Day 2 Morning - Select And Target Market Segments Corien Kershey

Technical Entrepreneurship “ Select and Target Market Segments” Corien Kershey HBS Marketing

Topics

Segment the Market

Create Segment Profiles

Identify Critical Flaws

Assess Variables

Select Target Segment

Segmentation Divides Markets into Addressable Chunks

Segmentation separates potential customers into groups according to different buying criteria

Mobile Knowledge does not address all possible uses of GPS

They focus on managing taxicab resources

Cadence did not address all possible uses of high-end graphic design

They focus on semi-conductor design tools

Corel tried to address everybody when they bought WordPerfect

They failed.

Target Segment is The Chunk That You Can Dominate

A startup has a much better chance of success if it focuses on a single, unserved segment that they can dominate fast

The target segment is the one that gives you the best chance to dominate

Corel built success on delivering easy-to-use graphics tools to the home-user segment

MOSAID built success by designing custom semi chips for the home electronics manufacturer segment

DELL built success by selling computers to the price-sensitive and convenience-sensitive home/home business market

These were unserved or underserved segments before

Of all the possible segments that were available, these came out on top after analysis of qualifying criteria

Choosing a Target Segment is Critical to Success

In general, studies show that between 70% and 90% of all high-tech startups will fail in the first two years

Most startup technologies and products fail as a result of poor segmentation and targeting practices

Good Knowledge of the Market and Single-Minded Focus are the Number One Reasons for Startup Success

Ready, Fire, Aim Doesn’t Work

Most common start-up error is to attack a number of segments to see which will work best

No “whole product” is ever delivered to one market

Resources are distributed among too many segments and sales, marketing, development is done poorly

No segment can be dominated fast

Defenses are weak and competitors can breach the segment walls easily

Early adopters/innovators do not mirror the thinking of pragmatists

Beachhead Approach Secures Dominant Segment Position

Focus limited resources to establish leadership in a single segment

Gives strategic sales direction even in the very early market

Leadership in a single segment helps build credibility with

Analysts and media

Financiers

Hard-core pragmatists

Employees

Board

High tech buyers prefer to buy from segment leaders

Reduces the risk of failure – go find another beach

Much better chance of being first in the “mind”

Moore’s Chasm Model Illustrates Startup Challenge Early Adopters Chasm Pragmatists on Main Street Beachhead Bowling Alley Early Majority Late Majority Laggards Tornado Applies to product categories, NOT to companies Each stage requires a different approach to segmentation

Seven Steps to Successful Segmentation for Startups

Step 1: Determine where you really are within the startup life cycle.

Step 2: Regardless of Step 1, create as broad a definition of an addressable market as possible and then break it down in to all possible sub-segments

Step 3: Create customers profiles for all remaining sub-segments

Step 4: Assess profiles again critical flaws criteria and eliminate those that fail

Step 5: Assess remaining profiles against selection variables continuously until top segment remains

Step 6: Test target segment against SWOT and performance goals

Step 7: If no segment apparent, repeat process

Step 1: Find Where You Are Relative to the Chasm to Determine Segment Strategy Chasm Atomized Segmentation for Innovators Concentrated Segmentation for Beachhead Differentiated Segmentation for Bowling Alley

Three-Step Segmentation Strategy Helps Startups Succeed Time Mix 1 Mix 3 Mix 2 Segment 1 Segment 2 Segment 3 Differentiated Marketing – bowling alley, pragmatists, maturing Company Marketing Mix Segment 1 Segment 2 Segment 3 Concentrated Marketing – startup, beachhead strategy Company Marketing Mix Customer 1 Customer 2 Customer 3 Atomized Marketing – early adopters and innovators – true 1-to-1 marketing

Characteristics of Early Adopter Market

New technology with first product still in development or at early Release 1.0 stage

Angel, seed or small first round financial situation

No customers or small set distributed widely across different vertical or horizontal markets

Sales are growing

Buyers are technology people within customer organizations

Product “story” revolves around the “coolness” of the technology

Sales-led with no marketing communications effort

Characteristics of the Chasm

Sales growth has slowed

Starting to see some competition perhaps

Sales asking for constant product changes to close deals

Prospective customers fail to understand the product’s “technology” story

Additional early adopter buyers are not coalescing around any particular vertical or horizontal market

Additional financing is often proving difficult to obtain

Often many partners and resellers signed up but little or no results

Product management struggling to identify product roadmap and technology roadmap

Step 2: Define the Total Addressable Market and Then Narrow Down

Brainstorm the possible broad applications for your technology

Build hierarchies for each one until you have multiple “application trees”

Vertical waterfalls

Cross-horizontal segments – vertical cuts on horizontal technologies

Suppliers and channels

Think in terms of the buyer, NOT the organization

Layer reasonably but go at least four deep if possible

Some technologies will have many applications: others will have a more limited application scope

Good Segmentation Narrows the Focus and Leverages Resources Anyone Who Needs to Locate Anything that Moves and that is Big Enough to Carry a Receiver and That is Outside for Any Length of Time GPS Segmentation Example Vehicles People Animals Cargo Icebergs Trailers Planes Cars Rail Cars Earth Movers Ships Livestock PressTank Tankers Dry Cargo Reefers Container Freezer Refridge High Perish Low Perish Flowers Produce Meat Indies Carriers Corporates

Topics

Segment the Market

Assess Variables

Upon completion

You will know about

Using customer profiles to understand segments

You will know how

To create a profile of a typical customer in a segment

To determine the customer’s pain point

To create a before/after picture of the customer’s pain after adopting your solution

To focus on the customer as an individual rather than as a company

To determine the potential value of your solution to the customer and the segment

To group segments into related segments

You Can’t Really Know What the Beach Looks Like Till You Get There

Beachheads have no ‘hard data’

Company has little or no experience with the beachhead target segment

No similar products are serving that segment

No credibility with which to gain information directly from pragmatists in segment

Innovators/early adopters are different from pragmatists and cannot be used as models

High-level market size projections are generally untrustworthy and erroneous

Step 3: Create Multiple Target Customer Profiles

In most startups, the product is looking for a target segment

Usually begun with a technology bias

Were this not true, far fewer startups would fail

With little useful and specific market data available, turn to building a profile of the potential customer

“informed intuition” rather than “analytical reason”

Be wide and ranging in your approach

Current early adopters, lost deals, profiles in related categories, your own experience, ask friends and family for ideas, brainstorm

Define the Prospect’s Current Problem with These Questions

What problem causes the pain or frustration? Sketch a scenario in which the customer attempts a task and feels pain as a result.

How does the customer try to cope with the problem now?

What is causing the problem? What is interfering with a speedy solution? What goes wrong and why?

How much money is the customer losing, either in additional costs or lost revenue? Quantify the pain.

Who is the individual who feels the pain first and how does it “waterfall” up or down?

Who else feels the pain? The customer’s customers? Suppliers? Partners? Investors?

Profile Example – Pain Scenario Frustration Point Costs Current Solution Stakeholders Cause Pain Solution Fleet mgrs misplace 5% of loaded produce reefers due to admin and driver problems Avg. value of lost or spoiled cargo is $250K -- $12 million total for avg carrier + high ins. rate Insurance pays 75% of value and rest is written off as tax loss Produce distributors; supermarket owners; truck drivers; insurance company; carriers Many trailers being managed at once: Inadequate admin techniques; careless reporting by drivers; late loads Characteristic

Align Your Product to Their Problems With These Questions

Define the customer’s changed situation

How does the customer approach the task differently?

Is the pain removed or is it lessened. For whom?

Are new problems introduced as a result of your solution?

Is your solution better than any other way the customer had of solving the problem? Why?

How does your solution remove the pain?

How much money will the customer gain as result of your solution, either as cost savings or increased revenues?

Can you determine a time frame for payback?

Profile Example – Solution Scenario Frustration point Costs Stakeholders Cause Pain Solution Fleet mgrs misplace 5% of loaded produce reefers due to admin and driver problems every year Avg. value of lost or spoiled cargo is $250K -- $12 million total for avg carrier + high ins. rate Insurance pays 75% of value and rest is written off as tax loss Produce distributors; supermarket owners; truck drivers; insurance company; carriers Many trailers being managed at once: Inadequate admin techniques; careless reporting by drivers; late loads By using GPS, fleet mgrs can locate trailers before cargo spoils Cost for avg carrier including services is $3 million, providing customer payback in one quarter and savings of $10.5 M/yr Problem is solved easily Current solution Distributors incented to use GPS-able carriers; driver morale improves; insurance easier and cheaper to get; insurance push? Root causes difficult to eradicate cause based on human error: GPS-enabling solves problem faster and cheaper than changing behaviours Characteristic

Create Groups According to Similarities

Be creative and open in building profiles

BUT

Unless you have unlimited time and money, rationalize all the profiles into segment groups

Out of 50 or so profiles, about 10 segments will likely coalesce

Look for key similarities

Vertical markets

Common problems and pain points

Similar economic impacts

Similar groups of users

Topics

Segment the Market

Assess Variables

Upon completion

You will know about

What the binary criteria are for success in a segment

You will know how

To assess segment customer profiles against each criteria

To eliminate immediately segments in which you stand little chance of success

Step 4: Assess Profiles Against Critical Flaws

Assess each profile against 5 key criteria that can “make or break” your chance of succeeding in that segment

Ask and answer a series of questions and rate the answers on a binary scale of yes or no. Include a sentence or two on why.

Eliminate any that fail and set aside all related segments

Do They Have a Reason to Buy?

You may think it’s great, but will the customer?

Is the financial impact of the problem severe enough to drive the need of a solution

There are lots of problems that pragmatists will live with rather than take a risk that could have worse consequences

Of all possible ways of solving the problem, is yours the obvious choice from the point of view of

Total cost – including “whole product,” installation, services, training and adoption costs

Speed to implement

Ease of use and adoption

Maintenance and support

Stability of technology and company

What Do They Actually Need to Buy to Solve the Problem?

Is it practical to deliver the “whole product”?

Do you have the right partners to deliver the “whole” product?

How well established are those partnerships?

Can you establish the right partners and be productive with them in the time frame needed to enter and dominate that segment early and fast?

Who do you need to partner with and is it reasonable to assume that they will come on board with you?

Who Else Can They Buy From?

Has someone else beat you to the beachhead?

If yes, reconsider or develop a second-entry strategy

Are there barriers to entry that protect you in that segment for sufficient time?

Are there players in related product categories that can move into your space quickly?

Is there potential confusion among categories within similar segments?

Is the segment characterized by a “single vendor” approach?

Can They Buy?

Does the segment have a ‘target customer’ who has buying power?

Is there a single person who feels the most pain?

Is that pain tied to revenue loss or additional costs?

Does the buyer have a budget for the “whole” product?

Is the financial pain felt by someone with buying authority?

Trying to fix bad segmentation with smart selling doesn’t work

Lots of effort spent identifying and winning sponsors and champions

Endlessly long sales cycle

Uncommitted budgets

Uncommitted management ready to cut projects on a whim

Binary Answers to Critical Flaw Criteria Criteria Yes No Reason Segment: Produce Reefer Location for Carrier Companies Compelling reason to buy √ 5% of trailers misplaced, 3% stolen Carrier liable for both, loss per avg. $275K/yr; customers punish carriers with high loss Deliver whole product √ Make entire receiver; partnership with mounting and antenn partners; have installation partners Buyer with economic power √ Risk managers and CFO feel greatest financial pain; drivers docked for misplacement No competition Cell-based communications services provide GPS within acceptable margin of error where service available √

Topics

Segment the Market

Assess Variables

Assess Variables

Upon completion,

You will know about

What assessment variables are important to selecting a target segment beachhead

How each of those variables can affect your success

You will know how

To rate each customer segment profile against the assessment variables

To determine your ability to overcome shortcomings or change your ability to satisfy the requirement

At What Price Will They Buy At?

Can you deliver the “whole product” at a price that is consistent with the segment’s budgets?

Is the price commensurate with the customer’s financial loss?

Is there enough margin in the price to ensure all levels in the channel are adequately compensated?

Can you deliver the “whole product” at a price that will win share rapidly without going under?

How Are They Going to Buy?

Do you have the right sales channel to reach that segment?

If not, can you establish timely relationships with the right channel partners/

Do you have any expertise with the segment or the dominant vertical in the segment?

Do you have or can you obtain someone with the right rolodex to take you into the segment quickly?

Can you compensate everyone in the channel sufficiently to keep their interest and loyalty?

Why Should They Buy From You?

Is the segment reachable?

Is there a set of communication vehicles that can reach them?

Do you have the resources to market adequately?

Will the channel participate in tactical marketing?

Do you have any credibility with this segment?

Can you deliver a “whole product” and can you commit to it?

Can you build credibility fast enough to hold back bigger players in associated product categories?

Can you talk their talk?

Is the Segment Small Enough?

Large segments are usually heavy with competition

Choose a segment that is small enough for you to penetrate to a critical mass and dominate

This means capturing 50% of market share measured as dollars and units

Can you capture 50% with the resources available to you?

Can you service 50% without burning out?

Choose a segment that is large enough to meet your revenue projections

If 50% of the segment won’t meet forecast, dump it

Will the Segment Survive?

Is the segment at risk for its own survival?

Are there signals that the segment is failing in terms of

Product category adoption rates growing or failing

Financial stability

Competitive saturation

Can you estimate the remaining lifespan of the segment?

Does the segment exhibit innovation characteristics or is it know for technological conservatism?

Can You Identify Lead Customers?

Does the segment have identified buyers who have a history of innovation and early adoption?

Have they deployed their early buys or kept them in the lab?

Do they have the support of their organizations?

Have they a history of championing early technologies publicly?

Is there one or two organizations that feel the pain more acutely?

Will they participate in the design, development, test process?

Are they open to an over-time payment model?

Do they have credibility among potential investors?

Are There Adjacent Segments That You Can Jump To?

Beachhead segment is the “head pin” in the bowling alley

What close segments are a natural segue? Refer back to the application trees.

Are they likely to still be available?

At what point can you begin to attack the next segment?

Are there enough close segments to achieve breakeven and profitability over time?

Step 5: Rate Remaining Segments According to Variables

Rank each variable on a scale of one to five

Rank all segments and eliminate weakest 50%

Use totals as an overall indication

Weight variables according to your flexibility or ability to change your situation

e.g. software has much more flexibility on pricing

e.g. no existing channels but ability to establish the right partnerships

e.g. offered technology will increase segment stability

Repeat ranking exercise until top one or two segments revealed

Ranking Example Segment: Produce Reefer Location for Carrier Companies Criteria Rank Weight Reason 2 Channels Price Final Segment Size Innovators 5 4 No established price, dev is capitalized, direct sales, 90% software margin, 1 year runway 4 3 4 Preferred direct model, upfront cost high, greater risk, no proliferation, total control 3 2 3 2 4 3 Segment size large to achieve 50% penetration and domination; no ability to change; potential to narrow segment Trucking industry conservative; satellite technology accepted; 2 known innovative risk managers Totals 11 14 14

Topics

Segment the Market

Assess Variables

Select a Target Segment

Upon completion,

You will know about

The final four tests before selecting a beachhead

The importance of a SWOT analysis

The importance of a financial goal

The importance of performance goals

The importance of assessing risk of failure

You will know how

To apply a SWOT analysis to the target segment

To establish performance goals

Step 6: Rate Final Segment Against Final Criteria – Can You Win It?

Undergo a SWOT exercise in relation to segment

Involve all internal stakeholders and decision makers

Rate chances of success against corporate weaknesses and strengths

Assess segment honestly against core competencies

Technology bias

Marketing ability

R&D ability

Build one and two year financial models to assess revenue potential, profitability, share, growth

Can you live with the risk of failure

What is the cost of failure?

Can the company survive?

Establish Performance Goals

Set in quantifiable measures

Define the performance dimension e.g. absolute share, increase in share, revenue

Define the index – units, dollars, percentage

Target – 50% share, $1 million in revenue, breakeven

Time – within a year, a quarter, a month

Ensure that goals are compatible and not mutually exclusive

High share goals do not live with high profitability

High revenue goals do not live with short time frames

Taking competitor’s share does not live with increased penetration

And the Winner Is!!

Critical that everyone buys in

Deal with subversion early and quickly

Promote a “disagree and commit” philosophy

Establish short-term tactical goals to ensure meeting overall product performance and corporate goals

Begin planning for the next segment as you attack the beachhead

Understand sooner rather than later your next steps should you win

And should you lose

Speed is critical to keep competition at bay and win mindshare and real share

Technical Entrepreneurship “Positioning to Win ” Corien Kershey

Topics

Find your positioning platform

Create a positioning statement

Establish a branding platform

Slide

Find Your Positioning Platform

Upon completion,

You will know about

What positioning is

Why positioning is critical to your success

The six rules of positioning

The seven steps to successful positioning

You will know how to

Determine the important attributes to your customers

Map your ability to “own” an attribute and defend it

Select one or two key attributes on which to build a positioning and branding program

Slide

Brand is a Contract and Guarantee

Position is the single attribute that your customers will identify you and your products by

Brand is the psychological contract between you and the buyer that you will always deliver the expected attribute in return for the expected price.

Position Locates Your Product in the Customer’s Mind

Marketing is a battle of perceptions, not products

What the customer thinks is the only reality that matters

Superior technology alone will not win

Positioning determines how your customers perceive you in relation to your competitors

Good positioning focuses on one key attribute that is important to your target segment

Think of positioning as placing your product on a two-dimensional plan in relation to your competitors

Positioning is Placing Yourself in the Customers’ Mind Mercedes + Lincoln + Cadillac + Volvo + Porsche + Lexus + Nissan + Honda + Acura + BMW + Saab + Toyota + Chevrolet + Dodge + Ford + Plymouth + Hyundai + Chrysler + Buick + Sporty Conservative Low Cost Affordable Expensive High End

Branding is the Consistent Expression of Your Position

Branding is NOT just colours, logos and taglines

Good branding is ensuring that everything that the customer experiences about your product is consistent with the position

Price

Quality

Delivery system and sales approach

Advertising and marcomm messaging

Customer service

Product functionality and specifications

Good branding also creates a look for your product that is immediately identifiable and immediately evokes the position (values and attributes) that you claim

Brand Equity is Your Most Valuable Asset

Brand equity builds brand loyalty

Builds profitable repeat customers

Protects market share

Protects profit margins

Directs innovation and technology/product direction

Provides a definable market that can be addressed with given resources

Makes it easier to measure yourself against competitors

More defendable than most IP

Well-defended positions are difficult to steal

For most companies, owning a clear and defendable market through a clear position is more valuable and attainable than patent protection – patents don’t force people to buy

Nine Rules Govern Positioning and Branding

You MUST be able to deliver the promised position

Be the first in the mind with your attribute in your product category

You cannot claim an attribute that another product owns

Do not claim an attribute that is not important to your customers

Only claim an attribute that you can competitively defend

You must always defend your position and your attribute

You can only position relative to your competitors

Communicate your position through consistent branding

Good positioning is a long-term commitment and requires inflexibility

Eight Step Process to Establish Position and Brand

Step 1: Identify the target segment

Step 2: List all the critical attributes important to the target

segment

Step 3: Establish and map your ability and those of your competitors to deliver those attributes

Step 4: Identify and map your competitor’s ability to deliver and to attack your advantage

Step 5: Create three positioning statements

Step 6: Select the position that provides the greatest focus

Step 7: Select an execution approach based on six techniques

Step 8: Establish and execute a branding plan

Step 1: Target Segment Defines Positioning Options

A startup has a much better chance of success if it focuses on a single, unserved segment that they can dominate fast

The right target segment is the one that gives you the best chance to dominate given available resources

The right target segment delivers clear customer wants and needs

Step 2: Define the Prospect’s Important Needs – Do Research

What is the target customer’s main problem?

What are the two or three most important benefits that the target customer will seek from your solution?

How much money is the customer losing, either in additional costs or lost revenue? Quantify the pain

How important is cost relative to all other attributes?

How much of the prospect’s personal reputation and feelings are tied up in the problem and its solution?

Are you solving a problem that is on their priority list?

Step 3: Establish Ability to Satisfy Attributes – Can You Walk the Talk?

Examine your own ability to satisfy various key attributes.

Price vs. quality/functionality

Ability to innovate quickly

Customer service provisioning

Distribution and delivery systems

Choice and selection

Outreach capabilities

Current position or brand identity

Determine what attributes you have strong capabilities in

Determine your strength in the key attributes that you identified within the target segment

Step 4: Understand the Position that Your Competitors Occupy

You have competitors. If you think you don’t, you’re not thinking broadly enough

Competitors can come from any quarter

Suppliers

Home Depot is fighting Black and Decker’s decision to sell directly on the Internet

Franchisees

Sealy was taken over by an alliance of powerful licensees

Distributors

Pubs who run microbreweries compete directly with the big brands that they distribute

Big brand foods must compete directly with their distributor’s label, President’s Choice

Customers

IBM was Microsoft’s major customer. ‘nuff said. Works both ways!

Apathy

The problem you’re solving is not on my top 100-list so come back in 5 years

It’s Not About Where to Compete: It’s About HOW to Compete

Phenomenon occurs in companies and industries called isomorphism in which competitors execute the same strategies at the same time

All roll out the same products at the same time

All use the same type of messages and focus on the same attributes

No one is first in the mind, no one promotes the product category

The market is confused and locked in fear

Map competitors in their relative positions to

Look for gaps in positioning among potential competitors

Understand relative market share to assess probable winners and losers

Avoid isomorphism, the tendency for competitors to act together

Profile Current Attributes and Competitors Competitive Choices Key Attributes Yes Yes Yes Yes Yes Yes Yes Newco Using GPS No Yes Yes No Yes No No Current truck satellite comms No No Yes Yes No No No Landline Phone in No No Yes Yes No No Yes Cell phones Three-month ROI Fixed Cost Technical Reliability Single Supplier Crossborder Ease Customer Access Ease of Use

Overlay Defendability of Attributes Against Competitors For One Year Competitive Choices Key Attributes YES NO Yes Yes NO YES YES Newco Using Mobile Satellite No Yes Yes No Yes No No Current truck satellite comms No No Yes Yes No No No Landline Phone in No No Yes Yes No No Yes Cell phones Three-month ROI Fixed Cost Technical Reliability Single Supplier Crossborder Ease Customer Access Ease of Use

Map Each Attribute by Relative Competitive Strength and Importance Least Important Most Important Attribute Ease of Use Cust. Access Crossborder Single supply Reliability Fixed cost 3-mnth ROI 10 N N N N N N N C C C C C C C L L L L L L L S S S S S S S Worst 1 2 3 5 4 6 7 8 9 Competitive Rating Best 0 6 5 10 7 8 9 2 3 4 1

Topics

Slide

Create a Positioning Statement

Upon completion,

You will know about

Positioning statements

The two main positioning techniques

The six techniques for executing positioning and building brand

You will know how to

Select a positioning technique

Articulate a positioning statement

Assess the right position technique

Step 5: Create Three Positioning Statements

A brief articulation of what

Your product is

For whom it is targeted

The benefit that it delivers

Focus on preparing three positioning statements:

A statement that targets product advantage

A statement that stresses target segment benefits

A statement that takes aim at competitor’s weaknesses

Must form the first sentence of your “elevator” pitch

Must be simple enough at least for the target segment to understand in a sales context

Must be simple enough for the financial community to understand

Two Main Positioning Methods: Rational and Emotional

Rational works best for high-technology/b-to-b market

Rational works best for start-ups

Tied to hard benefits

Appeals to early majority markets/pragmatists

Results-oriented or quantifiable

Emotional positioning better suited to consumer products or to large companies

IBM positions on Fear, Uncertainty and Doubt

Apple positions on the “personality” of the Apple user

HP positions on expressing “personal imagination”

Be aware that there is always an emotional side effect when using rational positioning – you are talking to people, not computers

Step 6: Try Each On For Size and Select by Ability to Focus

Use the Pitch Formula to help structure you statement

You must include Product Name, Specific Buyer or Target Segment, Compelling Advantage or Benefit and Price/Value Statement

Product advantage or attribute

Premium-priced FuseTalk is the only discussion forum with the reliability and scalability to ensure that high-volume sites stay accessible

Target market benefit

Premium-priced FuseTalk is for support managers who need to reduce the cost of non-complex support calls by offering service through a discussion forum platform

Competitive weakness

Unlike other discussion forum platforms, premium-priced FuseTalk offers high-volume site managers the reliability and scalability that they need.

Step 7: Select an Execution Approach Based on Six Techniques

Once the statement is clear, it’s time to determine how to articulate it in a believable, compelling and sustainable way

Six main techniques for building a positioning execution plan

Product advantage, attribute or benefit

Users of your product

Occasions of use

Against an existing product category

Against a specific competitor

Association

A specific target market problem

Position by Product Benefit or Attribute

Very common in technology and startup positioning

Focus on the product or technology benefit has a high appeal both to early adopters and pragmatists

Price tied closely to benefit or attribute

FuseTalk is the most reliable and scalable mid-priced discussion forum platform available for high-volume sites.

Position by Users of Your Product

Also common in technology and startup positioning

Appeals directly to sense of personal value and convenience

Beautifully executed by IBM – leverage the fear and uncertainty of IT managers if they can’t deliver on ambitious corporate plans

FuseTalk never crashes – and so you never have to crawl from your warm bed after you do.

Position by Occasions of Use

Not common in technology and startup positioning

Tends to appeal at an emotional level

Crosses over into “user” positioning because of its emotional approach

Can be successfully used as a “carrot” or “snob” technique

Scalable and reliable FuseTalk, the right discussion forum for when you hit that magic 1 million users mark!

Position Against an Existing Product Category

The technique of choice for startups who need to be first in a new product category

Usually creates a new sub-category within a larger category or splits a category

Very dependent on good segmentation

Focuses on a key attribute and then creates the new category – the product comes second

FuseTalk, the leading high-volume discussion forum platform specifically for high volume sites.

Position Against a Specific Competitor

DOES NOT involve product comparisons

DOES involve repositioning existing competitor

Focuses on a key competitor weakness that the competitor cannot easily fix

A very effective second-entry strategy

Not effective against much larger competitors – use new product category positioning technique instead

Can be very expensive unless you focus in a very narrow market against a specific competitor

90% of UBB’s customers have less than 1000 visitors a day. 90% of FuseTalk’s have over 1 million visitors a day. Who would you trust your forums to?

Position By Association

Effective if you have a powerful and vocal lead customer, endorsement by a key industry group or a compelling spokesperson

Also works when associated with images, places, events

Marlboro’s association with cowboys and the wild West is a classic and enduring use of association

Requires a long-term consistent program to make the right impact

Has an emotional component

Macromedia chose FuseTalk to run their online support. Shouldn’t you?

Position by Problem

Common high technology and startup technique

Tied to a specific problem and proposes a clear benefit

Gives the advantage of a very clear position

Challenge is to ensure defendability

Focus on ROI and cost/value equation

Answering a support question by phone costs $35. Responding to a forum question costs 35 cents. Do the math. FuseTalk.

Topics

Slide

Establish a Branding Platform

Upon completion,

You will know about

The role of branding as the outward articulation of position

The components of a branding program

The key criteria for selecting a marketing agency

And you will know how to

Choose the right image for your branding

Know when your marketing agency is going wrong

Your Brand Promise

Characteristics

Definition

Step 8: Articulate Your Position Through Consistent Branding

A brand is completely meaningless if it has no positioning behind it

A brand MUST STAND FOR SOMETHING

A brand must be consistent and believable

A brand should be firm and focused – avoid the temptation to have such a broad brand that it can stand for any kind of product

A brand is a name and a visual image that immediately evokes the position that you claim and own

Elements of a Brand

Vision/mission

Positioning

Brand promise (of value)

Brand character

Brand Pyramid

Choose a Name and Logo That Matches Your Position

Your startup name and logo must

Focus on your product

Evoke your category and your benefit

Be simple, memorable and have good “decay” properties

Elicit a mental image or emotion

Have obvious meaning (e.g. avoid acronyms and meaningless groups of letters)

Have an available URL if possible

Be legally available

Avoid being cute, cool, clever or punny

Select a Name and Logo Carefully and Use Help Attributes Associations for Ease of Use Micro Mini Tiny Ant Seed Mighty Mite Small unit/ Unobtrusive Ease Peace Breathing Heartbeat No driver intervention Dependable Bee Wolf Sun Ant Fire Systems Osmosis John Henry Always working -- reliable Auto Automatic Always No action required Latin/Greco roots Qualities Natural Enviro. Objects Characters

Choose Your Help Carefully