Frugal Marketing Workshop TiE

Frugal Marketing For Startups October 22, 2009 Jessie Paul

When is frugal marketing required? 1. New business model challengers 2. Old model, new market challengers high high low low Relative Marketshare Relative Growth Rate Mature Champions Laggards Challengers Upstart brands take on brands that are larger, more established than themselves

Section 1: Conceptual Framework Building Your Brand Architecture

Think Narrow

This allows you to operate without mass media

Enables focused offerings

One-to-one communication is possible

You can own a superlative - first/largest/only - in a smaller space

www.nomoneymarketing.org

Defining Your Brand

WHO AM I?

WHY BUY ME?

WHY NOT BUY SOMEONE ELSE?

Cheese or Mousetrap? Core or Surround? People Delivery Facilities Price Country of origin Executive Management Vision Corporate Governance SURROUND Delivery Process Business Benefits Quality CORE Photo Credit: Rennett Stowe

Core vs Surround Branding Input Elements Core Service Attributes Output Impact People Elements that are directly related to service performance Service Delivery Process Delivery Facilities Price Country of origin Executive Management Vision Corporate Governance Environment Community Investor Returns Business Benefits Industry Development Surround Surround Core Quality No Money Marketing , Jessie Paul, Tata McGraw-Hill

VALUE ADDERS – CUSTOMER BENEFITS Reliability Cost savings Increased efficiency/ speed Ability to identify &/ capture new business opportunities DIFFERENTIATORS Business Optimization thro business analytics & domain knowledge TABLE STAKES SATISFICERS Physical & Data Security, Infrastructure WHO AM I? WHY BUY ME? WHY NOT BUY SOMEONE ELSE?

Infrastructure:

Telecom

Facilities

People:

Domain experts

Process experts

Framework/ Methodologies:

For process optimization

Process management

Process quality

Section 2: Why the Flat World Matters Determining Your Eco-system

Flat World Trends 1. 2. 3. The market is very small: You have a target audience of one 4. Advertising is free: But getting it is hard work Digitization, Globalization: People are buying things they cannot see The world is interconnected: Everyone is a journalist, opinion-maker and salesperson!

Marketing changes in the Flat World Individuals Interconnected Location-specific Location-independent Customers Access controlled Easily accessible At cost Free Information One way 2-way, interactive Lag Instantaneous Opt out Opt-in At cost Free Communication Old World Flat World No Money Marketing , Jessie Paul, Tata McGraw-Hill

Own your eco-system Industry Associations Analysts Consumer Reports Consulting Firms Sourcing Advisors Other Customers Journalists Expert Users Government Academics Internet Pundits Friends & Family Employees Salesperson Decision Maker

Section 3: Building Your Brand Determining the Levers and Brands

Leveraging resources for smart branding Thought Leadership PR Awards Online presence

Executive Branding

Pricing

Country of Origin

Sustainability

Channels Levers

Executive Branding Create a brand blueprint Stars are created, not born Be accessible Have a point of view Be everywhere Spend your time generously Photo Credit Jurvetson MyBo Twitter YouTube Facebook LinkedIn MySpace Barack Obama

Price as a differentiator Pricing is about perceived value Use Extreme Pricing – Either Low-cost or Premium Consumers associate high prices with high quality Pricing depends on ability to experiment

Lever: Country of Origin You can CHOOSE your home country Does your “home” add value or detract? Have you invested in relationships at home? How much of national flavour is differentiating and not overbearing? www.nomoneymarketing.org

Sustainability WIPRO All other things being equal, consumers would prefer a “green” offering Regulations will drive greener practices Partners Community Customers Suppliers Employees Bio-diversity Waste Water Energy

Leveraging resources for smart branding Thought Leadership PR Awards Online presence

Executive Branding

Pricing

Country of Origin

Sustainability

Channels Levers

Thought Leadership Analysts Customers Journalists Expert Users Employees Salesperson Thought Leadership Useful information on latest trends and how it affects them Door-opener to have a non-sales business discussion with a prospect Reassurance that their organization is on the cutting-edge Current developments that can trigger exclusive stories Information on how the latest trends can benefit their business Allows an intellectual dialogue on recent developments

PR Be contrarian Be different in the context Use controversies Personal touch Information is cheap. Insight is rare. Swiss Spaghetti Harvest BBC Panorama, April 1, 1957

Awards Awards add credibility Win awards Give awards

Online Media Everyone can be a broadcaster. Free. Build a hub-and-spoke model You can’t always “own”. Rent. Instant responses. Everyone can have an opinion. Trust is the differentiator. www.wipro.com Twitter YouTube Co-branded portal LinkedIn Second Life Wipro

Section 4: Conclusion Some tips and ideas for building the next superbrand

Channels: Build vs Buy

Customize mass-media to be more narrow eg “power-jackets”, IP-based targeting

Negotiate your own packages

Operate with a “mall-and-mainstreet” approach to online media

Create your own customer community

Institute an award

Globally distribute the marketing team

Move work to where it is done best

Consider “unusual” markets

Think Global www.nomoneymarketing.org

Think Interesting

Information is cheap, insight is rare

The cardinal sin in today’s world is to be boring

Do innovative stuff and you will get a disproportionate share of buzz

Source:http://scrapetv.com/News/News%20Pages/Business/Pages/Microsoft%20mulls%20name%20change%20to%20Megahard.html www.nomoneymarketing.org

5 Tips for Frugal Marketing Create Your Own Marketing Channels Insights vs Information Go Online Own the Eco-system Define your Audience Narrowly 1 2 3 4 5