Entrepreneur Training Marketing Module Agenda Ø Introduction

Entrepreneur Training: Marketing Module

Agenda Ø Introduction and credentials Ø Goal Ø Marketing framework • • • Positioning Product Price Place Promotion Ø Workshop • Your examples Ø Close 2

INTRODUCTION S 3

Credentials Ø Who is LGE Execs? • Growing five year old group of 120 former senior executives, from multiple functions, multiple verticals, in US and Europe • Available to help run companies, functions, initiatives • We are the Anti-Consultants • We have Supply, Demand, Finance, and Talent practices Ø Who am I? • • • First 11 years in Consumer Products – foundation in marketing VP Marketing for Bell. South’s SMB division Director/VP Marketing and then VP/GM for Dell’s $4 B SMB division Repositioned startup, sold to Cisco Started marketing practice, merged with LGE in January, 2007 4

THE FUNDAMENTALS STILL APPLY! 5

A Tried and True Foundation LGE Execs P 5 Framework. TM Positioning Product Price Place Promotion Purpose Create sustainable advantages for the firm vis-à-vis competitive alternatives Purpose Create a product portfolio that solves the target’s relevant problems in a superior way Purpose Provide price structure that optimizes revenue and/or profit Purpose Deliver a channel that maximizes target customer buying opportunities Purpose Provide toolset that drives demand with ROI certainty and control Target Assess and optimize existing portfolio Proactive and strategic pricing model Assess target’s satisfaction with existing structure Virtuous cycle of awareness, trial, repeat, referral Competitive set Target needs and market based reqts Understand leverage elasticity Evaluate direct, indirect, online, wholesale, etc Create demand generation model to control ROI Point(s) of difference Strategic roadmap to support positioning Coverage of addressable market Deliver on channel reqts for success Drive sales model: Deal flow, deal size, deal velocity 6

Example Case Studies Positioning Product Price Net. Solve Dell Servers IT Security Hosted Apps IT Architecture Solution Place Cisco CMS Promotion SEM Mobile Security Enterprise SW vs. Saa. S vs. Appliance Dell SMB Voice Apps 7

Positioning: Create sustainable competitive advantage Target Competitive Set Point of Difference • Who are they? • Where are they? • What problems do they have • How do they make decisions? • How does the target solve its problem today? • What roles do “do it yourself” and “do nothing” play and why? • What is the SWOT for each major competitor, including DIY and DN? • What problems are left uncovered? • With consideration to the Target and Competitive learnings… • What are the unique selling propositions that provide the firm with • Compelling, relevant, and sustainable advantages? 8

What You Need to Do Deliverables for Positioning: Ø Understand current and future strengths, weaknesses, opportunities and threats, compare versus leading competitors Ø Research market through primary and secondary means Ø Interview key execs, employees, customers, and partners Ø Develop a strategic positioning segmentation or framework that leverages client’s best attributes against competition to maximize appeal to the target. 9

Product: Create superior solutions to target’s problems Current Portfolio • How does the current product or service deliver on the benefits that the target requires? • Are there too many offerings? Too few? • Are there unmet user needs that must be addressed? • If so, is a new offering or a relaunch of an existing offering better? Target Requirements • What are the real needs of the end user (and/or partner, as appropriate)? • What understanding does the firm have today and how was this information obtained? • What level of domain expertise exists and how current is the thinking? Roadmap • How can a realistic roadmap position the firm as the leader in the category? • Can the roadmap be achieved organically or are strategic alliances or M&A required? • Are current and future products captured in a strategic roadmap that can be presented to prospects? • Customers buy roadmaps, not products. 10

What You Need to Do Deliverables for Product: Ø Understand competitive business models and offerings, and analyze strengths and weaknesses. Ø Document and prioritize current and future end user and/or partner needs. Ø Assess viability of current offerings to address these specific needs. Ø Develop strategic roadmap based on current and changing needs. 11

Price: Optimize Revenue and/or profit Business goals • Revenue at all costs? Profit maximization with topline tradeoffs? Balance? • Document specific financial parameters to ensure that pricing is proactive and strategic and not merely reactive and tactical. Current Pricing • Is the current pricing optimal, given the business goals? • How can you leverage elasticity impact results with some degree of control? Pricing Logic • Is the pricing logical across the portfolio? • Does it incent the desired buyer behavior? • Does the pricing schema have appeal (and therefore coverage) of the target market? Alternative Schema • Are there competitive pricing models that are appealing? • Are there models from outside the industry that have potential? • Evaluate within context of above criteria. 12

What You Need to Do Deliverables for Price: Ø Analyze pricing, revenue, margin, and unit velocity data to develop pricing model and elasticity curves. Ø Validate thinking with sales and customers (as appropriate). Ø Create and make recommendations on various pricing scenarios based on these issues. • Recommend and transition tactics, as needed. Ø Understand competitive business models and offerings 13

Place: Maximize opportunities for target to buy Existing Approach • Analyze existing channel and distribution structure. • Assess predominant channel structure of the category and competitors • Assess the target’s level of satisfaction. Alternate Models • What is the best model? Shrink wrap, license, subscription, wholesale, retail, OEM, or distributor? • Understand tradeoffs of existing channel strategy and evaluate these potential alternate approaches. • Prioritize and execute. Execution • Understand channel requirements • Develop and execute plan for recruiting, contracting, training, incenting, maintaining and growing. 14

What You Need to Do Deliverables for Place: Ø Research and analyze the current category distribution structure to create a channel map. • Identify potential gaps and opportunities. Ø Provide informed recommendation on distribution strategies, based on the tradeoffs of status quo, costs, feasibility, and risks to changing approach. • Alternately, develop a full potential plan for existing channel strategy. Ø Create and execute an end-to-end plan for managing the channel for success. 15

Promotion: Generate Cycle of Awareness, Trial, Repeat, Referral Virtuous Cycle ROI Sales Execution • What are the most effective ways to generate target market awareness? • Convert that awareness to first purchases? • To incent repeat purchases? • To activate word of mouth referrals? • Within budget and time requirements? • What is the financial foundation of the demand generation model? • What are the ROI sensitivities? • Where are first places to cut budget and first places to add? • Create and analyze the sales model to understand manage the dynamic tradeoffs between: • Velocity • Deal flow • Deal size • Sales coverage • Compensation 16

What You Need to Do Deliverables for Promotion: Ø Assess, quantify and prioritize assortment of programs for awareness, trial, repeat and referral. Ø Create various spending plans based on budget parameters that include estimated revenues and profitability results. Ø Create the demand generation model that can be used to manage tactics and expenses to project and manage ROI. Ø Create the sales model that can be used to manage the sales and/or channel team, its expenses, and the sales funnel, pipeline and forecast. 17

WORKSHOP 18

Workshop Notes: Example One Ø Positioning • • Target Competitive Set Point of Difference For [target] with [problem], [your company] is the best choice among [competitive set] because of [point of difference. ] 19

Workshop Notes: Example Two 20

Workshop Notes: Example Three 21

BACKUPS 22

LGE Offering