Final Flashcards
Top Down thinking is problematic for new ventures because it:
Increases cost due to lack of innovativeness
Slows down time-to-market
Limits a firm’s ability to exploit opportunities
Favors me-too over something truly different
1 & 2
All of the above are true*
The million dollar question for a new venture is?
Who will benefit most if I succeed?*
Who is my most likely anchor customer?
Who is my Love Group?
Who should I approach in Walmart to get their business?
Who is my Swing Group?
The principle of building an advisory board is: “if you do not have a wealth of experience and/or a powerful reputation ______?
Find smart people whom you can convince to love your idea
Recruit people who have just taken the successful steps your business needs to follow*
Educate yourself first by building strong analytic tools to help you understand your business
Hire the best and brightest
Keep up momentum by surrounding yourself with people who make you feel good about your ideas
In 1990, Jim Koch, the founder of Samuel Adams beer attacked Heineken beer with an outlandish marketing tactic. Koch launched an American advertising campaign proclaiming, “When we asked for Europe’s tried and poor, we didn’t mean their beer.” Heineken was visibly upset because Jim Koch highlighted the fact that Heineken beer was outlawed in Germany because of a purity law–it is made of corn not wheat. Heineken called his tactics “classless.” However, Jim Koch’s new venture got a lot of attention and increased sales by attacking one of the largest beer manufacturers in the world. This is a good example of a startup:
Using social media
Choosing big friends
Being a puffer fish
Getting their swagger on*
Selling with touch points
AllRecipes has introduced a website for busy moms to search for quick and easy recipes that can be made with local ingredients. This is an example of managing:
special connections
Twitter feeds
big friend relationships
customer touch points*
Facebook friends
The best way to play big would be:
Telling potential distributors your sales last year were much larger than they really were
Rent a Limo service for the weekend to take all your key customers to lunch
Purchasing a large trade show booth at an industry convention*
Offer your products with life-time guarantees to highlight how big you are
Telling customers you expect to sell 1 million units in your first 6 months to get their orders
Co-branding your product or service with a large, well-known brand would be an example of…
Recruiting mavens
Using connectors
Being a puffer fish*
Finding an anchor
All of the above
Many entrepreneurs are so focused on building a better product that they do not spend enough effort on:
Being personally involved with selling their product*
Coming up with new ways to sharpen the angle
Listening to critical customer feedback
Creating marketing events
One of the first American firms to leverage the power of the Love Fest was Harley Davidson (H.O.G.- Harley Davidson Owners Group). A love fest enables Harley Davidson to:
Empower their best customers to sell to other customers
Encourage the H.O.G to sell their products for Harley Davidson
Attract people who like belonging to a motorcycle club
Provide people with a meaningful activity that changes their life
1 and 2*
2 and 3
Startup Marketing 5 Best Practices
Bottom-up mindset
Finding good ideas
Leveraging leverage
Think big and act big
Launching tactics
Bottom - Up Mindset
Entrepreneurs win or lose at the tactical level (bottom-up) Post-it Notes & Nyquil Examples –Took negative aspects of their products and made them strengths
What is Creativity?
Using old things in new places, ways, and combinations
In class Professor Swenson talked about creativity: using old things in new ways. Creativity also works best _______
An open mind
Without Constraint
With Constraint
With organization
With familiarity
Identifying a differentiating tactic, and then marshaling all of your resources around it is an example of?
Research and Development
Bottom-up Marketing
Leveraging Leverage
Piggybacking
What does R&D stand for?
Refine and Design: Entrepreneurs seldom invent and market completely unique products; rather, they build their ventures around incremental innovations and modifications.”
Modifying Ideas
Lip balm on a leash
Thing for trees to grow in (see roots)
Ladder from Germany
Ideation
“The creative process of generating, developing, and communicating new ideas.”
Four - Step Ideation Process
Select a problem area
Explore a specific problem
Propose and test alternative product ideas
Perfect the top product idea
Selecting Problem Area
Oyster vs. Eagle Broad and opportunistic vs. narrow and focused
Generally speaking, eagle entrepreneurs:
Take a narrow focus
Leverage experience or passion
Take a broad focus
A and B are correct
B and C are correct
** Oyster entrepreneurs take a broad focus, looking for pain-points, or conversely coolness, with no particular product category in mind. Eagle entrepreneurs take a narrow focus, leveraging their expertise or passion in a specific product category or industry.
Four Keys to Finding Great Ideas
Solve everyday pain
Ride wave of interest
Stretch or entertain to the extreme
Cool hunting
Laddering Research Method
What outcomes (functional and emotional) are customers seeking?
What barriers stop those outcomes?
What attributes lead to those outcomes?
**Prescription drug bottle example
Measuring WOW Factor w/ Six Thinking Hats
- White Hat – Facts
- Red Hat – Emotions (1-10 scale)
- Yellow Hat – Positive judgment
- Black Hat – Critical judgment
- Green Hat – Creativity
- Blue Hat – Summary
**Be above 7.5 percent Wacky Walker example
Product Angle
- Unique Product Claim–How is the product distinctly better at solving problems and more memorable than its closest competitor?
- Need to Believe–What significant pain point does the product address that is personally relevant to the target market?
- Dominate Situations–Which usage situations does the product dominate in a way that delivers superior value?
- Reason to Believe–How effective is the demonstration of product problem-solving benefits in capturing the imagination of the target market?
- Quantifiable Support–What are the relevant facts and figures that can be used to support or enhance the product claim?
Billy has created a couple of options for a new product he has developed and wants to test which alternatives, if any, pass the WOW factor test. He decides using the white hat will be the most appropriate option for his situation. What method is the white hat based on?
Creativity
Facts
Critical Judgment
Positive Judgment
Summary
What are successful startups built on?
consumer insight.
Phone Soap Case Study
The [target person] in a specific [situation] wants to satisfy a certain [need] but cannot because of a [hurdle.]
People with smartphones are concerned that their phones are not sanitary and, thus, causing sickness, but soap, wipes, and other easily-available solutions just don’t work.
Flow Hive Case Study
PLay Groud Mat Case Study
Complete the phrase for entrepreneurs “If you want something done right, do it yourself…ONLY ___________.”
a. if you have the energy
b. if you can do it well
c. if you have the bandwidth
d. all of the above
e. none of the above
**“If you want something done right, do it yourself.” For startup marketers, there are two important qualifiers: (1) Do it yourself ONLY if you can do it well, and (2) Do it yourself ONLY if you have the bandwidth and energy to do it.
Five Best Practices for leveraging the skills and resources of others:
- Unleash the power of horses–product advocates
- Empower early-adopter customers
- Land an anchor customer
- Work with benefactors
- Build an advisory board
Which group has the biggest opportunity for large and small businesses?
a. Love
b. Undecided
c. Hate
d. Swing
e. Money
**Sell to the swing group through the eyes of the love group…
Building an Advisory Board
Advisory board members should not be people who have simply done things, but people who can get things done
A useful approach for planning and measuring potential customer touch points is:
A.Price right and customers will come
B.Talk to your love group and promote your product more
C.Understand steps in the customer experience*
D.Talk with your channel of distribution
E.Talk to customers at the end and get their feedback
Connectors, Mavens & Salespeople
- Connectors–people specialists
- Mavens–information specialists
- Salespeople–persuasion specialists
What is the golden rule of marketing?
A specialist always beats a generalist
5 Launching Tactics
- Use Marketing events to create buzz
- Make the demonstration compelling
- Create a catch phrase and/or jingle
- Select the channel
- Close the deal
5 Rules of Marketing Events
1) Make sure the distinctive product features take center stage
2) Make sure the quality and personality of the event mirror the quality and personality of the product
3) Connect the event with local cause when possible
4) Target a specific audience and marketing objective
5) Send home a personalized souvenir to drive home a brand experience
3 Biggest Challenges for Entrepeneurs
They lack credibility
The power is with the buyer - overcome using the “so what” test
Ego
Why should you use marketing events in launch tactics?
A.They bring the love group, make money, and generate awareness.
B.They grab attention, bring the love group, and generate awareness
C.They grab attention, generate buzz, and are low cost*
D.They generate buzz, are low cost, and are easy to put together
E.They bring the love group, are low cost, and only happen once a year.
The “BIG SECRET” for entrepreneurs for launching success is to _______.
A.Have access to capital
B.Work hard and play hard
C.Know how to sell and close a deal
D.Have good ideas
E.Are really, really good looking.
