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Frugal Marketing Workshop TiE


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Marketing Workshop conducted for TiE members in October 2009, Bangalore.

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Frugal Marketing Workshop TiE

  1. 1. Frugal Marketing For Startups October 22, 2009 Jessie Paul
  2. 2. 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
  3. 3. Section 1: Conceptual Framework Building Your Brand Architecture
  4. 4. Think Narrow <ul><li>This allows you to operate without mass media </li></ul><ul><li>Enables focused offerings </li></ul><ul><li>One-to-one communication is possible </li></ul><ul><li>You can own a superlative - first/largest/only - in a smaller space </li></ul>
  5. 5. Defining Your Brand <ul><li>WHO AM I? </li></ul><ul><li>WHY BUY ME? </li></ul><ul><li>WHY NOT BUY SOMEONE ELSE? </li></ul>
  6. 6. 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
  7. 7. 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
  8. 8. 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? <ul><li>Infrastructure: </li></ul><ul><ul><li>Telecom </li></ul></ul><ul><ul><li>Facilities </li></ul></ul><ul><li>People: </li></ul><ul><ul><li>Domain experts </li></ul></ul><ul><ul><li>Process experts </li></ul></ul><ul><li>Framework/ Methodologies: </li></ul><ul><ul><li>For process optimization </li></ul></ul><ul><ul><li>Process management </li></ul></ul><ul><ul><li>Process quality </li></ul></ul>
  9. 9. Section 2: Why the Flat World Matters Determining Your Eco-system
  10. 10. 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!
  11. 11. 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
  12. 12. 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
  13. 13. Section 3: Building Your Brand Determining the Levers and Brands
  14. 14. Leveraging resources for smart branding Thought Leadership PR Awards Online presence <ul><li>Executive Branding </li></ul><ul><li>Pricing </li></ul><ul><li>Country of Origin </li></ul><ul><li>Sustainability </li></ul>Channels Levers
  15. 15. 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
  16. 16. 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
  17. 17. 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?
  18. 18. 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
  19. 19. Leveraging resources for smart branding Thought Leadership PR Awards Online presence <ul><li>Executive Branding </li></ul><ul><li>Pricing </li></ul><ul><li>Country of Origin </li></ul><ul><li>Sustainability </li></ul>Channels Levers
  20. 20. 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
  21. 21. 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
  22. 22. Awards Awards add credibility Win awards Give awards
  23. 23. 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. Twitter YouTube Co-branded portal LinkedIn Second Life Wipro
  24. 24. Section 4: Conclusion Some tips and ideas for building the next superbrand
  25. 25. Channels: Build vs Buy <ul><li>Customize mass-media to be more narrow eg “power-jackets”, IP-based targeting </li></ul><ul><li>Negotiate your own packages </li></ul><ul><li>Operate with a “mall-and-mainstreet” approach to online media </li></ul><ul><li>Create your own customer community </li></ul><ul><li>Institute an award </li></ul>
  26. 26. <ul><li>Globally distribute the marketing team </li></ul><ul><li>Move work to where it is done best </li></ul><ul><li>Consider “unusual” markets </li></ul>Think Global
  27. 27. Think Interesting <ul><li>Information is cheap, insight is rare </li></ul><ul><li>The cardinal sin in today’s world is to be boring </li></ul><ul><li>Do innovative stuff and you will get a disproportionate share of buzz </li></ul>Source:
  28. 28. 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
  29. 29. <ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li>[email_address] </li></ul><ul><li>[email_address] </li></ul>