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Entrepreneurship 101
Presented by: Murray McCaig
Managing Partner
MaRS Cleantech Fund
mmccaig@marsvf.com
Twitter: @murraym...
Crossing the Chasm
Pg 2
Jump the chasm with a focused go-to-market
Crossing the Chasm
Area under curve
represents number
o...
Go-to-Market: Old School
Pg 3
Linear process, make the product and then figure out how to sell it
What	
   Who	
   How	
  
...
Pg 4
Go-To-Market: New School
Pg 5
Developing a go-to-market strategy is an iterative process
What	
   Who	
  
How	
   Where	
 ...
¨  Low cost energy management
solution for commercial buildings
Case Studies
Pg 6
Example MaRS clients for go-to-market c...
Pg 7
What	
   Who	
  
How	
   Where	
  
Go-­‐To-­‐
Market	
  
What are you selling?
¨  What UNIQUE benefits does your product provide in comparison to
competitors?
¨  Typically compete on either (1) cost o...
Value proposition
Pg 9
Example MaRS clients for go-to-market case studies
Pg 9
¨  Find energy problems faster
¨  Measure...
Example Value Proposition
Pg 10
Focus on benefits, NOT features
Features	
   Benefits	
  
Circuit	
  level	
  data	
  measur...
¨  What is the whole solution
to the end user?
¨  What portion of the whole
solution can you deliver?
¨  Are partners r...
Pg 12
What	
   Who	
  
How	
   Where	
  
Go-­‐To-­‐
Market	
  
Who are you selling to?
Market Segmentation
Pg 13
Think about segments, NOT market size and share of market
Market Market Segments
1%
Market Segmentation
Pg 14
Use easily identifiable criteria to segment market
Age Demographic?Urban Core?
Male
Female
Yes
No...
Determine Segment Fit with Benefits
Pg 15
Compare NEEDS of each segment with your primary BENEFITS
Portable/EasyStorage
“N...
Refining the Target Market
Pg 16
Other factors beyond fit with benefits must be considered
Market Segment
M.U.S.H.
Corporate...
Beachhead Strategy
Pg 17
Point of Attack
Today
Tomorrow
MUSH, US
SW
MUSH, US
SE
Corporate,
US SWMarket
Penetration
(Needs-...
Pg 18
What	
   Who	
  
How	
   Where	
  
Go-­‐To-­‐
Market	
  
How will you reach your target market?
How will you reach target market?
Pg 19
Which channel? Partners?
Market Segments
Channel(s) Strategy
Pg 20
Many options for reaching your target market
Customer	
  You	
  
Customer	
  You	
  
Salesperson...
¨  Deal size / Product margin
¨  Percent of whole product
¨  Solution complexity
¨  Competition (have they locked cert...
¨  Recruit the best … pay for performance
¨  Top guns follow great managers
¨  Industry experience
¨  Be a leader … ge...
¨  Reps or Distributors
¨  Selection
–  Alignment with target market
–  Reputation/brand
¨  Management
–  Legal agreeme...
Pg 24
What	
   Who	
  
How	
   Where	
  
Go-­‐To-­‐
Market	
  
Where will you promote your product?
¨  Align your promotion plan with your target market
¨  Focus on reaching decision makers in the target market
¨  Where...
Messaging in Critical
Pg 26
Spend time getting the message right for the market segment
CircuitMeter is…
[what]
… a forens...
Go-to-Market Summary
Pg 27
8 steps in developing a powerful go-to-market strategy
Go-­‐To-­‐Market	
  
1. Value Propositio...
Go to Market Strategy  - Entrepreneurship 101
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Go to Market Strategy - Entrepreneurship 101

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Learn how to create an action plan that defines how you will reach your target customers and achieve competitive advantage. This session is geared for startups that have not yet entered the market and are contemplating what needs to be in place for product launch.

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Go to Market Strategy - Entrepreneurship 101

  1. 1. Entrepreneurship 101 Presented by: Murray McCaig Managing Partner MaRS Cleantech Fund mmccaig@marsvf.com Twitter: @murraymccaig
  2. 2. Crossing the Chasm Pg 2 Jump the chasm with a focused go-to-market Crossing the Chasm Area under curve represents number of customers Do not require full solution and are less price sensitive Focus on needs of the Early Majority
  3. 3. Go-to-Market: Old School Pg 3 Linear process, make the product and then figure out how to sell it What   Who   How   Go-to-Market Strategy Where   Focus on the product, the ‘what’ Next determine who you can sell it to and how to reach them Where to promote it an after thought?
  4. 4. Pg 4
  5. 5. Go-To-Market: New School Pg 5 Developing a go-to-market strategy is an iterative process What   Who   How   Where   Go-­‐To-­‐ Market   4  quadrants  of  a  strong  go-­‐to-­‐market  strategy   What are you selling? How will you reach your target market? Who are you selling to? Where will you promote your product?
  6. 6. ¨  Low cost energy management solution for commercial buildings Case Studies Pg 6 Example MaRS clients for go-to-market case studies Pg 6 ¨  Innovative eBike with a unique ergonomic sitting position (e.g. its cool)
  7. 7. Pg 7 What   Who   How   Where   Go-­‐To-­‐ Market   What are you selling?
  8. 8. ¨  What UNIQUE benefits does your product provide in comparison to competitors? ¨  Typically compete on either (1) cost or (2) differentiation –  Same value, <= price –  Greater value, >= price ¨  Costs include: –  Risks (high when dealing with a startup); switching barriers; others? ¨  What you are selling impacts who you are selling to and how you sell it AND vice versa Value Proposition Pg 8 What are your unique product BENEFITS? Value = Benefits - Costs
  9. 9. Value proposition Pg 9 Example MaRS clients for go-to-market case studies Pg 9 ¨  Find energy problems faster ¨  Measure solution payback ¨  Compact ¨  Comfortable riding position
  10. 10. Example Value Proposition Pg 10 Focus on benefits, NOT features Features   Benefits   Circuit  level  data  measured  each   second  with  ability  to  analyze  power   harmonics   Quickly  find  opAons  for  energy  savings   Cloud  based  analyAcs   Compare/contrast  data  across  buildings   Low  cost   Fast  ROI   Defining Unique Benefits Example: CircuitMeter
  11. 11. ¨  What is the whole solution to the end user? ¨  What portion of the whole solution can you deliver? ¨  Are partners readily available for delivering the whole solution? Whole Solution Example CircuitMeter Core  Product  Services   InstallaAon   Cloud  Portal   Compare  Equipment  / Buildings   ConsulAng/  Vendor   IntegraAon   Electrical   FingerprinAng   Learning  Algorithms   AnalyAcal  Tools   What part of the whole solution are you selling? Can you sell? Equipment  
  12. 12. Pg 12 What   Who   How   Where   Go-­‐To-­‐ Market   Who are you selling to?
  13. 13. Market Segmentation Pg 13 Think about segments, NOT market size and share of market Market Market Segments 1%
  14. 14. Market Segmentation Pg 14 Use easily identifiable criteria to segment market Age Demographic?Urban Core? Male Female Yes No No Yes Sex? Market Segments (Size)
  15. 15. Determine Segment Fit with Benefits Pg 15 Compare NEEDS of each segment with your primary BENEFITS Portable/EasyStorage “No Sweat”/ Safe Riding Position Segment Needs vs. Solution Benefits LifeBike Example CompeAAon   HighLow Low High University Students Female Professionals who Live/Work in City
  16. 16. Refining the Target Market Pg 16 Other factors beyond fit with benefits must be considered Market Segment M.U.S.H. Corporate, Single Tenant Multi-tenant Buildings Hotels Market Size Needs/ Solution Fit Propensity to Spend Market Concentration Market Access Overall Segment Attractiveness Low High Fit with Value Proposition Ease of Selling Segmenting Beyond Fit with Value Proposition CircuitMeter Example
  17. 17. Beachhead Strategy Pg 17 Point of Attack Today Tomorrow MUSH, US SW MUSH, US SE Corporate, US SWMarket Penetration (Needs-based Segmentation) Market Expansion (High Energy Prices) Hotels, US SE Multi-tenant, US SW Hotels, US SW 700 Bldings 5,500 109,000 4,500 91,000 Corporate, US Midwest MUSH, US Midwest Corporate, US SE 3,000 117,000208,000 A beachhead strategy is a leveraged approach to market rollout Beachhead Market Rollout Strategy Example: CircuitMeter
  18. 18. Pg 18 What   Who   How   Where   Go-­‐To-­‐ Market   How will you reach your target market?
  19. 19. How will you reach target market? Pg 19 Which channel? Partners? Market Segments
  20. 20. Channel(s) Strategy Pg 20 Many options for reaching your target market Customer  You   Customer  You   Salesperson/ Reps   Customer  You   Retailer   Customer  You   OEM   Distributor/   Reps   Salesperson   Customer  You   Channel Options e-Commerce Direct Personal Selling Retail (on/offine) Indirect Component or Private Label In House Outsourced
  21. 21. ¨  Deal size / Product margin ¨  Percent of whole product ¨  Solution complexity ¨  Competition (have they locked certain channels) ¨  Differentiation (can different channel provide unique strategy) ¨  Credibility/brand ¨  Importance of local knowledge ¨  Time to market ¨  Number of target customers Channel(s) Selection Pg 21 Factors to consider in channel selection
  22. 22. ¨  Recruit the best … pay for performance ¨  Top guns follow great managers ¨  Industry experience ¨  Be a leader … get involved ¨  Align with business targets ¨  Manage to targets/activity … yearly, monthly, weekly, daily (track it!) ¨  Be aware of salespeople chasing the “big fish” ¨  Fire fast … spend time with top performers ¨  Training and knowledge sharing ¨  Tweak the compensation plan ¨  Inside sales team Direct Sales Pg 22 Key points to consider in building a high performance sales team
  23. 23. ¨  Reps or Distributors ¨  Selection –  Alignment with target market –  Reputation/brand ¨  Management –  Legal agreement (targets, pricing/commissions, information sharing, …) –  Market/account split (house accounts) … customer ownership? –  Training –  ‘Drive-a-rounds’ Indirect Sales Pg 23 Factors to consider in developing an indirect channel strategy
  24. 24. Pg 24 What   Who   How   Where   Go-­‐To-­‐ Market   Where will you promote your product?
  25. 25. ¨  Align your promotion plan with your target market ¨  Focus on reaching decision makers in the target market ¨  Where do the decision makers get their information? ¨  Types of promotion –  Internet/Social media (Google Adwords, Facebook) –  PR (mass market publications vs. specialty publications) –  Word-of-mouth (social media promos) –  Trade shows –  White papers –  Product demos –  Gorilla/shock –  Old school – print, TV Promotion Plan Pg 25 Where will you communicate to reach decision makers
  26. 26. Messaging in Critical Pg 26 Spend time getting the message right for the market segment CircuitMeter is… [what] … a forensic energy management solution … …primarily for… [target market] … commercial building owners who want to accurately identify energy solutions and measure solution impact. The compelling reason to buy [benefits] … … unlike [competitors] … CircuitMeter Positioning Statement • Fast payback; • Simplifies actions/ investments and measurement; • Compare with other buildings in real time. • Expensive meter-on-chip solutions; • High level, watered down, solutions that look only at total building energy use.
  27. 27. Go-to-Market Summary Pg 27 8 steps in developing a powerful go-to-market strategy Go-­‐To-­‐Market   1. Value Proposition 3. Market Segmentation 6.  Channel(s) 7. Promotion Plan What Who How Where 2. Whole Solution 4. Target Segment 5. Beachhead Strategy 8. Messaging

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