Day 1: Introduction to Global Entrepreneurial Marketing (GEM)
Also known as MS&E 271, Winter 2008 The GEM Teaching Team
Captain: Tom Kosnik Co-Captain: Lynda Kate Smith, Guest Lecturers: Donna Novitsky, Lena Ramfelt Course Assistants: Arnav Sharma, Dong Dong Ge Entrepreneurs in Residence: Anand Chandrasekaran And Laina Raveendran Green
Web Master: Dong Dong Ge Admin Lead: Isabel Cossio Plus global entrepreneurial marketing leaders as guest speakers GEM Final Project Sponsors, GEM Final Project Coaches and GEM alumni as graders for your Strategic Thinking Papers
11/21/2008 1
Our Agenda for Day 1
1. 2. 3. 4. 5. Admissions The GEM learning community What are our expectations? What is Global Entrepreneurial Marketing (GEM)? Why we should care about GEM
11/21/2008
2
Admissions
• • • • You are all qualified. There are not enough seats We use a lottery for admissions CAs will collect the GEM signup sheet today All GEM applicants must complete and submit a short application with your resume. • We will inform you who is admitted to GEM and who is on waitlist by email not later than start of Class #2. • Name, email, and telephone information will be compiled for the virtual GEM Resume Book (online) for exclusive use of class participants.
11/21/2008
3
The GEM Learning Community
Your GEM Learning Team Mates Other GEM team mates: Stanford on campus SCPD and NUS Silicon Valley College STP graders (GEM alumni) GEM final project coaches and sponsors GEM entrepreneurial guest speakers ETL speakers (Wed. 4:30 – 5:30 PM) SCPD production team GEM administrative lead = Isabel Cossio GEM Course Assistants (CAs): Arnav Sharma and Dong Dong Ge Entrepreneurs in Residence: Anand Chandrasekaran and Laina Raveendran Green GEM Instructors: Tom Kosnik, Lynda Kate Smith, Donna Novitsky & Lena Ramfelt 11/21/2008
4
Our Expectations
11/21/2008
5
Learning Teams
Form GEM Learning Teams by 7 AM, Wednesday, March 9, 2008 • 6 or 7 people (no variance unless approved by CAs) • Make sure you have diversity:
– – – – Mix Stanford on-campus with NUS and SCPD Men and women Not all the same degree Different countries of origin
• Why diversity?
– To increase your understanding about how different people (employees, investors, customers) think and make decisions – To prepare you to work in virtual global teams
11/21/2008 6
Teams Are Everywhere: Learn to Work in Them
Communication Problems: I didn’t know!
I don’t understand you.
Motivation Factors:
Gender Differences
Culture Differences:
What’s in it for me? I don’t know how.
It’s against my principles and values! That’s the way I am. It’s hard to change. I don’t have the time, money or authority.
7
Skill Gaps:
Principles & Values Clash: Personality Differences: External Constraints:
11/21/2008
Source: Kosnik, Blair, Ramfelt, and Pfeifer (1986, 2000) “1 to 1 Diagnosis.”
Honor Code Strictly Applied
The following are violations of Stanford honor code for GEM • Being coached by others who have done the cases in past • Reviewing other people’s DDARTS or notes about cases & assignments • Copying the work of another GEM learning team • Contacting case actors to find out what happened • Reviewing any source (including WWW) to find out what happened in a case study • Anything else that prevents you from practicing DDART, using your own brains and judgment • Failure to footnote and give credit for intellectual property you did not create
11/21/2008 8
Class and Web Participation is Critical
Treat our class sessions like high priority meetings with your most valuable customers: 1. Be here. 2. Be on time. 3. Be well prepared 4. Participate thoughtfully and effectively 5. Listen to & respect one another. 6. Take the initiative. 7. Have fun!
•
Note: Attendance is mandatory, unless you have a valid reason.
– Unless you are an off-campus student – Absences will be excused for serious illness, hardship, weddings, critical job interviews, company requirements for out of town travel.
11/21/2008
9
Quality, Not Quantity!
We use 7 criteria to assess quality of comments & questions in class & on the web site: 1. Clarity 2. Rigor = logic + evidence + assumptions 3. Conciseness 4. Relevance = timing + fit with the flow 5. Synthesis 6. Creativity 7. Humor
11/21/2008 10
Quality Beats Quantity in GEM!
Average Quality of Most People’s Comments
High
Low
0
10
15
20
>25
# of in-class and web contributions during the quarter
11/21/2008 11
Web Discussion Forum
• GEM discussion forum is handled through coursework. • To register for the forum, add MS&E271 as a course in http://coursework.stanford.edu • Access to the discussion forum will be automatically activated in approximately 24 hours. • All off-campus GEM participants must make an introductory posting Web Discussion Forum in either Session 3 or 4 by 7:00 PM Friday, March 11, 2008
11/21/2008
12
DDART Openings
(Diagnosis, Decisions, Analysis, Reality Test)
• 5 PowerPoint slides (plus cover page with team names) and two 8.5 X 11 inch Excel spreadsheet pages
– Extra slides and worksheet pages NOT graded – Speaker notes that exceed the 8.5 X 11 inch ―Notes View‖ of each PowerPoint slide NOT graded
• Apply tools from assigned readings, ETL speakers and Marketing Toolkit to analyze cases. Footnotes required! • Only some tools apply to each case – don’t force-fit • DDARTS posted to GEM website after 7 PM lose points • DDARTs that exceed 10 min. will lose 1 point/min. • See Openings grading sheet on GEM website
11/21/2008 13
Strategic Thinking Papers (STPs)
• You are the ―product‖ • Determine your strategic vision 10 yrs forward • Apply what we are learning in GEM to achieve your goals
– How are you positioned today; what do you need to do to get there
• Deliverable is a 15 page paper, including exhibits • Grading done in pairs by teaching team and GEM alumni • Grading based on application of GEM concepts
– Integration of concepts from class and readings – Your ability to think strategically – Your proficiency with the DDART framework and marketing tools
• STP is not a value judgment of your vision or direction
11/21/2008 14
Grading – Individual and Team Work
2 Team case openings @ 10% of course grade – done in 6 person teams Final Project – 3 to 4 person teams Or Final case exam –3 person teams Individual participation - in-class students = 20% in class - for SCPD-students = 20% on web Individual Strategic Thinking Paper Total
11/21/2008
20% 40%
20%
20% 100%
15
Teaching Team Office Hours
Who? Individuals or teams What? Course related or career issues Where? Terman 402 and vicinity How? Sign up in advance on the GEM website
Written agenda strongly encouraged
How long? 25 minute slots every half hour When? See below:
Tom Kosnik Donna Novitsky Lynda Smith Arnav Sharma Dong Dong Ge Wed 1:30 – 4:00 PM. Fri 12:00-2:00 PM By appointment only By appointment only TBD TBD
Open the door to Terman 402 at the time of your meeting
11/21/2008 16
What Is GEM?
11/21/2008
17
GEM is NOT a Salesman in a Full Cleveland…
―We’re looking for an aggressive, tenacious salesperson, like, for instance, the one who sold you that suit.‖
11/21/2008
18
―Start Up‖ Marketing In 10 Weeks
• Marketing toolkit
– Marketing tools, rules and roles to be used all quarter
• Targeting markets and customers
– Segmentation, sizing, choosing targets, going global
• Product marketing and management
– Roadmaps, competition, pricing, whole product
• Sales and negotiation
– Compensation, motivation, measurement, negotiating
• Partners and distribution
– Partner alignment, channel strategies, financial implications
• Outbound marketing
– Positioning, PR, lead generation, launches, budgeting
11/21/2008 19
DDART Organize Chaos with GEM’s DDART Architecture
DIAGNOSIS - What is the problem/opportunity?
DECISION - What is your plan of action? ANALYSIS - Why is your plan the best alternative? REALITY TEST - What are the risks? How to manage them?
11/21/2008 20
The Marketing Toolkit
(To be used for cracking cases in class and beyond)
1. TALC (and CALC, and The Dip!) 2. Competitive SWOT analysis 3. Whole product 4. Positioning statement 5. Marketing communication: 6M’s 6. Market map 7. Market segmentation charts 8. Partner matrix 9. Economic analysis 10. Reality test matrix
11/21/2008 21
DDART Caution: Tools Will Apply Differently In Different Cases
Diagnosis Decisions Analysis
1. TALC 2. Comp. SWOT 3. Whole product X X X X X
Reality Test
4. Positioning statement 5. 6Ms, MarComm 6. Market map 7. Market segmentation 8. Partner matrix
9. Economic analysis 10. Reality test matrix
11/21/2008
X X X X X X X X
X X
22
Tool 1: Technology Adoption Life Cycle
Pragmatists: Stick with the herd!
Conservatives: Hold on!
Visionaries: Get ahead of the herd!
Skeptics: No way!
Techies: Try it!
Innovators
Early Early Majority Adopters
Late Majority
Laggards
Pragmatists create the dynamics of high-tech market development
11/21/2008
Source: Moore (2002), Crossing the Chasm; Wiefels (2002), The Chasm Companion.
23
Types of Adopters
• Each adoption type describes individuals… • With different risk orientations toward technological innovation… • Who are make decisions about whether and when to adopt the innovation… • On behalf of: – Themselves – The organization where they work – Their family – Their community
11/21/2008 24
Innovators - Technology Enthusiasts
• Primary Motivation – Learn about new technologies for their own sake • Key Characteristics – Strong aptitude for technical information – Like to alpha test new products – Can ignore the missing elements – Do whatever they can to help • Challenges – Want unrestricted access to top technical people – Want no-profit pricing (preferably free)
11/21/2008 25
Early Adopters - The Visionaries
• Primary Motivation – Gain dramatic competitive advantage via revolutionary breakthrough • Key Characteristics – Great imaginations for strategic applications – Attracted by high-risk, high-reward propositions – Will commit to supply the missing elements – Focused on gains — so not price-sensitive • Challenges – Want rapid time-to-market – Demand high degree of customization and support
11/21/2008
26
Early Majority - Pragmatists
• Primary Motivation – Gain productivity improvements via evolutionary change • Key Characteristics – Astute managers of mission-critical applications – Understand real-world issues & tradeoffs – Focus on proven applications – Like to go with the market leader • Challenges – Insist on good references from trusted colleagues – Want to see the solution in production at the reference site
27
11/21/2008
Late Majority - Conservatives
• Primary Motivation – Just stay even with the competition • Key Characteristics – Better with people than technology – Risk averse – Price-sensitive – Reliant on a single, trusted advisor • Challenges – Need pre-assembled solutions – Would benefit from value-added services. Do not want to pay for them
11/21/2008
28
Laggards - Skeptics
• Primary Motivation – Maintain status quo • Key Characteristics – Good at debunking marketing hype – Disbelieve productivity-improvement arguments – Believe in the law of unintended consequences – Seek to block purchases of new technology • Challenges – Not a customer – Can be formidable opposition to early adoption 29
11/21/2008
What kind of adopter are YOU for each of the innovations below?
Technology Visionary Enthusiast
Smartphone/ Wireless email
Pragmatist Conservative
Skeptic
Instant Messaging Skype Blogging (your own web log)
11/21/2008 30
People adopt for different reasons at each phase of the technology adoption life cycle (TALC)
Main Street
Tornado Total Assimilation Chasm
Innovators
Early Market
Bowling Alley
Early Majority Late Majority Laggards
Early Adopters
11/21/2008
Sources: Moore (1991, 2002), Crossing the Chasm, Moore (1995, 2002), Inside the Tornado.
31
The Chasm occurs because pragmatists refuse to follow visionaries in the case of Discontinuous Innovations
Visionaries
vs.
Pragmatists
• Adventurous
• Early buy-in attitude • Think Big • Go it alone
• Prudent
• Wait-and-see • Manage expectations • Maintain relationships
• Spend big • First strike capability • Think Pragmatists are pedestrian
11/21/2008
• Spend to budget • Staying power • Think Visionaries are dangerous
32
Pragmatists don't trust visionaries as references.
Technology Adoption Life Cycle (TALC): Diagnose and adapt as markets evolve
Main Street Tornado
Early Market Chasm
Innovators Early Adopters
Total Assimilation Bowling Alley
Early Majority Late Majority Laggards
11/21/2008
Source: Moore (2002), Crossing the Chasm; Wiefels (2002), The Chasm Companion.
33
Category Maturity Life Cycle (CMLC)
Indefinitely elastic middle period
Revenue Growth
Early Main Street
C
Mature Main Street
D
Declining Main Street
B
Fault Line!
A
Technology Adoption Life Cycle
11/21/2008
E
End of Life
Time
Source: Moore, Geoffrey A. (2005) Dealing with Darwin
34
The Chasm vs. The Dip Focus is the way to climb out!
11/21/2008
Source: Godin (2007), The Dip
35
Marketing Toolkit…
…Marketing Toolkit Numbers 2 through 10 to be continued in our next session…
11/21/2008
36
GEM is…
The art and science of matching the right customers with the right product at the right time • Business strategy
– Markets (and marketing) determine your business strategy
• Product strategy
– Must evolve simultaneously with market strategy
• Missionary marketing
– Must create demand when no one knows you exist
11/21/2008 37
Why We Should Care About GEM
11/21/2008
38
GEM 08 Win Course Intro - Appendix
Extra slides for your background reading pleasure
11/21/2008
41
Seth Godin shows that the Dip is neither a cul- de-sac nor a cliff
11/21/2008
42
Beware the Cliff – after I-Banking or Management Consulting if you want out
11/21/2008
43
The rewards in market share of being the ―gorilla‖ in a product category
11/21/2008
44