Marketing for Commercialization

							 Marketing for Commercialization




             Key Message

• The “Value Proposition”
• Marketing Strategy based on Profit
• Marketing vs. Sales vs. Advertising




                                        1
    Marketing for Commercialization
•   Successful Commercialization
•   Evaluating Markets
•   Marketing Strategy
•   Marketing Plan




           Keys to Successful
           Commercialization
•   Know your Market
•   Provide Value
•   Find Enough Money
•   Attract Business Experts




                                      2
    Why Commercialization Fails
• Technical - 12%
• Market Factors – 73%
• All Other Factors – 15%

                          Dr. Blaine Lee, PhD




        Know your Customers
•   Who are they?
•   What do they need?
•   What do they value?
•   How do they buy?




                                                3
          Purchasing Process
1. Identify need
2. Define criteria
3. Search for alternatives
4. Evaluate options
5. Decision
6. Purchase
7. Use




                Competition
• There is ALWAYS competition

• Direct Competition
• Indirect Competition
• Replacements




                                4
           Evaluating Markets
•   Few barriers to entry
•   High volume users
•   Repeat users
•   Profitable customers
•   “Show me the money!”




       Getting More Information
• Observation
• Primary Research
• Secondary Research




                                  5
       Getting More Information
•   Ask Questions
•   Listen to Speakers
•   Engage Others in Conversation
•   Network!




             Provide Value
• Who cares?
• Be >25% better than the competition




                                        6
          Value Proposition
• Target market
• Benefits not features
• KISS




          Value Proposition
• Identify the problem
• Demonstrate superior benefit
• Case for change




                                 7
Marketing ≠ Advertising
Marketing ≠ Sales




         Marketing Defined

Delivering a message to a market that
 makes them change their behavior




                                        8
               Strategy
• Where are you today?
• Where do you want to be?
• How do you get there?




        Marketing for Profit
Profit = Sales – Expenses
Sales = # Units X Price
# Units = # Customers
           X Frequency of Purchase
           X Units per Purchase




                                     9
         Marketing Goals
• Price
• # Customers
• Frequency of Purchase
• Units per Purchase




           Marketing Strategy
•   Price
•   Product
•   Distribution
•   Promotion




                                10
        Pricing to Cover Costs
•   Value vs. Cost
•   Development Costs
•   Value of Time and Expertise
•   Opportunity Cost
•   Benefit Cost




                  Product

• Not just the physical offering
• Support Services
• Warranties/Reliability




                                   11
                 Distribution

•   Industry norms/regulations
•   International considerations
•   Product considerations
•   Costs




                  Promotion

•   Public Relations
•   Sales Promotion
•   Direct to Consumer
•   Advertising
•   Personal Selling




                                   12
            Keys to Successful
            Commercialization
•   Provide Value
•   Know your Market
•   Find Enough Money
•   Attract Business Experts




             Find the Money

“Sales are the best source of capital”

                               Dale Lemke - DSI




                                                  13
         Building Business Value
           through Marketing




       Developing “Goodwill”

• Creating value in intangible assets that a
  potential buyer couldn’t easily or quickly
  establish themselves




                                               14
        Developing “Goodwill”
•   Brands
•   Client Information
•   Customer Loyalty
•   Distribution/Supply Agreements
•   Reporting Systems
•   Employee Loyalty




                  Brands

• Do you have a brand?
• How can you increase brand value?


              Investment




                                      15
           Client Information

•   Do you collect it?
•   Do you store it?
•   Can you use what you store?
•   Is it legal?




           Customer Loyalty
• Do you know your 80/20?
• How loyal are these customers?
• How do you retain customers?




                                   16
Distribution/Supply Agreements

• Can you create “barriers to entry” by
  securing a distribution or supply channel?
• How can you build these relationships?




         Reporting Systems
• Do you read and track financial indicators?
• Do you know the health of your business?
• Do you regularly meet with
  investors/lenders to keep them up to date?
• Do you have benchmarks to measure
  performance?




                                                17
            Employee Loyalty
• Engaged employees are:
    – Productive
    – Profitable
    – Loyal




            Keys to Successful
            Commercialization
•   Provide Value
•   Know your Market
•   Find Enough Money
•   Attract Business Experts




                                 18
   Hiring Business “Experts”
• The Best Salesperson
• Hiring vs. Doing




             Key Message

• The “Value Proposition”
• Marketing Strategy based on Profit
• Marketing vs. Sales vs. Advertising




                                        19