Section 3 Marketing and Selling Your Stuff

1. Section 3Marketing and Selling Your Stuff Intro/transition for moderator or speaker: We�ve just finished talking about the ways in which you can try to validate your idea to make sure that it can be turned into a �real business.� Now we are going to enter an arena in which many technologists feel very uncomfortable: marketing and sales. So buckle your seat belt as we discuss the ways you can help real customers decide to buy the stuff you make and pay you real money for the privilege. Intro/transition for moderator or speaker: We�ve just finished talking about the ways in which you can try to validate your idea to make sure that it can be turned into a �real business.� Now we are going to enter an arena in which many technologists feel very uncomfortable: marketing and sales. So buckle your seat belt as we discuss the ways you can help real customers decide to buy the stuff you make and pay you real money for the privilege.

2. If You Don�t Know Where You�re Going, You Can�t Get There From Here The 1st Marketing Function = A business plan! It should quantify and define Industry & Market Segment Business objectives/costs Your audience (target market) Their pain & their language The value of what you have to offer them Who/what influences their buying decisions Where and how they buy Without a market, there is no product Without a market, there is no product

3. What you don�t know can kill you The difference between advertising & marketing The dynamics in your industry Your competition The decision maker Whether the timing is right

4. Getting to the Place You�ve Identified Critical Requirements Well defined business objectives/costs Knowledge your audience is and how they are influenced (personification) Description of your business or product that answers their pain in their language Plan of action and methods for monitoring success What you don�t necessarily need Deep marketing expertise Lots of money Thorough understanding of your audience Profile your audience Identification of best ways to reach them What they read Where they go for guidance on what they buy How they use the Web to find and buy products like yours Thorough understanding of how the industry works Profile the industry and the dynamics Get a grasp on the processes and parties involved Know what you compete with How you are differentiated or answer the problem better Solid positioning of your product that addresses all the above Thorough understanding of your audience Profile your audience Identification of best ways to reach them What they read Where they go for guidance on what they buy How they use the Web to find and buy products like yours Thorough understanding of how the industry works Profile the industry and the dynamics Get a grasp on the processes and parties involved Know what you compete with How you are differentiated or answer the problem better Solid positioning of your product that addresses all the above

5. Marketing Spending Decisions Weigh by what they will return in: Company/product awareness Sales revenue or proof of concept Partnership opportunity Investor visibility Without history some will be guesses Don�t try too many things at once What counts most when you are getting started: Low cost / high return Measurable Actionable Opportunity to refine Message Pricing Product/Service features Differentiation What counts most when you are getting started: Low cost / high return Measurable Actionable Opportunity to refine Message Pricing Product/Service features Differentiation

6. The Basics Phone number and address Basic Corporate ID Package Reusable Components (copy, graphics, etc) A Domain Name Simple Brochure Starter, but Professional Looking Website Phone: Services like AccessLine Virtual Office (www.accessline.com) Images and copy that are reusable across a variety of media Domain and email: Spend the small amount to get a real one Avoid using AOL or Yahoo especially for email addresses Simple Brochure Don�t say too much Everything you have to say initially WILL change Website Hosting plans are inexpensive Including tracking Referrals, where users go on your site, how long they stay Probably don�t need an agency unless you�ve got plenty of cash and a very well defined go-to-market strategy Agencies operate on some formulas A startup may not be well-defined enough for the formulas to apply in the same way You will be expected to know your market and their needs You�ll end up spending the same dollar again You don�t have time or resource to make a lot of these mistakes Web Offers Numerous Resources for inexpensive work Design Outpost (www.designoutpost.com) Logo Works http://www.logoworks.com/Logo-design-pricing.html Guru (www.guru.com) Phone: Services like AccessLine Virtual Office (www.accessline.com) Images and copy that are reusable across a variety of media Domain and email: Spend the small amount to get a real one Avoid using AOL or Yahoo especially for email addresses Simple Brochure Don�t say too much Everything you have to say initially WILL change Website Hosting plans are inexpensive Including tracking Referrals, where users go on your site, how long they stay Probably don�t need an agency unless you�ve got plenty of cash and a very well defined go-to-market strategy Agencies operate on some formulas A startup may not be well-defined enough for the formulas to apply in the same way You will be expected to know your market and their needs You�ll end up spending the same dollar again You don�t have time or resource to make a lot of these mistakes Web Offers Numerous Resources for inexpensive work Design Outpost (www.designoutpost.com) Logo Works http://www.logoworks.com/Logo-design-pricing.html Guru (www.guru.com)

7. And What About the Web

8. Momentum maker � the internet Use your website Press releases Case Studies White papers Testimonials 35% of journalists say they use blogs as a source of information Google adwords are a great way test your message and your audience try doing searches on your own to see how words and word combinations are used by your target audience, then spend $5 with Google to set up an account and bid on those words or word combinations. The going bid Monitor and Measure results 35% of journalists say they use blogs as a source of information Google adwords are a great way test your message and your audience try doing searches on your own to see how words and word combinations are used by your target audience, then spend $5 with Google to set up an account and bid on those words or word combinations. The going bid Monitor and Measure results

9. Tried & True, Traditional methods Winning Friends and Influencing People In a Business to business world Editors Analysts SMEs Recommenders/specifiers Press Editors Writers Reviewers Analysts Industry Analysts both independent and large firms Financial analysts SMEs Those who speak on the topic Those who write on the topic Industry organizations/associations Find the people who serve on committees related to your product and you�ll find SMEs Get actively involved yourself Press Editors Writers Reviewers Analysts Industry Analysts both independent and large firms Financial analysts SMEs Those who speak on the topic Those who write on the topic Industry organizations/associations Find the people who serve on committees related to your product and you�ll find SMEs Get actively involved yourself

10. Example: Concrete Countertop Manufacturer Local Market Size = ~ $200M/Y in natural stone countertops Market Dynamics Consistent growth in high-end residential use of natural stone Regional shifts in design trends for more subtle, less shiny materials Clear relationship for high-end in use of interior and kitchen designers Natural stone fabricators/installers rely on recommendations Competition Low-Cost = Corian/other man-made solid surfaces High-Cost = Granite/marble/exotic stone End-Customer = Home Owner, interior designer, or builder Recommender = Interior designer, kitchen designer/cabinet provider, architect Marketing Audience Designers Kitchen Showrooms Plumbing fixture showrooms

11. Methods/Investment Website Professional photography ASID Membership Designer presentations Showroom Displays/Sample boards Participation in high-end designer show houses Regional design mags; Local lifestyle magazine coverage Listings on Internet directories Direct Mail to those requesting information Total Expenditures 3% of revenue Sales/marketing staff of 1.5 FTEs CAGR 122% for 3 year old company to $600K per year Website $25 p/m hosting, Template $50, Microsoft FrontPage $249 Professional photography Bartered for countertop � cost to produce $2000, retail value $4500 ASID Membership $350 per year � includes meetings and membership directory listing Designer presentations About $500/year in Quizno�s sandwiches or cookies Showroom Displays/Sample boards Cost to produce custom displays in 10 locations � avg $1600 ea. Sample boards = $20 ea Participation in high-end designer showhouses Most for custom work at cost National Street of Dreams $5000 advertising fee including booth 2200 people registered for giveaway Regional design magazines Local lifestyle magazine coverage Frequent writer/editor contact and press releases = free Listings on Internet directories Free Direct Mail to those requesting information Postcard printing cost $1200 In-house printing of back for specific uses Total expenditures over 3 years 3% of revenue to generate 100% year on year growthWebsite $25 p/m hosting, Template $50, Microsoft FrontPage $249 Professional photography Bartered for countertop � cost to produce $2000, retail value $4500 ASID Membership $350 per year � includes meetings and membership directory listing Designer presentations About $500/year in Quizno�s sandwiches or cookies Showroom Displays/Sample boards Cost to produce custom displays in 10 locations � avg $1600 ea. Sample boards = $20 ea Participation in high-end designer showhouses Most for custom work at cost National Street of Dreams $5000 advertising fee including booth 2200 people registered for giveaway Regional design magazines Local lifestyle magazine coverage Frequent writer/editor contact and press releases = free Listings on Internet directories Free Direct Mail to those requesting information Postcard printing cost $1200 In-house printing of back for specific uses Total expenditures over 3 years 3% of revenue to generate 100% year on year growth

12. Example: Video Professor Computer Software Training CDs Free � for the cost of shipping Money-back guarantee Broadly advertised on TV �but not always 1980s in computer as DOS VHS for $9.99 1990s Expanded to CD-ROM Today major market share in software training @ $4.99

13. Timing can be everything

14. Marketing Spending Decisions Wrap Up Weigh by what they will return in: Company/product awareness among customers Sales revenue or proof of concept Partnership opportunity Investor visibility Without history some will be guesses Test, measure, and do it again Don�t try too many things at once What counts most when you are getting started: Low cost / high return Measurable Actionable Opportunity to refine Message Pricing Product/Service features Differentiation What counts most when you are getting started: Low cost / high return Measurable Actionable Opportunity to refine Message Pricing Product/Service features Differentiation

15. Section 3Marketing and Selling Your Stuff Intro/transition for moderator or speaker: We�ve just finished talking about the ways in which you can try to validate your idea to make sure that it can be turned into a �real business.� Now we are going to enter an arena in which many technologists feel very uncomfortable: marketing and sales. So buckle your seat belt as we discuss the ways you can help real customers decide to buy the stuff you make and pay you real money for the privilege. Intro/transition for moderator or speaker: We�ve just finished talking about the ways in which you can try to validate your idea to make sure that it can be turned into a �real business.� Now we are going to enter an arena in which many technologists feel very uncomfortable: marketing and sales. So buckle your seat belt as we discuss the ways you can help real customers decide to buy the stuff you make and pay you real money for the privilege.