2012-05 founder institute

7/31/2019 2012-05 Founder Institute

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Market & Marketingbuilding blocks for

Start-Ups



My Background

The 1990‟s: •Engineer Universidad deAndes•Exxon, Hewlett-Packard•Georgetown MBA US /Oxford UK/ Bocconi Italy

Inflexion Point

The 2000‟s •MIT Entrepreneurship Program / Fellowship

•Ventures-BeepCast: Start-Up-Virtual Iron: Start-Up – Exit – Sold to Oracle $$$-Egenera: $100 Million in Revenue

-AuthorsGlobe: Start-Up



The 3 “Amigos”



The life of an entrepreneur…



Finding a Profit Zone



Category of Adopters

Diagram from Dorf & Byers, Technology Ventures, p. 24837



Strategy to Cross the Chasm

Diagram from Geoffrey A. Moore, Inside the Tornado, p. 25



How to Find AddressableMarket Size

• Tops Down

– Industry Studies (e.g., Gartner Group,Forrester, Yankee)

– Assumptions on market share

• Bottoms Up

– How many specific sales can I count?

– Sales Rep productivity

• Comparables

– Similar products in similar markets



Incidence(million)

Diagnosed (%)

X

Cases diagnosed(million)

Treated (%)

X

Price per treatment (USD)

Number of treatments

X

Price per patient(USD)

Number of treatedpatients (million)

Market

penetration (%)

Market potentialUSD millions

Sales potentialUSD millions

X

X3,000

5

150

0.15

20,000

0.2

75

0.5

40

10,000

2

Source: Medical books, Internet research, WHOGlobal Health statistics

US Potential Per Year



Slicing Up Target Market

Segment each target market by:

• Geography

– “Customers in the northeast buy 60% of this type of

product” • Industry/Taxonomy

– “Financial services firms comprise 75% of the market”

• Type of Buyer – “40% of the market are early adopters seeking a

technological edge and willing to bet on earlytechnology”



Attacker vs. Defender Mentality

• Looking to dominate a market

• Not incremental – 5% share is not thementality or a strategy for success

• “If you are not a market leader in your chosen market, you have not defined yourmarket well enough”



Do market research by asking & doing

1. ASK YOUR FRIENDS…is this a good idea?

2. Launch your product & ask!!!

1. How satisfied are you with the product? 1 – 5

2. Will you use it/buy it again? 1 – 53. Will you recommend it to a friend? 1 - 5

CUSTOMER LOYALTY INDEX - CLI



Do market research by asking &doing



Summary: Market Analysis

1. Segment and select target market … and deselect

2. Tech Push vs. Market Pull

3. Know your customer is great depth – customer can lead

you to promised land4. Size Tops Down and Bottoms Up

5. Similar product, Similar Value Prop, WOM

6. Addressable Market Opportunity

7. Market Characteristics (Geography, Industry, Type)8. Dominate mentality

9. Okay to start small and grow

10.Competition certainly matters (March 4)



1. Be a great networker!



1. Be a great networker ...Advice

•At least 1 relevant event per week if not 2

•Arrive early. Talk with the speakers before …

•Know what you are looking for…

•Ask..do you know who can help me? Can you

introduce me to XYZ.

• Follow-up within 24 hours..be diligent. Followthrough with your promises



2. Deliver Awesome Presentations



2. Deliver „Awesome‟ Presentations

CONTENT

PACKAGINGDELIVERY

Elements

ProblemSolutionMarketTeamBusiness ModelFinancialsCapital RequirementsMilestones

Keys to Success

-Articulate-Structure-Passion!!!!-Light on words

-Powerful Images-PRACTICE-Know it by Hard



3. Use Inbound Marketing rather thanOutbound

Outbound marketing isabout

pushing messages out.




Inbound is about

pulling people in.




Where To Get Found

http://images.google.com/imgres?imgurl=http://www.popandpolitics.com/wp-content/uploads/2008/05/rss_logo2.jpg&imgrefurl=http://www.popandpolitics.com/category/top-five/&h=300&w=300&sz=53&hl=en&start=2&sig2=NB-UQUuJRmwa20dT9yQaXg&um=1&tbnid=gH9Mdv2ae5FLAM:&tbnh=116&tbnw=116&ei=fhd0SI7ILoHIeaWbmNwC&prev=/images?q=rss+logo&um=1&hl=en&rls=com.microsoft:en-us:IE-SearchBox&rlz=1I7GFRD&sa=N




Why you get found?

RemarkableContent

For Example:

Become an IndustryThoughtLeader

Start Building a List of Potential Customers




Blog Article Performance

cvis

cusvisits

,$000.1000

2,1$

worth




Talk about the

industry’sissues, not yoursolution.




Cracking TheGoogle Code




As ye SEO,so shall ye

reap.

Ranking Algorithm:f(n): Context + Authority




Keywords:Don’t pick a

fight with aninja.

(Unless you’re a ninja)

29




30

What is the best PageTitle?




31



4. Have a sustainable business model

LifeTimeValue CostofAcquisition

LifeTimeValue = Revenue Per Month * 1/Churn Rate

Cost of Acquisition = (Marketing Cost + Sales Cost) / # ofacquired customers



6. Don‟t give up unless you know you are going nowhere…



The Turning Point

The 3 “Amigos”

2012-05 founder institute

Documents