Five Lessons to Learn From Traditional B2B Marketing

PUBLIC VERSION

Kikuyu DanielsTechnology Licensing AssociateMassachusetts Institute of TechnologyApril 16, 2009

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large ◦ AMA Definition est. in 2007

Definition expanded from prior years to encompass B2B as well as B2C marketing

Business to Consumer Business to Business

Marketing CultureMarket to end of chainMore perceptual propositionValue primarily in brand

Large customer segmentsSmaller-unit transactionsTransaction linkageMore direct purchaseConsumer decides

Manufacturing/Tech CultureMarket to value chain *More technical propositionValue primarily in use, quantifiable *Small number of customersLarge-unit transactionsProcess linkage *Complex buying sequence *Web of decision participants *

Source: Institute for the Study of Business Markets (ISBM)

Business buyers start buying process with a need◦ no creation of basic wants

necessary

So, we must:◦ Know business drivers

(or at least general needs/problems of industry)◦ Provide solutions (not sell)

Business buyers are a “web” of decision makers within a firm◦ No one decision maker

So, we must:◦ Find a champion◦ Clearly demonstrate &

communicate value◦ Provide tools &

support to our champ

Can no longer think if we “build it and they will come”◦ Shorter product lifecycles◦ Increased global competition

So, we must:◦ Not wait for firms to come to

us with their need◦ Identify the value in our offer◦ Find ways to identify firms

who value our offering

Must market to the value chain◦ Businesses like known entities◦ Strive to create value and manage value at each link

So, we must:◦ Not jump to end use◦ Use market research

to get industry drivers◦ Use idea of portfolio

of related IP

Source: Institute for the Study of Business Markets (ISBM)

Value primarily in use (not brand), quantifiable◦ Once called Industrial

Marketing◦ Trend to quantify

So, we must:◦ Make usefulness

(added value) really clear◦ Build value-oriented

relationships

Some Misconceptions (based on valid data from AUTM) Marketing Realities

70% of university licenses from sources identified by inventors, thus no need to market

Marketing = Selling Who wants to sell? Our technology sells itself

Those interested will understand our on-line technical descriptions

True, but many universities don’t market; useful when no prospects; helps in communicating value

Misleading b/c no identity with selling, yet it makes us successful; Also, external factors make it necessary

Most are not read in full; Understanding =/ value; Reader may or may not have science background

Dr. James Anderson of the Kellogg School of Management at Northwestern University has extended the definition of “value:”

Value in business markets is the worth in monetary terms or the technical, economic, service and social benefits a customer firm receives in exchange for the price it pays for a market offering.

Worth = Use

A UVP is a succinct statement of the uniqueness of a product (or IP) that sets it apart from all others. ◦ Similar to VC elevator pitch

The UVP statement will often contain quantitative statements about the uniqueness of a product (or IP). Precisely WHY should customers do business with you?◦ Distinguish from what is already out (Most, many… etc.)

Competitive analysis will help you develop your UVP and test the validity of the claims you make about your product (or IP).◦ Competitive advantage is a good start

Source: http://www.marketingexperiments.com

Start with case/invention titles (often first things seen or described)

Should answer the question “What is it?”

May also convey some benefit through its use (What does it do for me?)

Rat neural cell line system

Self-doped microphase separated block copolymer electrolyte

Electric Display Device

Is there value in these titles? Are you compelled to read further?

Devices for Improved Computer-Assisted Laser Surgery

Automobile navigation system using real time spoken driving instructions

Minimally-Invasive Tool for Intraocular Lens Removal

Are these more effective? What makes them so?

B2B Buyers are different, they:◦ Start process with a need◦ “Web” of multiple decision makers inside a firmB2B Marketers are different, they:◦ Can not think if we “build it and they will come”◦ Must market to the value chainB2B once called Industrial Marketing◦ Value primarily in use (not brand), quantifiable

A UVP is a succinct statement of the uniqueness of a product (or IP) that sets it apart from all others

Our UVP statement will consist of a good title and the invention’s benefits (the value)◦ Note: we’ll talk more about benefits later

Source: http://www.marketingexperiments.com

Should answer the question “What is it?”

May also convey some benefit through its use (What does it do?)

Your turn to judge!

For each of 4 descriptions◦ Identify the value proposition◦ Rate it on a scale of 1 -10 (10 is hard) regarding

how easy or difficult it is to ascertain the value proposition.◦ Write your rating down (to avoid group think)

Conventional sigma-delta analog-to-digital conversion (ADC) systems may be significantly enhanced by using a recently developed novel design approach. The technique involves instrumenting an ADC's modulator subsystem with an observation circuit to provide quantized estimates of the modulator's state values. This observation circuit provides a limited precision estimate of the modulator state values (delay stages), but leaves the modulator's input/output relationship unchanged. A separate processing function is performed on these state estimates—which are filtered separately—and the result is added to the output of the decimator subsystem. A closer approximation to the input value than would otherwise be available is thus achieved.

Value? (1-10)

The present invention provides for a method and kits for stabilizing mammalian membrane protein using short surfactant peptides. The mammalian membrane protein can be a G protein-coupled receptor.

Value? (1-10)

Settling time is an important performance metric in the phase-locked loop (PLL) frequency synthesizers. To achieve a fast settling time, the PLL loop bandwidth should be increased. In the widely used charge pump PLLs, however, the loop bandwidth cannot be undoubtedly large, but rather, is limited to about 10% of the reference frequency to maintain the loop stability. Due to the 10% bandwidth rule, for a given frequency resolution, fractional-N PLLs have a faster settling time than integer-N PLLs. This is because the former has a higher reference frequency than the latter. The faster settling of the fractional-N PLL, however, ...

(Continued on Next Slide)

(Continued from Previous Slide)… comes at a price of increased hardware complexity and power dissipation, since the fractional-N frequency synthesis necessitates the use of phase interpolators or high-order modulators to suppress the steady-state fractional spurs. The invention is a new architecture of a fastlock PLL frequency synthesizer. The architecture has the wide loop bandwidth of the fractional-N PLL in the tracking state and the narrow loop bandwidth of the integer-N PLL in the locked state. The proposed architecture can have fast settling time of the fractional-N PLL, while maintaining the same hardware complexity as the integer-N PLL. The hybrid PLL architecture is essentially an integer-N PLL which is faster than the normal integer-N PLL.

Value? (1-10)

The invention features substantially pure nucleic acid sequences encoding wild-type or mutant serotonin retake transporter (SERT) polypeptides, as well as the polypeptides themselves. The invention also features methods for identifying modulators of the biological activity of a SERT and for identifying if such a modulator has a secondary target. In addition, the invention features methods for treating a condition in a subject.

Value? (1-10)

What score did you give?

Why was it difficult to find the value proposition in these descriptions?

Click here to see again and discuss

Value = Use; Title + statements convey:◦ What is it?◦ What does it do for me?Most important point at the top!Don’t use vague words or statements w/o qualificationNo long list of features without benefitsOne feature/benefit per sentence

More ->

Start with benefits (they sell)Features don’t automatically = benefits

This technology uses a single source of measurement data (GPS) as input information

Compared to:Simple to implement and maintain due to readily accessible, single source of measurement data (GPS) as input information

Features Benefits

Features are factsTrueCan be provenUsed in science

Specific to customer needsContain valueProvide a reason to buyUsed in business

SO THAT…

Feature Benefit

Simple to implement and maintain

Readily accessible, single source of measurement data (GPS) as input information

Your turn!Create a Feature / Benefit statement:◦ Describe the most unique feature of your technology that

solves potential licensee’s problem/satisfies need◦ Pick a single feature◦ Use “so that…” to write the associated benefit that explains

why would the potential licensee care about this feature◦ Remember UVP – select aspects not currently offered by

other technologiesYour UVP will be the combination of these benefits

Create a Feature / Benefit statement:

My technology is ____________________ [a good title] and it ____________________ [describe the unique feature], so that _______________________ [describe the benefit provided].

Volunteers to share examples?

Unique Value Proposition in action!

FRONT

BACK

Unique Value Proposition in action!

Useful for verbal communications too(i.e., cold calling and “elevator” pitches)

Multi-media

Direct Mail

Benefits sell, features don’tUse “So that…” to convert a feature to a feature/benefit statementUse feature, benefit statements to construct your UVPPut the most salient benefit first (and in the title if you can)

Still don’t know what to say?

Companies and industries:http://www.hoovers.comhttp://www.frost.com

People:http://scholar.google.com/schhp?hl=en&tab=wshttp://www.google.com/patents?hl=en http://www.linkedin.com

Single market or product areas:http://www.ibisworld.com (Manufacturing & Service Industries)http://www.windover.com (Medical Devices and Pharmaceutical)http://www.worldpharma.com (World Pharmaceutical)

Many more!

University libraries may have subscriptions to these tools available for your use for free!

Marketing Research Demonstration in progress

THE END

Conventional sigma-delta analog-to-digital conversion (ADC) systems may be significantly enhanced by using a recently developed novel design approach. The technique involves instrumenting an ADC's modulator subsystem with an observation circuit to provide quantized estimates of the modulator's state values. This observation circuit provides a limited precision estimate of the modulator state values (delay stages), but leaves the modulator's input/output relationship unchanged. A separate processing function is performed on these state estimates—which are filtered separately—and the result is added to the output of the decimator subsystem. A closer approximation to the input value than would otherwise be available is thus achieved.

NEXT Click for highlights

The present invention provides for a method and kits for stabilizing mammalian membrane protein using short surfactant peptides. The mammalian membrane protein can be a G protein-coupled receptor.

NEXT

It answers the question “what is it?” but it does not say why you should want to use it.

Click for highlights

Settling time is an important performance metric in the phase-locked loop (PLL) frequency synthesizers. To achieve a fast settling time, the PLL loop bandwidth should be increased. In the widely used charge pump PLLs, however, the loop bandwidth cannot be undoubtedly large, but rather, is limited to about 10% of the reference frequency to maintain the loop stability. Due to the 10% bandwidth rule, for a given frequency resolution, fractional-N PLLs have a faster settling time than integer-N PLLs. This is because the former has a higher reference frequency than the latter. The faster settling of the fractional-N PLL, however, ...

(Continued on Next Slide)

NEXT Click for highlights

(Continued from Previous Slide)… comes at a price of increased hardware complexity and power dissipation, since the fractional-N frequency synthesis necessitates the use of phase interpolators or high-order modulators to suppress the steady-state fractional spurs. The invention is a new architecture of a fastlock PLL frequency synthesizer. The architecture has the wide loop bandwidth of the fractional-N PLL in the tracking state and the narrow loop bandwidth of the integer-N PLL in the locked state. The proposed architecture can have fast settling time of the fractional-N PLL, while maintaining the same hardware complexity as the integer-N PLL. The hybrid PLL architecture is essentially an integer-N PLL which is faster than the normal integer-N PLL.

NEXT Click for highlights

The invention features substantially pure nucleic acid sequences encoding wild-type or mutant serotonin retake transporter (SERT) polypeptides, as well as the polypeptides themselves. The invention also features methods for identifying modulators of the biological activity of a SERT and for identifying if such a modulator has a secondary target. In addition, the invention features methods for treating a condition in a subject.

RETURNClick for highlights