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PRAGMATIC MARKETING
TRAINING THAT DIDN’T SUCK
Brian Kelly @resetbrian Feb 2016 Ann Arbor LSC Meetup
IN OCTOBER 2014, I ATTENDED A THREE-
DAY TRAINING SESSION IN BOSTON.
PRAGMATIC MARKETING
HERE’S WHAT I LEARNED
▸ Why this topic is relevant to Lean Startup Circle
▸ Who should care about it?
...
IDEAS ARE CHEAP.
IT’S ALL ABOUT EXECUTION.
Lean Startup Fanboy
PRAGMATIC MARKETING 4
WHAT’S MISSING?
STRATEGY
FIRST.
THEN A PLAN.
THEN EXECUTION.
PRAGMATIC MARKETING
WHO SHOULD CARE ABOUT THIS RECAP?
▸ Product Managers
▸ Product Marketers
▸ Engineers
▸ User Experience...
TL;DR:
FOCUS ON FINDING AN UNMET NEED, 

USE PRAGMATIC MARKETING TO REFINE, BUILD,
BRING YOUR SOLUTION TO MARKET
PRAGMATIC MARKETING
PRAGMATIC MARKETING, INC.?
▸ Yep. That’s the training company’s name.
▸ Established 1993
▸ Focus: Prod...
PRAGMATIC MARKETING
COMPANIES THAT ATTENDED MY SESSION (BOSTON, OCTOBER 2014)
▸ Acquia
▸ Backupify
▸ Best Doctors
▸ Blackb...
PRAGMATIC MARKETING
CURRICULUM
▸ Foundations
▸ Focus
▸ Build
▸ Market
▸ Launch
▸ Price
10
Product Management (PM)
Product ...
Marketing
Technical
Strategic
PRAGMATIC MARKETING
WHY SHOULD YOU CARE?
If you’re in the business of building and selling a product 

Pragmatic Marketing...
FOUNDATIONS
PRAGMATIC MARKETING
PRAGMATIC MARKETING
WHAT IS BEING “MARKET-DRIVEN?”
▸ Market-driven means we base
our decisions on what that
market is aski...
AN OUTSIDE-IN APPROACH INCREASES
THE LIKELIHOOD OF PRODUCT SUCCESS
PRAGMATIC RULE
KNOW YOUR CUSTOMER
THE AIM OF MARKETING IS TO KNOW AND
UNDERSTAND THE CUSTOMER SO WELL THAT THE
PRODUCT OR SERVICE FITS HIM AND SELLS ITSELF....
PRAGMATIC MARKETING
SO, WAIT, WE DON’T NEED A SALES TEAM?
If it was only that simple!
‣ Marketing gets customer attention…...
PRAGMATIC MARKETING
THE PRAGMATIC P’S
19
Product, Price, Promotion, Place
What’s missing?
Problem
Which one do companies o...
Strategy Execution
Less Technical

Markets and Business
More Technical

Products and Technology
PRAGMATIC MARKETING
TYPICAL APPROACH: EXECUTION-FIRST
Problems with this approach
▸ Activities have a lot of guesswork
▸ I...
PRAGMATIC MARKETING
BETTER APPROACH: STRATEGY-FIRST
▸ Do everything
from the left.
▸ This gives us
everything we
need for ...
PRAGMATIC MARKETING
START WITH THE PROBLEM
▸ Get this right, and it will
multiply the effect of
every single other
activit...
GOAL:
TAKE EVERYTHING THAT
YOU KNOW ABOUT THE
MARKET AND DISTILL IT
INTO ONE PAGE.
LinkedIn’s Series B Pitch to Greylock

...
PRAGMATIC MARKETING
TYPICAL SOURCES OF IDEAS
Loudest voices in the room
▸ Input from sales team, tech support, user groups...
MARKET SEGMENTS
THE BUILDING IS FULL OF PRODUCT EXPERTS.
YOUR COMPANY NEEDS MARKET EXPERTS.
PRAGMATIC RULE
IN EVERY MARKET
SEGMENT, WE HAVE Potentials
Evaluators
Customers
Market Segment: A group of individuals or
businesses that...
PRAGMATIC MARKETING
CUSTOMERS
▸ People who have gone
through the process to
evaluate solutions to a
problem they identified...
PRAGMATIC MARKETING
EVALUATORS
▸ People who want to do
something about their
problem, but haven’t
purchased anything, yet....
PRAGMATIC MARKETING
POTENTIALS
▸ People that we believe have
a problem, but they don’t
know they have that
problem, yet.
3...
PRAGMATIC MARKETING
DEFINE YOUR MARKET SEGMENTS
Market Segment: A group of individuals or businesses that share
a set of p...
PRAGMATIC MARKETING
USE SEGMENTS TO FIGURE OUT YOUR POSITION
▸ For each segment, identify:
▸ Your distinctive
competencies...
THE ANSWER TO MOST OF YOUR
QUESTIONS IS NOT IN THE BUILDING.
PRAGMATIC RULE
PROTIP: SPEAK WITH A
CUSTOMER EVERYDAY
PRAGMATIC MARKETING
INTERVIEW EVERY TYPE, IN EACH OF YOUR MARKET SEGMENTS
▸ Customers tell us the past
▸ Evaluators tell y...
PRAGMATIC MARKETING
FIND THE QUIET 80%
▸ Training classes
▸ Conferences
▸ Associations
▸ Executives and colleagues
▸ Socia...
PRAGMATIC MARKETING
ASK… CUSTOMERS AND POTENTIALS
▸ What drives you crazy about your job?
▸ What drives your buying decisi...
PRAGMATIC MARKETING
OBSERVE
▸ Start with an open agenda
▸ Understand “a day in the life”
▸ When do they pick up a pencil?
...
PRAGMATIC MARKETING
MANY INPUTS, ONE PROBLEM
Problem Statements
▸ “I need a file-indexing database, coupled with a
complex ...
YOU CAN LISTEN TO WHAT PEOPLE SAY,
BUT YOU WILL BE FAR MORE EFFECTIVE
IF YOU LISTEN TO WHAT PEOPLE DO.
Seth Godin
PRAGMATI...
PRAGMATIC MARKETING
EVERYONE IS A PRAGMATIC MARKETER
▸ My buyers tell me that…
▸ I have a neighbor in our industry and she...
ONLY BUILD SOLUTIONS FOR PROBLEMS THAT ARE
URGENT, PERVASIVE AND THAT THE MARKET WILL
PAY TO SOLVE.
PRAGMATIC RULE
ORGANIZING YOUR TEAM
PRAGMATIC MARKETING
ORGANIZATIONAL STRUCTURE
45






DEV






MARCOM






SALES
PRODUCT
TEAM
build stuff
sell stuff
pro...
PRAGMATIC MARKETING
ACCOUNTABILITY
▸ Product Team: Collects and quantifies the problem
▸ Development: Solves the problem
▸ ...
IF THE PRODUCT TEAM DOESN’T DO ITS JOB,
OTHER DEPARTMENTS WILL FILL THE VOID.
PRAGMATIC RULE
37

activities
Which are the most
compelling, right now?
Strategic
Execution
DEFINE OWNERS
Less Technical
DEFINE OWNERS
More Technical
PRAGMATIC MARKETING
IN CLOSING
▸ Discover and validate market problems
▸ Focus on markets and problems to identify the bes...
Brian Kelly @resetbrian 

Ann Arbor LSC Meetup Feb 2016
THANKS
Now, go take 

this training!
pragmaticmarketing.com
Pragmatic Marketing recap by Brian Kelly
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Pragmatic Marketing recap by Brian Kelly

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Presented at the Ann Arbor Lean Startup Circle Meetup on Feb 9, 2016. Recording on YouTube: https://www.youtube.com/watch?v=DzI8UpGtIZ8

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Pragmatic Marketing recap by Brian Kelly

  1. 1. PRAGMATIC MARKETING TRAINING THAT DIDN’T SUCK Brian Kelly @resetbrian Feb 2016 Ann Arbor LSC Meetup
  2. 2. IN OCTOBER 2014, I ATTENDED A THREE- DAY TRAINING SESSION IN BOSTON.
  3. 3. PRAGMATIC MARKETING HERE’S WHAT I LEARNED ▸ Why this topic is relevant to Lean Startup Circle ▸ Who should care about it? ▸ What is Pragmatic Marketing? ▸ How you can apply it 3 Credit / Thanks / Disclaimer: Most of the ideas and content in this presentation are taken directly from Pragmatic Marketing, Inc. I wish they were all mine, but they’re not. I found these ideas so useful that I created this recap to share them with people who might not have heard of Pragmatic Marketing. I highly recommend that you take their training. pragmaticmarketing.com
  4. 4. IDEAS ARE CHEAP. IT’S ALL ABOUT EXECUTION. Lean Startup Fanboy PRAGMATIC MARKETING 4 WHAT’S MISSING?
  5. 5. STRATEGY FIRST. THEN A PLAN. THEN EXECUTION.
  6. 6. PRAGMATIC MARKETING WHO SHOULD CARE ABOUT THIS RECAP? ▸ Product Managers ▸ Product Marketers ▸ Engineers ▸ User Experience Designers ▸ Founders 6 AT COMPANIES OF ALL SIZES
  7. 7. TL;DR: FOCUS ON FINDING AN UNMET NEED, 
 USE PRAGMATIC MARKETING TO REFINE, BUILD, BRING YOUR SOLUTION TO MARKET
  8. 8. PRAGMATIC MARKETING PRAGMATIC MARKETING, INC.? ▸ Yep. That’s the training company’s name. ▸ Established 1993 ▸ Focus: Product Management & Product Marketing at technology companies ▸ “Trained tens of thousands of professionals at thousands of companies.” 8
  9. 9. PRAGMATIC MARKETING COMPANIES THAT ATTENDED MY SESSION (BOSTON, OCTOBER 2014) ▸ Acquia ▸ Backupify ▸ Best Doctors ▸ Blackboard ▸ Bloomberg ▸ Canadian Medical Association ▸ Duo Security ▸ Equifax ▸ Everbridge ▸ IBM ▸ Ipswitch ▸ Polycom ▸ RSA / EMC ▸ Seagate ▸ Wolters Kluwer 9
  10. 10. PRAGMATIC MARKETING CURRICULUM ▸ Foundations ▸ Focus ▸ Build ▸ Market ▸ Launch ▸ Price 10 Product Management (PM) Product Marketing (PMM) This recap (a bit of each)
  11. 11. Marketing Technical Strategic
  12. 12. PRAGMATIC MARKETING WHY SHOULD YOU CARE? If you’re in the business of building and selling a product 
 Pragmatic Marketing is a proven model for how be successful. ▸ How to determine if a product should be built ▸ What to do to bring that product to market ▸ Who does what (PMM, PM, MKTG, Sales, …) ▸ When to do it, and how to do it 12
  13. 13. FOUNDATIONS PRAGMATIC MARKETING
  14. 14. PRAGMATIC MARKETING WHAT IS BEING “MARKET-DRIVEN?” ▸ Market-driven means we base our decisions on what that market is asking for. ▸ It’s being outside-in. ▸ It’s not thinking inside-out and focusing on what we can do. 14 What is being “market-driven”? Market-driven means we base our decisions on what that market is asking for. → Be outside-in. It’s not: Thinking inside-out and focusing on what we can do.
  15. 15. AN OUTSIDE-IN APPROACH INCREASES THE LIKELIHOOD OF PRODUCT SUCCESS PRAGMATIC RULE
  16. 16. KNOW YOUR CUSTOMER
  17. 17. THE AIM OF MARKETING IS TO KNOW AND UNDERSTAND THE CUSTOMER SO WELL THAT THE PRODUCT OR SERVICE FITS HIM AND SELLS ITSELF. Peter Drucker PRAGMATIC MARKETING 17
  18. 18. PRAGMATIC MARKETING SO, WAIT, WE DON’T NEED A SALES TEAM? If it was only that simple! ‣ Marketing gets customer attention… ‣ But, some customers prefer working with sales,
 and sales reps are often needed for large, complex deals. 18
  19. 19. PRAGMATIC MARKETING THE PRAGMATIC P’S 19 Product, Price, Promotion, Place What’s missing? Problem Which one do companies often put too much focus on?
  20. 20. Strategy Execution Less Technical
 Markets and Business More Technical
 Products and Technology
  21. 21. PRAGMATIC MARKETING TYPICAL APPROACH: EXECUTION-FIRST Problems with this approach ▸ Activities have a lot of guesswork ▸ It’s really hard to make an impact with tactics because we don’t yet have a strategic view of the market (a.k.a. we don’t know the problems well enough, yet). 22
  22. 22. PRAGMATIC MARKETING BETTER APPROACH: STRATEGY-FIRST ▸ Do everything from the left. ▸ This gives us everything we need for the right. 23
  23. 23. PRAGMATIC MARKETING START WITH THE PROBLEM ▸ Get this right, and it will multiply the effect of every single other activity. 24
  24. 24. GOAL: TAKE EVERYTHING THAT YOU KNOW ABOUT THE MARKET AND DISTILL IT INTO ONE PAGE. LinkedIn’s Series B Pitch to Greylock
 reidhoffman.org/linkedin-pitch-to-greylock/
  25. 25. PRAGMATIC MARKETING TYPICAL SOURCES OF IDEAS Loudest voices in the room ▸ Input from sales team, tech support, user groups, (some) execs ▸ This results in enhancement requests, special one-offs, etc. Don’t do this! ▸ This is the noisy 20% of the market ▸ We should be focusing on the quiet 80% 26 PROTIP: QUIET DOESN’T MEAN THEY’RE HAPPY
  26. 26. MARKET SEGMENTS
  27. 27. THE BUILDING IS FULL OF PRODUCT EXPERTS. YOUR COMPANY NEEDS MARKET EXPERTS. PRAGMATIC RULE
  28. 28. IN EVERY MARKET SEGMENT, WE HAVE Potentials Evaluators Customers Market Segment: A group of individuals or businesses that share a set of problems.
  29. 29. PRAGMATIC MARKETING CUSTOMERS ▸ People who have gone through the process to evaluate solutions to a problem they identified they have, and they have purchased something. 30 Potentials Evaluators Customers Our customers Customers of our competitors HOW ARE YOU REACHING YOUR COMPETITORS’ CUSTOMERS?
  30. 30. PRAGMATIC MARKETING EVALUATORS ▸ People who want to do something about their problem, but haven’t purchased anything, yet. 31 Potentials Evaluators Customers HOW ARE YOU REACHING EVERY EVALUATOR?
  31. 31. PRAGMATIC MARKETING POTENTIALS ▸ People that we believe have a problem, but they don’t know they have that problem, yet. 32 Potentials Evaluators Customers
  32. 32. PRAGMATIC MARKETING DEFINE YOUR MARKET SEGMENTS Market Segment: A group of individuals or businesses that share a set of problems. 33 ▸ Bad Examples ▸ Fortune 500 ▸ Global 2000 ▸ Mid-tier ▸ Wireless ▸ Good examples ▸ Organizations that must produce regulatory reports ▸ Field salespeople that need to update the home office from the road
  33. 33. PRAGMATIC MARKETING USE SEGMENTS TO FIGURE OUT YOUR POSITION ▸ For each segment, identify: ▸ Your distinctive competencies ▸ The competition ▸ Barriers to entry 34 ▸ Align with strategy ▸ Sales channels ▸ Development teams ▸ Technology direction
  34. 34. THE ANSWER TO MOST OF YOUR QUESTIONS IS NOT IN THE BUILDING. PRAGMATIC RULE PROTIP: SPEAK WITH A CUSTOMER EVERYDAY
  35. 35. PRAGMATIC MARKETING INTERVIEW EVERY TYPE, IN EACH OF YOUR MARKET SEGMENTS ▸ Customers tell us the past ▸ Evaluators tell you about the present ▸ Potentials tell you about the future 36 Potentials Evaluators Customers
  36. 36. PRAGMATIC MARKETING FIND THE QUIET 80% ▸ Training classes ▸ Conferences ▸ Associations ▸ Executives and colleagues ▸ Social networks 37
  37. 37. PRAGMATIC MARKETING ASK… CUSTOMERS AND POTENTIALS ▸ What drives you crazy about your job? ▸ What drives your buying decisions? ▸ What do you think of my company / product? ▸ Who are my competitors, and what do you think of them? ▸ What great products have you seen lately? 38
  38. 38. PRAGMATIC MARKETING OBSERVE ▸ Start with an open agenda ▸ Understand “a day in the life” ▸ When do they pick up a pencil? ▸ How do they survive without your technology? 
 When in doubt, listening is better than talking. 39
  39. 39. PRAGMATIC MARKETING MANY INPUTS, ONE PROBLEM Problem Statements ▸ “I need a file-indexing database, coupled with a complex query engine, which would allow ad-hoc search and retrieval of documents by random criteria.” ▸ I look bad when I waste time looking through 20 directories and I can’t find the one file that we need.” 40 Bad. Good!
  40. 40. YOU CAN LISTEN TO WHAT PEOPLE SAY, BUT YOU WILL BE FAR MORE EFFECTIVE IF YOU LISTEN TO WHAT PEOPLE DO. Seth Godin PRAGMATIC MARKETING 41
  41. 41. PRAGMATIC MARKETING EVERYONE IS A PRAGMATIC MARKETER ▸ My buyers tell me that… ▸ I have a neighbor in our industry and she said… ▸ I met a competitor’s customer on the plane… ▸ I recently attended a conference and met… ▸ I made a cold call and heard… ▸ Our user group said… ▸ While visiting our clients I learned… 42
  42. 42. ONLY BUILD SOLUTIONS FOR PROBLEMS THAT ARE URGENT, PERVASIVE AND THAT THE MARKET WILL PAY TO SOLVE. PRAGMATIC RULE
  43. 43. ORGANIZING YOUR TEAM
  44. 44. PRAGMATIC MARKETING ORGANIZATIONAL STRUCTURE 45 
 
 
 DEV 
 
 
 MARCOM 
 
 
 SALES PRODUCT TEAM build stuff sell stuff promote stuff
  45. 45. PRAGMATIC MARKETING ACCOUNTABILITY ▸ Product Team: Collects and quantifies the problem ▸ Development: Solves the problem ▸ Marketing Communications: Promotes the product ▸ Sales Channel: Helps people buy 46 HOW WELL IS YOUR COMPANY KEEPING THESE RESPONSIBILITIES SEPARATE, TODAY?
  46. 46. IF THE PRODUCT TEAM DOESN’T DO ITS JOB, OTHER DEPARTMENTS WILL FILL THE VOID. PRAGMATIC RULE
  47. 47. 37
 activities Which are the most compelling, right now?
  48. 48. Strategic Execution DEFINE OWNERS
  49. 49. Less Technical DEFINE OWNERS More Technical
  50. 50. PRAGMATIC MARKETING IN CLOSING ▸ Discover and validate market problems ▸ Focus on markets and problems to identify the best opportunities ▸ Create market-driven artifacts (personas, buying process, etc.) ▸ Clearly define the lines of each team: product, dev, comm, sales Run the product like a business of it’s own. 51
  51. 51. Brian Kelly @resetbrian 
 Ann Arbor LSC Meetup Feb 2016 THANKS Now, go take 
 this training! pragmaticmarketing.com

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