Otbc strategic marketing - 0911

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Strategic Marketing overview prepared for the Open Technology Business Forum (OTBF) 9/19/2011.

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Otbc strategic marketing - 0911

  1. 1. Strategic Marketing for New VenturesOpen Technology Business Center (OTBC)Wilson Zehr, CEO, CendixAdjunct Professor, Portland State University Professor September 16, 2011
  2. 2. Strategic Marketing Fundamentals Introduction• Competitive Pressure has never Been Greater p• 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!Apr-03-09 © 2004-2011 Cendix Slide 2
  3. 3. Strategic Marketing Fundamentals The Marketing Function Big M little mApr-03-09 © 2004-2011 Cendix Slide 3
  4. 4. Strategic Marketing Model Components & Relationship Core 5 P’s Ps PositioningMar-05-08 © 2004-2011 Cendix Slide 4
  5. 5. Corporate Strategy Strategy Defined “An integrated and coordinated set of An commitments and actions designed to exploit core competencies and gain a competitive advantage.” - Hitt, Ireland, Hoskisson (2007) , , ( )Apr-03-09 © 2004-2011 Cendix Slide 5
  6. 6. Corporate Strategy Strategy Defined “what” question what a b starting point destination environment/terrainresources/capabilities pMar-05-08 © 2004-2011 Cendix Slide 6
  7. 7. Corporate Strategy Bias Towards Action “Some people watch things happen Some people make things happen Some people have to ask “what happened?” Which do you want to be?”Les SchwabLes Schwab Tire CentersFounder & CEO Better to ask for forgiveness… g Apr-03-09 © 2004-2011 Cendix Slide 7
  8. 8. Corporate Strategy Align Organization, Brand, Goals• Vision / Mission• Corporate Values• Goals/objectives (short/long-term)• Organizational Structure Tune Elements to Assure Alignment T El t t A Ali tMar-05-08 © 2004-2011 Cendix Slide 8
  9. 9. Corporate Strategy Continuous Process MIA PDX ORD SFO vigilant for disruptive changeAuto Pilot:Spends Most of the Time Correcting Back to the Right CourseMar-05-08 © 2004-2011 Cendix Slide 9
  10. 10. External Environment Environmental Analysisenvironmentalscanning General Environment Industry Environment Enterprise Competitive EnvironmentApr-03-09 © 2004-2011 Cendix Slide 10
  11. 11. External Environment General EnvironmentHitt, Ireland, Hoskisson (2007) Apr-03-09 © 2004-2011 Cendix Slide 11
  12. 12. Industry Environment Five Forces Model Threat of New Entrants Power of Competitive Power of Suppliers Rivalry Buyers Government Threat of SubstitutionMichael Porter, Professor, Harvard University Apr-03-09 © 2004-2011 Cendix Slide 12
  13. 13. Competitive Environment Competitive Analysis Significant Competitors• Capture & rank• Size/Growth (employees, clients markets …) (employees clients, markets, )• Financial (sales, margins, trends, funding)• Products (features, pricing, positioning, wins/losses)• Channels (retail, direct, online, partners, …)• Other (age, brand, stability, credibility, …) Elements Vary – Company/IndustryApr-03-09 © 2004-2011 Cendix Slide 13
  14. 14. Competitive Environment Gartner Magic Quadrant Application Infrastructure, 2007Apr-03-09 © 2004-2011 Cendix Slide 14
  15. 15. Internal Environment Process OverviewHitt, Ireland, Hoskisson (2007) Apr-03-09 © 2004-2011 Cendix Slide 15
  16. 16. Internal Environment Market Segment(s) Cluster people with similar needs into individual and identifiable groups All Customers Consumer Business Markets Markets don’t forget.. B to C B to B B to G c1 c2 … cn b1 b2 … bnApr-03-09 © 2004-2011 Cendix Slide 16
  17. 17. Internal Environment Strategic Outsourcing Outsource: Contract with outside suppliers to provide internal company functions • Reduce distractions (focus) • Best of class resources • Reduce costs – Differential cost basis – Focused efficiency – Shared economies • Release capitalApr-03-09 © 2004-2011 Cendix Slide 17
  18. 18. Internal Environment Strategic Outsourcing • OWN the STRATEGIC • Consider everything else • AVOID outsourcing g – Single points of failure – Strategic functions that create value – Tasks that neutralize external threats – Sources of internal innovation – Points of differentiation Actively Manage Vendor RelationshipsApr-03-09 © 2004-2011 Cendix Slide 18
  19. 19. Corporate Strategy Analytical ToolsStrengths, Weaknesses, Opportunities, Threats (SWOT)Mar-05-08 © 2004-2011 Cendix Slide 19
  20. 20. Corporate Strategy Analytical Tools Three Circles of Hedgehog ConceptSource: Good to Great, Jim Collins, 2001 Mar-05-08 © 2004-2011 Cendix Slide 20
  21. 21. Corporate Strategy Analytical Tools Boston Consulting Group (BCG) Model 10% is often used as distinction between high/low growth Size of circle is relative size of business unit in revenues Market share is relative to largest competitor g pBoston Consulting Group (www.bcg.com) Apr-03-09 © 2004-2011 Cendix Slide 21
  22. 22. Corporate Strategy Analytical Tools Natural Selection Model mainframe: IBM $$$ mainframe: UnisysCost of competitive pressure: focused: TandemSolution volumes drive down unit cost $$ Sequent HP Sun $ Compaq Dell 0 Value (Completeness)Apr-03-09 © 2004-2011 Cendix Slide 22
  23. 23. Corporate Strategy Supporting Research• Environmental Analysis – Industry Research, Analysis, & Trends – Strengths, Weaknesses, Opportunities, Threats (SWOT)• Historical Information – Financial Res lts & Anal sis (3 5 years) Results Analysis (3-5 ears) – Performance by product/segment• Current Sales Materials – Corporate brochures – Product brochures – Promotions – Web site Just Scratched the Surface Importance Varies by Size, Stage, Market, …Mar-05-08 © 2004-2011 Cendix Slide 23
  24. 24. Brand Concepts What is a Brand?Mar-05-08 © 2004-2011 Cendix Slide 24
  25. 25. Brand Concepts Brand Defined Your Brand is NOT Your Logo. Your Brand is… Everything that you communicate about your company product or service at company, product, every “touchpoint”.Apr-03-09 © 2004-2011 Cendix Slide 25
  26. 26. Brand Concepts Automotive Examples What D Wh t Does Each Brand Represent to You? E hB dR tt Y ?Mar-05-08 © 2004-2011 Cendix Slide 26
  27. 27. People Know Your Prospects• Who are your customers? y  Current customers  Target prospects  Demographics g p  Market size (addressable)  ROI• Where is their pain?• When do they need to act?• Who is the decision maker?• Who are the key influencers?• What are their buying behaviors?Mar-05-08 © 2004-2011 Cendix Slide 27
  28. 28. Product Primary Elements• Product Benefits• Distinctive features• Competitive differentiation – Unique – Meaningful – Sustainable• Product requirements• Production cost• Market windowMar-05-08 © 2004-2011 Cendix Slide 28
  29. 29. People & Product Synchronizepeople productSometimes…S ti Sometimes… S ti Ultimately… Ulti t lStart with People Start with Product Synchronize Both people product people productMar-05-08 © 2004-2011 Cendix Slide 29
  30. 30. Price Three Key Factors• Cost of Goods• Value  ROI (value produced – cost)/cost • reduce expenses • grow revenue • save time  Personal Utility  I t Intangibles ibl  Elasticity• Competition  Comparative value  Discounting  ResponseMar-05-08 © 2004-2011 Cendix Slide 30
  31. 31. Price Other Discussion Points• Pricing “Strategy” c g S a egy – Market penetration – Skimming the Cream• B d t/Fi Budget/Financing i• Discounting – Volume purchasing Vol me p rchasing – Seasonal demand – Revenue targets – Old inventory – Cash flowMar-05-08 © 2004-2011 Cendix Slide 31
  32. 32. Place Channel SelectionUnderstand Customer Existing Strength Special Requirements& Buying Behavior & Role of Brand Imposed by ProductMaturity and InvestmentExisting ChannelsChannel Cost & SupportedMargin Available by Promotion Apr-03-09 © 2004-2011 Cendix Slide 32
  33. 33. Place “Process” of Selling Depends on Data Industry, Product, Prospect and CustomerMarketing Qualified LeadSales Opportunity Sales Cycle Proposal Client Cli t Sales note: retail talks more about inventory “turns” Apr-03-09 © 2004-2011 Cendix Slide 33
  34. 34. Promotion Messaging Matrix Audience Concerns Message Focus Key MessagesCXO 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 InfluencerMar-05-08 © 2004-2011 Cendix Slide 34
  35. 35. Promotion Select Optimal “Mix”Apr-03-09 © 2004-2011 Cendix Slide 35
  36. 36. Promotion Online: Factors to Consider• Reach• Active vs. Passive• Objective  Build rapport u d appo  Generate leads  Close sales• Choose tools  Web site  SEO/PPC  email  Banners  Webinars  Blog’s/RSS Blog s/RSS  Affiliates  newsgroups  ArticlesMar-05-08 © 2004-2011 Cendix Slide 36
  37. 37. Promotion Determine Budget / Select Mix• Sales Collateral (3 pieces) $ 10 000 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 © 2004-2011 Cendix Slide 37
  38. 38. Promotion Marketing Execution Plan Assign Owners, Execute and Track Progress! Owners Execute,Mar-05-08 © 2004-2011 Cendix Slide 38
  39. 39. www.cendix.comP: (888) 889-0066 Wilson ZehrF: (503) 210-6479 CEOE: wilson@cendix.com Cendix
  40. 40. 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 as an adjunct Professor for Portland State University (www.pdx.edu). (www pdx edu) Wilson Zehr has 25 years experience in high technology and telecom – over a decade of experience working with Internet-Wilson Zehr related products and services He has created numerous new services. 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 th i the world. Mr. Zehr is a serial entrepreneur who has raised ld M Z h i i l t h h i d 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 requestMar-05-08 © 2004-2011 Cendix Slide 40

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