Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Marketing for High-Tech Startups presented at UC Berkeley


Published on

This is a talk I delivered to Ikhlaq Sidhu's class at CET UC Berkeley on Jan 18th, 2013.

Marketing for High-Tech Startups presented at UC Berkeley

  1. 1. Marketing for Startups in High-Tech Marketing for High-Tech StartupsR. Paul Singh – rpaulsinghEntrepreneur CyLAN 1
  2. 2. AGENDAWhat has changed in Software business?4Ps of MarketingProductDistributionPricing and Revenue ModelPromotion & Customer Acquisition
  3. 3. Software Markets 5 years ago Consumer Large Ent. Small Business Medium Medium Enterprises Enterprise Large Ent. Small Business Consumer
  4. 4. What is the goal of Marketing?Create a good brandPeter Thiel: Brand is as a classic code word formonopoly. But getting more specific than that ishard. Whatever a brand is, it means that people donot see products as interchangeable and are thuswilling to pay more.A good brand provides a clear and memorable senseof what your business stands for! 4
  5. 5. Select Core 4Ps of Marketing Product Process People Positioning Place Prayer Promotion Packaging Pricing
  6. 6. Has Marketing def changed?What differentiates High-Tech Marketing?For a marketing plan to be successful, the mix of 4Ps must reflect the desires of the consumers in the target market – Philip KotlerPeter Drucker --- Marketing is ◦ creating a product that sells itself ◦ creating a product people want to buy ◦ creating an environment that encourages people to buy
  7. 7. Development philosophies have Marketing repercussionsBlack-box Development Iterative DevelopmentHardware, High priced Software, Accessoriessoftware productsPre-development research Research as you gonecessaryLimited alpha and beta Large alphas, Open betasBuzz building after beta Buzz building starts veryphase early
  8. 8. Where is your Elephant? C A B
  9. 9. Where is your Elephant?Staying ahead of the Elephant (A) ◦ Difficult strategy to execute ◦ Need at least 2 years lead ◦ Some examples – AMD, SybaseStaying below the Elephant (B) ◦ Starting with a niche ◦ Some examples – F5, Packeteer, Portal SoftwareRiding the Elephant (C) ◦ Bumpy but the safest of the three alternatives ◦ Some examples – Airespace, Google, Thousands of app developers for Apple, Goog, MS, Oracle
  10. 10. Choose your Elephant & Partnering distance Fill-A-Gap Exclusive Value-Add Leverage Choose Ecosystem (s) MS, Apple, Google, FB, Tw, SF……
  11. 11. What is your Product like?Is your Product ◦ Physical ◦ Services ◦ SoftwareIs your Product ◦ Pain Killer ◦ VitaminDoes your Product ◦ Fit an existing market category ◦ Creating a new market segment
  12. 12. Segmenting & Finding your Customers  Yahoo Vs Google
  13. 13. Did you get the product right? ANALYZE
  14. 14. Does Distribution channel matter?High-Tech Demand Demand FulfillmentProduct GenerationCategoriesConsumer Vendor Web, Mobile,Software DistributorsConsumer Vendor Own Store, 3rd party E-Hardware stores, RetailAPIs/ Widgets Vendor Others (Web, Mobile)B2B Software Vendor Direct, Existing ChannelsInfrastructure Vendor Direct, Existing Channels
  15. 15. Pricing – Software Revenue ModelsBusiness Business ConsumerModelsSell – One-time Perpetual model, Perpetual model, App Stores App StoresSell – Direct DirectSubscriptionFremium Direct, In-App Direct, In-AppAd Supported Not Direct sale, Ad recommended Inventory from othersFree with Upsell Not Own product or recommended 3rd party product
  16. 16. Why Fremium?Channel for buying users = ExpensiveProduct has network effectsCost to offer products/services = LowWant to see if users adopt it firstMore users to talk toTease that works for your competitors/other similar products
  17. 17. Some Hows of Fremium?Showing pricing right away shows better conversionShowing 3 pricing seem to be very popularClearly articulate value for upgrade to premiumTest Change Test ChangeRemind free users often but not annoy Good reference – Matt Brezina of Xobni on Slideshare
  18. 18. Is your Customer Lifetime Value > 0?
  19. 19. What does it cost to acquire customers?
  20. 20. Promotion = Customer Acquisition Promotion is explaining to people who should care about what you’re selling in the way they want to hear about it (radio, print, mobile) in words and concepts they will understand why what you’re selling meets their needs Message is the keySome good reference presentations
  21. 21. Dave McClure model - Startup metrics for PiratesAcquisition – Discovery – First visit/usage – Most expensive phaseActivate – First visit/usage is enjoyable – Design is the new mantraRetention – Your product is actually solving a problem & users have figured out their use caseReferral – Users recommend to others – make it easy to do soRevenue – Users are willing to pay and you convert them to revenue
  22. 22. Acquisition Channels/PromotionsChannels NotesPR PR Agency, Cost, When, HowSEO Keyword, Website designBlogs Which products, Why, HowEmail Collect, Opt-in, Title is everything, HowSocial Media LI, FB, Tw, Quora, Digg, Youtube, Pinterest….Affiliates When and HowAds CPM, CPC, CPA, MediaTrade Shows Investment vs return, Pay to play& Awards
  23. 23. Primer: 8 Steps to Buzz via Social MediaThe Eight Commandments… Understand what you’re trying to sell, to whom, how they prefer to hear about it, and in what terms. Target – don’t sell Nuke Reactors on twitter? Craft the message(s). What do you want each audience (purchasers, media, mass audience) to hear? Set up your infrastructure: Twitter Account(s), Facebook App, RSS tags on blog on your site, Digg Link buttons,Video… what’s appropriate? Craft content. What’s the story around your message that makes it socially transmissible? Is it cool, new, funny, controversial, insightful…? Be ready to respond, reciprocate (have space to link back, time to reply) Be proactive. Don’t just post; submit. Participate. Comment on others! Reward good behavior. Feature your customers, make ‘em heros. Do not spin. Do do lots of news and “press releases”
  24. 24. Typical B2B Lead Generation Process Lists from industry groups, cold- calling, ads, & direct email, keywords, referrals Suspect “Opt-In”: responses to ads & email, No indication of interest or potential / Cold lead trade show leads, evals Prospect Contact made / Indication of interest Solutions Guides, Webinars, Customer Case Studies Opportunity Datasheets, Pricing Guides, Identified project, or VMware use case Powerpoint Prod. Presos, Demo Qualified “decision criteria” known / “buying process” known / Funds or budget available Whitepapers, Reviewers guides, guided evaluations & demos Validated Technical fit confirmed by prospect /Business fit confirmed by prospect Comparitive documents, competitive guides SelectedCustomer confirms that you are selected vendor / “Reverse timeline(RTL)” done Incentive (“buy now”) programs Negotiation Business terms being negotiated TCO and ROI studies Closed Contracts signed / PO in hand / No “hair” on deal
  25. 25. Marketing in Dilbert’s words
  26. 26. Summary