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These materials can be reproduced only with official approval from Rocket Builders and Venture labs. Entire contents © 2022 by Rocket Builders Canada Limited and Venture Labs. All rights reserved. �
These materials can be reproduced only with official approval from Rocket Builders and Venture labs. Entire contents © 2022 by Rocket Builders Canada Limited and Venture Labs. All rights reserved. �
These materials can be reproduced only with official approval from Rocket Builders and Venture labs. Entire contents © 2022 by Rocket Builders Canada Limited and Venture Labs. All rights reserved. �
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ACCELERATING SCIENCE AND TECHNOLOGY
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�Product/Market Fit�
“Product Marketing Overview”
Really about ‘Product Management’
To succeed as a tech company, you need to manage your product before, during and after MVP
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Dave Thomas 604-603-8630
Lesley Duncan
Director, Communications at Photonic Inc.
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Lesley Duncan, PhD
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Dave Thomas
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Sailing School at Jericho Beach & Harbour Tours
Round 2 – April/May
The jury is hoping for concise, consistent answers to those items
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Business Model Canvas
BUS 237
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Most Important Question - DT
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Not Sure How to Answer a Question
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Getting ‘down’ to Five pages
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How many of you used AI?
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Marketing Research & Segmentation�Understanding Consumers�‘Whole’ Solution Offerings�Product Positioning�Metrics��Answer Questions: 1, 2, 1, 2, 3
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Successful Growth Companies
Product
Revenue
Market
Market Research
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Why Segment?
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“Whenever you get confused… go to the store… the customer has all the answers… and all the money.”
—Sam Walton
Founder Wal-Mart
Value Proposition
Value of Your Offering
Value Offered by Competitors
The Value of Testing Your Value Proposition
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Be Humble in your Research
The value is in the strength of the test.
Everything should be set up to rigorously test your assumptions about your value proposition and find where it doesn’t hold up.
Build it like you’re right, test it like you’re wrong.
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Crash Test your Value Proposition
Your crash test dummy survives
=
Your value proposition is strong
=
A segment of the market will buy
Your crash test dummy doesn’t survive
=
Your value proposition is weak
=
Not enough of the market will buy
Market Research Approach�by Stage
| IDEA | MVP | SALE | SCALE |
Question | Is X a problem for a segment of people? | Does Product Y solve Problem X? | Will people pay for Product Y to solve Problem X? | Can enough people buy X to be a viable business? |
Hypothesis | There is a problem with X that could be solved with Y | Product as shown effectively solves problem X | Product effectively solves problem X better than existing solutions/no solution | Lots of people willing and able to buy and use this product |
Prediction | People with this problem share Z characteristic | Using product Y makes people ##% faster at X | People are willing to pay $AA for Product Y | ARR will be $AA, because ### users will pay $### each/yr |
Testing Method | Customer Discovery Interviews | MVP focus group, UX experience | Pricing testing, # of purchasers | Markets, sales processes, conversion |
Analysis | Synthesis of feedback | What works, what doesn’t | Price points, volume estimates, who buys, uses | Conversion, retention, efficiencies |
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Market Research Approach by Stage - examples
| IDEA | MVP | SALE | SCALE |
Question | Is X a problem? | Does Product Y solve Problem X? | Will people pay for Product Y to solve Problem X? | Can enough people buy X to be a viable business? |
Hypothesis | There is a problem with X that could be solved with Y | Product as shown effectively solves problem X | Product effectively solves problem X better than existing solutions/no solution | Lots of people willing and able to buy and use this product |
Prediction | People with this problem share Z characteristic | Using product Y makes people ##% faster at X | People are willing to pay $AA for Product Y | ARR will be $AA, because ### users will pay $### each/yr |
Testing Method | Customer Discovery Interviews | MVP focus group, UX experience | Pricing testing, # of purchasers | Markets, sales processes, conversion |
Analysis | Synthesis of feedback | What works, what doesn’t | Price points, volume estimates, who buys, uses | Conversion, retention, efficiencies |
34
Market Research Approach by Stage - examples
| IDEA | MVP | SALE | SCALE |
Question | Is X a problem? | Does Product Y solve Problem X? | Will people pay for Product Y to solve Problem X? | Can enough people buy X to be a viable business? |
Hypothesis | There is a problem with X that could be solved with Y | Product as shown effectively solves problem X | Product effectively solves problem X better than existing solutions/no solution | Lots of people willing and able to buy and use this product |
Prediction | People with this problem share Z characteristic | Using product Y makes people ##% faster at X | People are willing to pay $AA for Product Y | ARR will be $AA, because ### users will pay $### each/yr |
Testing Method | Customer Discovery Interviews | MVP focus group, UX experience | Pricing testing, # of purchasers | Markets, sales processes, conversion |
Analysis | Synthesis of feedback | What works, what doesn’t | Price points, volume estimates, who buys, uses | Conversion, retention, efficiencies |
35
Market Research Approach by Stage - examples
| IDEA | MVP | SALE | SCALE |
Question | Is X a problem? | Does Product Y solve Problem X? | Will people pay for Product Y to solve Problem X? | Can enough people buy X to be a viable business? |
Hypothesis | There is a problem with X that could be solved with Y | Product as shown effectively solves problem X | Product effectively solves problem X better than existing solutions/no solution | Lots of people willing and able to buy and use this product |
Prediction | People with this problem share Z characteristic | Using product Y makes people ##% faster at X | People are willing to pay $AA for Product Y | ARR will be $AA, because ### users will pay $### each/yr |
Testing Method | Customer Discovery Interviews | MVP focus group, UX experience | Pricing testing, # of purchasers | Markets, sales processes, conversion |
Analysis | Synthesis of feedback | What works, what doesn’t | Price points, volume estimates, who buys, uses | Conversion, retention, efficiencies |
36
How do I do effective market research for my company?
Business Model Canvas
This is the overarching theory of your business
Develop your Business Model Canvas to define the scope of work
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Customer Discovery Plan
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Customer Discovery Plan Advice
Prioritize De-Risking:
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Customer Discovery Plan Advice
Ask both What and Why
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Market Segmentation
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Blank - Hypotheses versus Reality
Large companies execute in a market
Start-ups ‘search’ for a business model
Build, Measure, Learn
Bottom-up – The Market
Bowling Alley Model – Headpin Segment
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(In Bowling Alley)
”Target a single niche market segment� with a ‘must-have’ value proposition”
Market Penetration – Where you Start
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U
X
MKT
MacSailing - Helly Hansen Jacket Sales
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MacSailing sold ______
Jackets when we added
Fancy ‘Sailing’ clothing
to our website? How many
in the first year?
Understanding the Market
Internal Focus External Focus
Product & Feature Customer Value
Lots of Features Differentiation
Reactive R&D Headpin Segment
Unpredictable Results Reliable Customers
More to it than doing a Demo
Role of Search in Buyer’s Process
Content Copyright 2013, Rocket Builders
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How many people are involved?
Content Copyright 2013, Rocket Builders
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Size of Buying Organization | Participants in Buying Process |
100 to 500 employees | 6.8 |
501 to 1000 employees | 13.5 |
Over 1000 employees | 21.0 |
Participants in Buying Process
Content Copyright 2013, Rocket Builders
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Third Party Validation
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Hotel Room Shopping Poll
When you book a hotel room do you read the comments from past customers that rate the hotel? Yes ____ N _____
When you book a hotel room do you insist that it has everything you want even if it costs more?
Everything __________
Most Important things and value _________
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Segmentation 101
Do you need to build every feature potential customers ask for?
Why or why not?
Is differentiation based only on your product?
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Building a Competitive Matrix
| Us | Competitor 1 | Competitor 2 |
Largest Customers | | | |
Key Partners | | | |
Financial Health | | | |
Market Share | | | |
Key Products | | | |
Pricing | | | |
Key Product Features | | | |
Value Proposition | | | |
Sales Channels | | | |
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GTM Program – Refining Market Strategy /
Whole Product
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Whole Product Definition
Physical Product
+
All Associated Factors
(services, partners, warranties, guarantees, image, training, etc.)
=
“The Whole Product”
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Both tangible & intangible elements required by target customer to solve his/her whole problem.
The Whole Product
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Core
Product
Hardware
Software
Legacy
interfaces
Connectivity,
SI
Pre-sales
services
Post-sales
service
& support
Peripherals
Consulting
Complementary
Products
Complementary
Services
Source: Crossing the Chasm, Geoffrey Moore
All other products, services and relationships needed by the target customer to fulfill their compelling reason to buy
Incredibly Important for Defense & Security
Hotels – Whole Product
Whole Product
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GTM Program – Product-Market Fit /
Coffee Example
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Starbucks/Dunkin Donuts
What percentage of the people switched to the other coffee shop after a month?
0 – 5 _____
5 – 10 _____
10 – 25 _____
25 – 50 _____
> 50% _____
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Positioning
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Definition
64
More Definitions…..
65
“My wife drives a very safe car” What type of car does she drive?
BMW ______
Chevy ______
Ford ______
Honda ______
Hyundai ______
Toyota ______
Volkswagen ____
Volvo ______
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Positioning Impact
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Partnerships
Pricing
Whole Product
Distribution
Sales Cycle
Service/Support
Company Valuation
Competition
Product Position
Product Positioning – How You Describe Your Product To Potential Customers
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The Positioning Statement
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Positioning Example: Apple iPod
For mobile, high-income individuals
who need a way to listen to their entire music collection in different settings
the Apple iPod is a small, portable digital music player
that offers elegance of design, the ability to store an entire music collection, and easy purchasing of new digital music.
Unlike flash mp3 players (Creative, Rio, etc),
the product stores an entire music library and is integrated into a service to purchase new digital music (iTunes)
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EXAMPLE FROM 1985 - Starbucks
Pricing & Value
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Common Pricing Issues
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Pricing 101
Pricing is a combination of……….
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Pricing 101
Do you need to have the lowest price to compete when you enter the market?
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Product Marketing, Metrics and Analytics
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Download from Hubspot
6 essential steps to internet marketing success:
HubSpot Has 199 free eBooks
B2B Social Media Marketing
Source: BtoB Magazine
Content Copyright 2013, Rocket Builders
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Market Segment Fit
Marketing Methods
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GTM Program – Marketing Programs, Processes and Methods /
Segments Poll
How many of you have an AI company?
How Many will integrate AI into their product?
How many will use AI to write their NVBC Application? Remember AI is weak at differentiation
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GTM Program – Marketing Programs, Processes and Methods /
Segments Poll
How many segments will you target initially?
1 ______
2 ______
3 ______
>3 ______
If it is more than 3 you’re fired
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GTM Program – Marketing Programs, Processes and Methods /
Are you going to Web Summit?
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GTM Program – Marketing Programs, Processes and Methods /
Resources – Reading Material
Dave Thomas 604-603-8630
Lesley Duncan
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