the business plan : go to market strategy

The Business Plan:

Go To Market Strategy

David BrennerMike Reardon

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Statement of the Obvious

You can’t write a business plan

….without a plan for your business

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Statement of the Obvious

You can’t write a business plan….without a plan for your business

Which naturally demands a clear understanding of the prospective

customer’s needs and expectations

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Invention = Innovation

A Key Misconception

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Distinction

Invention = Creation of a new idea

Innovation = Transforms new idea into value, commercial or otherwise

Business Plan = Written explanation how value will be realized in the chosen market

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Marketing’s “Perfect Storm”

Convergence of relevant market facts, observations, hunches, etc. about the potential of a new innovation in an

emerging market in relevant commercial action steps

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Customer-Centric Marketing:Start at the End – With Your Customer – and Work

Backwards

Your Business

Distribution

Channels

Economic Buyers

Influencers

End-

Users

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Customer-Centric Marketing: The “Solution Selling” Approach*

•Who is your customer

•What is your customer’s unmet need (their “pain”)?

•Surface your customer’s pain and its impact on them

•Help your customer develop a vision for addressing their pain (“What if you had the ability to………….?”)

•Describe your solution that matches the vision (the “whole product”)

•Bargain for the order (“If I can prove to you……”)

•Provide proof (customer testimonials, demos, etc.)

•Book the order!

*Derived from Solution Selling by Michael T. Bosworth

Business Plan

Operating Plan

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Customer-Centric Marketing: The “Solution Selling” Approach*

*Derived from Solution Selling by Michael T. Bosworth

100%100% of Addressable Market

(all theoretical potential customers)

TOTAL POTENTIAL

MARKET

YEAR

Expected Rate of Market Penetration

Your Market Share

(in units or $)

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Customer-Centric Marketing: The “Solution Selling” Approach*

*Derived from Solution Selling by Michael T. Bosworth

100%100% of Addressable Market

(all theoretical potential customers)

TOTAL POTENTIAL

MARKET

YEAR

Expected Rate of Market Penetration

Your Market Share

(in units or $)

Don’t fall into the “1%” market share trap!

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Competitive Alternatives

• How does the customer problem get solved now?

• What impact on customer acquisition?

• Any likely impact on pricing or channel strategy?

• Other impediments?

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Market Segmentation?

Geographic

Demographic

Pyschographic

Business vs. Consumer

Large vs Small

Public vs Private

Military vs Civilian

By Industry Sector

Professional vs Amateur

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Stage of Market Development?

Total Market

Revenue

InnovatorsEarly

Adopters

TH

E C

HA

SM

Early Majority

Late Majority

Laggards

Are you selling to risk-taking “Early Adopters”?

….or are you selling to conservative “Pragmatists” (the vast majority of potential customers)?

Derived from: Crossing the Chasm, by Geoffrey A. Moore

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Where Are You Selling?

Distribution

Channels

Exactly by what means do you sell your product or service to your customers?

•Direct Sales?

•Retail?

•Distributors?

•Resellers?

•Combination?

End-Users

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How Do You Make Money?

The Question of Business Model

Extracting Fair Economic Value for your product or service

Pricing Strategy• Sell vs. rent/lease• Up-front sale vs recurring revenue• Bundling products• Quantity discounts

Making it easy to buy

Building customer loyalty and future business

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How Do You Make Money?

The Question of Business Model

Extracting Fair Economic Value for your product or service

Pricing Strategy• Sell vs. rent/lease• Up-front sale vs recurring revenue• Bundling products• Quantity discounts

Making it easy to buy

Building customer loyalty and future business

More next week on Business Models…………….

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Key Take-Aways….

• Always start at the end: With your customer

• The purpose of marketing is to sell…”Solution Selling”

• Know what questions to ask

• Business model and pricing are strategically linked

• Competitive alternatives

Impact on pricing, business model and channel strategy

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Additional Information and Reading•Art of the Start, by Guy Kawaski

•Solution Selling, by Michael T. Bosworth

•The 22 Immutable Laws of Marketing, by Al Ries & Jack Trout

•Crossing the Chasm: Marketing and Selling High Tech Products to Mainstream Customers, by Geoffrey A. Moore

•Inside the Tornado, by Geoffrey A. Moore

•High Tech Startup, by John L. Nesheim

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Dialogue & Questions

David Brenner Mike Reardon