This lecture provides practical tips on how to prepare to enter the marketplace with your product. It is relevant for all start-ups that are still in a development phase and contemplating the various pieces that need to be in place for product launch. Case studies are used to emphasize the importance of taking a customer-centered approach to market entry and illustrate the barriers to scaling and selling your product.
3. It's hard to tell with these Internet startups if
they're really interested in building companies or
if they're just interested in the money.
I can tell you, though: If they don't really want to
build a company, they won't luck into it. That's
because it's so hard that if you don't have a
passion, you'll give up.
4. Go-to-Market: Old School
Make the product and then figure out how to sell it!
Go-to-Market Strategy!
What
How
Who
Focus on the
product, the
‘what’!
Where
Next determine
who you can
sell it to and
how to reach
them!
Where to
promote it an
after thought!
Pg 4!
5. Go-To-Market: New School
Developing a go-to-market strategy is an iterative process!
What are you
selling?!
What
Who
Who are you
selling to? !
Go-‐To-‐
Market
How will you
reach your
target market?!
How
Where
Where will you
promote your
product?!
4
quadrants
of
a
strong
go-‐to-‐market
strategy
Pg 5!
6. Case Studies!
Example MaRS clients for go-to-market case studies!
Grey water recycling system for
commercial and residential
customers!
Innovative eBike with a unique
ergonomic sitting position (e.g. its
cool)!
Pg 6!
8. Value Proposition!
What are your unique product BENEFITS? !
Value = Benefits - Costs!
What UNIQUE benefits does your product provide in comparison to
competitors?!
Typically compete on either (1) cost or (2) differentiation!
– Same value, <= price!
– Greater value, >= price!
Costs include:!
– Risks (high when dealing with a startup); switching barriers; others?!
What you are selling impacts who you are selling to and how you sell it
AND vice versa!
Pg 8!
9. Value proposition!
Example MaRS clients for go-to-market case studies!
Full solution!
Compact!
Simple reporting!
Comfortable riding position!
Near zero maintenance!
Pg 9!
10. Example Value Proposition!
Focus on benefits, NOT features!
Defining Unique Benefits!
Example: Greyter!
Features
Benefits
Microfiltra<on
with
auto
flushing
Near
zero
maintenance
WiFi
connected/remote
monitoring
Report
on
your
savings
Qualified
installers
One
stop
purchase
Pg 10!
11. Whole Solution!
What part of the whole solution are you selling? Can you sell?!
Example!
Greyter!
What is the whole solution to
the end user?!
Smart
City
Integra<on
Financing
What portion of the whole
solution can you deliver?!
Services
Online
Monitoring
Annual
Servicing
Core
Product
Are partners readily available
for delivering the whole
solution?!
Water
Tes<ng
Consumables
Installa<on
Equipment
14. Market Segmentation
Use easily identifiable criteria to segment market!
Sex?!
Urban Core?!
Age Demographic?!
Market Segments (Size)!
Yes!
Male!
No!
Yes!
Female!
No!
Pg 14!
15. Determine Segment Fit with Benefits
Compare NEEDS of each segment with your primary BENEFITS!
Segment Needs vs. Solution Benefits!
LifeBike Example!
High!
Portable / Easy Storage!
Female University
Students!
Female Bay Street
Professionals!
Compe<<on
Low!
Low!
“No Sweat”/ Safe Riding Position!
High!
Pg 15!
16. Refining the Target Market
Other factors beyond fit with benefits must be considered!
Segmenting Beyond Fit with Value Proposition !
Greyter Example!
Fit with Value Proposition
Market Segment
Market Size
Needs/
Solution Fit
Ease of Selling
Propensity to
Market
Spend
Concentration
Market
Access
Overall
Segment
Attractiveness
M.U.S.H.
Corporate,
Single Tenant
Hotels
Multi-tenant
Buildings
Low
High
Pg 16!
17. Beachhead Strategy
A beachhead strategy is a leveraged approach to market rollout!
Beachhead Market Rollout Strategy!
Example: Greyter!
Tomorrow!
208,000!
Hotels, US
SE
!
Multi-tenant,
US SW
!
Corporate,
US Midwest
!
Corporate,
US SE
!
MUSH, US
Midwest
!
4,500!
Market
Penetration
(Needs-based
!
Segmentation)
!
109,000!
91,000!
3,000!
Hotels, US
SW
!
117,000!
5,500!
Corporate,
US SW
!
MUSH, US
SE
!
700!
Bldings!
!
MUSH, US
SW
!
!
Market
Expansion
!
(water
scarcity)
!
Today!
Point of Attack!
Pg 17!
19. How will you reach the target market?
Which channel? Partners?!
Market Segments!
Pg 19!
20. Channel(s) Strategy
Many options for reaching your target market!
Channel Options!
e-Commerce!
You
Customer
In House!
Direct!
Personal
Selling!
You
Retail!
(on/offine)!
You
Indirect!
You
Component
or Private
Label!
You
Salesperson/
Reps
Retailer
Distributor/
Reps
OEM
Customer
Customer
Salesperson
Customer
Outsourced!
Customer
Pg 20!
21. Channel(s) Selection!
Factors to consider in channel selection!
Deal size / Product margin !
Percent of whole product!
Solution complexity!
Competition (have they locked certain channels)!
Differentiation (can different channel provide unique strategy)!
Credibility/brand!
Importance of local knowledge!
Time to market!
Number of target customers!
!
Pg 21!
22. Direct Sales!
Key points to consider in building a high performance sales team!
Recruit the best … pay for performance!
Top guns follow great managers!
Industry experience!
Be a leader … get involved!
Align with business targets!
Manage to targets/activity … yearly, monthly, weekly, daily (track it!)!
Be aware of salespeople chasing the “big fish”!
Fire fast … spend time with top performers!
Training and knowledge sharing!
Tweak the compensation plan!
Inside sales team!
Pg 22!
23. Indirect Sales!
Factors to consider in developing an indirect channel strategy!
Reps or Distributors!
Selection!
– Alignment with target market!
– Reputation/brand!
Management!
– Legal agreement (targets, pricing/commissions, information sharing, …)!
– Market/account split (house accounts) … customer ownership?!
– Training!
– ‘Drive-a-rounds’!
Pg 23!
25. Promotion Plan!
Where will you communicate to reach decision makers!
Align your promotion plan with your target market!
Focus on reaching decision makers!
Where do the decision makers get their information?!
Types of promotion!
– PR (mass, specialty)!
– Word-of-mouth!
– Social media!
– Trade shows!
– White papers!
– Product demos!
– Gorilla/shock/…!
– …. and finally, advertising (print, tv, internet)!
Pg 25!
26. Messaging
Spend time getting the message right for the market segment and DM!
Greyter Positioning Statement!
Greyter is… [what] … a grey water recycling system … !
!
…primarily for…
[target market] !
… commercial building owners who want to be water smart
and save money.!
The compelling
reason to buy
[benefits] …!
• Short payback with water savings;!
• Full solution;!
• Remote monitoring;!
• Near zero maintenance.!
… unlike
[competitors] …!
• Low flush toilets that don’t work well; and!
• Reduced flow shower heads that disappoint.!
Pg 26!
28. Crossing the Chasm
Jump the chasm with a focused go-to-market!
Crossing the Chasm !
Focus on needs of
the Early Majority!
Do not require full
solution and are less
price sensitive!
Area under curve
represents number
of customers!
Pg 28!
29. Go-to-Market Summary!
7 steps in developing a powerful go-to-market strategy!
1. Value proposition!
2. Whole solution!
What
3. Market segmentation!
Go-‐To-‐
Market
4. Target segment!
5. Beachhead strategy!
Who
How
Where
6. Channel(s)!
7. Promotion plan!
Pg 29!