Washington Winter 2012 | Mktg 555
Getting into the Pet Business
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University of Washington Winter 2012 | Mktg 555
Getting into the Pet Business
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University of Washington Winter 2012 | Mktg 555
Tools for Market Analysis
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• Class Intro• Idea “Hackathon”• Group Voting• Class Lecture• Group Set up
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