Marketing Basics for Emerging and Young Businesses

© 2017 Langoor | www.langoor.com1
Marketing 101
Presented by Ruchir Punjabi

You will walk away with a framework and the basics.
You won’t know all the answers, but will know what questions to ask.
Marketing 101
TODAY IS NOT
• Advanced or sophisticated marketing
• Digital marketing in detail
TODAY IS
• Fundamentals of marketing

Sales & Marketing

Sales v/s Marketing
The purpose of marketing is to attract
attention and create interest […] in a
business or their product or service.
The purpose of sales is to convert an
interest in a product or service in to a
commitment to purchase it.
Purpose of Sales
in a Business /
Profession
Purpose of Marketing in
a Business / Profession v/s

Sales & Marketing
MarketingSales
Roles include Research, Brand Strategy, Public
Relations (Media or otherwise), Events &
Sponsorships, Content & Channels, Media
Overall revenue attribution; detailed for online
channels
Roles include Hunters, Farmers, Pre-Sales
Direct revenue attribution
Usually Complement Each Other

Sales & Marketing
Marketing and sales are equal partners in most companies
The marketing-sales relationship (% of respondents)
66.80%
13%
9.90%
7.50%
2.80%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Sales and marketing work
together on an equal level
We don't have a sales
function
Sales is in charge of
marketing
Sales is within the marketing
function
We have a sales function,
but not a marketing function
Source: The CMO Survey

Who Is Your Customer?

Know Your Customer
How well do you know your customer?
You cannot work on anything else without insights in these two buckets.
Behaviour & Sales Triggers
 They tell you one thing, they behave
differently – have you considered following
them for a day?
 Third party qualitative feedback v/s observing
behaviour
 Intent based v/s impulse based
Demographics & Generalisations
 Basics- age, gender, ethnicity
 More sophisticated – locations, net worth, job
titles
 Specific – which social or professional groups
are they part of
 Market Size

Why Does It Matter?
DEMOGRAPHICS &
GENERALISATIONS
 Google
 Facebook
 Ad Platforms
 Physical Lists
BEHAVIOUR & SALES
TRIGGERS
 Google
 Deciding where to advertise
 Marketing Collateral & Messaging
Also important to carve out your messaging, when you advertise.
What do people care about; why are you different?

How Much Should You Spend On
Marketing?

Marketing Budgets
FEW NOTES
 General avg is between
7 to 12%
 Emerging (young)
companies spend more
as % of revenue on
marketing;
 In this region (Middle
East) most of it is spent
on sales
MARKETING SPEND IS 7.5% OF COMPANY
REVENUES
Figure 3.7. Marketing Spending of Company Revenues*
8.5
11
7.9 7.8
9.3
8.3 8.3
6.6
8.4
7.5
0
2
4
6
8
10
12
12-Feb 12-Aug 13-Feb 13-Aug 14-Feb 14-Aug 15-Feb 15-Aug 16-Feb 16-Aug
%marketing Spends
Overall 7.5%
B2B Product 8.7%
B2B Service 6.0%
B2C Product 10.2%
B2C Service 6.1%
Source: The CMO Survey

Exercise: How Much Should You Spend?
What is your average transaction value?
1
What is your average gross profit (GP) per transaction?
2
What is your life time value (LTV) of one customer?
LTV = Average GP * No of transactions over 12 months or 24 months
3
How frequently do people pay you (in days)?
4

Only Two Things Matter
WHAT SHOULD BE THE OUTPUT OF YOUR ORGANISATION’S MARKETING?
Cash FlowReturn on
Investment

Cash Flow and ROI
What can you afford = Customer
Acquisition Cost (CAC) =
Sales and Marketing Budget/New
Customers Won
Ideal LTV:CAC = 3:1
Most importantly, at this stage, make
your cash back in 3 months

What Do I Spend It On?

Marketing Framework
Customer Acquisition &
Retention Optimization
Get
Traffic
 Leverage core digital marketing activities
 Brand communication
 Establish presence across channels
Engage
 Build a community
 Make Transactions Happen
 Increase revenue/customer
Retain &
Grow
 Increase customer lifetime value
 Out of the box thinking – viz. exploring
business models

Channels of Marketing
 Social Media
(Non-Paid)
 Your Website & Content
 Newsletters
 Your own Events
 Customer touch points
e.g. invoices, Point of
Sale, etc.
 Free PR
 Google Search / SEO
 Word of Mouth &
Referrals
 Google Ads
 Social Media Ads
 Paid Media (Online &
Offline)
 Affiliate Advertising
 Content Seeding
 Direct Mail
 Sponsorships & Events
 Paid PR
 Database Lists
Owned Media Earned Media Paid Media

Channel Effectiveness
Low Exposure High Exposure
Low ROI
High ROI
Mostly Paid
Media
Earned Media
More Owned,
Less Paid
Paid, Some Earned
& Owned Media
Combined

PR & Offline Channels
At this Stage
Offline Channels
Your own events to convert leads
(B2B or high-LTV B2C)
Sponsorships for B2B where you speak at events (trade
booths – may be)
Customer touch points – potentially excellent
Paid Offline Media – Avoid it at this stage – cannot
measure impact so cannot test and learn
SMS Lists – is it yours? No try for 200 AED and move on
PR
Good for employee morale, good for credibility checks,
personal ego and inner circle
Bad for lead gen or business growth

Digital Media
Long Term Investment:
 Content, content content!
 Inc. Social Media
 Search Engine Optimisation (SEO)
 Newsletters
 Data collection and segmentation
Short Term Investment /
Performance based Investment:
 Google Ads (Intent based)
 Social Media -Mostly Facebook ads
(Demographics based)
 Affiliate marketing (for consumer based
brands in e-commerce)
 Content Seeding

Pushing Limits – Agile Marketing
Where the Outcome
Will Be Tomorrow
Original Plan Agile Plan
(series of Iterative small plans)
TODAY’S VIEW OF
THE GOAL
Time
DesiredRevenueGrowth/Acquisiton

RETAIN &
GROW
ENGAGE
High-level Sample Roadmap
3 Months 3-6 Months 6-12 Months
GET
TRAFFIC
 Assess Customer Journey
 Define Strategy
 Baseline Collaterals
 Initiate SEO
 Rebuild Website
 Finalise Brand Position
 Deploy Search Engine Marketing
(SEM)
 Continue to optimise Website &
Other Relevant Assets
 Consider New Channels
 Enablement – Customers,
Employees and Influencers using
the right Channels
 Continue what works and
measure ROI
 Assess breadth of Brand touch
points
 Prioritise based on Touch points
effectiveness
 Review Social Channels and
 Consolidate
 Capture Funnel / Journey details
 Segment and Target
 Nurture by content
 Events & BTL enablement
 Initiate overall marketing
maturity program
 Educate & Empower Workforce
 Thought Leadership
 Create Re-Engagement strategy
 Build Retention Strategy
 Creative Ideas & Campaign
Generation
 Deploy Retention & Engagement
Strategy
(e.g. App?)
 Review Out of the box digital
ideas
 Move to highest degree of
marketing maturity

How Do I Know If It Is Working?

What to Monitor?
Consider free acquisitions v/s paid acquisitions
– find out how they discovered you.
Long term your brand is important!
Sales – the only metric that matters
(at this stage anyway)
Brand Performancev/s

Evaluating Competition / Benchmarketing
You don’t have to invent the wheel:
 Landing Pages: https://unbounce.com/landing-page-templates/
 Newsletter templates from range of sources: e.g. Mailchimp.com
 Google “conversion friendly website”, “effective google advertising text”, “effective social media ads” –
copy other people’s work as a starting point – try 4-5 ads and see what works
Similar Web:
www.similarweb.com
What Runs Where:
www.whatrunswhere.com
SpyFu:
www.spyfu.com
Fake followers?

Questions?
ruchir@langoor.com

Marketing Basics for Emerging and Young Businesses

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