Strategic Marketing 2006

Crush the Competition
and Boost Sales with
Strategic Marketing

June 21, 2006

Wilson Zehr
CEO
Cendix
© 2006 Cendix (www.cendix.com)

Strategic Marketing
Introduction

 Sales growing as rapidly as you want?
 On the “short list” for your best prospects?
 Perceived as a leader in your primary market?
 Growing slower than your competitors?
 Losing important deals to competitors?
 Recognized as the solution of choice?

Strategic Marketing can help you address all these
issues and more. We’ll show you how…

© 2006 Cendix (www.cendix.com) Page 2

Strategic Marketing Model
Components & Relationship

the core

5 P’s

one more


Strategic Marketing Model
Strategic Marketing Defined

Big M

little m


Brand & Strategy
The Foundation

 What is “strategy”?
 What is “brand”?

 How important is brand?
 Market
 Buying behavior
 Choices/urgency


Brand & Strategy
Alignment Essential
 Similar discovery process
 Elements to consider
 Vision/mission ▪ Pricing
 Elevator pitch ▪ Competition
 SWOT analysis ▪ Strategic wins/losses
 Values ▪ Roadmap (6, 12, 24 m’s)
 Image ▪ Stage organization
 Market/Customer ▪ Competitive distinction
 Product/Benefit ▪ Business plan/financials
 Collateral ▪ Guiding function


Brand & Strategy
SWOT Analysis

Strengths Weaknesses
- Nimble - Limited barriers to entry
- Well financed - Short operating history
- Growing sales - Small size
- 100% customer satisfaction -…
-…

Opportunities Threats
- New government regulations - Sleeping giants
- Explosive new verticals - Rising interest rates
- Client referrals - Dependent on venture funds
- … - …


People
Know Your Prospect

 Who is the customer?
 Current customers
 Target prospects
 Demographics
 Market size
 Where is the pain?
 What is the buying behavior?
 Who are the key influencers?
 Who is the decision maker?


Product
Definition

 Product vs. device
 Device is foundation
 Product includes all deliverables
 Device
 Collateral
 Purchase incentives
 Installation & training
 Service & support
 Financing
 …


Product
Primary Elements

 Benefits
 Distinctive features
 Competitive differentiation
 Product requirements
 Market window
 Price point


Product
Release Bundle

 Establish master feature list
 Customer requests
 Brainstorm internally
 Observe competition/industry literature
 Determine ROI for each new feature
 Establish target market window
 Understand resources available
 Maximize return on resources
 Draw the cut line


Product
Enlightened Product Development

 Establish the product “core”
 Enhance systematically
 Publish realistic dates
 Hit dates promised
 Avoid “Big Bang”
 Quickly eliminate issues
 LISTEN to your customers!


Price
Three Key Factors

 Cost of Goods
 Value
 ROI (value produced – cost)/cost
 reduce expenses
 grow revenue
 save time
 Intangibles
 Competition
 Comparative value
 Other factors


Price
Natural Selection Model

$$$
competitive pressure:
volumes drive
down unit cost
$$
Sequent (a)

cogs a HP (b)
cogs b $ Sun (c)
cogs c
Compaq (d)
cogs d
0
Value
(Completeness)


Price
Other Things to Consider

 Terms/financing
 Volume discounts
 Product bundling
 Price elasticity
 Annuity pricing
 Seasonality
 Promo’s


Place
“Process” of Selling

Prospect
Marketing
Qualified Lead

Sales Opportunity

Sale


Place
Channel Selection

 Price point
 Completeness of solution
 Complexity of sale
 Channel choices
 Direct response
 Inside telesales
 Outside sales
 Channel partners
 Plus many more…


Promotion
Build Momentum

 Understand buying behavior
 Define sales process
 Fill the funnel with “qualified” leads
 A leads: Interest, budget, will act soon
 B leads: Interest, budget
 C leads: Interest
 Support each step in sales process
 Collateral/Tools
 Training
 Sell benefits not features


Promotion
Select Optimal “Mix”

 Advertising
 Print  Broadcast
 Online  Outdoor
 Direct response  Events
 Plus, many more…
 Public relations
 Viral
 “Word of mouth” on steroids
 Online or offline


Promotion
Online: Internet Basics

Communication Substrate AIM

Information Portal Google

Sales Channel Amazon

Match usage to products/markets


Promotion
Online: Factors to Consider
 Reach
 Active vs. Passive
 Objective
 Build rapport
 Generate leads
 Close sales
 Choose tools
 Web site  SEO/PPC
 email  Banners
 Webinars  Blog’s/RSS
 Affiliates  newsgroups
 Articles  …

Positioning
The Missing “P”

 Unique combination of P’s
 Does not have to be balanced
 Price leader
 Performance leader
 Fashion leader
 …
 Leverage competitive strengths
 Exploit weakness of others


Strategic Marketing
Concept Summary

 Embrace strategic marketing model
 Align strategy with brand
 Optimize the “five” P’s
 People
 Product
 Place
 Price
 Promotion
 Establish winning positioning
 Execute flawlessly


Wilson Zehr
Cendix (www.cendix.com)
Wilson Zehr has more than 25 years experience in high technology and telecom -- over 10 years experience working with Internet-related products
and services. He has created numerous new products and successfully brought them to market. In addition, he has managed strategic alliances with
many of the largest technology and communications firms in the world, including: Oracle, Sun, HP, DEC, IBM, Microsoft, Intel, Cisco, Lucent, 3Com,
Qwest, Verizon, Bell Canada, USPS, UPS, Xerox, Kinko’s, and others. Mr. Zehr is also a serial entrepreneur who has raised over $60 million from
investors; returned over $160 million; and bought/sold a number of enterprises. Currently, Wilson is the CEO of Cendix (www.cendix.com) the
leading provider of Web-to-print solutions that increase sales both online and offline. Cendix also provides strategic and tactical marketing
consulting services for emerging growth companies in the Pacific Northwest. In addition, Wilson serves on the faculty for the School of Management
at Concordia University, Portland, Oregon (www.cu-portland.edu).
Wilson also served as Chief Technical Officer for GetGordon (www.getgordon.com); a company that offers time-based multi-medium sales
automation tools; and as the Partner responsible for the Strategic Marketing Consulting Practice at Cube Management. From 1999 to 2004 Wilson
was co-founder and CEO of Zairmail/Launchpoint (acquired by Global Document Solutions). Zairmail (www.zairmail.com) invented the concept of
hybrid mail for short-run direct mail campaigns working with the US Postal Service. Wilson guided the company from a seed stage enterprise to a
mature organization with more than 12,000 registered users, 160,000 newsletter subscribers, and over 25 strategic partners including: the United
States Postal Service, Microsoft, Office Depot, Xerox, Kinko's, IKON, Experian, InfoUSA, and others. The company was funded by Hewlett Packard,
Tim Draper, and Timberline Venture Partners (Northwest affiliate of Draper Fisher Jurvetson).
From 1996 to 1999, Wilson led Business Development at eFusion (acquired by ITXC/Teleglobe NASDAQ: TLGB); a provider of VoIP gateways and
advanced software applications; where he was responsible for network product definition, product positioning, developing marketing materials,
evangelizing the technology, and he was also the leading salesperson for the company (80% of sales). eFusion was acquired by ITXC in a
transaction valued at over $160 million. The company was funded by Intel, Microsoft, AT&T, Lucent, France Telecom, and others. Mr. Zehr came to
eFusion from Sequent Computer Systems (acquired by IBM NYSE: IBM); the leading provider of Unix-based enterprise database servers; where he
was responsible for starting the Custom OLTP Business Group and managing Sequent's global relationship with Oracle Corporation. Custom OLTP
leveraged sales represented over 65% of Sequent's revenue in 1995 ($290 million). In addition, he grew leveraged sales attributable to Oracle from
46% of Sequent's business in 1993, to well over 60% of revenues in 1994 (~$200 million). Mr. Zehr also managed strategic relationships and a line
of software engineering automation products for Cadre Technologies (acquired by Computer Associates NYSE: CA).
In addition, Wilson started his career working as a Software Engineer for Verdix Corporation (acquired by Rational/IBM NYSE: IBM); the world’s
leading provider of Ada compiler technology. Wilson received a B.S. in Finance (Computer Science minor) and an M.B.A. from Portland State
University. He completed all of the coursework required for his Ph.D. in Systems Science. He has served on the Boards of the Software Association
of Oregon, the Oregon Advanced Computing Institute (OACIS), the American Advertising Museum, the Program Management Forum, and on the
national Small Business Advisory Council of the American Electronics Association (AeA). He also teaches classes on venture finance and business
strategy at Portland State University and participates in the multi-university Lab2Market venture mentoring program.


Strategic Marketing 2006

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