Electronic Marketing AdWords Workout

Workout #1: Communication + Framing Challenge Communication Challenge (Why should I listen to you or give you money?) ‘Lead in’ which will ‘hook’ your listener (the elevator pitch) Consider most important features of business model Fast & fulfilling (the 25 second pitch) Framing Challenge (What is the Real Business?) Potential customer set & e-Marketing business opportunity, Features / attributes that will be profitable with these customer Remember: Businesses today are not usually what they seem, e.g.: iTunes is a hardware business Amazon is a software business Google is an advertising firm MacDonald's is a property company Figure out where your business makes money… the money making part is your real product

Workout #2 Channels + Venture Capital Challenge Determine the main steps in consumption chain – conversion cone One of these should be your AdWords campaign Venture Capital Challenge What is your business worth, and why? Costs of each of the consumption chain activities How will these expenditures keep the customer from leaving the chain-cone Conversion value, rate and risk

Workout #3 Communication +Venture Capital Challenge Provide a brief ‘sales pitch’ to describe your product and the main points of the business Answer your investors’ question about customers: “Why do they want what you’re selling, and why should they pay for it?” Answer potential investors’ questions: Why should I give you My money?” How much money do you need, for what percentage of the company How will you negotiate? Your counteroffers?

Workout #3 Negotiations and Counteroffers (Shark Tank Part) Create pro forma financial statements for up to 3 years Balance Sheet containing cash, AR, Inventory, Fixed assets, Liabilities and RE Income Statement containing Sales, SG&A Expenses, Gross Margin, Net Profit Provide pro forma forecasts of ROI, and Scenarios (Best, Worst, Expected) Tie this to conversions, consumption chain & business model How will you deal with competitors and competitive forces outside management control