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Thursday, July 21, 2005

Marketing for Startups & Guiding Principles

I attended:
TiE Event
Marketing for Startups
6 Guiding Principles


1. Marketing's role is to bring "outside-in" discipline to the organization.
2. Marketing is war. It's not just a battle of products; it's a battle of perceptions.
3. Marketing's job is to focus on the organization where it can win -
on customer segments that will value its unique advantages.
4. A marketing budget must balance people $$ with program $$. You need both.
You need to spend money to make money.
5. Great marketing causes organizational stress - this is a good thing.
6. Superior marketing is as important as superior technology in building long-term competitive advantage.

Mentoring Roundtable
Ponnam Dhawan - not present
Jackie Gilbert - now an independent consultant (more focused on software)
Gary Baum - VP of Marketing at NanoCoolers (more focused on hardware)
Kevin Cunningham - not present

Principle #1
Marketing's role is to bring "outside-in" discipline to the organization.
Who you are going to sell to?
Why?
and communicate to the organization.

"discipline" - level of objectivity because you will have pride and blind spots
have to budget enough travel
must get out of office to the customer
want to know your weaknesses
want to here obejctive feedback

???? company did 700-1000 cold calls to do interviews

They were looking for:
- looking for urgent need
- pervasive need
- willing to pay money for

it is painful
you have to spend money to do it

can't stop with idea and concept
you have to do it with product specifications

Value of I/P and getting patents in place - very important.
Intel used patents to block people.

Principle #2
Marketing is war.

It's not just a battle of products; it's a battle of perceptions.

Engineers think truth is enough. Marketers think perceptions are all that matter.

How do you position relative to competition?
How do you appeal to customer?

War Story - Great battle of Intel vs. Motorola:
at stake was the entire market
8086 vs. 68000
Intel had a much more inferior product.
Positioned that they had a vision on computer architecture
Built future out of products that didn't exist
Had this road map
People sat back and said "can I afford not to be on this road map?"

War Story - Tivoli
after tivoli had been bought by IBM
challenge was CA
way they succeeded in positioning superior to ca
made CA look like they were mainframe
succeeded in assocaited CA with old, expensive, monthly license fees.
Took element of truth about their heritage and made it a big issue

Point is - don't do it all of your own.
Analysts, industry pundits are critical.

War Story - PC Magazine
Working with press.
Created a new category of digital imaging and educated PC Magazine on what categories were important.

Principle #3
Marketing's job is to focus on the organization where it can win -
on customer segments that will value its unique advantages.

Buy in of executive management.
If company is not bought in, you will have sales chase where money is.
Need company to stay focused

War Story - Southwest Airlines
flew between 3 cities - San Antonio, Dallas, Houston
price trip below cost of driving
1971 - 1979 only was in Texas
wasn't disracted by going outside thier market

War Story - Big Splash
All CEOs of imaging in one place
Analysts, press all showed up
If they didn't come, they'd be missing something

Principle #4
A marketing budget must balance people $$ with program $$. You need both.
You need to spend money to make money.

All the component parts (literature, market research, analyst influence, etc.) all require money.

How do you hire good marketing talent?
- track record
- who you have worked with
- ask people to pitch their last product to them (in interviews)

Recommended training course called "Pragmatic Marketing" - website is a great resource. Salary survey for product marketing people in high tech.

Principle #5
Great marketing causes organizational stress - this is a good thing.

Sales and technology will be rubbing up against marketing.
Likes to see a marketing person as a founder.

Principle #6
Superior marketing is as important as superior technology in building long-term competitive advantage.