2012-05 founder institute
TRANSCRIPT
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Market & Marketingbuilding blocks for
Start-Ups
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My Background
The 1990‟s: •Engineer Universidad deAndes•Exxon, Hewlett-Packard•Georgetown MBA US /Oxford UK/ Bocconi Italy
Inflexion Point
The 2000‟s •MIT Entrepreneurship Program / Fellowship
•Ventures-BeepCast: Start-Up-Virtual Iron: Start-Up – Exit – Sold to Oracle $$$-Egenera: $100 Million in Revenue
-AuthorsGlobe: Start-Up
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The 3 “Amigos”
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The life of an entrepreneur…
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Finding a Profit Zone
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Category of Adopters
Diagram from Dorf & Byers, Technology Ventures, p. 24837
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Strategy to Cross the Chasm
Diagram from Geoffrey A. Moore, Inside the Tornado, p. 25
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How to Find AddressableMarket Size
• Tops Down
– Industry Studies (e.g., Gartner Group,Forrester, Yankee)
– Assumptions on market share
• Bottoms Up
– How many specific sales can I count?
– Sales Rep productivity
• Comparables
– Similar products in similar markets
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Incidence(million)
Diagnosed (%)
X
Cases diagnosed(million)
Treated (%)
X
Price per treatment (USD)
Number of treatments
X
Price per patient(USD)
Number of treatedpatients (million)
Market
penetration (%)
Market potentialUSD millions
Sales potentialUSD millions
X
X3,000
5
150
0.15
20,000
0.2
75
0.5
40
10,000
2
Source: Medical books, Internet research, WHOGlobal Health statistics
US Potential Per Year
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Slicing Up Target Market
Segment each target market by:
• Geography
– “Customers in the northeast buy 60% of this type of
product” • Industry/Taxonomy
– “Financial services firms comprise 75% of the market”
• Type of Buyer – “40% of the market are early adopters seeking a
technological edge and willing to bet on earlytechnology”
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Attacker vs. Defender Mentality
• Looking to dominate a market
• Not incremental – 5% share is not thementality or a strategy for success
• “If you are not a market leader in your chosen market, you have not defined yourmarket well enough”
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Do market research by asking & doing
1. ASK YOUR FRIENDS…is this a good idea?
2. Launch your product & ask!!!
1. How satisfied are you with the product? 1 – 5
2. Will you use it/buy it again? 1 – 53. Will you recommend it to a friend? 1 - 5
CUSTOMER LOYALTY INDEX - CLI
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Do market research by asking &doing
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Do market research by asking & doing
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Do market research by asking & doing
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Summary: Market Analysis
1. Segment and select target market … and deselect
2. Tech Push vs. Market Pull
3. Know your customer is great depth – customer can lead
you to promised land4. Size Tops Down and Bottoms Up
5. Similar product, Similar Value Prop, WOM
6. Addressable Market Opportunity
7. Market Characteristics (Geography, Industry, Type)8. Dominate mentality
9. Okay to start small and grow
10.Competition certainly matters (March 4)
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1. Be a great networker!
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1. Be a great networker ...Advice
•At least 1 relevant event per week if not 2
•Arrive early. Talk with the speakers before …
•Know what you are looking for…
•Ask..do you know who can help me? Can you
introduce me to XYZ.
• Follow-up within 24 hours..be diligent. Followthrough with your promises
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2. Deliver Awesome Presentations
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2. Deliver „Awesome‟ Presentations
CONTENT
PACKAGINGDELIVERY
Elements
ProblemSolutionMarketTeamBusiness ModelFinancialsCapital RequirementsMilestones
Keys to Success
-Articulate-Structure-Passion!!!!-Light on words
-Powerful Images-PRACTICE-Know it by Hard
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3. Use Inbound Marketing rather thanOutbound
Outbound marketing isabout
pushing messages out.
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3. Use Inbound Marketing rather thanOutbound
Inbound is about
pulling people in.
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3. Use Inbound Marketing rather thanOutbound
Where To Get Found
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3. Use Inbound Marketing rather thanOutbound
Why you get found?
RemarkableContent
For Example:
Become an IndustryThoughtLeader
Start Building a List of Potential Customers
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3. Use Inbound Marketing rather thanOutbound
Blog Article Performance
cvis
cusvisits
,$000.1000
2,1$
worth
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3. Use Inbound Marketing rather thanOutbound
Talk about the
industry’sissues, not yoursolution.
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3. Use Inbound Marketing rather thanOutbound
Cracking TheGoogle Code
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3. Use Inbound Marketing rather thanOutbound
As ye SEO,so shall ye
reap.
Ranking Algorithm:f(n): Context + Authority
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3. Use Inbound Marketing rather thanOutbound
Keywords:Don’t pick a
fight with aninja.
(Unless you’re a ninja)
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3. Use Inbound Marketing rather thanOutbound
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What is the best PageTitle?
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3. Use Inbound Marketing rather thanOutbound
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4. Have a sustainable business model
LifeTimeValue CostofAcquisition
LifeTimeValue = Revenue Per Month * 1/Churn Rate
Cost of Acquisition = (Marketing Cost + Sales Cost) / # ofacquired customers
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6. Don‟t give up unless you know you are going nowhere…
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The Turning Point
The 3 “Amigos”