B2B Marketing & Sales: What concepts and tools will drive your growth in 2014-2015?

1. Update: 03/13/14
1© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Global Thought Leadership.
Proven Impact.
Key Question for C-Level Execs and Sales & Marketing Directors:
What Concepts and Tools Will Drive
Your B2B Growth in 2014-2015 ?
Michael Eckhardt
Managing Director
Chasm Institute
Palo Alto, California

2. Update: 03/13/14
2© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Update: 03/13/14
2© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.
3 Key Themes:
Content Marketing
Pipeline Marketing
Marketing Automation

3. Update: 03/13/14
3© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.
1991
1995
2001
2006
----------- Our 2 Newest Books for 2014 -----------
CrossingThe Chasm 3.0Escape Velocity
Chasm Institute expertise in B2B market success is based on:
• Michael Eckhardt’s 500+ engagements with tech-based clients
• our 6 best-selling strategy books by Chairman Geoffrey Moore
• our 15 yrs of Thought Leadership on accelerating B2B results

4. Update: 03/13/14
4© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.
Michael Eckhardt – Managing Director & Senior Workshop Leader at
Chasm Institute, is a veteran of Hewlett-Packard, Pepsico, and Price Waterhouse.
An MBA graduate of Harvard Business School and Wall Street Journal Award winner,
Michael Eckhardt is a recognized expert in strategic B2B marketing & high-tech
market success. He provides clients:
 in Silicon Valley, the US, and Europe / Asia-Pacific
 with strategy workshops & practical marketing tools
 for gaining (+ sustaining) leadership positions in highly-competitive markets
Michael Eckhardt has worked with over 90 technology-based businesses in
19 countries. Founded in 1993, our clients include: Intel, Cisco, Adobe, HP,
AT&T Wireless, SAP, Agilent Technologies, Micron, LMC Data Systems,
NetApp, Autodesk, Plantronics, Mentor Graphics, and other high-tech leaders.
His 3 primary areas of focus are: target market success, predicting customer reaction to
new product intro’s, and driving profitable growth.
Michael Eckhardt and his Chasm Institute senior team have worked on market strategy
for winning products, services and solutions in North America and worldwide. Geoffrey
Moore is Chairman Emeritus of Chasm Institute, and Eckhardt has edited + contributed
to several of Moore’s best selling high-tech strategy books, including the newest 2014
version of the best-selling B2B marketing best-seller, Crossing The Chasm.
Chasm Institute provides these advanced workshops to executives + teams:
“Driving Go-to-Market Results ” “B2B Market Strategy Success”
“Crossing The Chasm” “Inside The Tornado”
... for more information please click on: www.chasminstitute.com

5. New Disruptive Innovation
What Makes High-Tech Marketing Different?
• High Risk
• Unproven products and promises
• Incompatible and incomplete infrastructure
• Social resistance to change
• Low Data
• No product history
• No company track record
• No best practices
Update: 03/13/14
5© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.

6. The Technology Adoption Life Cycle
The Challenge Facing Every Disruptive Innovation
Update: 03/13/14
6© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
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7. The Technology Adoption Life Cycle
The Challenge Facing Every Disruptive Innovation
Update: 03/13/14
7© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.

8. The Technology Adoption Life Cycle
The Challenge Facing Every Disruptive Innovation
Update: 03/13/14
8© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.

9. Innovators - Technology Enthusiasts
Willing to help. Have no money.
Update: 03/13/14
9© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
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10. Early Adopters - The Visionaries
Willing to fund. Have big plans.
Update: 03/13/14
10© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
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11. Early Majority - Pragmatists
On the fence. Will go with the herd.
Update: 03/13/14
11© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
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12. Late Majority - Conservatives
Deer in the headlights. Need help.
Update: 03/13/14
12© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
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13. Laggards - Skeptics
Not on your side.
Update: 03/13/14
13© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
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14. How High-Tech Markets Develop
The Technology Adoption Life Cycle
CHASM
EARLY
MARKET
TORNADO
BOWLING
ALLEY
MAIN
STREET
Update: 03/13/14
14© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
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15. Life-Cycle Metrics that Matter
Tracking Performance Relative to the Chasm
• Early Market
• One or more flagship customers making big-bet commitments
• In the Chasm
• Cannot support yet another big-bet commitment
• Pragmatists still holding back from entering the market
• Taking the Beachhead
• Nailed a high-pain segment-specific use case
• Getting strong word-of-mouth support within target segment
• In the Bowling Alley
• Additional use cases coming on board, viral in adjacent segments
• Inside the Tornado
• Horizontal “killer app” -- hyper-growth in the category
• On Main Street
• Hyper-growth subsides – pecking order established
• Customers seek sustaining innovation going forward
Update: 03/13/14
15© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.

16. Crossing the Chasm
Two Key Principles
• Target a “beachhead” segment
• Highly focused approach to “rekindling the flame”
• Segment with an intractable problem, not solvable by conventional means
• Process owner is under pressure to find a solution
• Pragmatists are willing to consider disruptive approach
• Commit to provide the “whole product”
• Bring all the ingredients with you
• Complete solution to the intractable problem
• Typically involves products and services from partners and allies
• Lead vendor takes responsibility for ensuring customer success
Update: 03/13/14
16© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.

17. Crossing the Chasm
What’s New? End User IT!
• Digital Services
• Light to deploy, focus on user experience
• The Lean Start-Up
• Minimum viable product, rapid agile learning
• In consumer use cases, leap to the tornado
• Critical Success Factors: The Four Gears
• Acquire
• Engage
• Convert
• Enlist
Update: 03/13/14
17© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.

18. ENLIST ACQUIRE
ENGAGECONVERT
Starter
Motor
+ = Virality
o = Retention
- = Churn
Tipping Point for B2B Markets
The Four Gears Model
Performance
Gear
Performance
Gear
Power
Gear
Power
Gear
Update: 03/13/14
18© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.

19. Four-Gears Metrics that Matter
Tracking Performance Relative to the Tornado
• Acquire
• Rate of gaining new users
• Engage
• Average length, depth, and frequency of user engagement
• Convert
• Percentage of total users that participate in business model
• Enlist
+ Virality (New customers coming from existing customers – high NPS)
- Churn (Existing customer defecting – “de-enlisting” – low NPS)
Update: 03/13/14
19© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.

20. Slowest Gear Theory
• Thesis
• Prior to the tornado
• At any given point in time
• One of the four gears is slowing the other three down
• Actions Required
• Identify the slowest gear
• Focus everyone on speeding it up
• Maintain attention on the other three gears
• Repeat every quarter until
• The tornado happens
• Or you run out of gas
Update: 03/13/14
20© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.

21. Crossing the Chasm
What’s Not New? Enterprise IT!
• Taking the Enterprise Digital
• Heavy to deploy, focus on end-to-end systems
• Crossing the Chasm
• Minimum viable whole product (add partners and allies)
• Bowling alley strategy
• Critical Success Factors
• Pre-chasm
─ Breakthrough projects with top-tier customers
• Post-chasm
─ High value use cases with compelling reasons to buy
Update: 03/13/14
21© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.

22. 1. Target Customer
2. Compelling Reason to Buy
3. Whole Product
4. Partners & Allies
5. Sales Channel
6. Pricing
7. Competition
8. Positioning
9. Next Target
Key sponsor
Complete solution
Manages sales &
fulfillment complexity
Legitimate alternatives
Next growth segment
Key motive
Fill in the gaps
Maps to all the above
Core differentiation
Target Market Initiative Framework
A Checklist for Crossing the Chasm Planning
Update: 03/13/14
22© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.

23. Target Customer
Compelling Reason to Buy
Whole Product
Partners & Allies
Sales Channel
Pricing
Competition
Positioning
Next Target Customer
Visionary business executive
Dramatic competitive advantage
Application focus, differentiated
BPR and SI service providers
Direct sales
Value-based, gain motivated
Category vs. category
Technology-based leadership
Another visionary in a
different industry
This playbook is about creating budget
Before the Chasm
Update: 03/13/14
23© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.

24. Target Customer
Compelling Reason to Buy
Whole Product
Partners & Allies
Sales Channel
Pricing
Competition
Positioning
Next Target Customer
Pragmatist function manager
Fix a problem business process
Application focus, standardized
Recruited for specific whole product
Direct sales transitioning to VARs
Value-based, pain motivated
Market vs. market
Segment leadership
Adjacent segment
This playbook is about redirecting budget
Crossing the Chasm
Update: 03/13/14
24© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.

25. The New Examples
• Salesforce
• VMware
• Aruba
• Lithium
• Rocket Fuel
• Infusionsoft
• Mozilla
• Box
• Workday
Target Market
Target Market
Whole Product
Whole Product
Partners & Allies
Partners & Allies
Partners & Allies
Positioning
Positioning
Update: 03/13/14
25© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.

26. Update: 03/13/14
26© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.
1991
1995
2001
2006
----------- Our 2 Newest Books for 2014 -----------
CrossingThe Chasm 3.0Escape Velocity
Chasm Institute workshops + consulting are based on:
• Michael Eckhardt’s 500+ engagements with tech-based clients
• our 6 best-selling strategy books by Chairman Geoffrey Moore
• our 15 yrs of Thought Leadership on accelerating B2B success

27. Update: 03/13/14
27© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.
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Update: 03/13/14
28© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.

29. meckhardt@chasminstitute.com
www.chasminstitute.com
Thank You
Michael Eckhardt
Managing Director
Chasm Institute
Palo Alto, California
Update: 03/13/14
29© 2014 Chasm Institute Contact: Angela Martinez amartinez@chasminstitute.com
All rights reserved. Contents may not be reproduced in any form without prior written permission.