1 THE EXECUTIVE’S PROGRAM SESSION 13 STRATEGY & MARKETING MASTERY
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 2
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 3
REMINDERS
Finance
4. Refresher courses and
exam.
1. Only 3 classes left, after today – then the (optional)
5. Awards given. 4
2. refresh next Wednesday at noon. will be collecting information on your company. coaching will be offered.
3. We
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. – Play around with the 13-week cash flow tool – Analyze your cash flow using the marginal cash flow tool – Select 1 of the 7 levers to set a target to improve cash 5Proprietary and Confidential to Renew LLC
The Foundation “ …planning, governance, organization, systems, meetings and finance… ”
Session Topics
If you did just one thing…
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. Part 3: Mastering Flow Build and use a 13-week Cash Flow. Update it every week.
Finance
Reporting Start measuring 5-10 KPIs for your company. Weekly or monthly. As you measure it, you will see improvements.
ORIENTEERING: STEP-BY-STEP
Cash
The AMP Write down you AMP. Look to the Left!
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Start with your Guiding Statements, and KISS and use it (Coffee Stains) to set your annual plans.
Governance
The Habits Have a morning routine! Use your calendar. Set 3 “I Musts” each week and map them to your calendar.
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.
Meetings Run great meetings! Use them to drive execution. Use meetings to drive execute. Have P, O and A for every meeting.
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.
Management Teams Have an org chart and use it to organize your company. Write PAs for those connected to you (your management team).
Strategic Planning Write down your 5-year plan.
Execution Build your binder! “I should write that down.” Write SOPs. They are the treasure. Plan + Organized Team + PAs + SOPs + Battle Rhythm = Results!
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.
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2.
1. Step 1:Analyze your financials to understand your cash flow (CCC, Marginal Cash Flow). Step 2: Know your 7 cash flow levers. If more cash is needed, strategize which one to pull.
MASTERING CASH: BASIC STEPS
3. Step 3: Manage cash each week with a 13-week cash flow forecast tool and monitor impact of cash levers. Step 4: Build a culture of cash flow awareness using reporting and incentives. Step 5: Grow your cash reserves to 2-months of reserves.
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MASTERING CASH:TOOLS 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. 9 The 7 Levers of Cash The MasterTool. Use it every week.A lot to fill in at first, but easy to update. 13 Week Cash Flow
MASTERING CASH: GOAL Rule of Thumb: Build 2 months of OPEX. 10 Companies with more cash are more successful
11 Time For Growth Becoming the market leader.
This will not be a comprehensive course on marketing.There are thousands of topics to cover under marketing.
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This will focus on the disciplines you must do to win in the marketplace.
MARKETING
WHAT IS MARKETING 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
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• What
13 Source: Investopedia.com
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A marketing strategy refers to a business's overall game plan for reaching prospective consumers and turning them into customers.
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WHAT IS A MARKETING STRATEGY
What is a marketing strategy?
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It starts with detailed information on the target customer, a very honest comparison with competitor, unique selling points, value proposition, and key marketing messages.
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Source: Investopedia
Used to inform the marketing plan(s) – the “how”.
• are marketing plan(s)?
– A company may design and run multiple market plans per year.
WHAT ARE MARKETING PLANS
– Marketing plans must have a clear start and end, with SMART objectives/targets, activities, owners, milestones and KPIs.
– Explains the “How”. – Lays out the types and timing of specific marketing activities or marketing initiatives.
What
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– Details how the business will get across the key message to the target market.
PART 1: WHY DOES MARKETING MATTER? 16
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GROW OR DIE
18 Your marketing strategy is your “strategy”
PART 2: WHAT DOES GOOD MARKETING LOOK LIKE? 19
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Wisdom Give the market what it wants, and they will beat a path to your door to get it.
BAD MARKETING 21 • The CEO does not know what marketing is. • Not focused or consistent. So consumes a lot of energy and money, but with little results. • No regular research done on the market. • The company is not delivering on the marketing commitment. • Competition is easily copying. • There is nothing being planned or tracked. No plans, goals, KPIs, etc. • No marketing battle rhythm.
GOOD MARKETING 22 • Marketing is focused on a core value proposition or benefit to the customer. • The entire company is designed to deliver that benefit. • The marketing function is clearly different from sales. • Information on the target market and competitors is being gathered and analyzed on a regular basis. • There is a regular standing meeting each week and month to review marketing plans: Goals, activities, KPIs. • It is where the CEO spends a majority of their QII time. Starts Here
PART 3: HOW TO BECOME A MARKET(ING) LEADER 23
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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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.”
HIGH-LEVEL STEPS
1. Step 1: Clearly define and understand your target market (keep this fresh and refreshed).
STEP 1:YOUR TARGET MARKET Get Very Specific 25 Demographics are not only who has a need for your product or service, but also who is most likely to buy it: • Age • Location • Gender • Income level • Education level • Marital or family status • Occupation • Ethnic background Psychographics are the more personal characteristics of a person, including: • Personality • Attitudes • Values • Interests/hobbies • Lifestyles • Behavior Read from Inc. Magazine: https://www.inc.com/guides/2010/06/defining-your-target-market.html
Your Market Who are they? What do they want? Give the market what it wants, and they will beat a path to your door. 26
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? Can they afford my product / service? Can I reach them with my message? Are they easily accessible?
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)
Source: Inc. https://www.inc.com/guides/2010/06/defining-your-target-market.html
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STEP 1:YOUR TARGET MARKET
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STEP 2:YOUR CORE BENEFIT 28 Quality ServiceCost Source: Disciplines of Market Leaders
Pick one. This is just the start. Then get appropriately specific.
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 29
Focus → Obsess → Success 30
31 CORE BENEFIT 1: QUALITY FOCUS Source: Disciplines of Market Leaders A.K.A. Product
32 CORE BENEFIT 2: COST FOCUS Source: Disciplines of Market Leaders A.K.A. Efficiency
CORE BENEFIT 3: SERVICE FOCUS 33 Source: Disciplines of Market Leaders A.K.A.Total Solution
STEP 2:YOUR CORE BENEFIT 34 Competitive zone Your one areaTimecustomertoValue
STEP 2 SUMMARY 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) 35 Competitive zone: the other two Your “one value” Time customertoValue
STEP 3: KNOW WHO LEADS 36 Marketing vs. Sales Source: HBO.com
STEP 3: KNOW WHO LEADS Marketing Leads 7Variables 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 37Source: Leslie's’ Compass
STEP 3: KNOW WHO LEADS (EXAMPLE) Marketing Leads 7Variables 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 38 Source: Leslie's’ Compass
WHO LEADS
If
you’re marketing-intensive, the product is bought. If you’re sales-intensive, the product is sold. 39 B2C: Distribution and a marketing machine. B2B: Lead generation and a sales machine.
Source: Leslie's’ Compass
• Marketing has primacy. • Marketing generates the demand. • With its campaigns, it creates a strong enough appetite that people buy the product on their own.
STEP 3: KNOW WHO LEADS BUILD THE RIGHT SYSTEM 40
Marketing Serves Sales
• Sales has primacy. • Marketing’s responsibility is to create and hand off qualified leads to the sales organization. • 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!
• Lead manager – works on the brand, advertising, PR, launch and more.
• 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.
Sales Serves Marketing
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. 41 Simplified
STEP 4: DEVELOP MARKETING PLANS • Distribution • Sales channels • Inventory • Logistics • Advertising • Sales force • Publicity (PR) • promotionsSales • List price • Discounts • Bundling • Credit terms • Functionality • Quality • Branding • Packaging • Sizes • Services Product Price PlacePromotion 42 Target Market & Benefit
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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. –
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 • Marketing Plan Objective: Answers the “why.” –
Examples: Generate 100 qualified leads by September. Sign up 18 new young members by November.
Marketing Plan SMART Key Results:Answers “what” we want to accomplish by when. Goals #1, #2, #3. –
Pricing strategy: Lower entry point from 50K to 25K for this target market.
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 Oct:Sept: Nov: # of MembersNewYoungJoined (leads converted) Sept: 0 Oct: Nov:612 Nov:Oct:Sept: 44
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• 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.
• 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?”
• Annual: 1-2 days to review your strategy and design marketing plans and a marketing budget.
STEP 5: DRIVE A MARKING BATTLE RHYTHM Marketing Habits
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 46
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 47
Measure it Monthly!
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KISS MARKETING KPIS Example KPIs • WebsiteTraffic Ratios:Visitors to Leads (emails), Lead to Qualified Leads (emails of 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. • Sales growth – Trend analysis 49 Marketing to Sales Funnel Source:Vital What is this telling us?
SIDEBAR GENDER-SMART MARKETING HOW TO SELL MORE! 50
GENDER-SMART MARKETING 51 • Gender smart and responsible marketing is at the core of international principles • For example:WEPs by UN Women and UN Global Compact
CAUTION: DON’T PERPETUATE GENDER STEREOTYPES 52 Check your website or marketing materials
PROGRESSIVE ADVERTISING 53 CareImagesGender-smartwork Business Briefing Unilever & Oxfam Link
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TREND: UN-STEREOTYPING MARKETING
CASE GENDERSTUDY:-SMART MARKETING 55
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.
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Gender-disaggregated data and market insights are key for a gendersmart marketing strategy
MARKETING Product PlacePricePromotion 57 A gender-smart marketing strategy starts with gender-smart market research, product design, marketing, distributions channels and Makesales! sure women are actively involved in every step of the way. researchMarket Productdesign Marketing Distributionchannels Sales Gender Smart Strategy 4Ps
GENDERTAKE-AWAYS:-SMART
are helping companies on gendersmart marketing – they often release guidance – and its free to use!
TAKE-AWAYS: agencies
58 Communications
SUMMARY STEPS
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2. Step 2: Choose your company’s core benefit.Align your company around this market strategy (keep this at the center).
4. Step 4: Build marketing plans. Have clear, time bound, objectivefocused marketing plans built around the 4Ps (marketing mix).
Drive
5. Step 5: marketing plans via a marketing battle rhythm (weekly and monthly meetings)
1. Step 1: Clearly define and understand your target market (keep this fresh).
3. Step 3: Know who leads: marketing OR sales.
PART 5: BREAKOUT 60
4. What internal improvements can you make to ensure you stay ahead of competition - above the line?
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2. How confident are you that what your company is delivering is what your target market wants? Why? How can you improve this?
1. When we do X, we get more sales: what is your company’s “X”?
BREAKOUT QUESTIONS
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)?
PART 6: SUMMARY 62
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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.
❑ 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.
❑ 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.
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”. 64
REFLECTION TIME 65Proprietary and Confidential to Renew LLC
66 Thank you! www.renewstrategies.com