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Marketing That Works: How Entrepreneurial Marketing Can Add Sustainable Value to Any Sized Company, Second Edition

Book Description

Discover New Entrepreneurial Marketing Strategies for Supercharging Profits and Sustaining Competitive Advantage!

This practical guide shows how to use modern entrepreneurial marketing techniques to differentiate your company in the eyes of customers to achieve sustainable profitability. The authors focus on innovative strategies and tactics, pioneered by some of today’s most successful and disruptive companies, including Google, Quidsi (diapers.com), Apple, Victoria’s Secret, Anki, Pebble, Metricstream, and Warby Parker. These high-impact methods will help entrepreneurs achieve immediate, bottom-line results through more effective marketing.

Based on The Wharton School of the University of Pennsylvania’s pioneering Entrepreneurial Marketing course, this edition is fully updated to reflect what works in the marketplace today. Guided by the authors’ collaboration with dozens of high-growth companies, it offers new insights into which marketing programs and distribution channels are likely to succeed, and how to leverage them in your unique business environment—even with limited resources.

The authors begin by helping you refine your competitive positioning by clarifying “What am I selling to whom?” and “Why do they care?” Next, they guide you through the fundamentals of demand generation via public relations, social media, viral marketing, advertising, distribution, and marketing-enabled sales. Finally, they provide you with valuable tips on how to secure the right human capital resources to build the team you need to succeed. Each of these core concepts is illustrated with real-world anecdotes that provide fresh insights into traditional marketing concepts.

Pragmatic from start to finish, Marketing That Works, Second Edition, is for marketers who care about both long-term strategies and short-term results.

• Leverage cutting-edge, entrepreneurial techniques to get your positioning and pricing right
• Generate, screen, and develop great new marketing ideas to reach your target audience
• Lead your customers to your offering—and motivate them to buy
• Cultivate the right people and resources for outstanding execution

This guide offers high-value, low-cost marketing solutions that leverage today’s newest trends, tactics, channels, and technologies. It highlights companies that are redefining marketing and illuminates powerful new ways to secure resources, test and execute plans, and build brands.

The authors present practices for getting close to customers, reinforcing positioning, and developing marketing programs. Wherever you compete, this guide will help you grow your sales and profits, and drive more value from every dollar you spend on marketing.

For more information about Marketing That Works, visit www.marketingthatworksbook.com.

Table of Contents

  1. About This eBook
  2. Title Page
  3. Copyright Page
  4. Dedication Page
  5. Contents
  6. Acknowledgments
  7. About the Authors
  8. Introduction
    1. The Book’s Mission
    2. The Authors’ and the Book’s Heritage
    3. The Importance of Marketing
    4. One Positioning, Multiple Stakeholders
    5. Challenges of the Next Decade
    6. Endnotes
  9. Section One: Marketing Strategy—Refine Your Offering and Positioning
    1. 1. Marketing-Driven Strategy to Make Extraordinary Money
      1. Orvis Company—Excellent Entrepreneurial Positioning
      2. Positioning to Enhance the Value Proposition
      3. Getting Started: Segmentation and Targeting
        1. Virtual Communities: The Ultimate Segment?
        2. An Entrepreneurial Segmentation Example—Tandem’s East
        3. An Entrepreneurial Segmentation Audit
      4. Gaining the Competitive Advantage: Differentiation
        1. Distinctive Competence and Sustainable Competitive Advantage
      5. Tying Together the Value Proposition: Distinctive Competence, Sustainable Competitive Advantage, and Positioning
        1. Victoria’s Secret and L Brands—Excellent Integration of Positioning, Segmentation, and Distinctive Competencies
      6. Positioning, Names, and Slogans
        1. Hindustan Unilever Limited: Positioning and Targeting to the Bottom of the Global Pyramid
        2. The Unmet Need
      7. Summary
      8. Endnotes
    2. 2. Generating, Screening, and Developing Ideas
      1. Idea Generation and Testing at Idealab
      2. Evaluating Specific Venture Ideas
        1. Finding More Receptive Battlefields
      3. Dry Tests, Crowdfunding, and Concept Testing: What They Are and Where They Are Best Used
        1. Getting Customers to Part with Money: The Real Tests of Value
        2. Victoria’s Secret Uses Their Stores as Test Beds for New Products and Brands
        3. Testing Purchase Intention: The Concept Test
        4. How to Do Concept Testing—the “Nuts and Bolts”
        5. Best Practices and Uses for Concept Testing
        6. Caveats for Concept Testing
      4. Trakus: The Value of Concept Testing
      5. Summary
      6. Endnotes
    3. 3. Entrepreneurial Pricing: An Often-Misused Way to Garner Extraordinary Profits
      1. Determining Price at Warby Parker
      2. Pricing to Create and Capture Value
        1. Price and Perceived Value
        2. Getting Price Right Early—It’s Hard to Raise Prices Later!
        3. Perceived Value in Use for Business-to-Business Products
        4. The SAS Institute, Inc.—Very Effective Management of Perceived Customer Value
        5. Pricing of Intellectual Property
        6. What Else Can Impact Price Response?
        7. Customer-Determined Pricing
        8. Revisiting Costs in Determining Price
      3. Methods for Determining Revenue at Alternative Price Levels
        1. Premarket Methods—Pricing and Concept Testing
        2. In-Market Methods
      4. Victoria’s Secret Can Use Its Many Stores for In-Market Experimentation
      5. Summary
      6. Endnotes
  10. Section Two: Demand-Generation and Sales—Lead Your Customers to Your Offering
    1. Endnote
    2. 4. Leverage Public Relations for Maximum Value
      1. PayMyBills.com—Battling Competition with Public Relations
      2. Aspire to Be a “Winner”
      3. Gaining the Perception of Leadership
        1. Spokespersons/Evangelists
        2. Linkage to Fund-raising
        3. PR Agencies
        4. Timing Is Essential
        5. Crisis Management
      4. Summary
      5. Endnote
    3. 5. Promotion and Viral Marketing to Maximize Sustainable Profitability
      1. The Coolest Cooler—One of Kickstarter’s Most Successful Campaigns
      2. Methods for Promoting Products and Engaging Customers
      3. Give It Away
        1. Free Trials Versus Free Forever Versus Freemium
        2. Key Metrics for Free Trials to Pay
      4. Viral Marketing
        1. Using Social Media for Viral Marketing
        2. When Do Giveaways Work?
      5. Event Marketing
        1. Consumer Events
      6. Product Placement
      7. Winning the Tchotchke Wars
      8. Summary
      9. Endnotes
    4. 6. Advertising to Build Awareness and Reinforce Messaging
      1. Synygy Generated Productive Ad Options for Low Cost
      2. Moving to More Effective Advertising
        1. Even Large Firms Waste a Lot of Their Advertising Expenditures
        2. How Entrepreneurs Can Improve the Productivity of Their Advertising
      3. Improving Campaigns
        1. The Hindustan Lever (HLL) Missed Experimentation Opportunity
        2. Victoria’s Secret’s Advertising and Testing Strategy
      4. Evaluating Campaigns—“Vaguely Right” Versus “Precisely Wrong”
        1. A National Retailer’s Campaign Evaluation
        2. “Vaguely Right” Entrepreneurial Marketing Experimentation
        3. Evaluation Before Is More Valuable than After
      5. Media Planning
        1. Sample Template for Media Evaluation
      6. The Digital Marketing Revolution—Evaluating and Maximizing Its “Bang Per Buck”
        1. Display Ads
        2. Search Engine Optimization
        3. Evaluating the Return on Search Engine Marketing
        4. Methods for Improving Productivity of Search Engine Marketing
        5. SoLoMo, Personalization, and Other Emerging Digital Advertising Concepts
      7. Summary
      8. Endnotes
    5. 7. Distribution/Channel Decisions to Solidify Sustainable Competitive Advantage
      1. Anki—Emerging from Stealth Mode with Help from Apple
      2. Making Distribution Decisions
      3. Required Functions of Any Distribution System
        1. Evaluating Distribution Options, a Disintermediation Example
        2. Revisiting Positioning in the Context of Distribution
        3. Other Aspects of Distribution System Design—Direct Versus Indirect
      4. Owning Your Own Distribution—The Highest Control
        1. Victoria’s Secret and the L Brands’ “Own Store” Channel Strategy
      5. Indirect Distribution and Exclusivity Alternatives
        1. Exclusive Distribution
        2. Anki DRIVE—Launched by Exclusivity
        3. Evaluating Channel Exclusivity
        4. Item Exclusivity
      6. Intensive Distribution
      7. Selective Distribution
        1. Brooks Sports—Integrating Selective Distribution with Effective Positioning and Segmentation
        2. Preservation Hall Jazz Bands—A Selective Distribution Example
      8. Types of Intermediaries—Earn Your Partners in Distribution
        1. Neat, Co.—Using Kiosks (Direct Sales) to Earn Distribution
        2. Nice Systems—A VAR Example
      9. Dynamic Distribution Management
        1. Superscope, Inc.—Couldn’t Achieve Balance
        2. Franklin Electronic Publishers
      10. Franchising: Still Another Distribution Option
        1. Different Types of Franchising
        2. From the Franchisee’s Point of View
        3. From the Franchisor’s Point of View
        4. Rita’s Water Ice—A Successful Franchising Venture
      11. Managing and Anticipating “Channel Conflict”
      12. Concept Testing to Channel Members
      13. Summary
      14. Endnotes
    6. 8. Sales Management to Add Value
      1. Plantronics
      2. The Role of the Sales Management
      3. Type of Sales Forces
        1. Direct to End User
        2. Resellers, Distributors, and Retailers
        3. Value-Added Resellers
        4. Agents, Brokers, and Representatives
      4. The Control Issue: Choosing Your Sales Force
        1. What Situations Favor Direct Versus Rep?
        2. Choosing Reps
        3. Effective Rep Management
        4. Rep Management and the Perceived Value Proposition
        5. Direct Sales: Personal Versus Telephone Versus the Web and Other Nonpersonal Sales
        6. IndyMac: Using Both Direct and Indirect Sales Channels
      5. Sales Force Size, Deployment, and Organization
        1. Sales Force Size and Deployment
        2. Deployment with Limited Sales Force Size
        3. Sales Force Organization and Travel Costs
      6. Compensation
        1. Matching Incentives
        2. Outback Steakhouse—Perfectly Matched Incentives
        3. Incentives Versus Control Versus Time Horizons
        4. Compensation for New Versus Existing Customers, a Possible Festering Problem
        5. The Shadow Broadcast Services Example
      7. Recruiting, Training, and Retention Strategies
      8. Summary
      9. Endnotes
    7. 9. Marketing-Enabled Sales
      1. MetricStream, Inc., and the Marketing-Enabled Sales Strategy
      2. Marketing Tools to Support the Sales Process
      3. Help Prospects Find You
      4. Gain Prospect Interest and Trust
        1. Company Website
        2. Traditional Advertising
        3. Pay per Click (PPC) Advertising
        4. Social Media
        5. Webinars
        6. Trade Shows
        7. Blog Posts
        8. E-Mail Campaigns
      5. Qualify Prospects and Identify Prospective Buyers
        1. 8x8 Reinvigorating Dormant Prospects
      6. Drive Toward the Close
        1. Submit the Proposal
        2. Check References
        3. Handle Objections
      7. Close the Deal
      8. Training Is Necessary
      9. The Relationship Between Marketing and Sales
      10. Summary
      11. Endnote
  11. Section Three: Execution—Cultivate the People and Resources to Make Your Marketing Work
    1. Endnote
    2. 10. Create an Ecosystem to Maximize Product/Service Lifetime Profitability
      1. Pebble: The Start-Up Taking on Multibillion-Dollar Global Companies
      2. Engaging Your Customers in Product Launch
      3. The Beta Process
      4. Reference Accounts
        1. Reaching Target Reference Customers
        2. Establishing a Compelling Offer
        3. Building an Internal Resource Plan to Ensure a Successful Launch
      5. Securing External Support for Your Product
      6. Partnering for Launch
      7. Channels of Distribution
      8. Summary
      9. Endnotes
    3. 11. Entrepreneurial Marketing for Building Teams
      1. Anki: From Classmates to a Company
      2. Positioning for Talent
        1. Segmentation: Understanding the Needs of Company and Employees
        2. Differentiation: Setting Yourself Apart
      3. Building a Team and Corporate Culture
      4. Reaching the Prospects
      5. Choosing the Prospect
      6. Compensation: Pricing Your Talent
      7. Summary
      8. Endnotes
    4. 12. Marketing for Financing Activities
      1. Pebble: Preserving Equity with Crowdfunding and Venture Funding
      2. Financing: A Different Product for a Different Customer
      3. Product Versus Financial Marketing
        1. A Financial Marketing Plan
        2. The Buying Center
      4. Segmentation of Investors
        1. Crowdfunding
        2. Angels
        3. Venture Capital Firms
        4. Incubators and Accelerators
        5. Corporate Strategic Partners/Investors
        6. Institutional Investors
      5. Naming
      6. Pricing—The Value of Your Venture
      7. Venture Marketing
      8. Initial Public Offering (IPO)
      9. Investor Relations
      10. Summary
      11. Endnotes
    5. 13. Building Strong Brands and Strong Companies
      1. Why Is It Hard to Build Brands?
        1. Can Entrepreneurial Marketers Overcome These Eight Difficulties in Building Brands?
      2. Ten Guidelines for Building Strong Brands
      3. Summary
      4. Endnotes
  12. Index