The Business Plan: Go To Market Strategy

1
The Business PlanGo To Market Strategy
David Brenner Mike Reardon

2
Statement of the Obvious

• You cant write a business plan
• .without a plan for your business

3
Statement of the Obvious

• You cant write a business plan
• .without a plan for your business
• Which naturally demands a clear understanding of
  the prospective customers needs and expectations

4
A Key Misconception

• Invention Innovation

5
Distinction

• Invention Creation of a new idea
• Innovation Transforms new idea into value,
  
  commercial or otherwise
• Business Plan Written explanation how value
  will be realized in the chosen market

6
Marketings Perfect Storm
Convergence of relevant market facts,
observations, hunches, etc. about the potential
of a new innovation in an emerging market in
relevant commercial action steps
7

• Customer-Centric Marketing
• Start at the End With Your Customer and Work
  Backwards

Economic Buyers
End- Users
Your Business
Distribution Channels
Influencers
8
Customer-Centric Marketing The Solution
Selling Approach

• Who is your customer
• What is your customers unmet need (their
  pain)?
• Surface your customers pain and its impact on
  them
• Help your customer develop a vision for
  addressing their pain
  (What if you had the ability to.?)
• Describe your solution that matches the vision
  (the whole product)
• Bargain for the order (If I can prove to you)
• Provide proof (customer testimonials, demos,
  etc.)
• Book the order!

Business Plan
Operating Plan
Derived from Solution Selling by Michael T.
Bosworth
9
Customer-Centric Marketing The Solution
Selling Approach
100 of Addressable Market
100
(all theoretical potential customers)
TOTAL POTENTIAL MARKET
(in units or )
Expected Rate of Market Penetration
Your Market Share
YEAR
Derived from Solution Selling by Michael T.
Bosworth
10
Customer-Centric Marketing The Solution
Selling Approach
100 of Addressable Market
100
(all theoretical potential customers)
TOTAL POTENTIAL MARKET
Dont fall into the 1 market share trap!
(in units or )
Expected Rate of Market Penetration
Your Market Share
YEAR
Derived from Solution Selling by Michael T.
Bosworth
11
Competitive Alternatives

• How does the customer problem get solved now?
• What impact on customer acquisition?
• Any likely impact on pricing or channel
  strategy?
• Other impediments?

12
Market Segmentation?
Large vs Small
Geographic
Public vs Private
Demographic
Military vs Civilian
Pyschographic
By Industry Sector
Business vs. Consumer
Professional vs Amateur
13
Stage of Market Development?
Are you selling to risk-taking
Early Adopters?
.or are you selling to conservative
Pragmatists (the vast majority of potential
customers)?
Total Market Revenue
Early Majority
Late Majority
THE CHASM
Early Adopters
Innovators
Laggards
Derived from Crossing the Chasm, by Geoffrey A.
Moore
14

• Where Are You Selling?

Exactly by what means do you sell your product or
service to your customers?
End- Users
Distribution Channels

• Direct Sales?
• Retail?
• Distributors?
• Resellers?
• Combination?

15
How Do You Make Money? The Question of Business
Model

• Extracting Fair Economic Value for your product
  or service
• Pricing Strategy
• Sell vs. rent/lease
• Up-front sale vs recurring revenue
• Bundling products
• Quantity discounts
• Making it easy to buy
• Building customer loyalty and future business

16
How Do You Make Money? The Question of Business
Model

• Extracting Fair Economic Value for your product
  or service
• Pricing Strategy
• Sell vs. rent/lease
• Up-front sale vs recurring revenue
• Bundling products
• Quantity discounts
• Making it easy to buy
• Building customer loyalty and future business

More next week on Business Models.
17
Key Take-Aways.

• Always start at the end With your customer
• The purpose of marketing is to sellSolution
  Selling
• Know what questions to ask
• Business model and pricing are strategically
  linked
• Competitive alternatives
• Impact on pricing, business model and channel
  strategy

18

• Additional Information and Reading
• Art of the Start, by Guy Kawaski
• Solution Selling, by Michael T. Bosworth
• The 22 Immutable Laws of Marketing, by Al Ries
  Jack Trout
• Crossing the Chasm Marketing and Selling High
  Tech Products to Mainstream Customers, by
  Geoffrey A. Moore
• Inside the Tornado, by Geoffrey A. Moore
• High Tech Startup, by John L. Nesheim

19
Dialogue Questions
David Brenner Mike Reardon