Day 1: Introduction to Global Entrepreneurial Marketing (GEM) :1/13/2009 1 Day 1: Introduction to Global Entrepreneurial Marketing (GEM) Also known as MS&E 271, Winter 2008 The GEM Teaching Team Captain: Tom Kosnik Co-Captain: Lynda Kate Smith, Guest Lecturers: Donna Novitsky, Lena Ramfelt Course Assistants: Arnav Sharma, Dong Dong Ge Entrepreneurs in Residence: Anand Chandrasekaran And Laina Raveendran Green Web Master: Dong Dong Ge Admin Lead: Isabel Cossio Plus global entrepreneurial marketing leaders as guest speakers GEM Final Project Sponsors, GEM Final Project Coaches and GEM alumni as graders for your Strategic Thinking Papers


Our Agenda for Day 1 :1/13/2009 2 Our Agenda for Day 1 Admissions The GEM learning community What are our expectations? What is Global Entrepreneurial Marketing (GEM)? Why we should care about GEM


Admissions :1/13/2009 3 Admissions You are all qualified. There are not enough seats We use a lottery for admissions CAs will collect the GEM signup sheet today All GEM applicants must complete and submit a short application with your resume. We will inform you who is admitted to GEM and who is on waitlist by email not later than start of Class #2. Name, email, and telephone information will be compiled for the virtual GEM Resume Book (online) for exclusive use of class participants.


The GEM Learning Community :1/13/2009 4 The GEM Learning Community Your GEM Learning Team Mates Other GEM team mates: Stanford on campus SCPD and NUS Silicon Valley College STP graders (GEM alumni) GEM final project coaches and sponsors GEM entrepreneurial guest speakers ETL speakers (Wed. 4:30 – 5:30 PM) SCPD production team GEM administrative lead = Isabel Cossio GEM Course Assistants (CAs): Arnav Sharma and Dong Dong Ge Entrepreneurs in Residence: Anand Chandrasekaran and Laina Raveendran Green GEM Instructors: Tom Kosnik, Lynda Kate Smith, Donna Novitsky & Lena Ramfelt


Our Expectations :1/13/2009 5 Our Expectations


Learning Teams :1/13/2009 6 Learning Teams Form GEM Learning Teams by 7 AM, Wednesday, March 9, 2008 6 or 7 people (no variance unless approved by CAs) Make sure you have diversity: Mix Stanford on-campus with NUS and SCPD Men and women Not all the same degree Different countries of origin Why diversity? To increase your understanding about how different people (employees, investors, customers) think and make decisions To prepare you to work in virtual global teams


Teams Are Everywhere: Learn to Work in Them :1/13/2009 7 Teams Are Everywhere: Learn to Work in Them Source: Kosnik, Blair, Ramfelt, and Pfeifer (1986, 2000) “1 to 1 Diagnosis.”


Honor Code Strictly Applied :1/13/2009 8 Honor Code Strictly Applied The following are violations of Stanford honor code for GEM Being coached by others who have done the cases in past Reviewing other people’s DDARTS or notes about cases & assignments Copying the work of another GEM learning team Contacting case actors to find out what happened Reviewing any source (including WWW) to find out what happened in a case study Anything else that prevents you from practicing DDART, using your own brains and judgment Failure to footnote and give credit for intellectual property you did not create


Class and Web Participation is Critical :1/13/2009 9 Class and Web Participation is Critical Treat our class sessions like high priority meetings with your most valuable customers: Be here. Be on time. Be well prepared Participate thoughtfully and effectively Listen to & respect one another. Take the initiative. Have fun! Note: Attendance is mandatory, unless you have a valid reason. Unless you are an off-campus student Absences will be excused for serious illness, hardship, weddings, critical job interviews, company requirements for out of town travel.


Quality, Not Quantity! :1/13/2009 10 Quality, Not Quantity! We use 7 criteria to assess quality of comments & questions in class & on the web site: Clarity Rigor = logic + evidence + assumptions Conciseness Relevance = timing + fit with the flow Synthesis Creativity Humor


Quality Beats Quantity in GEM! :1/13/2009 11 Quality Beats Quantity in GEM! Average Quality of Most People’s Comments # of in-class and web contributions during the quarter High Low 0 10 15 20 >25


Web Discussion Forum :1/13/2009 12 Web Discussion Forum GEM discussion forum is handled through coursework. To register for the forum, add MS&E271 as a course in http://coursework.stanford.edu Access to the discussion forum will be automatically activated in approximately 24 hours. All off-campus GEM participants must make an introductory posting Web Discussion Forum in either Session 3 or 4 by 7:00 PM Friday, March 11, 2008


DDART Openings(Diagnosis, Decisions, Analysis, Reality Test) :1/13/2009 13 DDART Openings(Diagnosis, Decisions, Analysis, Reality Test) 5 PowerPoint slides (plus cover page with team names) and two 8.5 X 11 inch Excel spreadsheet pages Extra slides and worksheet pages NOT graded Speaker notes that exceed the 8.5 X 11 inch “Notes View” of each PowerPoint slide NOT graded Apply tools from assigned readings, ETL speakers and Marketing Toolkit to analyze cases. Footnotes required! Only some tools apply to each case – don’t force-fit DDARTS posted to GEM website after 7 PM lose points DDARTs that exceed 10 min. will lose 1 point/min. See Openings grading sheet on GEM website


Strategic Thinking Papers (STPs) :1/13/2009 14 Strategic Thinking Papers (STPs) You are the “product” Determine your strategic vision 10 yrs forward Apply what we are learning in GEM to achieve your goals How are you positioned today; what do you need to do to get there Deliverable is a 15 page paper, including exhibits Grading done in pairs by teaching team and GEM alumni Grading based on application of GEM concepts Integration of concepts from class and readings Your ability to think strategically Your proficiency with the DDART framework and marketing tools STP is not a value judgment of your vision or direction


Grading – Individual and Team Work :1/13/2009 15 Grading – Individual and Team Work


Teaching Team Office Hours :1/13/2009 16 Teaching Team Office Hours Who? Individuals or teams What? Course related or career issues Where? Terman 402 and vicinity How? Sign up in advance on the GEM website Written agenda strongly encouraged How long? 25 minute slots every half hour When? See below: Tom Kosnik Wed 1:30 – 4:00 PM. Fri 12:00-2:00 PM Donna Novitsky By appointment only Lynda Smith By appointment only Arnav Sharma TBD Dong Dong Ge TBD Open the door to Terman 402 at the time of your meeting


What Is GEM? :1/13/2009 17 What Is GEM?


GEM is NOT a Salesman in a Full Cleveland… :1/13/2009 18 GEM is NOT a Salesman in a Full Cleveland… “We’re looking for an aggressive, tenacious salesperson, like, for instance, the one who sold you that suit.”


“Start Up” Marketing In 10 Weeks :1/13/2009 19 “Start Up” Marketing In 10 Weeks Marketing toolkit Marketing tools, rules and roles to be used all quarter Targeting markets and customers Segmentation, sizing, choosing targets, going global Product marketing and management Roadmaps, competition, pricing, whole product Sales and negotiation Compensation, motivation, measurement, negotiating Partners and distribution Partner alignment, channel strategies, financial implications Outbound marketing Positioning, PR, lead generation, launches, budgeting


DDART Organize Chaos with GEM’s DDART Architecture :1/13/2009 20 DDART Organize Chaos with GEM’s DDART Architecture DIAGNOSIS - What is the problem/opportunity? DECISION - What is your plan of action? ANALYSIS - Why is your plan the best alternative? REALITY TEST - What are the risks? How to manage them?


The Marketing Toolkit(To be used for cracking cases in class and beyond) :1/13/2009 21 The Marketing Toolkit(To be used for cracking cases in class and beyond) TALC (and CALC, and The Dip!) Competitive SWOT analysis Whole product Positioning statement Marketing communication: 6M’s Market map Market segmentation charts Partner matrix Economic analysis Reality test matrix


DDART Caution: Tools Will Apply Differently In Different Cases :1/13/2009 22 DDART Caution: Tools Will Apply Differently In Different Cases


Tool 1: Technology Adoption Life Cycle :1/13/2009 23 Tool 1: Technology Adoption Life Cycle Pragmatists create the dynamics of high-tech market development Source: Moore (2002), Crossing the Chasm; Wiefels (2002), The Chasm Companion.


Types of Adopters :1/13/2009 24 Types of Adopters Each adoption type describes individuals… With different risk orientations toward technological innovation… Who are make decisions about whether and when to adopt the innovation… On behalf of: Themselves The organization where they work Their family Their community


Innovators - Technology Enthusiasts :1/13/2009 25 Innovators - Technology Enthusiasts Primary Motivation Learn about new technologies for their own sake Key Characteristics Strong aptitude for technical information Like to alpha test new products Can ignore the missing elements Do whatever they can to help Challenges Want unrestricted access to top technical people Want no-profit pricing (preferably free)


Early Adopters - The Visionaries :1/13/2009 26 Early Adopters - The Visionaries Primary Motivation Gain dramatic competitive advantage via revolutionary breakthrough Key Characteristics Great imaginations for strategic applications Attracted by high-risk, high-reward propositions Will commit to supply the missing elements Focused on gains — so not price-sensitive Challenges Want rapid time-to-market Demand high degree of customization and support


Early Majority - Pragmatists :1/13/2009 27 Early Majority - Pragmatists Primary Motivation Gain productivity improvements via evolutionary change Key Characteristics Astute managers of mission-critical applications Understand real-world issues & tradeoffs Focus on proven applications Like to go with the market leader Challenges Insist on good references from trusted colleagues Want to see the solution in production at the reference site


Late Majority - Conservatives :1/13/2009 28 Late Majority - Conservatives Primary Motivation Just stay even with the competition Key Characteristics Better with people than technology Risk averse Price-sensitive Reliant on a single, trusted advisor Challenges Need pre-assembled solutions Would benefit from value-added services. Do not want to pay for them


Laggards - Skeptics :1/13/2009 29 Laggards - Skeptics Primary Motivation Maintain status quo Key Characteristics Good at debunking marketing hype Disbelieve productivity-improvement arguments Believe in the law of unintended consequences Seek to block purchases of new technology Challenges Not a customer Can be formidable opposition to early adoption


What kind of adopter are YOU for each of the innovations below? :1/13/2009 30 What kind of adopter are YOU for each of the innovations below?


People adopt for different reasons at each phase of the technology adoption life cycle (TALC) :1/13/2009 31 People adopt for different reasons at each phase of the technology adoption life cycle (TALC)


The Chasm occurs because pragmatists refuse to follow visionaries in the case of Discontinuous Innovations :1/13/2009 32 The Chasm occurs because pragmatists refuse to follow visionaries in the case of Discontinuous Innovations Visionaries vs. Pragmatists Adventurous Early buy-in attitude Think Big Go it alone Spend big First strike capability Think Pragmatistsare pedestrian Prudent Wait-and-see Manage expectations Maintain relationships Spend to budget Staying power Think Visionaries are dangerous Pragmatists don't trust visionaries as references.


Technology Adoption Life Cycle (TALC): Diagnose and adapt as markets evolve :1/13/2009 33 Technology Adoption Life Cycle (TALC): Diagnose and adapt as markets evolve Source: Moore (2002), Crossing the Chasm; Wiefels (2002), The Chasm Companion. Chasm Early Market Bowling Alley Tornado Main Street Total Assimilation Innovators Early Adopters Early Majority Late Majority Laggards


Category Maturity Life Cycle (CMLC) :1/13/2009 34 Time Revenue Growth Technology Adoption Life Cycle Early Main Street Mature Main Street Declining Main Street Indefinitely elastic middle period End of Life A D C B Category Maturity Life Cycle (CMLC) Source: Moore, Geoffrey A. (2005) Dealing with Darwin


The Chasm vs. The DipFocus is the way to climb out! :1/13/2009 35 The Chasm vs. The DipFocus is the way to climb out! Source: Godin (2007), The Dip


Marketing Toolkit… :1/13/2009 36 Marketing Toolkit… …Marketing Toolkit Numbers 2 through 10 to be continued in our next session…


GEM is… :1/13/2009 37 The art and science of matching the right customers with the right product at the right time Business strategy Markets (and marketing) determine your business strategy Product strategy Must evolve simultaneously with market strategy Missionary marketing Must create demand when no one knows you exist GEM is…


Why We Should Care About GEM :1/13/2009 38 Why We Should Care About GEM


Loyal Customers Create A Wave :1/13/2009 39 Loyal Customers Create A Wave High Customer Loyalty Low High Low Customer Satisfaction Hostages Defectors/ Terrorists Die-Hard Loyalists Mercenaries Adapted from Jones and Sasser (1995) “Why Satisfied Customers Defect,” HBR Surf across chasms and tornadoes


GEM is Prep for Great Jobs in Marketing :1/13/2009 40 Marketing Roles GEM is Prep for Great Jobs in Marketing Product Manager Product Marketing Tech Mktg/Applications Engr Vertical Mktg/Business Dev. PR/Advertising/Branding Lead Gen/Lead Qual Channel Mgmt/Programs Field Marketing/Sales Support Sales Engineers Development Sales/Customers Sales Reps Product Developers Product Designers/Architects


GEM 08 Win Course Intro - Appendix :1/13/2009 41 GEM 08 Win Course Intro - Appendix Extra slides for your background reading pleasure


Seth Godin shows that the Dip is neither a cul- de-sac nor a cliff :1/13/2009 42 Seth Godin shows that the Dip is neither a cul- de-sac nor a cliff


Beware the Cliff – after I-Banking orManagement Consulting if you want out :1/13/2009 43 Beware the Cliff – after I-Banking orManagement Consulting if you want out


The rewards in market share of being the “gorilla” in a product category :1/13/2009 44 The rewards in market share of being the “gorilla” in a product category