5 Rules for Effective Marketing by kellena97


									5 R ules for E ffective M arketing
                  D ick D avies

             M arketing for E ntrepreneurs
  National C ouncil of E ntrepreneurial Tech Trans fer
                  January 27, 2009
                      S egment 3

     I Was Asked To C over The
              B asics
 •   Who is the customer?
 •   What is the need?
 •   What is the size of your market?
 •   Q ualify, P resent, and C lose
 •   You know, the usual stuff

                          E fficient… O r… E ffective?

“I speak B AS IC to clients, 1-2-3 to management, and mumble to myself” Anonymous

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What The “Usual S tuff” M eans

• A top down, “inside the office” approach
• Advantages to this approach
    – Google for 30 minutes, cut and paste, done.
    – Your research strengthens your hypothesis
    – Generates scads of facts
    – It is efficient
         • E fficient = Feels G ood!

"Y ou can observe a lot just by watching." Yogi B erra

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         D o We R eally Want the
• D isadvantages to this approach
     – What you find is what you were looking for
     – Ultimately pretty useless
     – M ay be efficient, but rarely effective
          • E ffective = M oney!
          • You like M oney don’t you?
• If you already knew the answers,
  why were you looking?
“If you think it's going to rain, it will.” C lint E astwood

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                 Be E ffective

•Take a bottom up, “outside the office” approach
•This is awkward and uncomfortable
   – You don’t know what you are going to do
   – You don’t know what you are going to find
   – You don’t know how long it is going to take
   – You don’t know what you don’t know

“E xperimental confirmation of a prediction is merely a meas urement. 
 An experiment disproving a prediction is a discovery.” - E nrico Fermi

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                     R ule # 1

• If you are going to start a
  have a paying customer

                               the new world disorder.” - D ieter Huckestein,
 “The customer is in charge of www.Planphoria.com                               5
     C ustomers Are A Huge
• C ustomer opinions define the need, the market,
  and the solution
• C ustomers will tell you what they will buy
• Note what they say in the meeting
• P ut your notes on stationery to make them look
  impressive, then show the page to the customer
  and ask for their improvements
• This may be the first time they see what they
  want in writing
“Learning from customers is a practice. We get better the more we do it.” D ick
   D avies
                                www.Planphoria.com                                6
             No C ustomers?
•R ule #2
    – If you don’t have a paying customer (or
      enough paying customers), go to 20 meetings
      a month until you have them
    – The best way to find a market for a new
      business or technology, revitalize a sales
      territory, or learn how to sell, is getting face to
      face with other people 20 times a month

“It’s a fallacy of academic market theory that information
  is available equally.” B ill Van D yke

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                    M eetings
• R ule #3 – What is a meeting?
   – S pend time before every meeting deciding what
     you want to accomplish
   – C reate a one page document explaining your offer
   – Ask their opinion of the document, note their
       • S end them your notes of what you heard
       • They will often modify your notes. That is good!
   – How long should the meeting last?
       • As long as it takes
   – Leave a clean copy of your document with the
     customer, you get their notes
   – This is an effective way to “Q ualify, P resent, and
     C lose”
“S tandards should be discovered, not decreed.” C omputer scientist explaining
    why TC P / crus hed O IS in “Where Wizards S tay Up Late - O rigins of the 8
             What If They Want
               S omething?
• R ule # 4 - Figuring capacity and cost
    – An efficient top down approach
         • “There are X billion people in C hina, if Y percent buy our
           s ervice for Z cents , WE AR E R IC H! YAHO O !”
         • Not realis tic. That imaginary model us ually buys s omething
           els e
    – An effective bottom up approach
         •   Las t time took J hours
         •   Bas ed on differences , this should take K hours
         •   It will take a total of L hours to s ell the cus tomer
         •   It will take M hours to install and integrate the product
         •   We need N value per hour
         •   C ompetitors will s upply the s ame thing for $250,000
    – S ooner or later you have the right data to make your
      model. R epeat until you have an answer you can use.
“If it’s not written down, it doesn’t exist.” - D oc Fails, Fails M anagement Institute
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       Understanding M odels

• R ule #5 – A M odel is a S implified
                R epresentation of R eality
    – Use your model as long as it helps you
      understand your situation
    – R ebuild your model when it no longer works
    – Try not to confuse your model with reality

“You win some, lose some, and wreck some.” D ale E arnhardt

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              It’s Your Choice…
            Which Will You Choose?


                           Thank You!
                dick.davies@ planphoria.com

“No matter how hard you do the wrong thing, it never quite works” Ted Long

                             www.Planphoria.com                              11

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