frugal marketing workshop tie

www.nomoneymarketing.org

Frugal Marketing For Startups

October 22, 2009

1

Jessie Paul


When is frugal marketing required?

1. New business model challengers

2. Old model, new market challengers

high

high

low

low

Rel

ativ

e M

arke

tsha

re

Relative Growth Rate

Mature Champions

Laggards Challengers

Upstart brands take on brands that are larger, more established than themselves


Section 1: Conceptual Framework

Building Your Brand Architecture

www.nomoneymarketing.orgwww.nomoneymarketing.org

Think Narrow• This allows you to

operate without mass media

• Enables focused offerings

• One-to-one communication is possible

• You can own a superlative - first/largest/only - in a smaller space


Defining Your Brand1. WHO AM I?

2. WHY BUY ME?

3. WHY NOT BUY SOMEONE ELSE?


Cheese or Mousetrap? Core or Surround?

PeopleDelivery Facilities

Price

Country of origin

Executive Management

Vision

Corporate Governance

SURROUND

Delivery Process

Business Benefits

Quality

CORE

Photo Credit: Rennett Stowe

http://www.flickr.com/photos/tomsaint

http://www.flickr.com/photos/tomsaint


Core vs Surround Branding

Input Elements

Core Service Attributes

Output Impact

People

Elements that are directly related to service performance

Service Delivery Process

Delivery Facilities

PriceCountry of origin

Executive Management

Vision

Corporate Governance

Environment

Community

Investor Returns

Business Benefits

Industry Development

Sur

roun

d Surround

Core

Quality

No Money Marketing, Jessie Paul, Tata McGraw-Hill


Infrastructure: •Telecom• Facilities

People: •Domain experts•Process experts

• Framework/ Methodologies:

• For process optimization• Process management•Process quality

VALUE ADDERS – CUSTOMER BENEFITS

Reliability

Cost savings

Increased efficiency/ speed

Ability to identify &/ capture new business opportunities

DIFFERENTIATORS

Business Optimization thro business analytics & domain knowledge

TABLE STAKES

SATISFICERSPhysical & Data Security, Infrastructure

WHO AM I?

WHY BUY ME?

WHY NOT BUY SOMEONE ELSE?


Section 2: Why the Flat World Matters

Determining Your Eco-system


Flat World Trends

1.2.3.

The market is very small: You have a target audience of one4.Advertising is free: But getting it is hard work

Digitization, Globalization: People are buying things they cannot see

The world is interconnected: Everyone is a journalist, opinion-maker and salesperson!


IndividualsInterconnected

Marketing changes in the Flat World

Location-specificLocation-independent

Customers

Access controlledEasily accessible

At costFreeInformation

One way2-way, interactive

LagInstantaneous

Opt outOpt-in

At costFreeCommunication Old WorldFlat World

No Money Marketing, Jessie Paul, Tata McGraw-Hill


Own your eco-system

Industry Associations

Analysts

Consumer Reports

Consulting Firms

Sourcing Advisors

Other Customers

Journalists

Expert Users

Government

Academics Internet Pundits

Friends & Family

Employees

SalespersonDecision Maker


Section 3: Building Your Brand

Determining the Levers and Brands


Leveraging resources for smart branding

Thought LeadershipPRAwardsOnline presence

• Executive Branding• Pricing• Country of Origin• Sustainability Ch

anne

ls

Leve

rs


Executive Branding

MyBo

Twitter

YouTube

Facebook

LinkedIn

MySpace

Barack Obama

Create a brand blueprint

Stars are created, not born

Be accessible

Have a point of view

Be everywhere

Spend your time generously

Photo Credit Jurvetson

http://www.flickr.com/photos/jurvetson


Price as a differentiator

Pricing is about perceived value

Use Extreme Pricing – Either Low-cost or

Premium

Consumers associate high prices with high

quality

Pricing depends on ability to experiment


You can CHOOSE your home country

Does your “home” add value or detract?

Have you invested in relationships at home?

How much of national flavour is differentiating and

not overbearing?

Lever: Country of Origin


Sustainability

PartnersCommunity

Customers

Suppliers

Employees

Bio-diversity

Waste Water

Energy

WIPRO

All other things being equal, consumers would prefer a “green” offering

Regulations will drive greener practices


Leveraging resources for smart branding

Thought LeadershipPRAwardsOnline presence

• Executive Branding• Pricing• Country of Origin• Sustainability Ch

anne

ls

Leve

rs


Thought Leadership

Analysts CustomersJournalistsExpert Users EmployeesSalesperson

Thought Leadership

Useful information on latest trends and how it affects them

Door-opener to have a non-sales business discussion with a prospect

Reassurance that their organization is on the cutting-edge

Current developments that can trigger exclusive stories

Information on how the latest trends can benefit their business

Allows an intellectual dialogue on recent developments


PR

Be contrarian

Be different in the context

Use controversies

Personal touch

Information is cheap. Insight is rare.

Swiss Spaghetti Harvest

BBC Panorama, April 1, 1957


Awards

Awards add credibility

Win awards

Give awards


Online Media

www.wipro.com

Twitter

YouTube

Co-branded portal

LinkedIn

Second Life

Wipro

Everyone can be a broadcaster. Free.

Build a hub-and-spoke model

You can’t always “own”. Rent.

Instant responses.

Everyone can have an opinion. Trust is the differentiator.


Section 4: Conclusion

Some tips and ideas for building the next superbrand


Channels: Build vs Buy• Customize mass-media

to be more narrow eg “power-jackets”, IP-based targeting

• Negotiate your own packages

• Operate with a “mall-and-mainstreet” approach to online media

• Create your own customer community

• Institute an award


• Globally distribute the marketing team

• Move work to where it is done best

• Consider “unusual” markets

Think Global


Think Interesting• Information is cheap,

insight is rare• The cardinal sin in

today’s world is to be boring

• Do innovative stuff and you will get a disproportionate share of buzz

Source:http://scrapetv.com/News/News%20Pages/Business/Pages/Microsoft%20mulls%20name%20change%20to%20Megahard.html

27


5 Tips for Frugal Marketing

Create Your OwnMarketing Channels

Insights vs Information Go OnlineOwn the

Eco-system

Define your

Audience Narrowly

1 2 3 4 5


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