founder insto pres v3 - joe rouse / ann burgraff

8/9/2019 Founder Insto Pres V3 - Joe Rouse / Ann Burgraff

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Smart Marketing for Start-Ups

Ann Burgraff-Rowell

Joe Sutherland-Rouse

The Founder Institute

June 6, 2010



About Ann

Grew up US, Marketing degree Arizona

Advertising Consultant, Dentsu Osaka, Japan

Innovative Start-up Addict (mostly San Francisco based), including

± Salesforce.com VP Marketing (IPO)

± NetGravity / DoubleClick VP Global Marketing (IPO, Merger

Acquired by Google)

± Informative VP Marketing (Purchased by

± Webaroo SMS GupShup VP Marketing (Private. > 25M users)

± Gydget Events Widget VP Marketing (Acquired)

± Startup Advisor NUS Enterprise



About Joe

Science undergrad, MBA (Queens U, Canada)

Product management ladder at BMS

Tundra Semiconductor (Networking ICs-IPO)

Philsar Semiconductor (RF ICs-Acq by Conexant)

MSBi Capital

GridIron Software (SW development tools)

Pioneer Capital Partners

Back at a startup, some governance & advisory stuff



Your Take-away Tonight

What you need to do:

± Effectively position your company/product, memorably

communicate to selected audiences, develop an affordable

yet effective marketing mix relative to your marketinggoals, execute and evaluate- all on a startup budget

Champagne results on a beer budget are possible

± But you have to research, rehearse, execute, review and

adjust course continuously

± Find and keep big, smart, rich friends



Competitive Positioning

A dynamic process

Understand the competitive set and individual

competitors positioning ± But first, understand your customer needs

Hit em where they aint

± but make sure its where the most desirable customers

are.



Competitive Positioning, II

Features versus benefits

± relative to validated market needs

Does your positioning answer these three questions ± So what? Who cares? Why you?

Position your company and product effectively, or

the market, or worse, the competition, will do it for

you.



Key Audiences

Characterize the buying process and its players

± Develop the marketing mix with this in mind

Audiences vs. customers Inside a customer: Decision-makers versus

influencers

External Influencers Beware the Toyshop Exercise!



Customer Intimacy

Get close! And stay close

± Call and meet prospective customers and partners

± Take an analyst or journalist to lunch (They all eat)

Play really nice with, but lead, sales and R&D

± You are the team coach and customer advocate

± Develop, own and evangelize the product spec

Importance of Alpha, Beta programmes ± Lead customers needs represent 80% of the value of your product

± 20% of the specs features deliver 80% of the value of the user

experience



Customer Intimacy, II

Join and seek out leadership roles with standards

bodies and other influential tech and marketing

associations Understand and have a clear, compelling position on

technical and market trends- and communicate that!

Make sure your channel strategy makes it easy forthe customer to buy, and buy again



Tell Me a (Company) Story

Simple, memorable, actionable and known by all

The elevator speech

Elements Personalities and their past achievements (nouns and

verbs)

Partners and Standards

Products

Events

Strategies



Telling the Story

Following from the What, you must decide

± Who/What tells it

±

When and Where ± How and How Often

Make is easy for your audiences to understand, act

and tell all their friends

The role of great PR counsel



Resourcing the Storytelling

Strategies vs. tactics

± Guerillas are tactical, not strategic

±

But sometimes tactics can turn the tide of the war Concept of the Marketing Mix

± Software versus hardware versus services

± Trends

Consistency of messaging, execution and adjustment



Creating the Right Messages

How will your products impact your customers?

Is what you have to say different/unique?

Can you say it boldly?

Is it memorable?

Are your messages defensible?

Speak to them where they aredont make them go hunting

for you

Say it simply & speak in honest language

- not jargon

Develop message cards for everyone



Developing Your Marketing Mix

Marketing Goals should align with Business Goals

Great Ideas Rarely Sell Themselves

There are a vast array of circumstances that will dictate which

elements of the marketing mix are right for you. Put time into

accurately defining your marketplace, your market segment, your product positioning, and your unique selling propositions then it

becomes much easier to select the right strategy and mix.



Getting the Promotional Mix Right

Plan Marketing strategies & tactics to achieve specific

objectives

± Capture 25% global market in 2 years (= 240,000 users)

Acquire 100,000 leads per month with an average cost of $2

Sign up 10,000 new customers per month with average cost of $10

Know Your Marketing ROI (Return on Investment)

Create a Dashboard and Report back to organization regularly

Dont be afraid to fail



How Much Do you Spend?

There are no averages but startups spend a much higher

proportion of budget on marketing. (Generally 8-20% of total

company spend in first two years) Industry Averages & Benchmarks can help learn from others

Refer back to your objectives & marketplace what are you

trying to accomplish?

Test, Refine, Repeat



A Few Tips

Make your marketing your own - avoid copying others, unless

you see a good idea that you can adapt to your circumstances.

Be sure that your promotion fits your image.

Consistently communicate your top messages & business values

no matter what the medium.

Remember - you are marketing through all your business

activities.

Empower everyone in the organization and leverage their

networks.



Measuring Up

Enduring Truisms

± If you cant measure it, you cant manage it

± I know that half of my marketing budget is wasted, but I' m not sure

which half (sometimes true; depending upon mix)

Accountability leads to credibility, trust and resources

There is a cost/price to pay for doing nothing (It is a race!)

Confer across the company, but have the courage of your

convictions

The affordability, precision and scale of emailing lists are not

substitutes for customer intimacy and market vision



Anns Case Study #1

Situation: ± salesforce.com, an online CRM company, wanted to create awareness,

position against big 800lb competitor Siebel, disrupt industry and

develop leads

Goals: ± PR coverage in tier 1 business and industry pubs (> 10M impressions)

± # leads (> 500)

Tactic: Stage Protest at Siebel User Conference

Results: ± Significant Press/PRSA Award

± Over 500 A quality leads

± Brand building



Anns Case Study #2

Situation: ± Launching Webaroo (SMS Gupshup), a new mobile blogging application.

Goals:

± Awareness in mobile business and consumer target segments

± PR coverage in tier 1 business and industry pubs (> 100M impressions)

± User signups

Tactic: Partner with Acer and Samsung at launch to show momentum & credibility

± Leveraged partners brands & marketing budgets

± Created promotions with major newspapers in India & Europe

Results:

± Significant Press first week of launch: Over 500M impressions 1st week,including: WSJ Global Editions, NY Times, CNN, SkyNews, The Economic Times of

India at least one article per day for the first 90 days.

± Over 100K Sign ups in first month



Joes Case Study #1

Tundra Semiconductor (Build-out of the Internet 1996-1999)

Spun out of comms switch maker Newbridge Networks

Technical expertise in PCI interface and switching fabric technologies

Partnered with embedded systems leader Motorola SPS

± Direct-connect datacomms I/F ICs for Cisco, IBM, Nortel, Ericsson

Business model based on design-wins into the above and smaller players

± Heavily leveraged Motos marketing strategies, plans and programmes, but

built and maintained our own identity through technical leadership and earlier

adoption of web-based product marketing Tundra IPOd Feb. 8, 1999 and achieved a market cap of about $1B at its

peak



Joes Case Study #2

Philsar Semiconductor (Bluetooth & wireless comms 1999-2000)

Founders vision: Bluetooth wireless comms juggernaut

± Applied prolific creation of technical content via web, trade pubs,

events to carve out a leadership mantle, positioning ourselves as peerswith MSFT, Nokia, IBM, Ericsson and other giants

± Filled a market vacuum at the enabling IC level

± Followed lead customer model: Conexant Systems Inc.

Philsar was acquired by Conexant in April 2000 for $200M US ± We had minimal revenues at the time, but lead a hot space and had

great timing



Executing

Simply put, it all comes down to execution

± But if you do fall, get up fast, to fight another day

Getting (and staying) on the radar screen of your

audiences

± Marketing is an investment, not a cost

± Seek to establish and maintain leadership

± Leverage, leverage, leverage

Marketing is a discipline, a craft and a science



Concluding Exercise

Your management team is like a band

Since we dream big at the FI, imagine its 1964 and

youre in the Beatles, arriving at JFK Airport and

about to change popular music forever



Concluding Exercise, II

Are you Paul?

George?

Ringo?

Youre John Lennon



Wrap up and Questions

[email protected] and [email protected]

founder insto pres v3 - joe rouse / ann burgraff

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