Archive for the ‘market segmentation’ Tag

Is Your Marketing Like Teaching A Dog to Read? Part 2

In part 1 of this series, I shared a story about a professor who taught his dog to read… obviously, the dog could not read at the end of the semester, but the professor “taught” the dog. Unfortunately, this is very common in marketing, especially in emerging growth companies. The companies have very “pretty” marketing materials; website, collateral, powerpoints, but when you cannot really understand the audience, value proposition, or why they are different.

The litmus test for marketing materials is whether you can use your competitors name in your materials and it would apply. Or you could insert a company name from another industry and it reads just fine. Finally, you could insert any company name and no one understands what you do.

The real challenge is that the organization did not go through a structured exercise to map the value chain: audiences to benefits to functionality to features. Here is a high-level process to do just that:

1. Focus on identifying the market & associated segments

2. Fnd the pain – immediate call to action – for each segment; ie. this is the problem or opportunity you address; your solution = benefits

3. Communicate in the language the market understands – means you need to have a market SME, customer advisory board, or perform lots of prospect interviews to understand their needs in their language.

4. Test your messaging – social media participation, sales calls, speaking events, networking events, advisory boards, analysts, etc. Frequency and time allow you to polish your messaging. I know that I am ready when I can get through the 1st several meetings with a prospect or an investor without them finding holes in my presentation and Q&A. Doesn’t mean your offering won’t have challenges in due diligence, but if you are targeted to the right audience with the right solution, the first two meetings should be about concept, relationship, and “fit”.

5. Model your marketing on the sales process – each stage is idenitfied and marketing’s support required – One of the biggest challenges to getting the marketing materials “right” is identifying the scenarios under which it will be used. If your sales process is to work through partners, then providing a generic sales presentation won’t work. If you are selling into a specific vertical, then understanding the buying process may mean that you have to have 2 different presentations; one executive and one technical for different meetings. Collateral and sales support materials are very expensive to produce (opportunity costs) so focusing on a limited number of high-quality tools versus having a checkmark for materials is critical.

6. Focus on how to speed up the sales process – optimize, accelerate, replicate – momentum, reselling, bridging – One of the biggest challenges in any sales process is the “porpoise effect”. You build momentum and then it subsides, you resell and build momentum, and then it subsides. Most qualified buyer sales that seemingly look qualified with a need, but don’t get beyond the initial sponsor die due to lack of momentum. Either the sponsor could not sell internally or lost focus… The ability to empower your sponsor to be an evangelist will assist you in maintaining momentum. Everything in sales support should be around how do we help the potential customer make a decision faster. You will close more sales this way.

7. Participate in the early sales – look for objections – price, package, credentialling, references, technology, features/functionality, language, benefits, positioning, competitors. My biggest beef with some marketing communications people is that they don’t understand the market, customers, or the products. I want to get in front of the customers and interact with the market. I need to understand the buyer behavior and get feedback to fine tune the messaging.

8. “Save your powder” – the first set of sales to early adopters doesn’t require big marketing; focus on sales support, business development, online marketing, andPR; expensive marcom, tradeshows, events, and brochureware after the message has been tested. Save the marketing dollars till you have proofed the model and are ready to grow big. My approach to marketing budgeting is like “rolling a snowball downhill”. Make a small investment to credential your sales process;  when the market is proofed, build upon the foundation.

9. Build a customer lifecycle early. Know where you are going and how you will get there. Build towards a critical mass of referencable customers. Shrink the product’s functionality & features to slightly beyond what your target market requires. Also, make sure you set customer expectations so that you can exceed them. Make sure the roadmap is clearly articulated and scales with your customer expectations and your identified new market segments.

10. Your first set of references and referrals are the most expensive & the most valuable. Focus the organization on wowing the customer and tie all organizational goals to customer satisfaction.

Making sure your marketing “dog” can actually read is critical to scaling your business. If you have to personally evangelize to every new prospect to get them to understand the concept of your product and the value for them, you will have a very expensive sales process. Even service companies need to package their services to scale effectively.

Part 3 will address the challenges of Mid-Market companies.

Part 4 will address the challenges of Established Brands.

In Web 2.0 Software, Adoption Trumps Functionality

The last several years have seen the greater adoption of social media and other Web 2.0 software components. These component software tools provide users with a more interactive experience, personalization, with the ability to create their own content, links, tags, navigation, etc. Additionally, you are seeing the growth of the “connected web”; web services, RSS, embeddable code, ubiquitous meta-tagging, widgets, consumable data, etc.

The proliferation of these software applications has migrated to every sector; consumer, enterprise, SMB, etc. What used to take NDA’s, sharing and modification of API’s, and endless meetings now can be accomplished with a snippet of code.

As the web transitions to more semantic driven applications and less user-interface driven, you would think that functionality would become increasingly important in applications.

In my experience, the trend is towards the opposite and that ADOPTION trumps functionality. The challenge is that we have too many options on the internet; too much data, content, search results, websites, applications, etc. The word I hear over and over is “overwhelming”.

So, if you have a very limited window of attention from your audience, why would you throw extraneous “stuff” at them hoping something would stick. Instead, take advantage of the Web 2.0 technologies and provide them with a tailored experience with just-enough functionality.

More importantly, focus on what is their motivation and interests. Not all potential buyers are the same. Don’t provide a generic website experience that meets 80% of 80% of the visitors and satisfies none. Instead, focus on identifying what a 100% of a smaller audience that you know will buy and add additonal functionality to support additional segments over time. Customers provide unsolicited referrals when you exceed their expectations and provide them a WOW! experience. This is the heart of word-of-mouth marketing. EXCEED CUSTOMER EXPECTATIONS!

If you cannot exceeed the whole group, then focus on a small enough group that talks to each other and build from there. You see countless blogs and articles about how to launch products on the interet. This is the reasoning behind the axioms. You need a critical mass of associated happy customers that will tell others about it.

It is about numbers. If you satisfy 1% of a large group, that doesn’t make much of a market impact. If you satisfy 80% of a small group, you own the market. Bottom line, adoption of your solution is more critical than providing everything, including the kitchen sink.

Of course, the secret is prioritizing the “right” functionality to satisfy the customer which takes someone asking them….