1. The Art of Marketing
Christina Ellwood, Founder/CEO, Moreland Associates
Cleantech Open Academy 2012, San Jose, California

2. Agenda/Overview
Introductions
Market Traction Milestones
The Market
Choosing the Segment
Dominating the Segment – Market Traction
Moore’s Positioning Exercise
Marketing Execution Fundamentals
Building Trust and Generating Interest
Competitors
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3. Business Milestones:
Roadmap to Market Traction
Market Traction
Milestones
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4. Focus on Market Traction
Market Traction = Dominance
in a given segment
• Prospects always consider the leader
• Gives you a beachhead
• Accelerates sales
• Reduces the effort required to sell
• Frees up resources and allows
expansion into other segments
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5. Choosing the Segment

6. Market Segment
• What is a Market Segment?
• Members of a segment reference each other in their buying
process
– They see each other as credible references
– They are likely to be accessible to each other
– They have the same buying criteria
• their needs and requirements are the same
• Buyers who distinctly similar
• Identifiable
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11. Market Segment Example
• A network engineer working for an IXC in the USA would consider
another network engineer working for an IXC in the USA a
credible reference. It is likely they have access to each other
through direct relationships, indirect ones, trade show and
industry conference attendance, and/or standards body
participation
• The same network engineers would not reference:
– A network engineer with a PT&T
– A network engineer with a USA ISP
– A network engineer with a USA Enterprise
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12. Momentum Stage
Choose Segment
Build revenue
Discovery Phase: momentum in
Sales/Marketing R&D chosen segment
on multiple segments
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Source: Christina Ellwood, www.morelandassoc.com

13. Solution - Replicable Sales ASAP
Posits & Methods &
Identification Execution Analysis
Purposes Metrics
Sales & Marketing R&D Process
Replicable
Sales
Systematic method to achieve replicable sales
• Correctly identify buyers and the compelling value proposition(s) that drive them to
buy
• Determine the buying triggers
• Identify the key messages
• Determine the actual buying and the true selling processes
• Identify the complete product and packaging required
• Determine price drivers
• Determine metric values
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14. Potential Market Segments
• Prioritize the list of target segment
• Identify you key posits about each
• Define “repeatable sale” for each target segment
• Systematically attempt to reach repeatable sales in each
segment in turn
Repeatable Sales: Multiple sales of ...
– The same product
– To the same profile buyer
– For the same price
– Following the same buying/selling process
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15. A Caution
• Your target market segments are not those that could buy and
use your product
– Rather, those that require your key differentiation
• Market your strength (sell where you can)
– Don’t confuse selling with installing
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16. A Caution
• Remember the cardinal rule for startups:
– Think big – biz strategy
– Start small – market entry strategy
– Move fast – execution
Source: Christina Ellwood, www.morelandassoc.com
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17. The Market

18. “Market Analysis” Versus “Marketing”
How Big is It?: Market Analysis
– Identify a Customer and Market Need
– Size the Market
– Competitors
– Growth Potential
How Do I Create Demand?: Marketing
– Positioning
– Marketing Objectives
– Go-to-Market Strategies (e.g., Pricing, Promotion)
– Demand Creation
Source: Steve Blank, www.steveblank.com
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19. Market Diagnosis: Total Available Market, Served Available Market, Target
Market
TAM = how big is the universe? Total
Available
Market Served
Available
Market
Target
SAM = how many can I reach
Market
with my sales channel?
Target Market =
Who are the
buyers we will
target for the
next 12 months?
Adapted from Blank, Steven B. (2009) “How Big Is it?” High Tech Entrepreneurship Class at Stanford
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20. Technology Adoption Life Cycle and Adopters
Pragmatists won’t
follow visionaries
Chasm
Innovators Early Early Late Laggards
Adopters Majority Majority
Techies Visionaries Pragmatists Conservatives Skeptics
Adapted from: Moore (2002), Crossing the Chasm.
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21. Types of Adopters
• Each adoption type describes individuals…
• With different risk orientations toward technological
innovation…
• Who make decisions about whether and when to adopt
the innovation…
• On behalf of:
– Themselves
– The organization where they work
– Their family
– Their community
Source: Moore, Geoffrey A., Philip Lay, and Lo-Ping Yeh, TCG Advisors. (2004), Life-Cycle Based Market
Development Strategy and Go-to-Market Programs; Section I – Prologue & Principles of High-Tech
Market Dynamics.
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22. Technology Adoption Life Cycle and Adopters
CTO Semi-Finalists: Indicate where your market is today
on the Technology Adoption Life Cycle Curve below:
Chasm
Innovators Early Early Late Laggards
Adopters Majority Majority
Techies Visionaries Pragmatists Conservatives Skeptics
Adapted from: Moore (2002), Crossing the Chasm.
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23. How do we recognize a good target customer?
• Has acritical job to do that current solutions don’t address
• Not getting the job done has serious negative consequences
• Our whole product offers an excellent way to get the job done
• Can afford or find the money for our whole product
• Is respected by others who will follow his/her lead
• willing to tell others about your product, brand, & company.
Sources: Moore (2002) Crossing the Chasm, Christensen (2003), The Innovator’s Solution,
Godin (2001), Unleashing the Ideavirus, and Hughes (2005), Buzz Marketing
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24. Customer Development
How will you do customer development?
Customer Customer Customer Company
Discovery Validation Creation Building
How will you “get out of the building” to discover and validate the
needs of:
• Your “end customers”?
• Your channel partners?
• Your suppliers?
• Other stakeholders?
How should you adapt this process for different countries?
Model Source: Blank, Steven (2006) Four Steps to the Epiphany, Cafepress.com
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25. WEBINAR: August 28th at 2:30 PDT
Tell Your Story, Sell Your Story
Maia Nilsson & Hollie Rogin
Posit Partners

26. Tell Your Story, Sell Your Story
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27. Moore Positioning Exercise

28. Moore’s Positioning
Exercise – The Claim
• For (target customer)
• Who (statement of the need or opportunity)
• The (product name) is a (product category)
• That (statement of key benefit – that is, compelling
reason to buy)
• Unlike (primary competitive advantage)
• Our product (statement of primary differentiation)
Adapted from: Moore (2002), Crossing the Chasm.
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29. Positioning: Apple iPhone
For anyone who wants to travel in style
who loves to have fun at work and at play
the Apple iPhone is a smart phone AND an iPod
that offers Apple’s legendary ease-of-use, elegance, & cool factor.
Unlike Blackberries & other smart-phones
our product offers clearer phone calls, faster browsing, and photos, music
and movies that come to life in the palm of your hand.
Adapted from: Moore (2002), Crossing the Chasm.
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30. Moore’s Positioning Exercise – The Claim
CTO Semi-Finalists: What’s Your Positioning?
• For: ________________________________________________
• Who: _______________________________________________
• The _________________ is a ___________________
• That ________________________________________________
• Unlike _______________________________________________
• Our product __________________________________________
Adapted from: Moore (2002), Crossing the Chasm.
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31. Marketing Execution Fundamentals

32. Business Currency
• Trust is the fundamental currency of business
• Every exposure the market has to the company either
builds, maintains, or erodes trust
Source: Christina Ellwood, www.morelandassoc.com
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33. Building Trust
• One of marketing’s roles is to communicate the premise for why
the company should be trusted and the promise of that trust
– Reputation
– Image
– Experience with the company
• At the corporate/business level, trust is also expressed in
– Values
– Mission
– Hiring practices Collectively referred to as Brand
– Training
– Customer service
– Policies Source: Christina Ellwood, www.morelandassoc.com
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34. Generating the Interest of Buyers
• A second primary role of marketing is to
generate the interest of buyers
– Awareness
– Primary lead generation
– Secondary lead generation (referrals)
– Market education
– Relationship building
Source: Christina Ellwood, www.morelandassoc.com
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35. Building Trust and Generating Interest

36. Marketing to buyer’s process
Buyer process
Interest Learn Evaluate Justify Purchase
Sales Process
Influence Confirm Compete Offer Close
Marketing
Word of mouth Web site Demonstration Professionalism Pricing
Referrals Messaging 30-day Trial Executives SLA
Media Webinar Pilot Investors Warranty
Search engine White Paper Analyst report Media/Analysts Helping buyer’s
Advertising Presentation Media coverage Leadership internal
Blogs Give away Case Study Expertise champion
Events Referral Reference Ally
Speakers Positioning
Direct Mail
Source: Christina Ellwood, www.morelandassoc.com
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37. Marketing Strategy
• How will you go about attracting customers?
– How will people become aware of your offering?
– How will people find you and your offering?
– How will people develop enough trust in you and your
offering to buy?
– How will they recognize you v. others?
• Serves as a basis for the marketing plan
• Derives from the business strategy
Source: Christina Ellwood, www.morelandassoc.com
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38. How will target buyers find out you exist?
(Awareness)
• Hear about you from others • Receive correspondence from you
– Word-of-Mouth – Direct mail, letter, email, offer
– Vendors, partners, channels – Event, speaker, trade show
• Read about you in the press and invitation
other pubs • Find you on-line
– General and industry press, – Search
analysts, newsletters – Social Media
– Blogs, podcasts, boards • See signage or Ad
– Advertising, trade show, flyers
Source: Christina Ellwood, www.morelandassoc.com – Billboard, building
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39. How will people develop enough
trust in you and your offering to buy?
• Referrals
• Brand
• Messaging
• Policies
• Documents e.g., white papers, data sheets,
articles
• Employee experiences
• Experiences with processes – requests,
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purchasing, queries Source: Christina Ellwood, www.morelandassoc.com
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40. How will they recognize you v. others?
• Image/Identity
• Positioning
• Leadership
Source: Christina Ellwood, www.morelandassoc.com
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41. Marketing Plan
• What will be done, over time, to fulfill the strategy?
– What tactics will be employed?
– What resources will be consumed?
– Who will do what?
– How will we measure the results?
– What processes are needed?
– What are the key posits and dependencies?
– When will we evaluate results/adjust the plan?
Source: Christina Ellwood, www.morelandassoc.com
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42. How do you choose tactics?
• Know thy customer
– Where does your customer think s/he would buy or learn
about such an offering?
– What is their preferred way to be reached?
– What methods do they use today to find, learn about,
and buy similar offerings
• Go for only what you need
– Do the minimum to get the game in play
– Maximize impact, minimize spending
– Don’t generate more than you can handle
• Internet business are global from day one
• Dashed expectations are more $ than deferred revenue
Source: Christina Ellwood, www.morelandassoc.com
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43. How do you choose tactics?
• Think leverage:
– Generate word-of-mouth at every opportunity
– Use free methods and opportunities (blogs, podcasting,
etc.)
– Leverage your partner, vendor and channel relationships
to co-market and/or co-promote
– Make messages short, clever, and memorable (beats
descriptive every time)
Source: Christina Ellwood, www.morelandassoc.com
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44. Dominating the Segment – Market Traction

45. Whole Product - Definition
For a given target customer
With a compelling reason to buy
The whole product is:
the complete set of products and services needed
To fulfill that reason to buy
• The Motorcycle
• The leathers
• The customization
• Warranty
• Service
• Replacement Parts
• The license
• The insurance
• Gasoline & Oil
• An open road
• What else?
Source: Tom Kosnik, Global Entrepreneurial Marketing, Stanford University
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46. Whole Product – Information Technology Example
Consulting Hardware
Post-sales
service Software
Complementary & support The Complementary
Services Product Products
Pre-sales
Peripherals
services
Legacy
interfaces Connectivity
The whole product is the minimum set of products and services
needed to fulfill the target customer's compelling reason to buy.
Source: High-Tech Marketing © 2005, TCG Advisors LLC
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47. LS
Whole Product – CTO Semi-Finalists Fill in your Whole
Product. Who does what?
Hardware
Software
Complementary The Complementary
Services Product Complementary
Products
Peripherals Products
Connectivity
The whole product is the minimum set of products and services
needed to fulfill the target customer's compelling reason to buy.
Source: High-Tech Marketing © 2005, TCG Advisors LLC
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48. Managing Partners:
Partner Give - Get Analysis
Potential Stakes to bet on the Partner can give: Partner can get:
Partnership
Technology (product, platform, and
process technologies)
Resources (money, time, talent, and
knowledge )
Relationships (with customers,
channels, investors, government)
Reputation (visibility, credibility,
brand equity)
Core Competencies (critical
capabilities for execution)
Chemistry of Key People (culture,
character, personalities, values)
Company Vision (purpose, mission,
values) and strategy
Adapted from: Tom Kosnik (2000), “Managing a Portfolio of Polygamous Partnerships?”
Talk for Stanford Center for Professional Education, January 26, 2000
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49. Managing Partners:
Your Give - Get Analysis
Potential Stakes to bet on the You can give: You can get:
Partnership
Technology (product, platform, and
process technologies)
Resources (money, time, talent, and
knowledge )
Relationships (with customers,
channels, investors, government)
Reputation (visibility, credibility,
brand equity)
Core Competencies (critical
capabilities for execution)
Chemistry of Key People (culture,
character, personalities, values)
Company Vision (purpose, mission,
values) and strategy
Adapted from: Tom Kosnik (2000), “Managing a Portfolio of Polygamous Partnerships?”
Talk for Stanford Center for Professional Education, January 26, 2000
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50. Sales Strategy

51. How do you choose sales model?
Direct Sales
Systems
Integrator,
VAR
Your Reseller
Company Ultimate
Retailer Customers
Distributor
Online
Utilities
Source: Tom Kosnik and Christina Ellwood
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52. Competitors

53. Competitors
Every company has competitors
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54. Competitors
• Number 1 – status quo
• Internal solutions
Every company has
• Other start-ups
competitors
• Current dominant
players in
adjacent/relevant
markets
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55. SWOT Analysis
Strengths (ours) Weaknesses (ours)
-
-
Opportunities (for us) Threats (to us)
-
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56. SWOT Analysis
Strengths (of competitor) Weaknesses (of competitor)
-
-
Opportunities (for competitor) Threats (to competitor)
-
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57. Christina Ellwood
Founder/CEO
Moreland Associates
christina@morelandassoc.com
www.morelandassoc.com
510-708-4855
Moreland Associates focuses on helping technology companies build market
traction.
Services include:
– Interim CMO, VP Marketing
– Messaging and Positioning
– Buyer Cycle Optimization
– Product Marketing
– Business and Marketing Strategy
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