Growing Graduate enterprise stage 1
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Transcript of Growing Graduate enterprise stage 1
What links these individuals?
And who is the odd one out
The Candle Problem
You have a candle, a box of thumbtacks, and a book of matches, and are tasked to affix the lit candle to the wall so that it will not drip wax onto the table below.
The innovation in the dual-cyclone vacuum cleaner came from applying
industrial dust extract technology to domestic vacuum cleaners.
James Dyson had the idea when he installed an industrial dust extraction
system incorporating a large, 30 foot high cyclone dust extractor to
remove excess powder from the atmosphere in a powder coating plant.
As James Dyson himself describes it: “It occurred to me at that moment
that there really was no reason why it should not work in miniature –
using a cyclone about the size of say a Perrier bottle”.
James Dyson and the vacuum cleaner
Sources of new ideas
Sources of new ideas
Customers
(Unmet needs)
Gaps in the Market
New Technologies
Performance Failures
New insights and ideas
Cost and Efficiency Savings
George de Mestral was a Swiss engineer. Returning from a walk in the forest one
day he noticed cockleburs sticking to his dog’s coat. Intrigued, he put a cocklebur
under a microscope and noticed that the surface consisted of thousands of tiny
hooks that readily stuck to tiny loops in his clothing. Having noticed that zip
fasteners often had a habit of sticking he wondered if the principle of tiny hooks and
loops could be used to develop a new type of fastener for clothing. It took him eight
years and resulted in “Velcro” which is now used throughout the world.
George de Mestral and Velcro
Ideas
• Look to the bigger picture
− Political
− Economic
− Social Cultural
− Technological
− Environmental
− Legal
Ideas
• That said ideas do not have to be:
− Imaginative
− Unique
− Different
There is nothing wrong with delivering something that already exists
The key is to have a USP and a CVP
Let’s start – what’s your idea?
You have 10 mins to develop a quick pitch to the group.The pitch should be no more than 30 secs long
Pitch
You now have 30 secs to tell us about your idea
Piecing it together
Value proposition
• How are we going to create value?
• Which one of our customer’s problems are we solving
• What’s different about our idea?
• A value proposition creates value for a customer through a distinct mix of elements specifically catering for their needs:
− Newness
−Some value propositions satisfy an entirely new set of needs that customers previously didn’t perceive
− Performance
− Improving product performance is traditionally a common way to add value
− Customisation
−Tailoring products and services to specific needs of customers.
Value Proposition
− Design
−Design is an important but difficult element to measure – Apple
− Brand / status
−Customers may find a value in the simple act of using and displaying a specific brand – brand aspiration
− Price
−Offering similar value at a lower price is a common way of satisfying needs.
− Risk reduction
−Businesses add guarantees to generate value through risk reduction, e.g. car warranties
− Convenience / Usability
−Making things more convenient to buy or easier to use is a good value proposition. Apple again is a good example
Customer segments
• Who are you creating value to?
• Who are your most important customers?
• Mass Market – for example Coke – no real differentiation
• Niche – a specific and defined target audience
• Segmented – a few different niches who have different needs
• Diversified – two very different and unrelated customer segments
Channels
• How do your customers want to be reached?
• Channels are touch points that play an important role in the customer experience.
• Channels serve several functions:
− Raising awareness among customers about a company
− Helping customers evaluate a company’s value proposition
− Allow customers to purchase specific products and services
− Delivering a value proposition
− Providing post purchase support
Customer relationships
• What type of relationship does each of our customer segments expect us to establish?
• How costly are they to establish?
• Personal assistance – email, phone, non specific
• Dedicated personal assistance – specific one to one service with a named individual
• Self service – no direct relationship with individuals
• Automated services – more sophisticated version of self service – recognising individual preferences
• Communities – Many companies are utilising on line communities to allow users to exchange knowledge and solve each others problems.
• Co-creation – Wikipedia, You Tube, Amazon (through reviews) – co create value
Key activities
• What key activities do we need to do?
• These are the most important things a company must do to make its business work
− Production
−These relate to designing, making and delivering a product
− Problem Solving
−Coming up with new solutions to individual customer problems
− E.g. consultancies, hospitals, physios etc
− Platform / Network
−Ebay, matchmaking websites for example
−Visa with its payment platform
−Key activities in this area are platform management, service positioning and platform production
Key resources
• What key resources do you require?
• These are the most important assets required to make the business work.
− Physical
−For example, manufacturing facilities, vehicles, buildings, specialist equipment
− Intellectual
−For example, brands, patents, copyright, trademark
− Human
−Crucial in knowledge led (consultancy) and creative industries
− Financial
−Start up costs
−Financial resources
Key Partners
• Who are our key partners?
• Who are our key suppliers
• What do we need from them?
• The key partners building block describes the network of suppliers and partners that will make the business work:
Who will we need to make this idea work?
• Key suppliers?
• Joint ventures?
Page
Revenue Streams
• For what value are our customer really willing to pay?
• How are they currently paying?
• How would they prefer to pay?
• A business usually involves one of two different types of revenue streams:
− Transaction revenues resulting from a one off sale to a customer
− Recurring revenues resulting from on going payments to deliver services or to provide post purchase support
Revenue streams
• Different ways to generate revenue:
− Asset sale – standard product purchase model.
− Usage fee – mobile phones – the more you use something the more it costs
− Subscription – gym membership for example
− Lending / Renting – Temporarily using an asset
− Licensing – Image rights – music / sport
− Brokerage fees – Go Compare etc
− Advertising – fee generated by allowing advertising
Page
Cost structure
• What are the most important costs in our business?
• Which resources are most expensive?
• Are any prohibitive?
• This area describes all of the costs that the business is likely to be charged:
− Cost driven
−Lean delivery such as Easy Jet / Ryan Air
− Value driven
−Some companies look in the opposite way to cost driven businesses.
−Their focus is on value creation – for example luxury hotels
There are 2 further characteristics
− Fixed Costs
− Variable costs
Business structures
• Sole trader, freelance or self employed
• Partnership
• Limited company
Sole Trader
• Convenient when just one person will own the business and will have complete responsibility for it.
• For example
− Graphic Designer
− Advantages
− No registration
− Less paperwork
− Owner entitled to all company profits
− Owner keeps overall control
− Disadvantages
− Unlimited liability
− Level of finance available is limited
− Limited company status is more prestigious
Partnership
• Good vehicle to use when the business involves two or more people
−Advantages
− Flexible structure
− Less paperwork
− Partnerships cannot be taken over by other businesses
−Disadvantages
− Unlimited liability
− Each partner is responsible for other members negligence
− Disagreements between partners
Limited Company
• Main advantage is that its owners have limited liability for the debts of the business
−Advantages
− Liability is limited to initial cost of shares
− Finance can be raised by selling shares
− Limited company has a separate legal identity to that of its owners
−Disadvantages
− Compliance with a wide range of complex legislation
− Public disclosure of accounts
Creating value
Where to start
Create a new gain creator for a given customer profile
Imagine a new product or service
Create a new pain reliever for a given customer profile
Focus on your customers’ most essential unrealized gain
Uncover a new unsatisfied job
Solve your customers’ most extreme unresolved pain
Step into your customers shoes
Select customer segment
Identify customer activities
Identify customer
pains
Identify customer
gains
Creating value
Customers (potential customers)
• Customer Jobs –(activities)
Jobs describe the things your potential customers are trying to get done. These could be tasks they are trying to perform, problems they are trying to solve or needs they are trying to satisfy
It is important to acknowledge that not all jobs / activities have the same importance
Angle Tip
When carrying out potential customer research its important to first identify who your potential customers might
be. Don’t waste your time asking people their views on products or
services that they will not buy.
•For example, mowing the lawn, playing a sportFunctional
Jobs
•When a customer wants to look good or gain power status
•For example – brand aspiration – Ferrari, Hugo BossSocial Jobs
•When customers seek a specific emotional state such as peace of mind or feeling secure
•For example – private healthcare
Personal jobs
Supporting Jobs
• Buyer of value – physically choosing and purchasing
• Cocreator of value – those that leave feedback
• Transferrer of value – reselling a product, upcycling a product
Jobs / activities
What are your customers jobs?
• Customer pains
− Anything that annoys customers before, during or after trying to get a job (activity done).
− Pains also describe risks –potential bad outcomes related to getting a job (activity) done badly
• Function – this does not work properly
• Social – I look bad in this
• Ancillary – its annoying
Undesired outcomes,
problems and characteristics
• These are things that prevent customers from starting their activity – I can’t afford it, I don’t have the time
Obstacles
• Example trigger questions:
− How do your customers define too costly? Too much time, money or effort?
− What makes your customers feel bad? What are the frustrations or annoyances?
− How are current products / services underperforming? What features are missing? Are there performance issues?
− What are the main difficulties and challenges your customers encounter?
− What risks do your customers fear?
− What’s keeping your customers awake at night?
− What are the barriers your potential customers face when adopting your product?
Pains
What are the potential pains?
• Customer gains
− Gains describe the outcomes and benefits your customers want. Some gains are required, expected and some are desired and some would even surprise them.
•These are gains without which the solution would not work
•For example, a smartphone making a phone call
Required gains
•Relatively basic gains that we expect
•For example – an iphone being well designed and looking good
Expected gains
•These are gains that go beyond what we expect
•For example – our smartphone to sync with other areas of our life – e.g. email
Desired gains
Unexpected gains
• These are gains that go beyond customer expectation and desire
Gains
• What are the:
−Required
−Expected
−Desired
−Unexpected gains
The value map
List all products and
services
Outline pain relievers
Outline gain creators
Value Map
Products and Services
Gain Creators
Pain Relievers
Products and Services Gain Creators Pain Relievers
• Products and services
− This is simply a list of what you offer
− Physical (products)
− Intangible (services)
− Digital
− Financial
• Gain creators
−Describe how your products and services create customer gains
−Focus on the most relevant and important gains where you can make a difference
−Typically saving time, money, effort
• Pain relievers
−Describe how your products or services alleviate customer pains
−Again focus on the most relevant ones
−Typically
−Underperformance
−Cost, time, effort
Value map
What are your:
−Products
−Pain Relievers
−Gain Creators
Fit
Are you addressing essential customer gains
Are you addressing essential customer pains
You achieve fit when customers get excited about your value proposition, which happens when you address important jobs, alleviate extreme pains, and create essential gains that customers care about.
Does yours match?
−What is left on the customers side?
−What is left on your side?
−Are any of them important?
Customer development
Customer discovery
Customer validation
Customer creation
Company building
Get out of the office to learn about your
customers’ jobs, pains and gains. Investigate what you could offer
them to kill pains and create gains
Run experiments to test if customers value how your
products and services intend to alleviate pains and
create gains
Start building end user demand. Drive customers to your sales channels and begin scaling the
business
10 characteristics of great value propositions
1. Are embedded in great business models
2. Focus on the jobs, pains and gains that matter most to customers
3. Focus on unsatisfied jobs, unresolved gains and unresolved pains
4. Target few jobs, pains and gains but do so very well
5. Go beyond functional jobs and address emotional and social jobs
6. Align with how customers measure success
7. Focus on jobs, pains and gains that a lot of people have or that some will pay a lot of money for.
8. Differentiate from competition on jobs, pains and gains that customers care about
9. Outperform competition substantially on at least one dimension
10.Are difficult to copy
10 testing principles
1. Realize that evidence trumps opinion
2. Learn faster and reduce risk by embracing failure
3. Test early, refine later
4. Experiments = reality
5. Balance learnings and vision
6. Identify idea killers
7. Understand customers first
8. Make it measurable
9. Accept that not all facts are equal
10.Test irreversible decisions twice as much
Do you have evidence?
Which gains matter most to your customers?Which ones are most essential?
Which pains matter most to your customers?Which ones are most extreme?
Which jobs matter to your customers?Which ones matter most?
Which one of your gain creators customers really need or desire?Which ones do they crave most?
Which one of your pain relievers helps your customers with their headaches?Which ones do they crave most?
Which one of your products and services customers really want?Which ones they want the most?
Testing your value proposition
1. Select a value proposition to test
2. Select factors of competition
3. Score your value proposition
4. Add competing value propositions
5. Score competing propositions
6. Analyse your sweet spot
Benchmarking Supermarkets
Use experiments to test
Willingness to pay
Priorities and Preferences
Interest and Relevance
Provide evidence that potential customers are interested enough in your value proposition to pay. Deliver facts that show they will put their money where their mouth is
Show which jobs, pains and gains your potential customers and partners value most and which ones they value least. Provide evidence that indicates which features of your value proposition they prefer
Prove that potential customers are genuinely interested. Show that your ideas are relevant enough to them to get them to perform actions that go beyond lip service
Experiments
• Lab studies
− Minimum viable products
− Prototypes
• Sales actions
− Mock sales
− Presales
− Crowdfunding
• Tracking actions
− Ad and link tracking
− Landing page
− A/B testing
• Participatory design and evaluation
− Speedboat
− Illustrations, storyboards and scenarios
Lab studies
Minimum viable product• Make your idea real as quickly as possible
• A MVP is a representation or prototype of your product
• Not finished or polished
• Goal is to design and produce a MVP to explore customer interest
• How
− Storyboard
− Drawings
− Renders
− 3D prototypes
Questions to ask of a MVP• Which MVP’s create value for you?
• Which ones should we progress with and which ones should we ditch?
• What is missing?
• What would you like to see?
• What should be left out?
• What should be added?
• Could there be other options?
Sales actions
Crowdfunding• Crowdfunding is one of the best ways of attracting pre sales
and analysing initial interest
• Its also a way of raising funds at the same time
• Look at sites like Kickstarter
• Kickstarter allows you to advertise a project and if people like it they will pledge money in exchange for the item itself
• The project receives funds only if you reach your predefined funding goal – all or nothing.
Pre sales• Main objective here is to explore initial interest not sales
• If there isn’t enough interest to produce the end product the sale can be cancelled and the customer reimbursed
• It’s a good way of funding the first round of products without using your own money
Tracking
Ad tracking• Select search terms that best represent what you want to
test, i.e. pains, gains or the value proposition
• Design your ad / test with a headline, link to a landing page and blurb. Make sure it represents what you want to test
• Launch your campaign. Define a budget for your campaign and launch it. Pay only for clicks on your ad which represent interest
• Measure clicks. Learn how many people click on your ad. No clicks may indicate a lack of interest
Unique link tracking• Fabricate a unique and trackable link to more detailed
information about your idea with a service such as goo.gl
• Pitch and track your idea to a potential customer. During or after the meeting give the person the unique link and mention it points to more detailed information
• Learn about genuine interest. Track if the customer used the link or not. If the link wasn’t used it may indicate a lack of interest or more important jobs, pains, and gains than those that your idea addresses
Link Tracking
Landing page
• The goal of a landing page is to validate one or more hypotheses, not to collect emails or sell, which is a nice by product of the experiment.
• Elements
− Traffic – generate traffic with ads, social media or existing channels
− Headline – Craft a headline that speaks to your potential customers and introduces the value proposition
− Value proposition – ensure your value proposition is clear and tangible to potential customers
− Call to action – get website visitors to perform an action that you can learn from
− Outreach – Reach out to people who performed the call to action. Investigate why they were motivated to perform the action
Total audience addressed
Visitors to website
Visitors who performed the
action
Visitors who are willing to talk to
you
Features Advantages Benefits
Buy groceries online Saves going out to supermarket • Makes supermarket shopping possible• Don’t face the ordeal of shopping with
toddlers• Keep your limited leisure time for
yourselves
Twenty four hours a day seven days a week
Can shop outside of normal hours • Shop when feel like it• Concentrate when kids are asleep• Sort out at weekend with no
pressure
Remembers your previous list Can make amendments rather that starting from a blank sheet
• Tend to need the same things• Head start to make the job quicker• Save lists for different occasions
Total price clear before getting to till
Useful for budgeting • Save money –limited income• Possible to delete a few treats • Know exactly what’s going on the
credit card
Selling the benefits
Innovation Games
Product box1. Design. Invite customers to design a cardboard
box for the product they would buy. Ask them to feature key marketing messages, main features and key benefits they would expect
2. Pitch. Ask them to now pitch the box to you.
3. Capture. Observe and note which messages, features and benefits customers mention on the box and in the pitch. Relate this back to your initial value proposition
Lets try them
You have 20 mins to develop your own product box
The testing process
Build
Measure
Learn
1. (Re)Shape your ideas 2. Extract your hypothesis
3. Design your test
4. Enter the learning loop
5. Capture the results
6. Measure progress
Financials
Pricing
Sales Forecast
Profit and Loss
Cashflow Forecast
Pricing Checklist
Know your real costs for each product /
service
Work out the minimum at which its
worth selling at all
Find out from your customers what each product or service is
worth to them
Check your competitors prices
If their price is lower than your worth selling at price THINK AGAIN
Be prepared to make range and pricing
changes
Keep checking that you price is right
Pricing methods
Pricingmethods
Cost
MarketingCompetition
• Cost Orientated Pricing
− Full cost pricing
−A way of including all the costs that are directly and indirectly associated with the product or service
− Increase cost with decreasing sales!
−Sales are estimated before a price is set
−Focuses on internal costs rather than customers and customer value
− It does however give an indication to the minimum cost to make a profit
Year 1
Direct costs £2
Fixed costs £200,000
Expected Sales 100,000
Cost per unit
Direct costs £2
Fixed costs £2
Full costs £4
Mark Up 10%
Price plus profit £4.40
What are your direct costs?Labour?
Materials?Sub-contract costs?
Direct Costs
(Per item) Cost of materials
Direct wages
Subcontract charges
Packaging and carriage
Total Direct Costs
What are your fixed costs?Rent?
Salaries?Marketing?
Overheads
(for 12 months) Staff Salaries / wages
Business Rent 0.00
Business Rates 0.00
Water Rates 0.00
Light / Heat / Power 0.00
Repairs and Renewals 0.00
Business Insurance 0.00
Travel and Vehicle costs 0.00
Phone and Postage 0.00
Printing and Stationery 0.00
Marketing 0.00
Professional Fees 0.00
General Expenditure 0.00
Total Overheads 0.00
Year 1
Direct costs £2
Fixed costs £200,000
Expected Sales 100,000
Cost per unit
Direct costs £2
Fixed costs £2
Full costs £4
Mark Up 10%
Price plus profit £4.40
Year 1
Direct costs £2
Fixed costs £200,000
Expected Sales 100,000
Cost per unit
Direct costs £2
Fixed costs £2
Full costs £4
Mark Up 10%
Price plus profit £4.40
Sales forecasting next
Sales forecasting
• Your sales forecast should be based upon any historical sales, your marketing strategic and your market research.
• It is a month-by-month prediction of the level of sales you expect to achieve.
• Every year is different, so you need to consider any changing circumstances that could significantly affect your sales
• These factors - known as the sales forecast assumptions - form the basis of your forecast.
• You may wish to do two
1. A best guess – what you really expect
2. A worst case – your lowest estimate no matter what
Typical examples of assumptions:
− The market you sell into will grow by 2 per cent.
− Your market share will shrink by 2 per cent, due to the success of a competitor.
− Seasonality – how sales will change depending on the time of year
− You will spend 50 per cent less on advertising, which will reduce the number of enquiries from potential customers.
− You are launching a range of new products. Sales will be small this year and costs will outweigh profits, but in future years you will reap the benefits.
− You have new products that have the potential to increase sales rapidly.
Sales Forecast
MONTH SALES a SALES
b
SALES
c
TOTAL
MONTH
MONTH CUMULATIVE
MONTHLY
1
2
3
4
5
6
7
8
9
10
11
12
YEAR
Can you forecast your sales?
You should now have enough information to complete your
Profit and Loss forecast
Annual
Sales Income
Sales a £0.00
Sales b £0.00
Sales c £0.00
Sales d
Total Sales Income £0.00
Direct Costs
Cost of materials £0.00
Direct wages
Subcontract charges
Packaging and carriage
Total Direct Costs £0.00
Gross Profit £0.00
% GP Margin
Overheads
Staff Salaries / wages
Business Rent 0.00
Business Rates 0.00
Water Rates 0.00
Light / Heat / Power 0.00
Repairs and Renewals 0.00
Business Insurance 0.00
Travel and Vehicle costs 0.00
Phone and Postage 0.00
Printing and Stationery 0.00
Marketing 0.00
Professional Fees 0.00
General Expenditure 0.00
Total Overheads 0.00
Net Profit / Loss £0.00
Profit and loss
Now that we have our costs and our sales – what are your costs per
unit?
Back to pricing
Year 1
Direct costs £2
Fixed costs £200,000
Expected Sales 100,000
Cost per unit
Direct costs £2
Fixed costs £2
Full costs £4
Mark Up 10%
Price plus profit £4.40
You now have a cost orientated price
Pricing Checklist
Know your real costs for each product /
service
Work out the minimum at which its
worth selling at all
Find out from your customers what each product or service is
worth to them
Check your competitors prices
If their price is lower than your worth selling at price THINK AGAIN
Be prepared to make range and pricing
changes
Keep checking that you price is right
Breakeven Analysis
Step 1Sales £4000Less variable costs £2000Gross profit = £2000
Step 2Gross Profit £1600
÷ X 100 = 40% % GPSales £4000
Step 3Fixed Costs
÷ x 100 = Breakeven Point% GP
Step 4Fixed Costs £1200
÷ x 100 = £3000 % GP 40 Breakeven Point
Pricing Checklist
Know your real costs for each product /
service
Work out the minimum at which its
worth selling at all
Find out from your customers what each product or service is
worth to them
Check your competitors prices
If their price is lower than your worth selling at price THINK AGAIN
Be prepared to make range and pricing
changes
Keep checking that you price is right
Competitor orientated pricing
− Focus on the competitor rather than the costs
− Going rate pricing
− In situations where there is little product differentiation a producer may have to look at going rate pricing.
−Goes against traditional marketing theory which seeks to deploy differential advantage, such as delivery time, after sales service and price accordingly.
− Competitive bidding
−Sealed unseen bids from other companies
−Used in both public (price plus quality) and private (usually just price) sectors
• Competition
− At the very least you should know who your competitors are and what they charge
Immediate competitors,
e.g. Blockbusters
Technically similar products
Secondary competitors,
eg. Lovefilm / Netflix
Different products solving the same
problem in a different way
Tertiary competitors e.g.
Sky Movies
Different products solving or eliminating the
problem in a different way
Can you accurately create a competitor based price for your
new product / service?
What’s the difference?Is it feasible?
Pricing new products or services
High
High
Low
Low
Promotion
Price
Rapid Skimming
Rapid
Penetration
Slow Skimming
Slow
Penetration
Premium products
Gradual entry
Premium products
Quick entry
What has your organisation used in the past?
What will you use now?
Cashflow
−Cashflow forecasting enables you to predict peaks and troughs in your cash balance.
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Income
Sales a
Sales b
Total Income £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
Expenditure
Materials
Subcontract Charges
Packaging and Carriage
Wages
Business Rent
Business Rates
Water Rates
Light / Heat / Power
Repairs and Renewals
Business Insurance
Travel and Vehicle costs
Printing and Stationery
Marketing
Professional Fees
General Expenditure
Total Expenditure £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
Monthly net inflow / outflow £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
Cumulative monthly flow £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
Financials
Pricing
Sales Forecast
Profit and Loss
Cashflow Forecast
What is social media?
Awareness
Interest
Desire
Action
Attract
Engage
Nurture
Engage
Before we start lets consider the journey
ModernVsTraditional
•Sites are interactive – it is not a business speaking to its customers, it is a two way communication
•NEED customer interaction in order to truly succeed
•“It is not what you say, its what they say that matters”
Why should you care?
Good news for small business
•Social media has afforded everyone with the tools to publish, broadcast and compete on a more level playing field
•No longer dependent on big budgets
•Starting a business and marketing a business has never been so easy
Key differences from traditional marketing?
•Puts the human back into marketing – it allows a business to show its own personality.
•Talking with your customers, not at your customers. It’s a two way conversation –remember customers should be at the heart of everything you do.
•Not about you.
Losing control
You must realise and accept that you do not control your social media activity. Your
audience does.Relax
6 Golden Rules of Social Media
1.Listen
2.Add value
3.No hard selling
4.Engage and interact
5.Be real, be nice, be honest, be grateful
6.Focus on quality, not quantity
What are the different types of social media?
Blogging and Microblogging
•A shared on line journal
•346,000,000 people regularly read blogs
•Establishes you as a thought leader in your industry
•Linkbacks and fresh, relevant content help website search rankings
•Take more time and requires a commitment to regularly blog
5 Blog tips
1.Make your content easy to share
2.Build relationships with other bloggers, share their content, comment on their content
3.Do not, do not spam
4.Use keywords, tags and links
5.Make your content easily available
•Allows you 140 characters per “tweet”
•Other people can follow you, you can follow others
•Fast paced, real time.
•Average tweet lasts 6 seconds
Twitter speak
• DM
−Can only send DM’s to those who follow you
• #Hashtags
−The secret to increased exposure
−Allows people to organise and search for key subjects
• Hootsuite, Tweetdeck – applications that allow you to manage your twitter and other accounts.
−Key to these is that they allow you to schedule posts for the best effect.
Video and photo sharing
Video
•Keep it short
•How can you make a video go viral?
−Good content
−Make your video easy to share
•Integrate on other platforms
•Create and brand a Youtube channel
Photo sharing
•Effective use of tagging and captions
•Great way to showcase new products
•Post high quality pictures
Instagram takeaway
• Keep your content fresh, interactive, and aligned with the brand attributes you want your fans to notice.
• Photos allow you to connect with customers in a different way.
• Fans and followers are more than happy to respond and take part if they are interested in the information you are sharing.
• Make sure the pictures you post have meaning to your customers and induce shares.
• If you don’t get excited about the picture you just took, neither will your fans.
• Take the time to think about what pictures your fans want to see from your brand and how to present them in an interesting way.
Social networks
• Aligned more to B2C and products
• Over 350 million users worldwide
• Would be the fourth biggest country
• 50% of its users log in each day
• Over 700,000 businesses have business pages
• Aligned more to B2B and services
• Over 50 million members worldwide
• Average user spends 6 mins a day
• Use pages not profiles
• Welcome and encourage fan content and sharing
• Don’t spam your fans
• Keep search in mind
• Consider facebook ads
• Keep your profile up to date
• Create a business page
• Get recommendations
• Ideal for finding key individuals in target organisations
• Join and participate in groups
• Consider LinkedIn ads and sponsored updates
Travel agency Intrepid Travel has put together a great Facebook Page --complete with a special tab that shows trip and tour reviews, and one that lets users search and book trips without having to leave their Facebook Page.
• Tough Mudder, an organization that runs hardcore obstacle course events focused on teamwork and camaraderie, leans on social media sites like Facebook to help recruit and pump up participants.
• They do a great job of keeping their Facebook content fresh and up-to-date, which is especially important for an events company.
• Not to mention, each event they run has its own Facebook Event -- which shows up in an "Events" feed on their Page -- so participants can connect, ask questions, and share event-specific photos with the community.
How can social media help my business?
•Streamline and improve customer service
•Carry out efficient and effective market research
•Connect with new leads and resources
•Increase your website search rankings
•Develop credibility within your industry
•Find employees and partners
Is traditional marketing dead?
Social media is anADDITION
to your marketing plan – not a replacement
PaidYou have paid to leverage
this
Paid advertising (print, TV, Radio, Sponsorships)
Awareness and stimulation
OwnedYou own and control this
media
Websites
Company Blog
Corporate Brochures
Build longer term relationships with existing customers and potential
customers
EarnedCustomers are the
channel
Word of mouth
Viral
Social media
Listen and respond
Use traditional marketing to:
− Link to your social networks from your website
− Let potential customers experience your products
− Engage with customers in a slightly different way
−Networking
−Exhibitions
−Email marketing
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How do I know if its working?
• Analytics tools
− Google Analytics
− Facebook analytics
− Twitter analytics
− LinkedIn analytics
Lets get started
Listen
Goals
PlanExecute
Analyse
• Find out what your audience is saying
• Where are they spending their time?
• What are your competitors doing?
Listen
Goals
PlanExecute
Analyse
• Determine what it is you want to accomplish
• Make the goals as tangible as possible
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• Determine your target audience
• Develop your plan / strategy
• How does this tie in with all of your marketing?
Listen
Goals
PlanExecute
Analyse
Page
Listen
Goals
PlanExecute
Analyse
• Execute and monitor your campaign
• Reply to comments, feedback, questions
• Look through your analytics reports
• Measure success• Repeat!
Listen
Goals
PlanExecute
Analyse
Wider world
Industry
Competition
Customers
Customers
• Who are they?
• What do they want?
• Where do they want to buy it?
• How do they want to buy it?
• When do they want to buy?
Angle Tip
When carrying out potential customer research its important to first identify who your potential customers might
be. Don’t waste your time asking people their views on products or
services that they will not buy.
You
Who
What
WhereWhen
How
Consumer Segmentation
Behavioural Psychographic Profile
BenefitsSought
PurchaseOccasion
PurchaseBehaviour
UsagePerceptions
AndBeliefs
Lifestyle PersonalityDemo
graphicSocio
economicGeo
graphic
Organisational Segmentation
Microsegmentation Macrosegmentation
ChoiceCriteria
DecisionMaking
Unitstructure
DecisionMakingprocess
PurchasingOrganisation
CompanyInnovation
Companysize
IndustryGeo
graphic
Who are your customers?
Competitors
• Who are they?
• What do they sell?
• Where do they sell it?
• How do they sell it?
• When do they sell it?
How are YOU different?
Angle Tip
When carrying out potential customer research its important to first identify who your potential customers might
be. Don’t waste your time asking people their views on products or
services that they will not buy.
You
Who
What
WhereWhen
How
Identifying competition
• Who offers the same products or services and delivers them in exactly the same way as you propose to do? (direct competition)
• Who offers similar products or services as you but delivers them in a different way? (indirect competition)
• Who offers slightly different products or services as you but delivers them in the same way? (indirect competition)
Who is your competition?
Finding a niche
Wider world
− You’re doing business in a wider world so factors such as
−Political
−Economic
−Social
−Technological
−Legal
−Environmental
Could all play a big part in your success
Industry / Market
Market analysis
Market size
Market risks
Competition
Customer needs
Market Size
Market size
Total available market
This is the entire universe that could ever buy your product, for your niche – anywhere
Addressable market
This is revenue represented by the market segments that you intend to sell and service in the time covered by your plan available
money
Market Size
A B CMarket
Size
Number of customers
Average transaction size
Number of transactions per
customer per year
Market risks
Risks
Competition
Product
Financial
Technological
How
• Gather your own data
−Questionnaires
−Online
−Offline
−Focus Groups
−Informal feedback – social media
What is marketing?
Who
What
Why
When
Your customers
Your product / service
Is there a pain?
Purchase occasion?
What is marketing?
How
How will your product be used?
How will you let people know?
How will people buy it?
Product as branding
Product as branding
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Meat packaging
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Juice bottle design
Page 193
Spaghetti packaging
Price
• Price your product or service at the level which your customers expect to pay for the quality you are delivery
− Does not mean high price means high quality
− Nor high quality will justify a high price
• Pricing directly affects sales revenue
− Relate sales revenue to costs – cost of sale, production, raw materials, transport and promotion
• Product – Price Mix
− Good after sales service or a brand well-supported with advertising may attract a higher price
Pricing methods
Pricingmethods
Cost
MarketingCompetition
• Cost Orientated Pricing
− Full cost pricing
−A way of including all the costs that are directly and indirectly associated with the product or service
− Increase cost with decreasing sales!
−Sales are estimated before a price is set
−Focuses on internal costs rather than customers and customer value
− It does however give an indication to the minimum cost to make a profit
Competitor orientated pricing
− Focus on the competitor rather than the costs
− Going rate pricing
− In situations where there is little product differentiation a producer may have to look at going rate pricing.
−Goes against traditional marketing theory which seeks to deploy differential advantage, such as delivery time, after sales service and price accordingly.
− Competitive bidding
−Sealed unseen bids from other companies
−Used in both public (price plus quality) and private (usually just price) sectors
Pricing Checklist
Know your real costs for each product /
service
Work out the minimum at which its
worth selling at all
Find out from your customers what each product or service is
worth to them
Check your competitors prices
If their price is lower than your worth selling at price THINK AGAIN
Be prepared to make range and pricing
changes
Keep checking that you price is right
Promotion
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WhenPurchase occasion?
Promotion
How - Promotion
Publicity
Direct Marketing
Personal
selling
Advertising
Sales Promotion
Internet/websit
e
Online
marketing
Face to face
(Trade
shows)
Examples - Good
Examples - bad
Page
Which methods would you use to market?
Handmade Cushions Graphic Designer
Promotion
Which methods would you use for your business?
PaidYou have paid to
leverage this
Paid advertising (print, TV, Radio,
Sponsorships)
Awareness and stimulation
OwnedYou own and control
this media
Websites
Company Blog
Corporate BrochuresBuild longer term relationships with
existing customers and potential customers
EarnedCustomers are the
channel
Word of mouth
Viral
Blogs
Social Media
Listen and respond
Owned Media
• Take ownership of the different channels
• Reduce marketing spend on paid media
• Reach out and engage with customers to build lasting relationships
Possibly the most successful campaigns this century?
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18,300,000 Media impressions870% increase in facebook traffic
260,000 new donatorsRise from $1.7 mill to $13.3 millTotal given now over $55 mill
Awareness
Interest
Desire
Action
Attract
Engage
Nurture
Engage
The journey
ModernVsTraditional
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What is the journey for your clients?
Can you map it out?What media are you going to use at each
stage?
Lets piece it all together with a pitch
Pitching
Presentations
SalesWritten pitch
Presentations
Page
Definition
• A presentation is a means of communication which can be adapted to various speaking situations, such as talking to a group, addressing a meeting or briefing a team.
50% Content 50% Delivery
• Following are the steps include in preparing effective presentation:
Plan
Prepare
Practice
Present
Planning
• Planning usually include following questions:
• Who is your audience?
• Why are they there?
• What is your goal?
• How long will it be?
• Where will it take place?
Prepare
• Following points must keep in mind while preparing:
Structure
Prompt
Visual aids
Voice
Appearance
Style
Questions
Structure
• Write your presentation in this order:
Objective
Beginning or introduction
Main content
Summary, conclusion and recommendations
Questions
Structure
Introduction
Main theme
Summary/Conclusion
Get AttentionGrab the audience attention
Content should be relevant to
topic
Key message
Prompt
• Short bullet points, key words only.
• Put your entire prompt onto your power point slides.
• These prompt are for you.
Visual aids
• Use simple fonts, colors and graphs.
• Use images and clipart.
• 3 to 7 bullets per slide.
• Don’t over crowd your slides, it will not look professional.
• New or different visual aids
wake people up.
Voice
• Louder and clear than your normal pitch.
• Vary pitch and volume.
• Over emphasis
Appearance
• Dark colors read as businesslike.
• Wear comfortable shoes to weight your feet evenly.
• Allow yourself to move a bit.
• Look confident.
Professionals vs. non professionals
Style
Creative
Showman
Charismatic
Intelligent
Expert
Just be YOU
Questions
• Sketch an idea of what kind of questions audience may ask.
Practice
• Rehearse all points what you prepare.
• Rehearse with all visual aids and handouts.
• Practice again and again to manage time.
• Rehearse in front of mirror or a friend.
Present
• Make a strong start.
• Engage the audience in first 2-3 minutes.
• Show your passion through your movements and gestures.
• Make an eye contact.
• Don’t forget to smile as well,
unless your topic is very grim.
Flaws in presentation
Flaws in presentation
• Lack of experience.
• Lack of enthusiasm.
• Lack of practice.
• Lack of related material.
• Lack of confidence.
• Hesitation.
• Ambiguity in the results
that you want to conclude.
Written pitch
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Pitchdecks
A pitch deck is a brief presentation, often created using PowerPoint, Keynote or Prezi, used to provide your audience with a quick overview of your business
plan. You will usually use your pitch deck during face-to-face or online meetings with potential investors, customers, partners, and co-founders.
11 slides of a pitchdeck
Pitchdeck
Introduction
Team
Problem
Advantages
Solution
ProductMarket
Competition
Business model
Funds required
Contact details
Pitchdeck Do’s
1. Tell a story & engage people emotionally
− Everyone loves to hear stories, even the investors. So tell an exciting story about your startup.
2. Limit each slide to expressing one idea
− You want to keep your entire audience on the same page
3. Prepare to make a great first impression
− First impressions are powerful. Believe it.The first 2-3 minutes are the most important
4. Show the people behind your idea
− Focus on a significant, relevant accomplishment for each person in a team that identifies that person as a winner
5. Keep a consistent look in presentation
− Use the same font, size, color and capitalization format across all slides of your investment pitch deck.
Pitchdeck Don’ts
1. Don't use too many bullet points
− Limit the bullets. Too many bullet points will kill a presentation.
2. Don't make it too long
− Average entrepreneur pitch: 38 slides. Average VC attention span/cranial capacity: 10 slides. Do the maths.
3. Don't read word by word from your script.
− You will sound like a robot and missthe all-important eye contact with the audience.
4. Don't create a text-rich, picture-poor presentation.
− People cannot read and listen at the same time. Great visual inspire and engage people emotionally.
6. Don't use small fonts
− Always use a font large enough to be seen by all audience members. Use 32- to 44-point for titles and no smaller than 28-point for the text or bulleted items.
Sales Pitch
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Where would we use a “Pitch”?
Lets try
• Its your turn
• Create an initial 30 second pitch for your idea that you are happy to present to everyone.
50% Content
What should it include
Beginning Middle End
Beginning
• Catchy title
• Grab attention
− Amuse
− Shock
− Ask a question
• Catchy hook
What do you do? The one liner
First introduction
Hi, my name is……… I / we ……………
For example
• We help companies maximise their growth potential
• Companies say we help them to achieve their growth goals more quickly
• We support companies to develop and implement their growth
What are your one liners?
Do we know what we are selling?
Features Promises
Business Pain Benefits
FeaturesSpecific details about the product or service
Promises
Promises can be made about what benefits the features could deliver
Business Pain
The quantifiable business drivers that relate to issues such as cost, income, profit margin, reputation etc
Benefits
Specific benefits from the promise list that relate to the prospect and their business pain
Features Advantages Benefits
Buy groceries online Saves going out to supermarket • Makes supermarket shopping possible
• Don’t face the ordeal of shopping with toddlers
• Keep your limited leisure time for yourselves
Twenty four hours a day seven days a week
Can shop outside of normal hours • Shop when feel like it• Concentrate when kids are asleep• Sort out at weekend with no
pressure
Remembers your previous list Can make amendments rather that starting from a blank sheet
• Tend to need the same things• Head start to make the job quicker• Save lists for different occasions
Total price clear before getting to till Useful for budgeting • Save money –limited income• Possible to delete a few treats • Know exactly what’s going on the
credit card
Selling the benefits
Creating value
Elevator Pitch
The next step
Prospect Pain / Capability Gap
• Many Companies are trying to grow and are experiencing difficulties with lack of finance, ability to innovate or the internal capacity to deliver
What’s my role
• My role is to help companies to overcome these barriers by providing the support they need either in the form of workshops or one to one coaching
Why it’s unique
• What’s different about this is we work with a wide variety of high quality coaches with a number of different specialisms
Supporting Facts
To back up your elevator pitch it is useful to have facts you can follow up with:
For example
• We have delivered support to over 450 companies to date
• On average businesses engaged with us have grown by 105%
• 97% of businesses would recommend us to other businesses
Case Studies
To back up your elevator pitch and your supporting facts have to hand a number of supporting reference stories.
For example:
An example of what we have done in a similar situation was to work with the directors who were having difficulty gaining access to new markets in the food and drink industry.
10 steps to sales pitch success
Ask people to buy things
Don’t waste opportunities. If the
customer starts asking questions this is a
buying signal
Selling is not only about talking. A good
sales person is an active listener
Understand your customers journey
Leaving brochures behind is a wasted opportunity to sell!
Asking about the past is a good idea – it’s a
great icebreaker
What your customers want to buy is value. Our job is to create and communicate
value
Don’t sell by email or text.
Remember there is no need to be aggressive.
Lets put it all together
• Your turn.
• Lets create a two minute presentation on your idea.
• Think about
− the pain
− What your role is
− Why are you different
• Include evidence if possible