From product creation to marketplace creation - How Indian product companies can create 46th NASSCOM Friday's 2.0 sessio

You have a product? Great! Where’s the market? Vinod Harith Founder and Director CMO Axis Marketing Outsourcing www.cmoaxis.com

Introductions
Name
Title
Company
Product or service
Key marketing challenge

What is go-to-market?
Go-to-market process is the
Strategic and tactical aspects of delivering and supporting a product or service offering in the marketplace
This includes product specification, pricing, distribution, marketing communications, sales, after-market support, and customer experience management

What we will cover
Defining a market (what really is a market?)
Fundamental concepts of marketing
Segmentation, Targeting and Positioning
Differentiation, Competitive Advantage and Value proposition
Sales vs. Marketing, the fundamental difference
Choosing the channel
Some key frameworks
SIVA model
Blue Ocean strategy
Core and extended product
Knowing the ecosystem – your customer does not buy in isolation
When does the marketing of the product start?
The ‘immutable laws’
Some zero-cost marketing tools to get started
Case study discussions

What we will NOT cover

What really is a market?
A place where forces of demand and supply operate

Market research? Remember, next time you have a gut feel, it could just be your ulcer!

What will MR do?
Provide you with overview of the industry, opportunity and customers with respect to your product. EXISTING OPPORTUNITY
Information on customer preferences and needs. This will help in planning your product portfolio, diversifications etc., POTENTIAL OPPORTUNITY
Insights on how customers buy and why they buy. INSIGHTS

Essentials of market research
What is the size of the market?
What unique need does your GENRE of product/ services meet?
How much are customers willing to pay for this product/ service (top/ bottom/average)?
Is this a price sensitive/ commodity product or premium product?
Who are the other key players?
What is the gap un-serviced by current players?
What is the REAL available market for you?
How is your product different from competition?
What is your playing field? (premium/ general/ price warrior)
What share of this can you reasonably expect to get?

You always don’t need an MR agency
Talk to the ecosystem
Buyers
Users
Analysts
Industry media
Competitors
VCs
Where can you find them?
Your peer network
Linked-in/ Facebook
Online communities
Events and conferences

Fundamental concepts: Segmentation-Targeting-Positioning
Who are we?
Who is our product relevant to?
Why buy us?/ why not to buy competition
Where to play
How to win

Definition
Market Segmentation:
Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.

Segmenting Business Markets
Demographic segmentation
Industry, company size, location
Operating variables
Technology, usage status, customer capabilities
Purchasing approaches
Situational factors
Urgency, specific application, size of order
Personal characteristics
Buyer-seller similarity, attitudes toward risk, loyalty

Segmenting International Markets
Geographic segmentation
Location or region
Economic factors
Population income or level of economic development
Political and legal factors
Type / stability of government, monetary regulations, bureaucracy, etc.
Cultural factors
Language, religion, values, attitudes, customs, behavioral patterns

Requirements for Effective Segmentation
Measurable
Size, purchasing power, and profile of segment
Accessible
Can be reached and served
Substantial
Large and profitable enough to serve
Differentiable
Respond differently
Actionable
Effective programs can be developed

Sample Segmentation Niche Buyer Lifestyle Buyer Value buyer Segment Endeavor, Pajero Innova Scorpio, Safari SUVs, MUVs BMW, Benz, Toyota Verna, Esteem Sedans Getz Santro, Alto Small Cars

Target Marketing
Target Market
Consists of a set of buyers who share common needs or characteristics that the company decides to serve

Target Marketing
Evaluating Market Segments
Segment size and growth
Segment structural attractiveness
Level of competition
Substitute products
Power of buyers
Powerful suppliers
Company objectives and resources

Target Marketing
Selecting Target Market Segments
Undifferentiated (mass) marketing
Differentiated (segmented) marketing
Concentrated (niche) marketing
Micromarketing (local or individual)
Shampoo
Shampoo for dry hair, long hair etc
Shampoo with natural ingredients
Hair salons
Company Company Company

Choosing a Target Marketing Strategy
Considerations include:
Company resources
The degree of product variability
Product’s life-cycle stage
Market variability
Competitors’ marketing strategies

Positioning
Positioning
The term 'positioning' refers to the consumer's perception of a product or service in relation to its competitors.
Positioning is all about 'perception'.
Perception differs from person to person, market to market
e.g what you perceive as quality, value for money, etc, is different to my perception

Identifying possible competitive advantages
Differentiation can be based on
Products
Services
Channels
People
Image
Differentiators

Which differences make for a competitive advantage?
Criteria include
Important
Distinctive
Superior
Communicable
Preemptive
Affordable
Profitable
Choosing the right competitive advantage
Competitive Advantage

Value propositions represent the full positioning of the brand
Possible value propositions:
Saves Money, Effort, Time
More for More
More for the Same
More for Less
The Same for Less
Less for Much Less
Choosing a positioning strategy
Value Proposition

Choosing the channel
Choose the right sales channels
Direct sales, Online sales, Distributors/ VARs
Alliance marketing
Technology alliances, product alliances
GTM partnerships
Align with complementary brands for joint go-to-market

Sales vs Marketing
Sales
Individual influence on buyer
Knows the customer and their specific pain points
Initiates, manages and closes the sale
Funnels ground knowledge of customer needs, competitor offerings to help marketing in better product management and value articulation
Marketing
Collective influence on the buyer segment
Knows the customer segment, their ecoystem of influence and what their collective pain points are
Reduces time and cost of sale through effective product/ service differentiation and value articulation
Helps command a price premium through effective brand management

Product->Solution
Promotion->Information
Price->Value
Placement->Access
The four elements of the SIVA model are:
Solution: How appropriate is the solution to the customer's problem/need?
Information: Does the customer know about the solution? If so, how and from whom do they know enough to let them make a buying decision?
Value: Does the customer know the value of the transaction, what it will cost, what are the benefits, what might they have to sacrifice, what will be their reward?
Access: Where can the customer find the solution? How easily/ locally/ remotely can they buy it and take delivery?
The SIVA Framework

The existing space, occupied by firms is called the red ocean – because the competition makes it “bloody”
The blue ocean, on the other hand:
is unexplored territory
has wider scope
has greater potential
can offer cost reduction and value adds
relies on the “value-add” theory
The Blue Ocean Strategy

Core and Extended Product
Core product – what direct need does it meet?
Extended product – what psychological need does it meet
Core product: MP3 Player Extended product: Lifestyle product, style icon, in-with-the-times

Working the ecosystem
Identifying your unique ecosystem helps you maximize touch points, improve effectiveness and reduce cost of outreach
Leverage existing partnerships, relationships and best practices
Advocates Alliance Marketing, Awards and Rankings, Industry associations Social Channels Advisory Boards, Customer council and forums, Employee branding, Blogs, Facebook Marketing Channels Demand generation, industry events Promotions, Brand programs Direct marketing Thought Leadership White papers, Points of view, Speaking opps, research, academic partnerships Expert Channels Financial and industry Analysts, Media & Deal advisors

Sample Ecosystem - Helpdesk IDC Yankee Ovum Forrester Gartner Silicon techtarget Forrester HDI Annual conference TechTarget ITIM blog EMA Gartner symposium CIO Gartner Datamonitor PacRim Services and support professionals association Network world It Toolbox Butler Group Frost and sullivan customer contact HDI, Americas and Europe Computer world Techrepublic AMR Research IT EXPO ITIM Association Informationweek Datamation Aberdeen Group ITIM conference Forums/ Associations Media/ Journalists Blogs Analysts Target Events

Sample Themes - Helpdesk
Help desk optimization
Help desk to strategic service desks
Smart service desk management - leveraging knowledge base
Help desks - from supporting to partnering
Smart service desk - Lowering TCO
Tools, people, process - delivering collaborative service desks

Why thought leadership?
Because customers now control the buying process

Simple. Because your customers are looking for it
And 4 of the top 5 effective marketing vehicles AS RANKED BY CUSTOMERS have to do with thought leadership

And customers pay a lot of attention to thought leadership

Customers will even read junk mail if the message or idea is compelling

What thought leadership marketing delivers
Moving beyond being just a cost player with your customer
Building a strong brand – thereby helping you cut cost/ time of sale
Increasing Marketing’s Business Impact
Improving Competitive Positioning and Differentiation
Implementing Demand Generation Tactics that Work
Sharpening Marketing’s Edge

The Thought Leadership Ecosystem
1/3 rd of organizations don’t have a thought leadership strategy and another 1/3 rd don’t communicate it
Identifying your unique ecosystem helps you maximize touch points, improve effectiveness and reduce cost of outreach
Next practices – joint thought leadership with clients, customer councils
Thought Leadership Creation Build in-depth research and compelling content around the identified topics Thought Leadership Partnerships Identify the right fit partners for joint research and papers with academia and partners Thought Leadership Dissemination Distribution of papers, PPTs, webinars and podcasts though paid and unpaid channels Thought Leadership Repurposing Convert the content into webinars, Podcasts, speaking opps, etc Niche Identification and Positioning Identify the unique space you should occupy in the Thought Leadership space

When Should You Start Marketing? Pre-launch PR, test marketing Launch, building partnerships/ channels, free trials, offers New features, product upgrades/ versions, brand and awareness building (events, tradeshows), co-marketing Customer loyalty, referral marketing, PR, communities/ user groups, initiate corporate branding Move from product to company branding, price wars, mover customers to new product lines

The law of leadership: Is there a category where you can be the first/ only/ #1?
First indigenous car, First small car
The law of mindshare and perception: It is important where you are in your customer’s mind and how he/ she perceives your product/ service
Santro – modern, Korean, smart, Shah Rukh, Fuel efficient, good service
Indica – indigenous, diesel, taxi, car from a truck maker, not refined
Jack Trout and Al Ries’ ‘Immutable Laws’

The law of focus and exclusivity: What is the one word you own in the prospect’s mind?
Hamam – family soap
Pepsi – drink for Gen-Y
The law of division: Lead a category or create a division
Mobile phones> Music phones/ Biz (email/ internet) phones/ Touch screen phones

The law of singularity: What is that one thing you do really well? Don’t push your luck…
Lifebuoy> Germ-killer or beauty soap?
The law of acceleration: Ride a trend, not a fad
Sugarfree vs Pro-biotic

The law of resources: What kind of resources are you putting behind your product?
Money
Time
Partnerships
Working the ecosystem

Blogs
Communities/ forums
Industry associations
Analysts, influencers
Speaking opportunities
Awards/ rankings
Targeted ‘low cost’ marketing
Alliance marketing
Co-marketing
Pay-for-performance marketing tools
Zero-cost Tools

Global Survey by the CMO Council and BCG involving over 1000 marketeers and sales leaders
Only 6 percent of marketers rated their go-to-market capabilities as "extremely good,"
Another 27 percent rate themselves as "quite effective."
Sales executives also provided notably low self-assessments, with only 6 percent giving their go-to-market capabilities the highest marks and 29 percent calling themselves "quite effective.“
Go-to-Market is still evolving

Short-Term over Long-Term: Most of the executives surveyed said they were focused on selling effectiveness and account management (43 percent), while placing less importance on longer-term capabilities such as customer-data capture, integration, mining, and warehousing (15 percent). Improvements in channel management (14 percent) or multifunctional selling teams (11 percent) also ranked relatively lower
Resting on the "Tried and True": Companies appear to be relying on traditional metrics such as revenue growth (85 percent), acquisition and retention (53 percent), market share (49 percent), and margin improvement (47 percent) for evaluating go-to-market performance. Input and insight from consumers, as well as from the channel, are lower on the list of priorities.
Go-to-Market is still evolving

Ideal Go-to-Market Framework

Go-to-market checklist
Clarify the opportunity
Sharpen value propositions
Engage the entire organization
Develop sharp marketing programs
Build on initial success – Testimonials
Build a strong sales support mechanism
Constantly measure
CONQUER THE MARKET

Risk Management Product
Everyone needs risk management
Risk Management beyond the bell-curve
Ecosystem
Non conventional distribution channels
Blogs and communities
Evaluation copies to experts
Tie-up with Amazon
Tie up with CPA institutes
PR – more accurate event predictions
Case study

[email_address] http://cmoaxis.blogspot.com Thank You

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From product creation to marketplace creation - How Indian product companies can create 46th NASSCOM Friday's 2.0 sessio

by NASSCOM EMERGE Forum on Apr 18, 2009

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From product creation to marketplace creation - How Indian product companies can create 46th NASSCOM Friday’s 2.0 sessio — Presentation Transcript