Strategic Marketing overview prepared for the Open Technology Business Forum (OTBF) 9/19/2011.

1. Strategic Marketing for New Ventures
Open Technology Business Center (OTBC)
Wilson Zehr, CEO, Cendix
Adjunct Professor, Portland State University
Professor
September 16, 2011

2. Strategic Marketing Fundamentals
Introduction
• Competitive Pressure has never Been Greater
p
• Management Expectations are High
– Annual Growth
– Wins/Losses
– Visibility
• Budgets are Tight
• Must Do More With Less
• Produce Results Right Away
Strategic Marketing can Help…
… We’ll Show You How!
Apr-03-09 © 2004-2011 Cendix Slide 2

3. Strategic Marketing Fundamentals
The Marketing Function
Big M
little m
Apr-03-09 © 2004-2011 Cendix Slide 3

4. Strategic Marketing Model
Components & Relationship
Core
5 P’s
Ps
Positioning
Mar-05-08 © 2004-2011 Cendix Slide 4

5. Corporate Strategy
Strategy Defined
“An integrated and coordinated set of
An
commitments and actions designed to
exploit core competencies and gain a
competitive advantage.”
- Hitt, Ireland, Hoskisson (2007)
, , ( )
Apr-03-09 © 2004-2011 Cendix Slide 5

6. Corporate Strategy
Strategy Defined
“what” question
what
a b
starting point destination
environment/terrain
resources/capabilities
p
Mar-05-08 © 2004-2011 Cendix Slide 6

7. Corporate Strategy
Bias Towards Action
“Some people watch things happen
Some people make things happen
Some people have to ask “what happened?”
Which do you want to be?”
Les Schwab
Les Schwab Tire Centers
Founder & CEO
Better to ask for forgiveness…
g
Apr-03-09 © 2004-2011 Cendix Slide 7

8. Corporate Strategy
Align Organization, Brand, Goals
• Vision / Mission
• Corporate Values
• Goals/objectives (short/long-term)
• Organizational Structure
Tune Elements to Assure Alignment
T El t t A Ali t
Mar-05-08 © 2004-2011 Cendix Slide 8

9. Corporate Strategy
Continuous Process
MIA
PDX ORD
SFO vigilant for
disruptive
change
Auto Pilot:
Spends Most of the Time Correcting Back to the Right Course
Mar-05-08 © 2004-2011 Cendix Slide 9

10. External Environment
Environmental Analysis
environmental
scanning
General Environment
Industry Environment
Enterprise
Competitive Environment
Apr-03-09 © 2004-2011 Cendix Slide 10

11. External Environment
General Environment
Hitt, Ireland, Hoskisson (2007)
Apr-03-09 © 2004-2011 Cendix Slide 11

12. Industry Environment
Five Forces Model
Threat of
New Entrants
Power of Competitive Power of
Suppliers Rivalry Buyers
Government
Threat of
Substitution
Michael Porter, Professor, Harvard University
Apr-03-09 © 2004-2011 Cendix Slide 12

13. Competitive Environment
Competitive Analysis
Significant Competitors
• Capture & rank
• Size/Growth (employees, clients markets …)
(employees clients, markets, )
• Financial (sales, margins, trends, funding)
• Products (features, pricing, positioning, wins/losses)
• Channels (retail, direct, online, partners, …)
• Other (age, brand, stability, credibility, …)
Elements Vary – Company/Industry
Apr-03-09 © 2004-2011 Cendix Slide 13

14. Competitive Environment
Gartner Magic Quadrant
Application Infrastructure, 2007
Apr-03-09 © 2004-2011 Cendix Slide 14

15. Internal Environment
Process Overview
Hitt, Ireland, Hoskisson (2007)
Apr-03-09 © 2004-2011 Cendix Slide 15

16. Internal Environment
Market Segment(s)
Cluster people with similar needs into
individual and identifiable groups
All Customers
Consumer Business
Markets Markets don’t forget..
B to C B to B B to G
c1 c2 … cn b1 b2 … bn
Apr-03-09 © 2004-2011 Cendix Slide 16

17. Internal Environment
Strategic Outsourcing
Outsource: Contract with outside suppliers to
provide internal company functions
• Reduce distractions (focus)
• Best of class resources
• Reduce costs
– Differential cost basis
– Focused efficiency
– Shared economies
• Release capital
Apr-03-09 © 2004-2011 Cendix Slide 17

18. Internal Environment
Strategic Outsourcing
• OWN the STRATEGIC
• Consider everything else
• AVOID outsourcing g
– Single points of failure
– Strategic functions that create value
– Tasks that neutralize external threats
– Sources of internal innovation
– Points of differentiation
Actively Manage Vendor Relationships
Apr-03-09 © 2004-2011 Cendix Slide 18

19. Corporate Strategy
Analytical Tools
Strengths, Weaknesses, Opportunities, Threats (SWOT)
Mar-05-08 © 2004-2011 Cendix Slide 19

20. Corporate Strategy
Analytical Tools
Three Circles of Hedgehog Concept
Source: Good to Great, Jim Collins, 2001
Mar-05-08 © 2004-2011 Cendix Slide 20

21. Corporate Strategy
Analytical Tools
Boston Consulting Group (BCG) Model
10% is often used as distinction between high/low growth
Size of circle is relative size of business unit in revenues
Market share is relative to largest competitor
g p
Boston Consulting Group (www.bcg.com)
Apr-03-09 © 2004-2011 Cendix Slide 21

22. Corporate Strategy
Analytical Tools
Natural Selection Model
mainframe: IBM
$$$ mainframe: Unisys
Cost of competitive pressure: focused: Tandem
Solution volumes drive
down unit cost
$$
Sequent
HP
Sun
$ Compaq
Dell
0
Value
(Completeness)
Apr-03-09 © 2004-2011 Cendix Slide 22

23. Corporate Strategy
Supporting Research
• Environmental Analysis
– Industry Research, Analysis, & Trends
– Strengths, Weaknesses, Opportunities, Threats (SWOT)
• Historical Information
– Financial Res lts & Anal sis (3 5 years)
Results Analysis (3-5 ears)
– Performance by product/segment
• Current Sales Materials
– Corporate brochures
– Product brochures
– Promotions
– Web site
Just Scratched the Surface
Importance Varies by Size, Stage, Market, …
Mar-05-08 © 2004-2011 Cendix Slide 23

24. Brand Concepts
What is a Brand?
Mar-05-08 © 2004-2011 Cendix Slide 24

25. Brand Concepts
Brand Defined
Your Brand is NOT Your Logo. Your Brand is…
Everything that you communicate about
your company product or service at
company, product,
every “touchpoint”.
Apr-03-09 © 2004-2011 Cendix Slide 25

26. Brand Concepts
Automotive Examples
What D
Wh t Does Each Brand Represent to You?
E hB dR tt Y ?
Mar-05-08 © 2004-2011 Cendix Slide 26

27. People
Know Your Prospects
• Who are your customers?
y
 Current customers
 Target prospects
 Demographics
g p
 Market size (addressable)
 ROI
• Where is their pain?
• When do they need to act?
• Who is the decision maker?
• Who are the key influencers?
• What are their buying behaviors?
Mar-05-08 © 2004-2011 Cendix Slide 27

28. Product
Primary Elements
• Product Benefits
• Distinctive features
• Competitive differentiation
– Unique
– Meaningful
– Sustainable
• Product requirements
• Production cost
• Market window
Mar-05-08 © 2004-2011 Cendix Slide 28

29. People & Product
Synchronize
people product
Sometimes…
S ti Sometimes…
S ti Ultimately…
Ulti t l
Start with People Start with Product Synchronize Both
people product
people product
Mar-05-08 © 2004-2011 Cendix Slide 29

30. Price
Three Key Factors
• Cost of Goods
• Value
 ROI (value produced – cost)/cost
• reduce expenses
• grow revenue
• save time
 Personal Utility
 I t
Intangibles
ibl
 Elasticity
• Competition
 Comparative value
 Discounting
 Response
Mar-05-08 © 2004-2011 Cendix Slide 30

31. Price
Other Discussion Points
• Pricing “Strategy”
c g S a egy
– Market penetration
– Skimming the Cream
• B d t/Fi
Budget/Financing
i
• Discounting
– Volume purchasing
Vol me p rchasing
– Seasonal demand
– Revenue targets
– Old inventory
– Cash flow
Mar-05-08 © 2004-2011 Cendix Slide 31

32. Place
Channel Selection
Understand Customer Existing Strength Special Requirements
& Buying Behavior & Role of Brand Imposed by Product
Maturity and Investment
Existing Channels
Channel Cost & Supported
Margin Available by Promotion
Apr-03-09 © 2004-2011 Cendix Slide 32

33. Place
“Process” of Selling
Depends on
Data
Industry, Product,
Prospect and Customer
Marketing Qualified Lead
Sales Opportunity Sales
Cycle
Proposal
Client
Cli t
Sales
note: retail talks more about inventory “turns”
Apr-03-09 © 2004-2011 Cendix Slide 33

34. Promotion
Messaging Matrix
Audience Concerns Message Focus Key Messages
CXO Minimize Reduce the cost of  Acme offers lower rates than onshore resources and
Operating getting to market with Indian firms with greater workforce stability
Cost high quality product  Competitive forces require outsourcing; the blended
model and process control reduce risk and assure
high quality products
Strategic Become the most cost  Leverage your core team to do strategic work and use
Advantage effective producer in low cost offshore resources for the routine
your market segment  Acme offers an army of experts on tasks that can
support the most effective use of internal talent
Operating Scale up or down  Acme has a staff of thousands waiting to go to work
Flexibility quickly based on for you on-demand
business requirements  Offshore staff can be reduced without any of the
complications associated with actual employees
Add more rows as needed …
One Matrix for Each Decision Maker or Influencer
Mar-05-08 © 2004-2011 Cendix Slide 34

35. Promotion
Select Optimal “Mix”
Apr-03-09 © 2004-2011 Cendix Slide 35

36. Promotion
Online: Factors to Consider
• Reach
• Active vs. Passive
• Objective
 Build rapport
u d appo
 Generate leads
 Close sales
• Choose tools
 Web site  SEO/PPC
 email  Banners
 Webinars  Blog’s/RSS
Blog s/RSS
 Affiliates  newsgroups
 Articles
Mar-05-08 © 2004-2011 Cendix Slide 36

37. Promotion
Determine Budget / Select Mix
• Sales Collateral (3 pieces) $ 10 000
10,000
• Sales presentation $ 5,000
• Assessment campaign depends on capacity
• Speaking engagements time & materials
• Web site (optimized) $12,000
• SEO/PPC $ 3,500 + $1,000/mo
– Optimized press releases
– Whitepapers (placement & linking) content developed internally
– Articles (placement & linking)
• Newsletter $ 1,000/mo
• Webinar(s) opportunistic
Mar-05-08 © 2004-2011 Cendix Slide 37

38. Promotion
Marketing Execution Plan
Assign Owners, Execute and Track Progress!
Owners Execute,
Mar-05-08 © 2004-2011 Cendix Slide 38

39. www.cendix.com
P: (888) 889-0066 Wilson Zehr
F: (503) 210-6479 CEO
E: wilson@cendix.com Cendix

40. Wilson is the CEO of Cendix (www.cendix.com) the leading
provider of Web-to-print solutions that increase sales both
online and offline. Cendix also provides strategic and tactical
marketing consulting services for emerging growth companies
in the Pacific Northwest. In addition, Wilson serves as an
adjunct Professor for Portland State University (www.pdx.edu).
(www pdx edu)
Wilson Zehr has 25 years experience in high technology and
telecom – over a decade of experience working with Internet-
Wilson Zehr
related products and services He has created numerous new
services.
products/brands and successfully brought them to market. In
addition, he has crafted and managed strategic alliances with
many (20+) of the largest technology and communications firms
in th
i the world. Mr. Zehr is a serial entrepreneur who has raised
ld M Z h i i l t h h i d
over $60 million from investors; returned over $160 million; and
bought/sold a number of enterprises.
More detailed background information on Wilson can be found
at http://www.cendix.com/about/management.html
References are available on request
Mar-05-08 © 2004-2011 Cendix Slide 40