Table of Contents
1Preface........................................................................ 7
1.1My MBA Course “Marketing for Entrepreneurs”.................................. 9
1.1.1Associated Prerequisite Readings........................................... 12
1.1.2Podcasts................................................................... 12
1.2Acknowledgements............................................................. 13
1.3About the Author............................................................. 14
2Entrepreneurship............................................................... 15
2.1Introduction to Entrepreneurship............................................. 15
2.1.1Are You Building a Company or a Product.................................... 16
2.1.2Figuring out what business to start........................................ 17
2.1.3Exercise – Find an Opportunity............................................. 21
2.2The Drunkard’s Walk of Entrepreneurship...................................... 24
2.2.1Life, Entropy and Evolution................................................ 25
2.2.2Patterns................................................................... 27
2.2.3Gaussian Distributions..................................................... 29
2.2.4Quantum Mechanics and Marketing............................................ 32
2.2.5Survival................................................................... 34
2.2.6Lifestyle Businesses....................................................... 36
2.2.7The Parental Voice......................................................... 38
2.2.8My Own Drunkard’s Walk..................................................... 41
2.2.9Exercise – Defining and Finding Success.................................... 44
2.2.10Technology is changing the way Business Works............................. 46
2.2.11Technology is changing the Teaching Process............................... 47
2.2.12Technology Offers New Business Opportunities.............................. 49
2.2.13Innovation................................................................ 50
2.2.14Learning to Start Small................................................... 61
2.2.15Web Businesses............................................................ 62
2.3Financing Your Business...................................................... 65
2.3.1Determining how much you need.............................................. 67
2.3.2Building Your Pro-forma financials......................................... 68
2.3.3Determining where to get it................................................ 71
2.3.4Equity Instruments......................................................... 72
2.4Leadership Skills............................................................ 86
2.4.1Building Your Team......................................................... 87
2.4.2Managing Your Employees.................................................... 89
2.4.3Stock Options.............................................................. 90
2.4.4Self Deception............................................................. 91
2.4.5Focus...................................................................... 94
2.4.6Leverage................................................................... 94
2.5Conclusion on Entrepreneurship............................................... 95
3Marketing and Sales............................................................ 96
3.1Introduction................................................................. 96
3.1.1The Fundamental Challenge of Marketing..................................... 97
3.1.2How Entrepreneurial Marketing is Different than Big Company Marketing...... 100
3.1.3Guerrilla and Viral Marketing.............................................. 102
3.2Value Proposition............................................................ 103
3.2.1Business to Business Value Propositions.................................... 105
3.2.2Consumer Value Propositions................................................ 113
3.2.3Competition................................................................ 114
3.3Category..................................................................... 117
3.3.1B2B Categories............................................................. 118
3.3.2New Category............................................................... 118
3.3.3Pre-existing Categories.................................................... 121
3.3.4Learn from Your Competition................................................ 123
3.3.5What happens when you get it wrong......................................... 124
3.4Exercise - Category and Value Analysis....................................... 124
3.5Customer Identification...................................................... 126
3.5.1Secondary Research......................................................... 126
3.5.2Primary Research........................................................... 126
3.5.3Consumer Database Analysis................................................. 129
3.6Channel Identification....................................................... 131
3.7OEM Relationships............................................................ 133
3.7.1Exercise - OEM Contract Creation and Negotiation........................... 140
3.8Selling...................................................................... 141
3.8.1Search and Destroy......................................................... 141
3.8.2Destroy Selling............................................................ 143
3.8.3Sales Preparation.......................................................... 143
3.8.4A Typical Sales Presentation............................................... 144
3.8.5The Sales Call............................................................. 145
3.8.6Public Speaking Tips....................................................... 148
3.8.7Transaction Selling........................................................ 150
3.8.8Anticipating Your Customer’s Issues........................................ 151
3.8.9When Something Works....................................................... 152
3.8.10Corporate Size Doesn’t Matter............................................. 152
3.8.11Sales Team Compensation Plans............................................. 153
3.8.12Starting with a Willing Buyer............................................. 154
3.8.13Channel Sell-Through...................................................... 154
3.8.14Selling Cost.............................................................. 155
3.9MARCOM....................................................................... 156
3.9.1Creative................................................................... 156
3.9.2Web........................................................................ 157
3.9.3Advertising................................................................ 158
3.9.4Literature................................................................. 160
3.9.5Public Relations........................................................... 161
3.9.6Trade Shows................................................................ 161
3.9.7Product Launch............................................................. 162
3.9.8International Marketing and Sales.......................................... 163
3.9.9Lead Generation............................................................ 165
3.10Pricing..................................................................... 168
3.11Retail Distribution......................................................... 170
3.11.1Buyers, Reps and Distributors............................................. 170
3.11.2Retailer’s Vendor Requirements............................................ 171
3.11.3Retail Packaging and Pricing.............................................. 172
3.11.4Package Design............................................................ 173
3.11.5Brand-Manufacturers and Contract-Manufacturers............................ 174
3.11.6Brick & Mortar Retail Trends.............................................. 176
3.11.7Seasonal and Time Related Issues.......................................... 181
3.11.8If you’re the Retailer – Improving Sales.................................. 181
3.11.9Direct Marketing.......................................................... 183
3.12The Direct Marketing Model.................................................. 183
3.12.1Dissecting the Direct Marketing Process................................... 186
3.12.2Lead Generation........................................................... 189
3.12.3Testimonial Endorsement................................................... 190
3.12.4Television - Long form and short form..................................... 190
3.12.5The Call to Action........................................................ 193
3.12.6The Close and Telemarketing............................................... 194
3.12.7Fulfillment............................................................... 196
3.12.8Returns................................................................... 197
3.12.9Test, test and test....................................................... 197
3.12.10Repeating the Message and Reinforcement.................................. 199
3.12.11Mixing Direct with Retail Distribution................................... 200
3.12.12Other Media Types........................................................ 202
3.12.13Internet Advertising..................................................... 203
3.12.14Direct Mail.............................................................. 205
3.12.15Print Advertising........................................................ 206
3.12.16Outbound Telemarketing................................................... 207
3.12.17Radio.................................................................... 207
3.12.18Financing Media Campaigns................................................ 207
3.12.19Consumer Databases....................................................... 208
3.12.20Summary of Vendors....................................................... 208
3.12.21The future of Direct Marketing........................................... 209
3.12.22Personal buying statistics............................................... 210
3.12.23Broadcast to one......................................................... 210
3.12.24The shopping experience.................................................. 210
3.12.25Consumer Multi-Tier Marketing or Direct Sellin........................... 211
3.12.26B2B Direct Marketing..................................................... 214
3.13Campaign Management......................................................... 216
3.13.1The Campaign Profit and Loss (P&L)........................................ 218
3.13.2Revenue Assumptions....................................................... 222
4Conclusion..................................................................... 224
5Attachments.................................................................... 226
5.1Sample Nondisclosure Agreement (NDA)......................................... 226
5.2Simple one Page Partnership Agreement........................................ 229
5.3Starting a Limited Liability Corp. (LLC) in MA............................... 230
5.4Written Case Attachments..................................................... 231
5.4.1Liberty Medical Supply Case Information.................................... 231
5.4.2Pixifun Case Information................................................... 234
5.5Internet Address Links....................................................... 241
5.6Podcast Case Attachments..................................................... 243
5.6.1Canditto – Interview 1, November 2009...................................... 243
5.6.2Heatspring Learning – Interview 1, November 2009........................... 247
5.7OEM Contract Negotiation Information......................................... 251
5.7.1Large Company– READ ONLY IF YOUR BIRTH DATE IS ODD......................... 253
5.7.2Small Company– READ ONLY IF YOUR BIRTH DATE IS EVEN........................ 255
6Glossary....................................................................... 256
7Index..................................................................63
