MARKETING vs marketing VAL www.consulttus.com
Big-M vs small-m marketing • What is marketing to you? • What is marketing to your investors? • What is “Big M” marketing? • What is “small m” marketing? • Which one will get you the money? • Which one drives profitable growth? • Which one provides value to investors? T H E C O N S U L T T U S G R O U P , I N C .
Market Viability Validation • Who is going to buy your product/service? • What price will they pay for it, what isprofit? • Which channels move it to market fastest? • How long is the sales cycle, when profitable? • How many will you sell in the first year? • What is the expected product life cycle? • Who are competitors / what are their positions? • How do you know all of the above? T H E C O N S U L T T U S G R O U P , I N C .
What is the relationship between Big M, small m and sales and which one drives revenue and profit? T H E C O N S U L T T U S G R O U P , I N C .
After the Internet Boom • During internet frenzy little market viability validation was needed to get VC $$$ • “Marketing” in biz plans was “small m” • Lots of tactical promotion of un-validated products in un-validated markets • Slow market ramp up drew more VC $$$ • Not today – need air-tight market viability validation just to get VC interest T H E C O N S U L T T U S G R O U P , I N C .
Examples of Local Duds • I had personal experience with each • All attracted major funding • Non had Big M market viability validation • Non are around today • Transducers with mounted digital displays • Digital traffic signals with concealed cameras • Wholesale building materials T H E C O N S U L T T U S G R O U P , I N C .
Big M Marketing Rules • You will get out of it what you put into it • Focus on market viability validation in your biz plan • Have broad customer testimony for your product • Include channel partner endorsements • Know market position precisely • Have a clear value proposition for sustained growth • Minimize small m “marketing” in biz plan • Don’t ask for funds to promote un-validated markets • Don’t come to the VC table with products in search of markets • Don’t expect VCs to “get it” when you have not provided crystal clear market viability validation
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