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Strategic Marketing Fundamentals
Wilson Zehr, CEO, Cendix
wilson@cendix.com

                    April 29, 2008
Strategic Marketing Fundamentals
                Introduction
•   Competitive Pressure has never Been Greater
•   Management Expectations are High
     – Annual Growth
     – Wins/Losses
     – Visibility
•   Budgets are Tight
•   Must Do More With Less
•   Produce Results Right Away


            Strategic Marketing can Help…
                           … We’ll Show You How!

Mar-05-08                 © 2004-2008 Cendix       Slide 2
Strategic Marketing Model
            Components & Relationship


                                         Core




                                         5 P’s




                                         Positioning



Mar-05-08           © 2004-2008 Cendix                 Slide 3
Brand & Strategy
                  Align Organization, Brand, Goals
• Organizational Foundation
     –      Vision/Mission
     –      Corporate Values
     –      Goals/Objectives (short/long-term)
     –      Guiding Function
• Brand(s)
     –      Concise Description
     –      Market Segment(s)
     –      Brand Strategy
     –      Visibility
     –      Noise
• Organizational Structure
                Tune Elements to Assure Alignment
Mar-05-08                      © 2004-2008 Cendix    Slide 4
Brand & Strategy
                    Supporting Research
• Environmental Analysis
     – Industry Research, Analysis, & Trends
     – Strengths, Weaknesses, Opportunities, Threats (SWOT)
     – Competitive Analysis (significant competitors)
             • Relative size and growth
             • Pricing & positioning
             • Win/loss record
• Historical Information
     – Financial Results & Analysis (3-5 years)
     – Performance by product/segment
• Current Sales Materials
     –      Corporate brochures
     –      Product brochures
     –      Promotions
     –      Web site
         Importance Varies by Size, Stage, Market, …
Mar-05-08                             © 2004-2008 Cendix      Slide 5
Brand & Strategy
            Analytical Tools: SWOT




Mar-05-08            © 2004-2008 Cendix   Slide 6
Brand & Strategy
             Analytical Tools: SWOT

              Strengths                          Weaknesses
Internal*


              Opportunities                      Threats

External**


              * rank based on importance
              ** rank based on likelihood and consequences

Mar-05-08                   © 2004-2008 Cendix                Slide 7
Brand & Strategy
                          Hedgehog Concept




Source: Good to Great, Jim Collins, 2001


    Mar-05-08                              © 2004-2008 Cendix   Slide 8
People
                  Know Your Prospects
• Who are your customers?
           Current customers
           Target prospects
           Demographics
           Market size
•   Where is their pain?
•   When to they need to act?
•   Who is the decision maker?
•   Who are the key influencers?
•   What are their buying behaviors?


Mar-05-08                       © 2004-2008 Cendix   Slide 9
Product
             Primary Elements
• Product Benefits
• Distinctive features
• Competitive differentiation
     – Unique
     – Meaningful
     – Sustainable
• Product requirements
• Production cost
• Market window



Mar-05-08              © 2004-2008 Cendix   Slide 10
People & Product
              Synchronize


people      product

Sometimes…            Sometimes…               Ultimately…
Start with People     Start with Product       Synchronize Both

                      people         product




                                               people   product




Mar-05-08               © 2004-2008 Cendix                  Slide 11
Price
                 Three Key Factors
• Cost of Goods
• Value
      ROI (value produced – cost)/cost
            • reduce expenses
            • grow revenue
            • save time
      Personal Utility
      Intangibles
• Competition
      Comparative value
      Discounting
      Response

Mar-05-08                       © 2004-2008 Cendix   Slide 12
Place
            “Process” of Selling
                                             s
                                           ad
                                        Le
                                  a les
                              S
                                                 Prospect
 Marketing                                       Qualified Lead

 Sales                                           Opportunity

                                                 Quote

                            Orders




Mar-05-08             © 2004-2008 Cendix                       Slide 13
Place
                  Channel Selection
•   Volume
•   Price point
•   Completeness of solution
•   Complexity of sale
•   Channel choices
           Direct response
           Inside telesales
           Outside sales
           Channel partners

Channel Compatible With Product and Buying Behavior

Mar-05-08                      © 2004-2008 Cendix   Slide 14
Promotion
               Messaging Matrix

 Audience   Concerns      Message Focus                             Key Messages
CXO         Minimize      Reduce the cost of        Acme offers lower rates than onshore resources and
            Operating     getting to market with     Indian firms with greater workforce stability
            Cost          high quality product      Competitive forces require outsourcing; the blended
                                                     model and process control reduce risk and assure
                                                     high quality products
            Strategic     Become the most cost      Leverage your core team to do strategic work and use
            Advantage     effective producer in      low cost offshore resources for the routine
                          your market segment       Acme offers an army of experts on tasks that can
                                                     support the most effective use of internal talent

            Operating     Scale up or down          Acme has a staff of thousands waiting to go to work
            Flexibility   quickly based on           for you on-demand
                          business requirements     Offshore staff can be reduced without any of the
                                                     complications associated with actual employees


   Add more rows as needed                    …
   One Matrix for Each Decision Maker or Influencer

Mar-05-08                           © 2004-2008 Cendix                                            Slide 15
Promotion
             Select Optimal “Mix”
• Advertising
      Online (Web site)                     Broadcast
      Direct response                       Outdoor
      Print                                 Events
• Public Relations
• Viral
      “Word of mouth” on steroids
      Online or offline
• Other…



Mar-05-08                  © 2004-2008 Cendix             Slide 16
Promotion
                   Online: Factors to Consider
• Reach
• Active vs. Passive
• Objective
      Build rapport
      Generate leads
      Close sales
• Choose tools
           Web site               SEO/PPC
           email                  Banners
           Webinars               Blog’s/RSS
           Affiliates             newsgroups
           Articles


Mar-05-08                   © 2004-2008 Cendix   Slide 17
Promotion
               Assign Budget to “Mix”
•   Sales Collateral (3 pieces)              $ 10,000
•   Sales presentation                       $ 5,000
•   Assessment campaign                      depends on capacity
•   Speaking engagements                     time & materials
•   Web site (optimized)                     $12,000
•   SEO/PPC                                  $ 3,500 + $1,000/mo
    – Optimized press releases
    – Whitepapers (placement & linking)     content developed internally
    – Articles (placement & linking)
• Newsletter                                 $ 1,000/mo
• Webinar(s)                                 opportunistic




 Mar-05-08                    © 2004-2008 Cendix                           Slide 18
Promotion
               Formal Marketing Plan




            Assign Owners, Execute, and Track Progress!

Mar-05-08                  © 2004-2008 Cendix             Slide 19
www.cendix.com




P: (888) 889-0066                       Wilson Zehr
F: (503) 210-6479                              CEO
E: wilson@cendix.com                        Cendix
Wilson is the CEO of Cendix (www.cendix.com) the leading
              provider of Web-to-print solutions that increase sales both
              online and offline. Cendix also provides strategic and tactical
              marketing consulting services for emerging growth companies
              in the Pacific Northwest. In addition, Wilson serves on the
              faculty for the School of Management at Concordia University,
              Portland, Oregon (www.cu-portland.edu).
              Wilson Zehr has 25 years experience in high technology and
Wilson Zehr
              telecom – over a decade of experience working with Internet-
              related products and services. He has created numerous new
              products/brands and successfully brought them to market. In
              addition, he has crafted and managed strategic alliances with
              many (20+) of the largest technology and communications firms
              in the world. Mr. Zehr is a serial entrepreneur who has raised
              over $60 million from investors; returned over $160 million; and
              bought/sold a number of enterprises.
              More detailed background information on Wilson can be found
              at http://www.cendix.com/about/management.html
              References are available on request


Mar-05-08                   © 2004-2008 Cendix                          Slide 21

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Strategic Marketing Fundamentals

  • 1. Strategic Marketing Fundamentals Wilson Zehr, CEO, Cendix wilson@cendix.com April 29, 2008
  • 2. Strategic Marketing Fundamentals Introduction • Competitive Pressure has never Been Greater • Management Expectations are High – Annual Growth – Wins/Losses – Visibility • Budgets are Tight • Must Do More With Less • Produce Results Right Away Strategic Marketing can Help… … We’ll Show You How! Mar-05-08 © 2004-2008 Cendix Slide 2
  • 3. Strategic Marketing Model Components & Relationship Core 5 P’s Positioning Mar-05-08 © 2004-2008 Cendix Slide 3
  • 4. Brand & Strategy Align Organization, Brand, Goals • Organizational Foundation – Vision/Mission – Corporate Values – Goals/Objectives (short/long-term) – Guiding Function • Brand(s) – Concise Description – Market Segment(s) – Brand Strategy – Visibility – Noise • Organizational Structure Tune Elements to Assure Alignment Mar-05-08 © 2004-2008 Cendix Slide 4
  • 5. Brand & Strategy Supporting Research • Environmental Analysis – Industry Research, Analysis, & Trends – Strengths, Weaknesses, Opportunities, Threats (SWOT) – Competitive Analysis (significant competitors) • Relative size and growth • Pricing & positioning • Win/loss record • Historical Information – Financial Results & Analysis (3-5 years) – Performance by product/segment • Current Sales Materials – Corporate brochures – Product brochures – Promotions – Web site Importance Varies by Size, Stage, Market, … Mar-05-08 © 2004-2008 Cendix Slide 5
  • 6. Brand & Strategy Analytical Tools: SWOT Mar-05-08 © 2004-2008 Cendix Slide 6
  • 7. Brand & Strategy Analytical Tools: SWOT Strengths Weaknesses Internal* Opportunities Threats External** * rank based on importance ** rank based on likelihood and consequences Mar-05-08 © 2004-2008 Cendix Slide 7
  • 8. Brand & Strategy Hedgehog Concept Source: Good to Great, Jim Collins, 2001 Mar-05-08 © 2004-2008 Cendix Slide 8
  • 9. People Know Your Prospects • Who are your customers?  Current customers  Target prospects  Demographics  Market size • Where is their pain? • When to they need to act? • Who is the decision maker? • Who are the key influencers? • What are their buying behaviors? Mar-05-08 © 2004-2008 Cendix Slide 9
  • 10. Product Primary Elements • Product Benefits • Distinctive features • Competitive differentiation – Unique – Meaningful – Sustainable • Product requirements • Production cost • Market window Mar-05-08 © 2004-2008 Cendix Slide 10
  • 11. People & Product Synchronize people product Sometimes… Sometimes… Ultimately… Start with People Start with Product Synchronize Both people product people product Mar-05-08 © 2004-2008 Cendix Slide 11
  • 12. Price Three Key Factors • Cost of Goods • Value  ROI (value produced – cost)/cost • reduce expenses • grow revenue • save time  Personal Utility  Intangibles • Competition  Comparative value  Discounting  Response Mar-05-08 © 2004-2008 Cendix Slide 12
  • 13. Place “Process” of Selling s ad Le a les S Prospect Marketing Qualified Lead Sales Opportunity Quote Orders Mar-05-08 © 2004-2008 Cendix Slide 13
  • 14. Place Channel Selection • Volume • Price point • Completeness of solution • Complexity of sale • Channel choices  Direct response  Inside telesales  Outside sales  Channel partners Channel Compatible With Product and Buying Behavior Mar-05-08 © 2004-2008 Cendix Slide 14
  • 15. Promotion Messaging Matrix Audience Concerns Message Focus Key Messages CXO Minimize Reduce the cost of  Acme offers lower rates than onshore resources and Operating getting to market with Indian firms with greater workforce stability Cost high quality product  Competitive forces require outsourcing; the blended model and process control reduce risk and assure high quality products Strategic Become the most cost  Leverage your core team to do strategic work and use Advantage effective producer in low cost offshore resources for the routine your market segment  Acme offers an army of experts on tasks that can support the most effective use of internal talent Operating Scale up or down  Acme has a staff of thousands waiting to go to work Flexibility quickly based on for you on-demand business requirements  Offshore staff can be reduced without any of the complications associated with actual employees Add more rows as needed … One Matrix for Each Decision Maker or Influencer Mar-05-08 © 2004-2008 Cendix Slide 15
  • 16. Promotion Select Optimal “Mix” • Advertising  Online (Web site)  Broadcast  Direct response  Outdoor  Print  Events • Public Relations • Viral  “Word of mouth” on steroids  Online or offline • Other… Mar-05-08 © 2004-2008 Cendix Slide 16
  • 17. Promotion Online: Factors to Consider • Reach • Active vs. Passive • Objective  Build rapport  Generate leads  Close sales • Choose tools  Web site  SEO/PPC  email  Banners  Webinars  Blog’s/RSS  Affiliates  newsgroups  Articles Mar-05-08 © 2004-2008 Cendix Slide 17
  • 18. Promotion Assign Budget to “Mix” • Sales Collateral (3 pieces) $ 10,000 • Sales presentation $ 5,000 • Assessment campaign depends on capacity • Speaking engagements time & materials • Web site (optimized) $12,000 • SEO/PPC $ 3,500 + $1,000/mo – Optimized press releases – Whitepapers (placement & linking) content developed internally – Articles (placement & linking) • Newsletter $ 1,000/mo • Webinar(s) opportunistic Mar-05-08 © 2004-2008 Cendix Slide 18
  • 19. Promotion Formal Marketing Plan Assign Owners, Execute, and Track Progress! Mar-05-08 © 2004-2008 Cendix Slide 19
  • 20. www.cendix.com P: (888) 889-0066 Wilson Zehr F: (503) 210-6479 CEO E: wilson@cendix.com Cendix
  • 21. Wilson is the CEO of Cendix (www.cendix.com) the leading provider of Web-to-print solutions that increase sales both online and offline. Cendix also provides strategic and tactical marketing consulting services for emerging growth companies in the Pacific Northwest. In addition, Wilson serves on the faculty for the School of Management at Concordia University, Portland, Oregon (www.cu-portland.edu). Wilson Zehr has 25 years experience in high technology and Wilson Zehr telecom – over a decade of experience working with Internet- related products and services. He has created numerous new products/brands and successfully brought them to market. In addition, he has crafted and managed strategic alliances with many (20+) of the largest technology and communications firms in the world. Mr. Zehr is a serial entrepreneur who has raised over $60 million from investors; returned over $160 million; and bought/sold a number of enterprises. More detailed background information on Wilson can be found at http://www.cendix.com/about/management.html References are available on request Mar-05-08 © 2004-2008 Cendix Slide 21