the business plan : go to market strategy
DESCRIPTION
The Business Plan : Go To Market Strategy. David Brenner Mike Reardon. Statement of the Obvious. You can’t write a business plan ….without a plan for your business. Statement of the Obvious. You can’t write a business plan ….without a plan for your business - PowerPoint PPT PresentationTRANSCRIPT
The Business Plan:
Go To Market Strategy
David BrennerMike Reardon
2
Statement of the Obvious
You can’t write a business plan
….without a plan for your business
3
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
4
Invention = Innovation
A Key Misconception
5
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
6
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
7
Customer-Centric Marketing:Start at the End – With Your Customer – and Work
Backwards
Your Business
Distribution
Channels
Economic Buyers
Influencers
End-
Users
8
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
9
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 $)
10
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!
11
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?
12
Market Segmentation?
Geographic
Demographic
Pyschographic
Business vs. Consumer
Large vs Small
Public vs Private
Military vs Civilian
By Industry Sector
Professional vs Amateur
13
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
14
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
15
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
16
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…………….
17
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
18
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
19
Dialogue & Questions
David Brenner Mike Reardon