Marketing in a New Venture Making the World

Marketing in a New Venture Making the World Sit Up and Notice…

First Step: Part of Feasibility Analysis (Marketing)…. • What do customers want? • Are there any needs it will meet that are not being met very well now? • If no—stop right there! • What problem do potential customers face? • Can you solve it? • Can you make a profit doing so? • What alternatives exist—or may soon exist?

How Can Entrepreneurs Find Out if there is a need/market for their product? Traditional Marketing Research Techniques Focus groups, surveys, mail studies What kind of markets should entrepreneurs seek? Temptation: new solution for existing market needs— ”We can do it better, cheaper, more reliably…” • Good, but even better: create a new market • But who will invest in uncertain markets? • You must make a strong case for this to investors! • •

Inventions that failed… Beer Holster Spaghetti Twirler

More inventions that failed. . Edison’s 1, 000 mile car battery? Edison’s Vote Counter

What techniques work for new ventures? • “Normal” marketing procedures are expensive • So, what can a new venture do, short of huge cash infusion from investors?

Why New Ventures Often Can’t Use “Normal” Marketing • It is out of reach of most new ventures. • It is just too expensive. • If the new venture doesn't spend enough then they will just get lost in the multitude of advertisements on media. • It involves huge waste as it is hard to pinpoint which ad really worked and pulled in the customer. • It is despised by many customers as it interrupts the customer's life instead of being there when needed by the customer.

Key Challenge for New Ventures…. • How how do we get the money needed to have an effective marketing campaign and • How do we test to find out if it’s working?

Two Basic Types of Marketing • Inbound Marketing is when the customer searches for your venture and/or its products • Outbound marketing is when your venture pushes its products to the customer • Why would customers search for your ventures or its products? • Because somehow, you call it to their attention, make it interesting—and provide free access

Four P’s of Marketing for New Ventures Product: make it clear what this is! Also: try to get reference accounts Price: get this right the first time Can be cost-based pricing; value-based pricing But watch out for the price-quality attribution problem! • Promotion: advertising—and anything you do to get your products known • • •

Four P’s Continued • Place: for distribution of your products • You want to get them in places where potential customers (the ones you have identified) will be exposed to them • Can be stores; on-line sites, almost any place that works for your product • But wherever it is, make sure your product is not “lost in the crowd” • And remember: the more people between you and the customer, the lower your profit! • And also remember: it can sometimes be free!

Product Placement…And “Basking in Reflected Glory”

New Ventures can use guerilla marketing • These are techniques that are outside the regular channels of ads, mailings, radio, TV, the internet, etc. • Finding people—that is a good first step • Use other routes to reach your intended audience • Marketing companies won’t tell you this because they earn their profits from fees! • (Analogous to patent attorneys) • So, you do have to “make it up as you go along”

Some Ads That Failed….

And More…

Some Guerilla Tactics • Ad placement—look for ‘freebies’—including social networks • Movie theaters? Trucks? • Other inventive approaches? • These are as varied as you can imagine—and are another example of creativity at work! • Can you think of others you have seen, or not seen?

Commercials From Ancient Days… That Didn’t Work https: //www. youtube. com/watch? v=uh. Fk 85 J 8 n_Q

And now for a commercial that DID work? Why? https: //www. youtube. com/watch? v=6 Hug. FW 8 r. LZ 8

Guerilla Tactics

More Guerilla Tactics…

Use the media… • Interviews! • Tell the media when something of interest is happening • Trade shows • Make donations— especially of products or services

Viral Marketing • In this technique, people pass along a marketing message

Is this for real?

Branding and Brand Personality…

So, branding and brand personality are important • Without them, new ventures and their products can be missed… • They are crucial in marketing, especially for new products/services and new ventures • You can try to do it yourself, but there are experts who can help • Branding is important form the word “go”—you can’t/shouldn’t wait

Advice from an expert Brand A name, term, design or symbol that identifies the goods, services, institution or idea sold by a marketer

Brand Name: • The part of the brand that can be spoken (e. g. Words, letters or numbers) • Brand Mark: • The part of the brand that cannot be spoken, such as the logo, or icon

• Brand Image: • A special meaning or mental representation created for a product, service or company that distinguishes its identity from competing brands

• Brand Personality: • is the sum of all the verbal and visual cues that make your brandʼs best case—via head, heart & gut—to your “customers” and your prospects • Some companies—Apple, VW & Target, to name three— are expert at consistent branding with personality • Every element of their brand, from product to packaging to retail space to advertising is consistent in personality. At the same time, their brand systems allow for endless playful variation

Brand Personality is. . . • • Logo • Stationery • Signage • Posters Leaflets • Catalogs • Newsletters Advertising • Sales Materials • Web Site Direct Mail • e-Marketing • Images User Guides • Publications • Annual Reports • Statements and Billing Recruitment Materials • Forms Directories • Public Relations • Events Trade Shows. . . Bottom line: you need it for your new company!