Exec's Program #13: Marketing Mastery

THE EXECUTIVE’S PROGRAM SESSION 13 STRATEGY & MARKETING MASTERY

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PURPOSE AND LEARNING OBJECTIVES Purpose:To learn how top executives plan and execute to dominate their market.

Learning Objectives: To learn…

• Why marketing is a critical function • What good marketing looks like

• How to do marketing like a market leader

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AGENDA 1. Orienteering and recap 2. Why marketing 3. What marketing is and what good looks like 4. How to do marketing like a market leader 5. Breakout 6. Summary and Assignment

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REMINDERS 1. Only 3 classes left, after today – then the (optional) exam.

2. Finance refresh next Wednesday at noon.

3. We will be collecting information on your company.

4. Refresher courses and coaching will be offered.

5. Awards given.

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ASSIGNMENT 1. Use your calendar. Define 3 “I Musts” for the week and map the time to do them onto your calendar.

2. Set aside 3 hours for “ON the business” work.

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Play around with the 13-week cash flow tool

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Analyze your cash flow using the marginal cash flow tool

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Select 1 of the 7 levers to set a target to improve cash

Proprietary and Confidential to Renew LLC

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The Foundation “…planning, governance, organization, systems, meetings and finance…”

Proprietary and Confidential to RENEW LLC

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ORIENTEERING: STEP-BY-STEP Session Topics

If you did just one thing…

The Habits

Have a morning routine! Use your calendar.

Set 3 “I Musts” each week and map them to your calendar.

Strategic Planning

Write down your 5-year plan.

Start with your Guiding Statements, and KISS and use it (Coffee Stains) to set your annual plans.

The AMP

Write down you AMP. Look to the Left!

Strategic plan is the input. Use the AMP to set quarterly and monthly OKRs. Chop up your goals into bite-size work that ultimately becomes weekly projects and I Musts.

Governance

Have a diverse group with authority (ideally a board) to give you feedback and holds you accountable to your plans.

Ask for their feedback! Follow your own rules – set the example. Everyone is watching you.

Execution

Build your binder! “I should write that down.” Write SOPs. They are the treasure. Plan + Organized Team + PAs + SOPs + Battle Rhythm = Results!

Management Teams

Have an org chart and use it to organize your company.

Write PAs for those connected to you (your management team).

Meetings

Run great meetings! Use them to drive execution.

Use meetings to drive execute. Have P, O and A for every meeting.

Reporting

Start measuring 5-10 KPIs for your company. Weekly or monthly. As you measure it, you will see improvements.

Intro to Finance

Close your books by the 10th and hold your finance meeting on the 15th. DO NOT ABDICATE this work. You are the co-CFO.

Financial Analysis Part 1 & 2

Calculate your monthly TvA and ratios and do a quick common size and trend analysis. Ask Why 7 times during your TvA meeting. Observe red flags in trends and common size.

Finance Part 3: Mastering Cash Flow

Build and use a 13-week Cash Flow. Update it every week.

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MASTERING CASH: BASIC STEPS 1.

Step 1: Analyze your financials to understand your cash flow (CCC, Marginal Cash Flow).

2.

Step 2: Know your 7 cash flow levers. If more cash is needed, strategize which one to pull.

3.

Step 3: Manage cash each week with a 13-week cash flow forecast tool and monitor impact of cash levers.

4.

Step 4: Build a culture of cash flow awareness using reporting and incentives.

5.

Step 5: Grow your cash reserves to 2-months of reserves.

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MASTERING CASH: TOOLS The 7 Levers of Cash 1.

Price: Increase price of your goods or services.

2.

Volume: Sell more at the same price.

3.

COGS: Reduce the price you pay for raw materials and direct labor.

4.

Accounts Receivable: Collect from your debtors faster.

5.

Inventory: Reduce the amount of stock you have on hand.

6.

Accounts Payable: Slow down the payment to creditors.

7.

Operating Expenses: Reduce your operating costs.

8.

(Optional) Bad Debt: Check credit before giving credit.

13 Week Cash Flow The Master Tool. Use it every week. A lot to fill in at first, but easy to update.

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MASTERING CASH: GOAL

Rule of Thumb: Build 2 months of OPEX. Companies with more cash are more successful

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Time For Growth Becoming the market leader.

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MARKETING

This will not be a comprehensive course on marketing. There are thousands of topics to cover under marketing.

This will focus on the disciplines you must do to win in the marketplace.

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WHAT IS MARKETING • What is marketing?

– When I do this…I get more sales – Everything a company does to acquire customers and maintain a relationship with them.

– Marketing is meeting your customers’ expectations – Even the smallest tasks, like writing thank-you letters and greeting someone at the door…is marketing.

https://youtu.be/MoQz3SaWY9s

Source: Investopedia.com 13

WHAT IS A MARKETING STRATEGY • What is a marketing strategy?

– A marketing strategy refers to a business's overall game plan for reaching prospective consumers and turning them into customers.

Source: Investopedia – It starts with detailed information on the target customer, a very honest comparison with competitor, unique selling points, value proposition, and key marketing messages.

– Used to inform the marketing plan(s) – the “how”.

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WHAT ARE MARKETING PLANS • What are marketing plan(s)?

– Explains the “How”.

– Lays out the types and timing of specific marketing activities or marketing initiatives.

– Details how the business will get across the key message to the target market.

– A company may design and run multiple market plans per year.

– Marketing plans must have a clear start and end, with SMART

objectives/targets, activities, owners, milestones and KPIs.

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PART 1: WHY DOES MARKETING MATTER?

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GROW OR DIE

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Your marketing strategy is your “strategy”

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PART 2: WHAT DOES GOOD MARKETING LOOK LIKE?

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Wisdom

Give the market what it wants, and they will beat a path to your door to get it.

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BAD MARKETING •

The CEO does not know what marketing is.

•

Not focused or consistent. So consumes a lot of energy and money, but with little results.

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No regular research done on the market.

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The company is not delivering on the marketing commitment.

•

Competition is easily copying.

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There is nothing being planned or tracked.

No plans, goals, KPIs, etc.

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No marketing battle rhythm.

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GOOD MARKETING •

Marketing is focused on a core value proposition or benefit to the customer.

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The entire company is designed to deliver that benefit.

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The marketing function is clearly different from sales.

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Information on the target market and competitors is being gathered and analyzed on a regular basis.

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There is a regular standing meeting each week and month to review marketing plans: Goals, activities, KPIs.

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It is where the CEO spends a majority of their QII time.

Starts Here

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PART 3: HOW TO BECOME A MARKET(ING) LEADER

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HIGH-LEVEL STEPS 1.

Step 1: Clearly define and understand your target market (keep this fresh and refreshed).

2.

Step 2: Choose your company’s “core benefit”. Align your company around this benefit (keep this at the center). This also becomes your “brand.”

3.

Step 3: Know who leads: Marketing OR Sales (Leslie’s Compass)

4.

Step 4: Build marketing plans. Have clear, time bound, objectivefocused marketing plans built around the 4Ps (marketing mix).

5.

Step 5: Drive marketing plan implementation via a marketing battle rhythm (weekly and monthly meetings)

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STEP 1:YOUR TARGET MARKET

Get Very Specific Demographics are not only who has a need for your product or service, but also who is most likely to buy it:

Psychographics are the more personal characteristics of a person, including:

• Age

• Attitudes

• Location

• Values

• Gender

• Interests/hobbies

• Income level

• Lifestyles

• Education level

• Behavior

• Personality

• Marital or family status • Occupation • Ethnic background

Read from Inc. Magazine: https://www.inc.com/guides/2010/06/defining-your-target-market.html

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Your Market Who are they?

What do they want?

Give the market what it wants, and they will beat a path to your door.

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STEP 1:YOUR TARGET MARKET 1.

Are there enough people who fit my target (i.e., is the market large enough) to make my business attractive? (hint: look at your margins)

2.

Will my target market really benefit from my product / service? Will they see a need for it?

3.

Do I understand what drives my target market to make decisions? If so, what drives them to purchase my product or service?

4.

Can they afford my product / service?

5.

Can I reach them with my message? Are they easily accessible?

Source: Inc. https://www.inc.com/guides/2010/06/defining-your-target-market.html 27

STEP 2:YOUR CORE BENEFIT Quality

Pick one.

This is just the start.

Then get appropriately specific.

Cost

Service

Source: Disciplines of Market Leaders 28

STEP 2:YOUR CORE BENEFIT Once you select the core benefit, 1) obsess about it, 2) get appropriately specific; 3) align the five core elements of your company to that benefit.

1.

Core processes

2.

Organization

3.

Management systems

4.

Information technology

5.

Culture

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Focus → Obsess → Success

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CORE BENEFIT 1: QUALITY FOCUS A.K.A. Product

Source: Disciplines of Market Leaders 31

CORE BENEFIT 2: COST FOCUS A.K.A. Efficiency

Source: Disciplines of Market Leaders 32

CORE BENEFIT 3: SERVICE FOCUS A.K.A. Total Solution

Source: Disciplines of Market Leaders 33

STEP 2:YOUR CORE BENEFIT

Value to customer

Your one area

Competitive zone

Time 34

a)

Pick the area you want to put above all others (the focus)

b)

Ensure the other 2 areas do not slip below the competitive zone

c)

Set targets and design initiatives in your AMP, and choose investments in your budget to strengthen the core benefit

d)

Keep the other two within the competitive zone

e)

Discuss this during your AMP, Board and monthly management meetings (obsess)

Value to customer

STEP 2 SUMMARY

Your “one value”

Competitive zone: the other two

Time

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STEP 3: KNOW WHO LEADS

Marketing vs. Sales

Source: HBO.com 36

STEP 3: KNOW WHO LEADS Marketing Leads

7 Variables

Sales Leads

Cheap

Price

Expensive

Many customers

Market Size

Few customers

Simple

Complexity of the product

Complex

High

Fit and finish

Low

B2C

Type of customer

B2B

Single transaction

Customer lifetime

Long lifetime

Low

Level of customer engagement

High

Source: Leslie's’ Compass

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STEP 3: KNOW WHO LEADS (EXAMPLE)

Marketing Leads

7 Variables

Sales Leads

Cheap

Price

Expensive

Many customers

Market Size

Few customers

Simple

Complexity of the product

Complex

High

Fit and finish

Low

B2C

Type of customer

B2B

Single transaction

Customer lifetime

Long lifetime

Low

Level of customer engagement

High

Source: Leslie's’ Compass 38

WHO LEADS

If you’re marketing-intensive, the product is

bought.

B2C: Distribution and a marketing machine.

If you’re sales-intensive, the product is sold.

B2B: Lead generation and a sales machine.

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STEP 3: KNOW WHO LEADS BUILD THE RIGHT SYSTEM Sales Serves Marketing

Marketing Serves Sales

• Marketing has primacy.

• Sales has primacy.

• Marketing generates the demand.

• Marketing’s responsibility is to create and hand off qualified leads to the sales organization.

• With its campaigns, it creates a strong enough appetite that people buy the product on their own.

• Sales serves this effort by creating a “place” – line up distributors, retailers and merchandiser so the product has a presence — essentially a place where it can be found and is available for purchase.

• Lead manager – works on the brand, advertising, PR, launch and more.

• Marketing manages various lead sources through an organized pipeline structure.

They provide the collateral materials and programs to find prospects.

• The heart of the organization's success is for the sales department to convert a qualified lead to a customer win. CLOSE DEALS!

Source: Leslie's’ Compass 40

STEP 3: SUMMARY Using Leslie’s Compass a)

Evaluate your company’s product or service against the 7 variables.

b)

If possible, gain more alignment among the variables towards one side of the matrix.

c)

Select the appropriate strategy to use: 1) Sales Serves Marketing, or 2) Marketing Serves Sales.

d)

Develop marketing plans, based on who leads.

e)

Implement, measure and evaluate.

Simplified

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STEP 4: DEVELOP MARKETING PLANS • Functionality • Quality • Branding • Packaging • Sizes • Services

• List price • Discounts • Bundling • Credit terms

Product

Price

Target Market & Benefit

Promoti on • Advertising • Sales force • Publicity (PR) • Sales promotions

Place • Distribution • Sales channels • Inventory • Logistics

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STEP 4: MARKETING PLANS • Marketing Plan Objective: Answers the “why.”

– Example:We will roll out a new program for young members, ages 35-45 years making between $200K – 300K in annual salary in MN, MI and IL, to increase the membership of the IAN and lower the barriers for younger growth stage investors to join.

– Pricing strategy: Lower entry point from 50K to 25K for this target market.

• Marketing Plan SMART Key Results: Answers “what” we want to accomplish by when. Goals #1, #2, #3.

– Examples: Generate 100 qualified leads by September. Sign up 18 new young members by November.

• Marketing Plan Activities: The “how”.

– Run email campaign August to September use existing database with target messaging about benefits

of impact investing, and “how to guides” – Host boot camp luncheons at Rotary Clubs and Country Clubs in target cities.

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STEP 4: MARKETING PLANS KPIs (aligned to SMART goals)

Targets

Actuals

# of Unique Website Visitors to New Young Members’ Page

Sept: 50 Oct: 60 Nov: 100

Sept: Oct: Nov:

# Online inquiry forms complete (qualified leads)

Sept: 10 Oct: 15 Nov: 20

Sept: Oct: Nov:

# of New Young Members Joined (leads converted)

Sept: 0 Oct: 6 Nov: 12

Sept: Oct: Nov:

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STEP 5: DRIVE A MARKING BATTLE RHYTHM Marketing Habits • Weekly: 1-hour weekly marketing meeting (next slide). Purpose: To evaluate marketing plan implementation, which, while testing, run for 1 – 3 months (aim for shorter cycles) and to decide whether to kill or scale up. Discussions focused on activities – “are you doing X,Y, Z per the plan?”

• Monthly: 3-hour monthly marketing meeting to review KPIs, customer feedback, market data, status of marketing plans (TvA, KPIs), make decisions on current plans, and to come up with new marketing plans, if needed.Your constraint is budget.

• Annual: 1-2 days to review your strategy and design marketing plans and a marketing budget.

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WEEKLY MARKETING MEETING • Purpose: To review the status of XYZ marketing activities per the marketing plan(s) • Outcomes: – A review of our KPIs – A review of our marketing plan SMART goals – Decisions to help advance the plan • Agenda: 1.

Review next steps from last meeting

2.

Review the status of each plan initiative (activities), KPI and SMART goal

3.

Next steps and close

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MONTHLY MARKETING MEETING • Purpose: To review the status (TvA) of XYZ marketing plan(s) KPIs, and design new plans • Outcomes: – A review of our current marketing initiatives – A review of the market – customer feedback and competitors – New plans and decisions on current plans • Agenda: 1.

Review of marketing initiatives TvA for KPIs, SMART Goals and Budget

2.

Review of the market – customer feedback and competitors

3.

Brainstorming – new initiatives and kill or keep current initiatives

4.

Review decisions and owners / next steps

5.

Close

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Measure it Monthly!

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KISS MARKETING KPIS Example KPIs • Website Traffic Ratios:Visitors to Leads (emails), Lead to Qualified Leads (emails of

Marketing to Sales Funnel

target market), Qualified leads to sales leads (meetings).

• Website: Unique Sessions, Page views, Page per Session, Average Session Duration, Bounce Rate • Cost of customer acquisition (COCA) = total sales / # of customers acquired • Sales team response time – leads degrade

with time.

What is this telling us?

• Sales growth – Trend analysis Source:Vital 49

SIDEBAR GENDER-SMART MARKETING HOW TO SELL MORE!

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GENDER-SMART MARKETING

• Gender smart and responsible marketing is at the core of international principles • For example: WEPs by UN Women and UN Global Compact

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CAUTION: DON’T PERPETUATE GENDER STEREOTYPES

Check your website or marketing materials 52

PROGRESSIVE ADVERTISING Gender-smart Images Care work Business Briefing Unilever & Oxfam Link

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TREND: UN-STEREOTYPING MARKETING

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CASE STUDY: GENDER-SMART MARKETING

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CASE STUDY: GENDER-SMART MARKETING •

M-KOPA is a solar energy company that was founded in 2012. It has pioneered and built one of the world’s most advanced Pay-As-YouGo platforms and expanded the product line from lighting solutions to fridges and mobile phones.

•

M-KOPA’s market strategy builds on the premise that for the product to be commercially successful, the product design, distribution, marketing and financing options should be tailored around women’s expressed needs, preferences and behaviours.

•

M-KOPA’s case study demonstrates the business case for women-centred design in off-grid solar products.

Gender-disaggregated data and market insights are key for a gendersmart marketing strategy 56

TAKE-AWAYS: GENDER-SMART MARKETING A gender-smart marketing strategy starts with gender-smart market research, product design, marketing, distributions channels and sales!

Product

4Ps

Make sure women are actively involved in every step of the way.

Market research

Product design

Marketing

Price

Promotion

Distribution channels

Place

Sales

Gender Smart Strategy 57

TAKE-AWAYS: MARKETING ADVICE CAN BE FREE! Communications agencies are helping companies on gendersmart marketing – they often release guidance – and its free to use!

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SUMMARY STEPS 1.

Step 1: Clearly define and understand your target market (keep this fresh).

2.

Step 2: Choose your company’s core benefit. Align your company around this market strategy (keep this at the center).

3.

Step 3: Know who leads: marketing OR sales.

4.

Step 4: Build marketing plans. Have clear, time bound, objectivefocused marketing plans built around the 4Ps (marketing mix).

5.

Step 5: Drive marketing plans via a marketing battle rhythm (weekly and monthly meetings)

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PART 5: BREAKOUT

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BREAKOUT QUESTIONS 1.

When we do X, we get more sales: what is your company’s “X”?

2.

How confident are you that what your company is delivering is what your target market wants? Why? How can you improve this?

3.

Which one of the “core benefit” are you best position to deliver on? Does everyone at your company know this is your company’s core benefit (your strategy)?

4.

What internal improvements can you make to ensure you stay ahead of

competition - above the line?

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PART 6: SUMMARY

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SUMMARY POINTS ❑ Know, in an intimate way, your target market. Make sure you can say what they want. Keep this

fresh and evaluate yourself regularly. Assign someone to gather market data each week. ❑ Focus on one core benefit (i.e., price, quality or service) to win. Don’t let any of these benefits slip below the competitive zone line. Have 2-3 lunch meetings with your management team or board and define this.

❑ Differentiate your marketing function from your sales function. Know who leads. This eliminates confusion. Do the Leslie’s Compass activity with your management team at your next meeting. It just clarifies… ❑ Create marketing plans (i.e. ,quarterly) what have measurable targets. Have your sales and marketing team drive them forward like projects. Hold a marketing battle rhythm. After the

above is done, start working with your marketing team on quarterly projects with SMART goals.When I do X, sales goes up.

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HOMEWORK ASSIGNMENT 1. Use your calendar (I Musts, map all your time, set aside 3 hours for ON the business work) 2. Schedule 3 hours: –

Define your company’s core benefit (think about this) based on your target markets’ wants.

–

Decide who leads - sales or marketing?

–

Write a 3-month marketing plan to hit a measurable marketing KPI target. The activities you do to hit that target should align with your “X”.

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REFLECTION TIME

Proprietary and Confidential to Renew LLC

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Thank you! www.renewstrategies.com

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