1. Entrepreneurship in Entertainment Technology
Welcome!

2. MARKETING Today’s Agenda
Fred Wilson: “I believe that marketing is what you do when your product or service sucks or when you make so much profit on every marginal customer that it would be crazy to not spend a bit of that profit acquiring more of them (coke, zynga, bud, viagra).”

3. Today’s Agenda
CUSTOMERS

4. Ties back in to the Business Model Canvas.
How do we connect our Value Propositions to our Customers?

5. customers “People don’t want to buy a quarter inch drill.
They want a quarter inch hole.”
Theodore Levitt
Our Value Proposition isn’t our product, it’s how we help our customers solve a problem or satisfy a need.

6. In class research
What’s the last product you bought? Why that one instead of a competing one? What’s the most recent website you went to for the first time? Why? How did you find it? What’s you newest favorite website? How did you find it? What’s the last app you downloaded? Why? How did you find it? What company will you never buy a product from again? Why?

7. Business Model Canvas Channel Types Channel Phases Own Direct Indirect
Sales force
1. Awareness
How do we raise awareness about our company’s products and services?
2. Evaluation
How do we help customers evaluate our organization’s Value Proposition?
3. Purchase
How do we allow customers to purchase specific products and services?
4. Delivery
How do we deliver a Value Proposition to customers?
5. After sales
How do we provide post-purchase customer support?
Web sales
Indirect
Own stores
Partner
Partner stores
Wholesaler

8. awareness
Take a Thought Leadership approach to getting the word out about your company and product. Use as many tools as you can to get it out there.
Know your message from Day 1 and always communicate it.
Brad Feld “I Don’t Hate Marketing”
Being a Thought Leader in your space, “…you have built a real following around people that care about the topic.”
Ways to be a thought leader
Blog
Speak at conferences
Host webinars
Get quoted a lot (develop connections, speak in sound bites; Academy Award example)
Publish
Guest writer, editorials…
Participate online
Need to be an expert, need to be somewhat controversial
“vertically famous”
Some ways to get customers from Fred Wilson (
(Note: comments point out that Marketing ≠ Advertising)
Word of mouth
Twitter – get your friends, contacts and users to tweet it, too.
Social Hook – Facebook, Twitter, … Get users to build community around your product and invite others to be a part of that community.
Find entry points – find an obvious group of like minded people who know each other and launch into that community.
Events – find live events to launch at. Create a buzz about it.
PR – do your own.
Search – pay attention to SEO, make sure you’re getting search results.
Developers – API to get other people working for you.
Customer service – a way to leverage off the customers you already have. Feed word of mouth.
*include examples for all of these

9. Evaluation and acquisition
Get customers to try your product or ‘evaluate your Value Proposition’
Freemium business model
Trial periods
Free samples
Play with puppies 
How are users coming to your site/store/etc. through various channels? (McClure)

10. Purchase and activation
Closing the deal. Making it really easy for people to give you their money.

11. After sales and retention
Keeping customers. Compare your acquisition cost to offering additional value and customer service.
Leveraging customers. Are you getting referrals? Are they marketing for you?

12. metrics
Metrics. From your financial model you should have some ideas about what drives people to your product and how you convert them, or what it costs to get a customer. How can you measure this? You need some way to measure how effective your marketing dollar or effort is. What do you do if you aren’t hitting your metric? (eg. conversions…)
Customer acquisition cost
Conversion rate
Revenue per customer
Churn
Referrals

13. Some advice

14. example Looks like Four Steps to the Epiphany!
Using search data to develop a marketing strategy
3. Mars, Inc. invests pennies to earn millions In 2009 Vitruvian's Joel McDonald was hired to manage a $1000/month AdWords account for a division of Mars, Incorporated. Keep in mind that Mars' advertising budget for 2009 was estimated by Advertising Age at $1.6 billion. But the investment paid off handsomely once Joel harvested their AdWords data and had them apply it to their advertising in "unmeasurable" media.
Joel ran keyword tests to discover the most searched-for ingredients in this product line. Through ad testing, he found "free shipping" generated nearly twice the sales of the original "30% off" offer (specifics have been changed for confidentiality reasons.)
Within about a month of reporting his AdWords tests, Joel saw a virtually identical product description, price, and offer on Mars' national TV commercials. Now a miniscule AdWords investment was paying huge dividends in other media. Mars no longer had to depend on the creative impulses of expensive Madison Avenue ad writers. They just applied common sense to AdWords data and cloned tiny successes on a massive scale.

15. 10x growth strategy
10 customers 100 customers 1,000 customers 10,000 customers …

16. DOMINATE a small market first.
focus
DOMINATE a small market first.

17. Whiteboarding
What do your customers want? (Not what are you selling them) How are you going to attract your core audience?

18. Next Class

19. Presentations Present your customer acquisition plan
Who is your customer?
How will you build awareness?
How will you acquire customers?
How will you ‘close the deal’?
How will you keep your customers?
How will you leverage your customers?
What is your customer acquisition cost, and what is a customer worth to you?

20. Resources

21. Resources