1. Electronic Marketing
AdWords Workout

2. 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

3. 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

4. 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?

5. 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