Updated: Marketing your Technology

Marketing Your

TechnologyMarty KaszubowskiPresident, General Ideaswww.SlideShare.com/Kaszubowski@MartyKasz

What you WON’T be getting today

A PhD in marketing theory and practice

“One-size-fits-all” solutions to sell your technology

Advice on how to get someone to buy something they don’t want or need

What I WON’T be talking about

Many of the usual “marketing and sales” topics are only appropriate for mature companies

I won’t be talking about:

Pricing strategy, Distribution, Market Research, Demographics, Market Segmentation, Advertising, Branding, Brand management, Direct marketing, Publicity.

What you WILL be getting today

A framework that will help you think about the kind of marketing you should be doing

Strategies for deciding who your customers are and what you should be saying to them

Some potential “good outcomes” that you should be pursuing

Encouragement to take marketing seriously and learn more

What I will be asking about …

1. What are your goals for your company? What kind of company do you want to create?

2. How mature is your technology?

3. What kind of problem does your technology solve?

The kind of company you create defines your marketing approach!

1.Lifestyle business2.Small business3.Scalable startup4.Buyable startup5.Large company6.Social entrepreneur

Per Steve Blank, et al

Types of ventures:

1. Lifestyle Startups: Work to Live their Passion.

Examples: Professional Photographers, Healthclubs, Surf Shops, Ski Instructors, Golf Pros, R&D Shops

2. Small Business Startups: Work to Feed the Family.

Examples: Restaurants, Clothing stores, coffee shops, Cleaning Services, Contractors, Taxi Cabs, Consultants

3. Scalable Startups: Born to Be Big:Examples: Google, Facebook, Skype, Apple, Ford, Boeing, Мобильные Телесистемы, SoftServe, etc.

Types of ventures:

4. Buyable Startups: Born to Flip:Examples: Tumblr (acquired by Yahoo), Instagram (acquired by Facebook), Groupon (should have taken the offer from Google!), IP-driven licensing

5. Large Company Startups: Innovate or Evaporate:

Examples: Boeing (satellites, rockets), Ford Motor Company (Ford credit), Apple Computer (iPod, iPhone, iPad), Hewlett Packard (printers), Research In Motion (?)

6. Social Startups: Driven to Make a Difference:

Examples: Tom’s (shoes), Ethos (water), Husk Power Systems (electricity generation)

A challenging question …

What do you want your company to look like in five years?

In ten years?

Did you say … A small, well respected R&D team with consistent project funding and

licensable patents?A stable, medium-sized company that offers several related products

or services?A major manufacturing company that has products known throughout

the world?Something else?

We Love Engineers … But …

• “Everyone loves ‘cool ideas’ and new technology.”

• “I need to go-it alone to assure quality and elegance.”

• “Marketing is fluff and selling is black magic.”

• “We need to get functionality maximized before we focus on customers.”

• “A good engineer hates unpredictability and risk.”

• “We can’t worry about making money until we get it built.”

• “Outside funding causes loss of control and undue pressure to deliver.”

Per Krishna Uppuluri

How do we define “Maturity?”

An objective assessment of the maturity of your technology is the first step to an effective marketing plan!

“Technology Readiness Levels” (TRLs) are a simple way to define how mature a technology is.

US government agencies, large companies, universities, and investors use TRLs to help guide investment, product development, purchasing, and resource allocation decisions.

Technology Readiness Levels

1. Basic principles observed and reported.2. Technology concept and/or application formulated.3. Analytical and experimental critical function and/or characteristic

proof of concept.4. Component and/or breadboard validation in laboratory

environment.5. Component and/or breadboard validation in relevant environment.6. System/subsystem model or prototype demonstration in a relevant

environment.7. System prototype demonstration in an operational environment.8. Actual system completed and qualified through test and

demonstration.9. Actual system proven through successful long-term operations.

Technology Readiness Levels

1. Basic principles observed and reported.2. Technology concept and/or application formulated.3. Analytical and experimental critical function and/or characteristic

proof of concept.4. Component and/or breadboard validation in laboratory

environment.5. Component and/or breadboard validation in relevant environment.6. System/subsystem model or prototype demonstration in a relevant

environment.7. System prototype demonstration in an operational environment.8. Actual system completed and qualified through test and

demonstration.9. Actual system proven through successful long-term operations.

Basic Research

Technology Demonstration

Product Development

Maturity defines who your target customer is!

TRL 1-3 is basic research and is generally “marketed” to government agencies, major companies, and philanthropic organizations that seek to advance the state of the art.

Ex: Sponsored research, “Science for hire”

TRL 4-7 is technology demonstration and is “marketed” to early-adopters and strategic partners seeking early market advantages.

Ex: Licensing agreements, sales of patent portfolio, joint venturing, pilot projects

TRL 8-9 is technology application and product development and is marketed directly to end users.

Ex: Product sales and marketing, full-scale manufacturing & support

Market Paths

Basic Research(TRL 1-3)

Technology Demonstrat

ion(TRL 4-7)

Product Developme

nt(TRL 8-9)

What is a “Good Outcome” for you?Success in Basic Research means:

You’ve found agencies, universities, or R&D-intensive companies who will pay you to generate new concepts and validate their potential; and

You have become a recognized “thought leader” in your field.

What is a “Good Outcome” for you?Success in Technology Demonstration

means:

You have formed partnerships or joint ventures with companies who will help test your technology and ultimately manufacture products or provide valuable services;

You have licensed your technology to a company that will pay you a royalty when they sell products or services; and/or

You have sold the rights to your patent(s)

What is a “Good Outcome” for you?Success in Technology Application and Product Development means:

Sales, sales, and more sales.

Two Questions

To what extent does your technology make other technologies obsolete?

Example: The automobile made the horse and buggy obsolete

To what extent will your technology make current marketing & sales channels obsolete?

Example: The people who sell automobiles are not the same people who sold horses and buggies

Other Examples

Niche Innovations: Solid state Flash Drives did not make Hard Drives obsoleteThe people who sell Flash Drives do not sell Hard Drives

Evolutionary Innovations: 1 TB hard drives did make 100GB hard drives obsoleteThe people who sold 1GB drives also sell 1TB drives

Revolutionary Innovations:High Definition (digital) TV made analog TVs obsoleteThe people who sold analog TVs also sell digital TVs

The Transilience Map

Niche Architectural

RevolutionaryEvolutionary

Makes sales & marketing channels obsolete

Makes older

technologies

obsolete

Automobiles

MP3 Music

Digital Cameras

Flash Drives

High Def.TVHigh Capacity Hard Drives

Leaves older

technologies viable

Retains existing sales & marketing channels

• Build trust• Extend

communication• Extend feedback

mechanisms• Identify new

“Insider Champion(s)”

Another Useful “Framework”

New Product or

Service

NewCustomer

CurrentCustomer

Current Product or

Service

• Strong market research

• MVP + early customer feedback

• Find early-adopters

• Focus on branding, social networks

• Identify common need

• Aggressive branding

• Extend direct sales

• Reduce “Switching Costs”

• Maintain relationships

• Earn trust• Maintain Quality

Control

• Build trust• Extend

communication• Extend feedback

mechanisms• Identify new

“Insider Champion(s)”

Another Useful “Framework”

New Product or

Service

NewCustomer

CurrentCustomer

Current Product or

Service

• Strong market research

• MVP + early customer feedback

• Find early-adopters

• Focus on branding, social networks

• Identify common need

• Aggressive branding

• Extend direct sales

• Reduce “Switching Costs”

• Maintain relationships

• Earn trust• Maintain Quality

Control

STARTUPS START HERE

THEN MOVE HERE

WAIT FOR IT …

HERE NEXT!

?

The 7 Ps of Technology Marketing

1.Potential – Once it’s mature, what sort of new and valuable applications or improvements will be possible?

2.Products – What will you be delivering to your customers?

3.Price – How much money do you need to mature your technology versus what you might be able to charge for it?

4.Partners – Can you do this by yourself or do you need partners?

5.Promotion – How will you become known to your potential customers and partners?

6.Process - How can people obtain your product or service?

7.People – Who is the “face” of your business?

The 7 Ps vs. “Maturity”

Basic Research


Product Development

Potential

Many possible applications in

many industries

Initial product forms and features are

being defined

Specific products and services are defined,

applications are known

Products

Papers, presentations,

ideas

Prototypes, one-time services, patents,

methodologies

Finished products, mature services

Price Basic research funds

Test and evaluation funds

Operational and capital budgets

Partners Other researchers Future manufacturers, joint sales & marketing

Sales partners

Promotion

Conferences, technical

societies, journals

Trade shows, professional

societies, venture fairs

Advertising, Public Relations, direct sales

Process Journals, invitations to

speak, collaborative

projects

Test installations, Pilot Projects

Purchase

People The Researcher A team of developers,

designers, testers

The CEO and professional sales


Basic Research


Product Development

Potential


many industries


being defined



Products


ideas


methodologies






Sales partners

Promotion


societies, journals






projects


Purchase


designers, testers



Basic Research


Product Development

Potential


many industries


being defined



Products


ideas


methodologies






Sales partners

Promotion


societies, journals






projects


Purchase


designers, testers


A few words about selling …

Are you an introverted entrepreneur? Not all people love selling all the time. But as a startup founder, that's usually part of the job description.

The Introvert Salesman …

1. Understand the sales process• Understanding how salespeople work will help

you explore ways to offset your inability or dislike of sales

• Try “selling” over lunch coffee. One-on-one or one-on-two is always better than trying to "work a room.“

• Hire some to be your "relationship starter."• Work on building a community around your

product or service (so they can sell each other and you don’t have to!).

• Sometimes you just have to make the cold call.

2. Don't Expect an Immediate 'Yes'• Not everyone will fall in love with your product

or service• You will be pleasantly surprised by how many

people say “Yes” once you stop expecting them to!

3. Fall in Love with Your Product• Deep down you fear that you don't bring

value... • Focus on the ways your product or service

saves your clients money, makes their lives easier, and changes the world for the better


4. Start with the People You Know • You'll feel more comfortable talking to friends

and acquaintances• They will be more forgiving as you learn how

to best present your product/service. • Listen more than you talk

5. Ask a Lot of Questions• Don’t assume you know what potential

customers value • Sales is really about getting to know your

customers' needs. Ask them!• Find their “pain points” and customize your

pitch and proposal just for them


6. Spend Time Educating• Few startups have a known product to sell … • Your potential customer probably doesn’t

understand what how you’re going to make his life better

• Every sales call is a chance to educate people about your industry, your products, etc.

7. ”Small Talk” is a Big Deal …• Customers are people, too!• “Small Talk” = chatting about non-work-related

things that are of interest to the person you’re meeting

• Casual talk establishes rapport, builds relationships, and helps close deals!


8. Be a Consultant, Not a Salesman• A salesperson's job is to find problems and

help solve them• Selling is about creating value for both parties

rather than simply providing a product or services

9. Find a Partner or Co-Founder Who Loves to Sell• Some people are just uncomfortable in a sales

role and nothing helps … • If you really, really, really hate to sell, find a

business partner who loves it. • The right person is worth whatever price you

pay or equity you give up ...


Knowing your Competition – Existing Markets

Competitor#1

Competitor #2

Competitor #2

Our Startup!!

!

Feature #1

Feature #2

Feature #3

Feature #4

Feature #5

Knowing your Competition – Category Creators!

Our Startup !!!

Market Catego

ry#1 Market

Category#2

Market Catego

ry#3

Market Catego

ry#4

Market Catego

ry#5

Market Catego

ry#6

Market Catego

ry#7

Market Catego

ry#8

An Example of a Category Creator!

Personal

Data Assista

nt

Cell Phone

Laptop with WiFi

MP3 Player

s1st Gen.

Digital Camer

as

?

Facsimile

Machines

SMS Text

One last thing to worry about ...

Premature scaling of sales and marketing is the leading cause in a start-up.

Early sales from board members or friends do not prove there’s sustainable business model.

A start-up should scale sales and marketing only after the team has found a repeatable sales model.

Questions?