uw mktg 555 session 1

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University of Washington Winter 2012 | Mktg 555

Marketing 555Entrepreneurial Marketing

Session 1January 4, 2012


Today’s Schedule• Section 1– Introduction to Class

• Resources, Blog, Highlighter, etc…

– Brainstorming – Entrepreneur “Hackathon”– Voting / Team Set up process

• Break• Section 2– Class Topic: Market Analysis, Segmentation and

Audience Identification– Assignment– Group Formation

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• Class Intro• Idea “Hackathon”• Group Voting• Class Lecture• Group Set up

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Introductions• Contact Info– [email protected] | [email protected]– Will be on campus 1-2 hours before each class

• My Resume– UW MBA 2006– Have worked for/with RealNetworks, Microsoft,

Spring Creek Group, GotVoice, Imagekind, other startups

– Currently manage small agency called Social3i, and co-founder of new software company called Relaborate

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Grading

• 5-6 blog posts to MKTG 555 blog.

Individual Semi-Weekly Assignments (20%)

• 2-3 page report, solving a problem for an entrepreneur

Individual Entrepreneur Project (20%)

• As an entrepreneur, how are you perceived when an investor, employer, or partner looks you up online

Participation / Individual Personal Branding (10%)

• Q+A with weekly guest speaker

Group Entrepreneur Interview (20%)

• 5 minute presentation• 2 Page Executive Summary

Group Final Marketing Plan (30%)

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A Typical Class Session

• Discussion of the topic studied during the week. • Group and individual presentations will be the base of conversations.6:00 – 6:45*

• One or more guest speakers who are expert in the topic studied during the week will come to class.

• One group will be responsible for a Q+A session/ moderated discussion.

6:45 – 7:45

• Break7:45 – 8:05

• Topic Begins. We will discuss the next topic of study for the upcoming week.8:05 – 9:15

• Wrap Up / Q+A9:15 – 9:30

* All times “-ish”


Assignments


Individual Entrepreneur Project

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• 2-3 page paper solving a specific marketing problem for a entrepreneurial company

• Opportunity for you to reach out to an entrepreneur of your choice or have me help connect you


Guest Speakers (sample)• Richard Tait,

Cranium/Golazo• Kelly Smith, Curious

Office/Zapd• Wil Merritt, Zoopa• Elizabeth Bowman,

iOrganize• Kristen Knight, Filter

Talent• RealNetworks

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• Rob Newton, Ontela/Google

• Marty Roberts, thePlatform/Comcast

• Paul Owen, Owen Media• Geekwire• SeoMoz• Adam Schoenfled,

Simply Measured• More….


Resources• Blackboard– http://foster.blackboard.com

• Highlighter– http://highlighter.com

• Blog– http://marketing555.wordpress.com/

• Twitter Feed– @Mktg555– PW: Paccar291

• LinkedIn– UW MKTG 555: Email to come with invite

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What the Quarter Will Look LikeMODULE 1 Identifying Market Opportunities • Assessment of market potential | How large is the market |

Evaluating Market Attractiveness• Targeting Markets and Customer• Low-budget or no-budget market research. Who are you? -- Mission/Values/Positioning/Branding• Mission / Values / Positioning• Pricing: Because pricing will affect who adopts your product• Branding: Establishing and Managing the Brand: • Partner evaluation matrix• Creation of successful distribution relationships

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What the Quarter Will Look LikeMODULE 2How do you raise initial awareness • Entrepreneurial Communication Strategy• How do you reach out to the community through PR • PR / Community outreach / 1st Buzz

How do you apply sales/-marketing tools effectively in an entrepreneurial environment? • Outbound marketing tactics: Advertising, public relations, trade shows, viral

marketing, internet marketing, etc…• Executing a web / seo / sem /social / email strategy• Blending in Social Media• Building Customer RelationshipsTeam building• Roles in a marketing org

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What the Quarter Will Look LikeMODULE 3Crossing the chasm• From early adopters to mainstream • Entrepreneurial Distribution Strategy Retention and Referral• Turning a large number of rabid fans into a volunteer sales force on behalf of your

company, product, or cause. • How do you retain customers• Building tribes and followers Customer feedback into development• How do you get customer feedback into product dev?• Managing Market Evolution and Change:

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Group Project: The Marketing Plan• Split into teams of 2. You will have 15 minutes to come up with an

idea for a startup. Your task is simple. If you were given $1000 dollars today, how could you make the most money by March 9. – The only rules: No gambling. It must be legal. It must adhere to the

laws of physics (ie no time machines.)• Each group will propose their idea off the top of their head (you

can use one you are already working on.) • After all presentations you will have 15 minutes to mingle with

each other and talk to the people about their ideas. Every student will then place one of their 5 poker chips into 5 of the boxes. (Or we will set up a survey monkey.) The 12 companies with the most chips will be the projects we work on for our final group project.

• At the end of class we’ll announce the 12 ideas, and the students will be left to form into groups.

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MARKET ANALYSIS, SEGMENTATION, IDENTIFICATION

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Before we build a better mousetrap, we need to figure

out if there are any mice – Yogi Berra

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Sample Market Planning Task List

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Measuring a Market• Potential Market– Set of consumers who possess some interest in a

product or to whom the product is potentially relevant

• Available Market– Set of consumers who have interest in, income for

and market access to a particular product• Target Market– Part of the available market that the company

decides to pursue with marketing budget

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Measuring a Market

Economic Possibility

Potential Market

AvailableMarket

TargetMarket

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Market Size

Market Size =

# of Potential

Customers

Avg Size of Transaction

# of Transactions

per customer per year

X X

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Sources of Info• Trade, professional, and social associations and groups: • Government sources:

– Census Bureau– FedStats Web site.)

• University professors: In addition to your library, don't dismiss the possibility that the exact data you need is sitting in a research report on an academic shelf. Talk to professors who have an academic interest in your e-business industry

• Market analysis firms: – Jupiter Research– International Data Corporation– eMarketer

• Direct data collection: If feasible, go directly to representatives of the target market.

• The Internet: – Nua Internet Surveys– Yahoo's Internet Statistics and Demographics Surveys page.

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Market Analysis Discussion

• Apple• Facebook• Google Plus• Dove Skin Care for Men• Others?


Estimating Market Demand• Market demand: Total volume that – would be bought by a particular customer group– in a particular time period– in a particular marketing environment– under a particular marketing program.

• When estimating market demand, qualify estimation as appropriate given a certain level of marketing investment.– If you slash your marketing budget, you have to adjust

demand opportunity appropriately– The market demand corresponding to a certain level of

marketing expenditures is called the market forecast.

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Estimating Market Demand• When we estimate market demand, assume that

marketing expenditures will increase market demand. • 3 constraints:– There is a certain level of demand for the product that

would occur without any marketing spending, which we call the market minimum

– At some point, marketing expenditures become ineffective at generating incremental demand because we have tapped out the market; this point is called the market potential

– The market potential is dependent on a given external market environment.

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Market Identification

Identify Your Target Market & Assess Market Conditions• Size, growth rate and maturity• Niche market or large market• What segment exists• What are their basic needs• What channels do they consider

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Assessing Market Opportunity

Compelling Unmet Need

Uniqueness

Market Size and Growth

Competition

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Revenue Opportunity


Market Validation

• Conduct 20-30 interviews with representative customers.– Would they buy?– What would they expect to pay?– Who in their org would buy?– What are they buying like this already?

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PEST vs SWOT Analysis• PEST is an acronym for Political, Economic, Social

and Technological factors, which are used to assess the market

• Completing a PEST analysis is helpful prior to completing a SWOT analysis (a SWOT analysis - Strengths, Weaknesses, Opportunities, Threats - is based broadly on half internal and half external factors).

• PEST analysis most commonly measures a market; a SWOT analysis measures a business unit, a proposition or idea.

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Estimating Market Share

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Market Share

Unit Share = Product Unit Sales

Market Unit Sales

Dollar Share = Product Demand in Dollars

Market Demand in Dollars

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Choosing where to compete

Market DevelopmentMarket Penetration

DiversificationProduct Development

New Markets

Current Products

Current Markets

New Products

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Apple

http://radar.oreilly.com/2010/09/apple-segmentation-strategy-an.html



Improvised User Behavior

Twitter Tumblr

Dodgeball Foursquare

Hipstamatic Instagram

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Market Segmentation

• Dividing People into groups based on similar characteristics

• Can segment on age, income, education, etc….• Once target is chosen, analyze needs/wants

and purchase motivations

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http://www.slideshare.net/colleencar/increasing-social-media-roi-using-gladwells-tipping-point-framework-4539106

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Korrio

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Competitive Analysis

• Direct vs Indirect Competitors• What do they do well/poorly• How/Where do we compete• How will they react to what we do

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Example: Google for research

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Getting into the Pet Business

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Tools for Market Analysis

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