marketing high tech in challenging times - 9 key success factors

• Theon‐demandwebinarrecordingisavailableattheBeWhysMarke;ngwebsite

• Afree15‐dayindividualseatlicensetoChasmIns6tute’saward‐winningOnlineLearningTool:“Founda(onsofHigh‐TechMarke(ng”.(Select"Register"andenterthefollowinginthecouponcodefield:CHASM_15_DAYS_q409demo)

• DummiesGuidetoNurtureMarke(ngfromMarketBright–thelatesteasytoreadguideonthekeyelementsofnurturemarke;ngandleadgenera;on.Reserveyourcomplimentarycopytobegintheroadtounderstandingnurturemarke;nginB2Bmarke;ng.AvailableApril2010

• Marke;ngHighTechWebinarSpecial–Jigsawspecialoffertoenhanceyourdatabase–save20%onoffthestandardpricingforpackagesof2,000,5,000or10,000contacts.

• Atwohour,noobliga(on,freeconsulta(ononyourleadgenera(onprogram–providingbenchmarksagainstindustrystandardsandrecommenda;onsonhowtoincorporatebestprac;cemethodologyintoyourexis;ngcampaignsfromBeWhysMarke;ng.

Marke6ngHighTechinChallengingTimes–9KeySuccessFactorsAddi6onalResources

Collapseorexpandtheplayer

Youcanaskques;onsviathechattool.Ifwecan’tanswerthemduringthepresenta;onwewillanswerwithafollowupemail.

Ifyoucan’theartheaudio,youmayhavemisdialedthenumber.Pleasehangupandtryagain.Thenumberis773‐945‐1011.OryoucanuseyourMicandSpeakers.We’resetupforboth.

AXerthepresenta;on,wewillsendaPDFoftheslides.AweekaXerwewillfollowupwithanondemandversionofthewebinar.

Submitques;onstoSueHayviathechatwindowduringthepresenta;on

Welcometothewebinar:Marke;ngHighTechinChallengingTimes–9KeySuccessFactors

IfyouexperiencetechnicaldifficultypleasecontactGoToWebinaron1‐800‐263‐6317.Thewebinarnumberis479559769Thedialinnumberis773‐945‐1011

5 Update: 02/13/10

© 2010 Chasm Institute Contact: Michael Eckhardt [email protected] All rights reserved. Contents may not be reproduced in any form without prior written permission.

Chasm Institute’s

Marketing High Tech in Challenging Times: 9 Key Success Factors

... an advanced webinar for high-tech marketing professionals in key software, product, and web-based businesses, seeking to drive profitable sales in 2010.

3 priority questions to be addressed:

how do customer needs change in different stages of the TALC (Technology Adoption Life Cycle) ?

what are some key Best & Worst Practices for high-tech market success in tough times ?

which 9 factors predict success or failure in new product launches ?

6 Update: 02/13/10


Chasm Institute’s Senior Workshop Leaders

 Previous sales and marketing experience in enterprise software

•  Oracle Applications •  JD Edwards •  McCormack & Dodge •  The Service Bureau Company

 Education, workshops and consulting engagements

•  Cognos •  FileNet, an IBM Company •  Lawson Software •  Nokia •  Symbol Technologies

 MBA, University of North Texas

 Previous product management and consulting experience

•  Hewlett-Packard •  PepsiCo Inc. •  Harbridge Consulting •  Price Waterhouse & Co.

 Education, workshops and consulting engagements

•  Agilent Technologies •  Cisco Systems •  Hewlett-Packard •  Intel Corporation •  Mentor Graphics

 MBA, Harvard Business School

Mark Cavender •  Managing Director,

Chasm Institute LLC •  Managing Director,

The Chasm Group, 1994 – 2003

•  e-mail: [email protected]

Michael Eckhardt •  Managing Director,

Chasm Institute LLC •  Senior Affiliate,

The Chasm Group, 1994 – 2003

•  e-mail: [email protected]

7 Update: 02/13/10


Chasm Institute’s

Marketing High Tech in Challenging Times:

9 Key Success Factors ... an advanced webinar for high-tech marketing professionals in key software, product, and web-based businesses, seeking to drive profitable sales in 2010.

Priority Question #1:

how do customer needs change in different stages of the TALC (Technology Adoption Life Cycle) ?

... and how does this impact marketing automation, lead nurturing, and database segmentation priorities ? ... plus: “why bad things happen to good marketing campaigns” – and how to avoid this.

8 Update: 02/13/10


High-Tech Markets develop in a relatively predictable pattern ... ... based on the changing behavior of customers

Innovators Early Adopters

Early Majority Late Majority Laggards

Techies: Try it!

Pragmatists: Stick with the herd ! Conservatives:

Status quo is OK -- move only when necessary!

Skeptics: No way!

Visionaries: Move ahead of the herd!

9 Update: 02/13/10


How Do Customer Needs Change Across the TALC ?

Innovators EarlyAdopters


The Technology Adoption Life Cycle models market acceptanceof both discontinuous and continuous innovations.

10 Update: 02/13/10


Innovators - Technology Enthusiasts

 Primary Motivation: •  Learn about new technologies for their own sake

 Key Characteristics: • Strong aptitude for technical information •  Like to alpha test new products • Can ignore the missing elements • Do whatever they can to help

 Challenges: • Want unrestricted access to top technical people • Want no-profit pricing (preferably free)

Key Role: Gatekeeper to the Early Adopter

11 Update: 02/13/10


Early Adopters - The Visionaries

 Primary Motivation: • Gain dramatic competitive advantage via revolutionary

breakthrough  Key Characteristics:

• Great imaginations for strategic applications • Attracted by high-risk, high-reward propositions • Will commit to supply the missing elements • Perceive order-of-magnitude gains — not so price-sensitive

 Challenges: • Want rapid time-to-market • Demand high degree of customization and support

Key Role: Fund the development of the early market

12 Update: 02/13/10


Early Majority - Pragmatists

 Primary Motivation: • Gain sustainable productivity improvements via evolutionary

change  Key Characteristics:

• Astute managers of mission-critical applications • Understand real-world issues and trade-offs •  Focus on proven applications •  Like to go with the market leader

 Challenges: •  Insist on good references from trusted colleagues • Want to see the solution fully deployed at the reference site

Key Role: Selective defender of the status quo

13 Update: 02/13/10


Late Majority - Conservatives

 Primary Motivation: • Avoid competitive disadvantage

 Key Characteristics: • Better with people than technology • Risk averse, disruptions unacceptable • Price-sensitive • Often highly reliant on a single, trusted advisor

 Challenges: • Need completely pre-assembled solutions • Would benefit from value-added services

but may often not want to pay for them

Key Role: Extend product life cycles

14 Update: 02/13/10


Laggards - Skeptics

 Primary Motivation: • Maintain status quo

 Key Characteristics: • Disbelieve marketing hype • Disbelieve productivity-improvement arguments • Believe in the law of unintended consequences • Enjoy taking a contrarian position • Seek to block purchases of new technology

 Challenges: • Not a customer • Can be formidable opposition to early adoption

Key Role: Retard the development of high-tech markets

15 Update: 02/13/10


Pragmatists are crucial to the adoption of new technologies -- they cast the deciding vote.

Innovators Early Adopters


Techies: Try it!

Pragmatists: Stick with the herd ! Conservatives:

Status quo is OK -- move only when necessary!

Skeptics: No way!

Visionaries: Move ahead of the herd!

High-Tech Markets develop in a relatively predictable pattern ... ... based on the changing behavior of customers

16 Update: 02/13/10


Chasm Institute’s




what are some key “Best & Worst” Practices for high-tech market success in tough times ?

... and how can “pattern recognition” drive marketing success ? ... plus: winning practices from Tech 100 Leaders.

17 Update: 02/13/10


What are some “Best & Worst” Practices for high-tech market success in tough times ?

... and how can the TALC 2.0 Model be a predictive marketing framework for your 2010-2011 customer initiatives and go-to-market priorities ?

5-A 5-B

Thriving Market Maturing

Market Declining Market

5-C

5. Main Street

1. EarlyMarket

2.Chasm 3. Bowling

Alley

4. Tornado

18 Update: 02/13/10


The Technology Adoption Life Cycle (TALC 2.0)

TALC 2.0 Model ... a tool for predicting how high-tech market priorities (including target marketing, feature decisions, messaging, channel, pricing, and # of SKU’s) must change ---- from Early Market through Main Street.

5-A 5-B



5-C

5. Main Street

1. EarlyMarket

2.Chasm 3. Bowling

Alley

4. Tornado

19 Update: 02/13/10


1. Early Market: Customers are visionaries under the influence of technology enthusiasts. Each new deal is greeted with enthusiasm. Product is still immature. Whole product has to be built from scratch for each customer, including a significant amount of “special work” unique to that customerʼs requirements. Looks more like a project than a product.

[ Key: watch out for tops-down forecasts that are unattainable ]

2. The Chasm: Early market commitments now absorb all discretionary resources such that you cannot offer any more “specials” to visionaries. Pragmatists, however, do not see the relevant references nor the evidence of a whole product that would make the new category a safe buy. Sales cycles are extended, and most that do close are for pilot projects.

[ Key: “100% Whole Product” is crucial to a successful Chasm Crossing ]

Technology Adoption Life Cycle (TALC 2.0) EXECUTIVE OVERVIEW

1. EarlyMarket

2.Chasm

20 Update: 02/13/10


Crossing the Chasm

  The Problem: •  80% of many solutions — 100% of none •  Pragmatists won't buy 80% solutions

  Most frequent vendor mistake: •  Working on the most common overall enhancement requests •  Never finishing any one segment's requirements

 The Correct Solution (leading to success): •  Focus on a single beachhead segment •  Accelerate formation of that segment's 100% whole product •  Pick a list of requirements for a specific segment – and finish it !

Dominating a market begins with dominating a segment.Examples: Google, Cisco, HP LaserJets, Apple iPods, Facebook

The “Beachhead” segment

21 Update: 02/13/10


3. Bowling Alley

4. Tornado

3. Bowling Alley: Product is endorsed by pragmatist customers within the confines of one or more segments. Sales cycles within these segments are predictable with good margins. Outside of these segments, there are only opportunistic sales, often at significant discount.

[ Key: broad sales motions will fail ]

4. Tornado: The majority marketplace has taken off. Virtually any vendor who can supply this category of product can sell it. A fierce market share war has developed, and price discounting is vicious. A market leader has emerged, establishing the de facto standards, and this company gets much better margins than the competition.

[ Key: duration of Tornado is typically only 2-4 years ]


22 Update: 02/13/10


5-A 5-B



5-C

5. Main Street

5. Main Street: The hyper-growth era is over. Market growth slows down as the market saturates, but opportunity remains robust in both Thriving (5-A) or Maturing (5-B). To expand further some competitors are now modifying their “standard offerings” to appeal to special segments via +1 Offers. Other competitors compete on price alone. The market leader still gets a margin premium but is under pressure to reduce price.

[ Key: offer both safe Standard Solutions and smart, margin-rich +1’s ... while rationalizing SKU’s ]

Note re: 5-C as Main Street moves beyond the stages of “5-A” and “5-B” and into “5-C” (Declining Market), this category of product is now fully saturated in the marketplace. This category may still find loyal conservative customers within specific segments on Main Street, but the category will eventually pass out of the market from the perspective of the broad set of customers. It may be displaced by a newer category in the future.

[ Key: at this stage (5-C) pricing decision is crucial ]


23 Update: 02/13/10


Chasm Institute’s




which 9 key factors predict success or failure in new product launches ?

... and why are the 4 P’s “necessary but not sufficient” when marketing high-tech products or services ?

... plus: whom to target -- in automated lead nurturing + database segmentation -- is just as key as what to say.

1. Target Customer 2. Compelling Reason to Buy 3. Whole Product 4. Partners & Allies 5. Distribution 6. Pricing 7. Competition 8. Positioning 9. Next Target

24 Update: 02/13/10


The 9-Point Market Strategy Checklist

1. Target Customer

2. Compelling Reason to Buy

3. Whole Product

4. Solution Partners

5. Distribution / Channel

6. Pricing

7. Competition

8. Positioning / Messaging

9. Next Target

Focal point for everything

To fulfill the compelling reason to buy

Willing and able to deliver the whole product

For the customer's money

Next move

Key market driver

Needed for whole product

Whole product price consistent with customerʼs reason to buy, margins consistent with partnerʼs contribution

This template holds for all stages in the Life Cycle.

Relative to competition

25 Update: 02/13/10


9-Point Market Strategy: Attack Plan

1. Target Customer

2. Compelling Reason to Switch

3. Whole Product



6. Pricing

7. Competition

8. Positioning: “Why Switch?”

9. Next Target





Next move

Key market driver



The Attack 9-Point Strategy seeks to dominate new segments


26 Update: 02/13/10


9-Point Market Strategy: Defend / Expand

1. Target Customer

2. Compelling Reason to Stay

3. Whole Product



6. Pricing

7. Competition

8. Positioning: “Why Stay/Add ?”

9. Next Target





Next move

Key market driver



The Defend / Expand 9-Point Strategy seeks to gain loyalty & repurchase from our current segments


27 Update: 02/13/10


Goal of 9-Point Market Strategy Summary:

 A well-written 10 page summary document ... 1 executive overview page + 9 detailed pages that tells:

•  your product group •  your management team •  key external (and internal!) partners •  key Sales and Support … your market development strategy for a

specific product, service or initiative.

28 Update: 02/13/10


1 Target Customer

MarketPro targets businesses of X to Y employees in the U.S. “Iʼm a shop owner, not a marketer” sums up challenges these businesses have finding the time + in-house expertise to create compelling marketing materials. Solutions like MarketPro are needed to help them differentiate their business, while saving time + money. MarketPro would improve on the relatively weak set of choices these customers have today.

2 Compelling Reason to Buy

Small business customers are tight on time, have very limited budgets, but a strong desire to look more professional. MarketPro helps them to affordably create + print marketing materials (brochures, business cards, flyers) via easy-to-use on-line choices that give their company a great, professional look.

3 Whole Product An MVP (minimum viable product) that provides this customer experience an easy + affordable way to create professional brochures, business cards, flyers + other marketing matʼls -- and print them how and when they want.

4  

Solution Partners MarketPro is well aligned with internal + external partners -- HP Audio, Dunder-Mifflin, Tykor, and Stanton have the right skills and capabilities, share an understanding of our target customer, and have a track record of meeting commitments.

5 Distribution

(1) HP internal partners (SPG, LSG, Web, regions) are motivated to distribute MarketPro, but they need to be educated & equipped to integrate MarketPro into their HP programs. HP internal partners are still confused as to how the MarketPro brand has evolved over the past year and the difference between WK/MP. Additional challenge: each internal HP partner has different OMB strategies, rules of engagement, requirements, & timing relative to Interlock objectives. (2) MarketPro.com

6 Pricing Higher-margin pricing for Print-to-Desktop and Print-to-Store (due to Bowling Alley lower price elasticity) Moderate-margin pricing (vs. InstaPrint) for Print-to-Mail (due to Tornado higher price elasticity)

7 Competition 2 Dangerous Competitors = “Status Quo” + InstaPrint (also: HP BizPro is a potential distraction for customers)

8 Positioning / Messaging

“For small businesses in the US (X to Y employees) who are tight on time + money, but want to look more professional, MarketPro is a web service that provides an easy + affordable way to create professional brochures, business cards, flyers and other marketing materials -- and print them how and when they want. Unlike other alternatives which are too expensive, offer limited choice, or do not produce unique/professional results, MarketPro will enable these businesses to proudly stand out and compete.”

9 Next Target FYXX – expansion into Northern Europe, GRAPHITE release, new hardcopy customers, differentiation at PDS

Customer Initiative or Solution: MarketPro web service solution for installed-base OMB customers in U.S.

TALC Stage: ____Bowling Alley____ [ ] Early [ X ] Mid [ ] Late

Time Period for this Plan: from Q1FY10 to Q4FY10

Business Objective for this Plan: Drive high-value pages for OMB brochures & flyers in FY10

OUR 9-POINT PLAN FOR MARKET SUCCESS

Executive Overview

29 Update: 02/13/10


Suggested “Homework” Where are your priority products or initiatives competing on the TALC -- in key geographies in mid 2010 ?

Once we’ve gained accurate answers to the above question, we can then move ahead with confidence and clarity: (1) about what we should and should not do in the market (2) based on the specific TALC Stages we are competing in.

5-A 5-B



5-C

5. Main Street

?

?

?

? ?

?

? ?

30 Update: 02/13/10


Pulling It All Together What related Chasm Institute Workshops are available ?

Note: Many marketing professionals ask us how to gain the real insights + tools needed to win in Chasm-Crossing, Bowling Alley, Tornado or Main Street life cycle stages.

The following 2-day on-site workshops are tailored to your specific business:

Market Strategy Workshops (on-site) Focus:

Crossing the Chasm (commercializing innovative new technologies and products) Bowling Alley Success (dominating key markets and market segments) Inside the Tornado (maximizing profitable revenue in high-growth / hyper-growth markets) Winning on Main Street (thriving in slower growth / margin pressure / mature markets)

... as well as the next level in marketing workshops – including: our “Advanced Marcom” Workshop and “Advanced Go-to-Market” Workshop.

For more information: on the above-mentioned tailored skill-building workshops for your team or specific business, contact Angela Martinez at 650-537-6742 or [email protected].



31 Update: 02/13/10


Why Chasm Institute ?

•  Chasm Institute programs are based on the industry standard in high-tech strategy, coupled with real world experience

•  Geoffrey Mooreʼs best-selling business books •  Strategy concepts that have been proven and refined through hundreds of

real world consulting engagements by The Chasm Group over 12 years

•  Ability to accommodate all of a companyʼs offerings •  Multiple categories •  Multiple places in the Technology Adoption Life Cycle

•  Executives can choose between a blend of both workshops and online education

•  Chasm Institute programs help companies: •  Achieve alignment across the organization •  Gain alignment with business partners •  Improve employee and partner motivation

•  The result: Better definition and execution of your company strategy

“No matter how great the strategy is, it means nothing unless it is implemented.” - Geoffrey Moore

32 Update: 02/13/10


Thank You

 Chasm Institute provides education and professional development programs in market development strategy for technology companies.

 Work is based on best-selling business books by Geoffrey Moore including Crossing the Chasm and Inside the Tornado plus The Chasm Companion by Paul Wiefels.

Chasm Institute LLC 900 Cherry Avenue Suite 221 San Bruno, CA 94066

Michael Eckhardt [email protected]

Mark Cavender [email protected]

33 Update: 02/13/10


Copyright Notice

•  Copyright ©2010, Chasm Institute LLC. All rights reserved. •  This presentation is provided to you solely for informational

purposes and does not constitute conveyance of any intellectual property rights.

•  Chasm Institute LLC has created materials, methodologies and practices that are proprietary. All intellectual property associated with these works and any derivative works that come as a result of any Client engagement shall remain the property of Chasm Institute LLC.

•  This presentation may not be reproduced or redistributed, in whole or in part, without the prior consent of Chasm Institute LLC.

34 Update: 02/13/10


Order

Demo

ContractProposal

WhitePapers

Presenta;ons

ROI

Pricing

Sales

Marke;ngTradeShows

PR

Webinars

Adver;sing

Telemarke;ng

SEO

SocialMedia Blogs

DirectMail

Partners

IT IS A REALLY COMPLICATED PROBLEM

B2BSellingreliesonprovidinganinforma;onconversa;on

Customer

B2B BUYING LIFECYCLE

Awareness Qualification Conversion Validation

MARKETING AUTOMATION IN A NUTSHELL

ORCHESTRATE RIGHT TIME RIGHT MESSAGE

ROI DRIVER

Today’sAgenda•  AboutJigsaw

•  DatabaseSegmenta;on

•  Why‘Clean’DataMacers

Mitch Knight Director of Business Development Jigsaw

 Foundedin2003.

 World’slargestandmostcompletesourceofB2Bcompanyandcontactinforma;on.

 Over95%ofFortune500CompaniesuseJigsaw

 9thfastestgrowingprivatecompanyintheBayArea* *‐SanFranciscoBusinessTimes

Marke6ngBudgets–HowAreWeSpendingThoseMarke6ngDollarsToday?

ChangesinBudget–2009

•  Catalog–Down14.8%•  DirectMail–Down28.6%

•  Email–Up43.2%•  InternetMarke;ng–Up62.9%

DMA Research - 2009 Response Rate Report

TheSalesSide–HowareBest‐In‐ClassCompaniesEnablingSales?

•  CustomizedMessaging:Thebenefitsofknowingexactlywhoasalesperson’stargetindividualis.

•  IncorporatedSalesIntelligenceSources:Top‐performingsalesteamsarerealizingthepoten;alofdirectlyfeedingsalesintelligenceintothedailysellingtoolsystems(CRM/SFA).

•  Marke6ngAutoma6on:Allowssalesteamstobemoreefficient.

Aberdeen Research - 2009 Sales Enablement Report

A Typical Incomplete Record

What’sTheImpact?NoTitle:

–  Inabilitytodeterminethewhatroleisoccupiedbytheprospectanddeliveratrulycustomizedmessageviaphone,email,ordirectmailcampaign=Lowerleadconversionrates.

NoEmailAddressorPhoneNumber:–  More;mespenttryingtoreachkeydecisionmakers=Longersalescycle,SlowerWin/

LossRate

NoRevenueorCompanySizeInforma6on:–  Inabilitytoaccuratelysegmentprospectsresultsinmore;mespentwithlesspromising

prospects=Longersalescycle,SlowerWin/Lossrate,Loweraveragedealsize.

BadData:–  Baddata……

KeyTakeaways

•  Withconsistentadop;oncapabili;esandenablersBest‐In‐Classusersareabletoachievemeasurableresults.

•  Whetherthemetricsare;–  Financial(Revenue;DealSize)Or–  Ac6vityOriented(Conversion&

Win/Loss;SalesCycle)

•  Thisgroupisrealizingconsiderablevalue.

• Theon‐demandwebinarrecordingisavailableattheBeWhysMarke;ngwebsite

• Afree15‐dayindividualseatlicensetoChasmIns6tute’saward‐winningOnlineLearningTool:“Founda(onsofHigh‐TechMarke(ng”.(Select"Register"andenterthefollowinginthecouponcodefield:CHASM_15_DAYS_q409demo)

• DummiesGuidetoNurtureMarke(ngfromMarketBright–thelatesteasytoreadguideonthekeyelementsofnurturemarke;ngandleadgenera;on.Reserveyourcomplimentarycopytobegintheroadtounderstandingnurturemarke;nginB2Bmarke;ng.AvailableApril2010

• Marke;ngHighTechWebinarSpecial–Jigsawspecialoffertoenhanceyourdatabase–save20%onoffthestandardpricingforpackagesof2,000,5,000or10,000contacts.

• Atwohour,noobliga(on,freeconsulta(ononyourleadgenera(onprogram–providingbenchmarksagainstindustrystandardsandrecommenda;onsonhowtoincorporatebestprac;cemethodologyintoyourexis;ngcampaignsfromBeWhysMarke;ng.

Marke6ngHighTechinChallengingTimes–9KeySuccessFactorsAddi6onalResources

marketing high tech in challenging times - 9 key success factors

Technology

chasm institute contact

chasm group

prior written permission

key software

key success factors

consulting engagements

market success

impact marketing automation