0% found this document useful (0 votes)
297 views

All Lectures

The document provides an overview of a class on digital marketing and the connected economy. It includes: - An introduction and overview of the class layout and topics to be covered over two parts, including introductions, an overview of the syllabus and assignments, and lectures on social media marketing and startup structure. - Biographical information about the instructor, James Loomstein, including his background and experience in digital marketing and as an entrepreneur and CEO. - Details about the syllabus, including assignments on case studies, growth opportunity analysis, and building a digital marketing toolbox. - The objective of the class, which is to teach students how to be the "CEO of the problem" by focusing on

Uploaded by

morgan hafer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
297 views

All Lectures

The document provides an overview of a class on digital marketing and the connected economy. It includes: - An introduction and overview of the class layout and topics to be covered over two parts, including introductions, an overview of the syllabus and assignments, and lectures on social media marketing and startup structure. - Biographical information about the instructor, James Loomstein, including his background and experience in digital marketing and as an entrepreneur and CEO. - Details about the syllabus, including assignments on case studies, growth opportunity analysis, and building a digital marketing toolbox. - The objective of the class, which is to teach students how to be the "CEO of the problem" by focusing on

Uploaded by

morgan hafer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 126

James Loomstein, MBA

CISB 6220 | Spring 2021


Class Overview
Welcome
Part I – Introductions / Overview (6:30- 7:40) Part II – Lecture (8:00 – 9:45)
● How we got here
● Check into class
● Class overview and layout ● Introduction to the connected
● Introductions economy
● Syllabus ● Understanding social media
● Grading marketing elements
● Assignments ● Startup design + structure
● Business challenge/opportunity
Break (7:40-8:00) ● Problem recognition/approach
How I got here
The short version...
• Born and raised in Dallas
• Bradley University (1999)
• SMU MBA graduate (2005)
• 9 Years Corporate/Agency
• 11 Years startup / CEO / owner
• Digital Space Consulting
• Rogue Marketing
• 7th year SMU adjunct faculty
• Dad/Husband
• Better-half: Shelley
• Kids: Brennen (12) , Hayley (9)
Syllabus

- HBR cases / articles - Minimally viable marketing project - Creating a tactical solution
- Industry trade publications - Growth opportunity analysis - Building your digital toolbox
- Podcasts - Marketing framework - Industry speakers
CEO of the problem
● We live in a connected economy
Today’s leaders need to be
● Platforms and technology connect consumers able to accelerate a vision,
● Buying software and spending more on marketing does not solve create a speed to solution
and understand the
business problems
micro/macro customer
● Niche brands scale (but they also shrink the available pie)
acquisition drivers
● ROI positive or not is a terrible marketing investment strategy

● Removing friction drives growth

● If you want to build a 20 story building...you need to dig down 20 stories


Class Objective As future executives
Creating a scalable framework
and a path forward
What we want to achieve
• How to be the CEO of the problem
• Setting the right focus and priorities across the
business
• Creating a channel strategy + media-mix
• Focusing on PROFITABLE growth and
identifying white space opportunities
Built on a growth model
• Creating strategies for finding the right key team
members / technology on a TIGHT BUDGET ● Strong business / marketing vocabulary
• Leveraging data insights to drive key business ● Identify/act on opportunities
decisions ● Identifying metrics that matter
● Prioritization strategy
● Developing a MVM /GTM model approach
Expectations
HBR Case Reviews
• Taking on the role of the protagonist (CEO of the problem)
• In-class: providing discussion on observations, solutions and points of friction
• Write-up: Case observations, implications of solution, rationale for decision and identifying points of friction

Growth Opportunity Analysis


• Identify opportunities within specific industries
• Sitting in the decision makers seat
• Providing a recommendation based on research, data and insight

Quiz
• Quiz is closed book/closed notes
• Opportunity for you to check-in // finding the gaps as the course progresses

Final Exam
• Understanding of class lecture and assigned reading concepts
• Ability to perform conversion calculations covered in readings
• Demonstrate digital marketing vocabulary // apply directly to the business
• Demonstrating an ability to build a GTM / MVM approach for a product introduction
What to do next
Step 1 Take a break

Step 2 Ask me questions

Step 3 Put on your startup hat (we will talk about these after the break)
● Where are consumer deploying attention
● Where would you launch a new technology product
● What industry trends are you seeing post-covid in the new-new normal?
James Loomstein, MBA
CISB 6220 | Spring 2021
Connected Economy
CEO | Timeline
Data is the new oil
2019 IPO List
- Uber
- Lyft
- Slack
- Pinterest
- WeWork
2020/2021 IPO List
- AirBNB
- Postmates
- Casper
- Doordash
- Bumble
- Nextdoor
How did you find information in 1955?
How did you find information in 1990?
How did you find information in 2005?
How did you find information in 2020?
Yahoo.com home page in 1996
And Then….

In 1999, Yahoo acquired


Broadcast.com for a whopping
$5.7 billion in stock. Cuban netted
$1 billion when he sold his
shares.
Google Search Results 2000
Google Search Results Today
How Does This Impact You?
The Pie Is Getting Smaller
The Pie Is Getting Smaller
How Digital Marketing CHANGED on the Consumer Side

Product discoverability

Product accessibility

Proliferation of choice

Social commerce
ng on the Business Side
How Digital Marketing Will Change
IS
gi
a n
Ch
Two fundamental reasons

Growth rate of digital spending Growth rate of martech technology tools


How Digital Marketing Is Changing on the Business Side
Consumption Changes
Business Insights

Growth will come out of new search


engines and content types
• How did you find information in
1990?
• How did you find information in
2005?
• How did you find information in
2015?
• How did you find information in
2021?
20% 60% 20%

Awareness Consideration Purchase Loyalty Advocacy

FB X X

Instagram X

Google
Adwords

YouTube X

email X
60%
Business Insights

Growth will come out of new search


engines and content types
• How did you find information in
1990?
• How did you find information in
2005?
• How did you find information in
2015?
• How did you find information in
2018?
What’s The Digital Impact for Startups
Rise of Voice Search
• 65% of consumers ages 25-49 years old talk to their voice-enabled devices daily
• The number of voice search increased by 35x from 2008 to 2016
• Mobile voice search on Google is now translated in over 60 languages
Multichannel Approach
• Inability to build a brand off one channel
• Shift from ROI/ROAS to CRO model
• Channel strategy expansion to DTC and social commerce
Discoverability
Algorithm complexity Accessibility
Unlimited Choice
• Shift towards great dependence on AI/Machine Learning
Reduced Purchase Friction
Ideation Framework (IAPE)
Class Discussion
Let’s dive into….
• How are companies creating influence to drive purchase in 2021?

• What new company has caught your attention? How?

• Where do you think consumers are deploying attention today?

• What channels do you think a consumer uses to make a purchase decision?


Self-Awareness
Ideas Idea
Validating ideas
• Does this idea solve a problem you currently face
Audience
• How easy is this to replicate
• How much do you love this idea (passion)
Product
• Why now (why is this the perfect time? Why not two years ago? Why not two
years from now?)
Execution
• Is this product very easy to explain/understand in less than two sentences

Key takeaway
• Recognizing a true business problem is more important than picking a
company name
Self-Awareness
Audience Idea
What you’re looking for
• Small niche that you can own and rapidly expand
Audience
• Understanding consumer behavior 2-10 years out Product
Questions to consider Execution
• What is the size and growth rate of the market
• How is the market going to evolve
• Does my idea target a small/rapidly growing market or an old/dying market
• What are the challenges that this audience faces THAT WOULD LEAD TO A CHANGE
Self-Awareness
Product Idea
Overview
• Great idea ---> Great product ---> Great company Audience
• Until you build a great product - nothing else matters
 
Product
Where to start ideating Execution
• What are consumers doing right now to solve this problem?
• What metrics would you recommend to validate trajectory?
• What blindspots would watch out for?
• What are the friction points that would prohibit growth

Takeaways
• Build something that users love vs. making something that people like
• It's better to build something that a small amount of users love - than a something that a
lot of people like
Self-Awareness
Execution
What you need to start Idea
• Creating a system
• Prioritization Audience
• Budget allocation
• Customer adoption (diffusion of innovation) Product
The outcome you want to achieve Execution
• Data driven market intelligence
• Speed to solution
• Identifiable / micro-market
• Execution > TIming/Funding
Think for yourself
• Simple: Google is a search box with two buttons
• Functional: iPhone was the first mobile phone that people loved
• Functional: Uber and Opentable save you time
Bring it all together
Social Media | Connected Economy | Digital Opportunity

Let’s consider another set of possible truths


• Privacy will continually be traded for better (or faster) customer experience
• Time will become the most important asset to consumers
• And customer reviews will be the equivalent of credit scores for consumers – determining where we
shop, eat, purchase, travel, etc. I.e. AirBNB, Amazon, Zappos, Netflix, etc.

Framing where opportunity meets demand


• Accessibility and discoverability drives growth
• Reducing friction, leveraging connected devices and seamless transactions
• Shift towards a sharing / fractional ownership / on-demand economy
• And using the network effect as a growth engine
Why Now

Why Launch
Why Social Media / Digital Marketing
• Big companies are slow / bureaucratic
• Traditional advertising isn’t feasible
• The cost to entry is incredibly low
• Data driven marketing intelligence
• Internet is hitting maturity
• Faster optimization for conversion
• Connected devices / mobile economy
• Every company is a media company
• Access to capital
• Ability to find/exploit micro-yes moments
Next Step
Next Steps
Assignments
Next week
• Complete student profiles
- Establishing a foundation
• bit.ly/studentprofile6220 (all lowercase) - Finding an audience
- Speaker: Facebook Targeting
• Course pack material
• Marketing Reading: Digital Marketing (page 1-55)
• Article: Why Most Product Launches Fail
• Article: Why Great Innovation Needs Great Marketing

• Download vocabulary list (available on canvas under resources)

• This week: Be on the lookout for next week's lecture + an in-class pre-read real world startup
concept
“The two most important roles at a company are those of
innovation and marketing” - Peter Drucker

James Loomstein, MBA


CISB 6220 | Spring 2021
Levels of Marketing
The act of changing what
surrounds the actual product
or service, adding enough
Telling a story that resonates with a usability and support and
tribe. The act of creating alignment. atmosphere that the
The product or service isn't for perception of the product
everyone, but bend over backwards itself changes.
to be sure that some people will be Example: Zappos.
able to fall in love with it. Example:
AirBNB, FitBit, Peloton

Take what the industry / company / The actual product or service


boss gives you and hype it, promote it itself. When the thing you sell
and yell about it. Example: Mostly has communication built in,
Everyone when it is remarkable and
worth talking about, when it
changes the
game—marketing seems a lot
easier. Example: (tell me)

If your marketing isn’t working...go one level deeper. - Seth Godin


Most inventors and marketers start with what they have (the stuff) and
try to work backward to the 'who is it for' question. It makes a lot more
sense to go the other direction.

Identify a set of fears, dreams and attitudes and then figure out what
sort of story fits that lock in a way that delights the consumer.

Then go build that.

What is it? Who is it for?


1
In
si
gh
W t
e s
se
e
a
po
in
to
ff
ric
tio
n
in
th
e
m
ar
ke
t .

2
St
r a t e

W
gy

re e w
th sp ill
is on p
m d re
uc by se
h n
m tak t X
on in to
ey g t th
in his e m
Marketing as a Linear Process

th ac a
is tio rk
m n et
uc . W an
h e d
tim w th
3

e. ill b e m
ui a
ld rk
Ex Y et
ec w w
ith ill
u ti
W on
w ew
an ill t ill
d he do
so n A
on de , a
. plo nd
y th
C
ta en
ct B
ic w
ag ill
ai ha
ns p
t D pe
n
ta . W
rg e
et
Target Platform Campaign Performance
Problem Recognition
Audience Prioritization Execution Optimization

What is the business Does my idea target a What are the primary and What is the minimum Impression share
problem to be solved? small/rapidly growing secondary tactics required marketing spend threshold
market or an old/dying for product discoverability? required for success? Organic / Referral / Paid
market Media traffic
How are potential
customers currently What is the total and What is the 80-15-5 mix for Sales efficiency
solving this problem? available market size for conversion? (CPL, CPA)
this product?
Average order size
Is the problem painful What are the demographic
enough to warrant an / psychographic traits for Social media engagement
alternative solution? the primary audience?
ROAS
How easy is this solution to What is customer journey
replicate? for an idea customer? Repeat purchase
conversion rate (LTV)

Why is now the right time


to solve this problem?

What is your unfair


competitive advantage?
Sprint Assignment | Audience
Overview

Using the Linear Process of Marketing -


leverage an insight to build out an
audience selection.

Assignment

1. What is the monthly search volume (audience size)?


2. What is the pain point you are solving?
3. What is the customer journey (Awareness -->Advocacy)?
4. What marketing metrics would you use to measure
performance/success at each journey point?
Creating a marketing approach
Customer Journey
awareness --- > consideration ---> purchase ----> Loyalty ----> advocacy
Customer Journey + Platform Alignment
Tactic Awareness Consideration Purchase Loyalty Advocacy

Facebook

Instagram

YouTube

Google Adwords

TikTok

Pinterest

LinkedIn

Nextdoor

Yelp

Direct Mail

TV/Radio

Billboard
Inbound | Outbound
Engagement | Media Exposure Opportunities
awareness --- > consideration ---> purchase ----> Loyalty ----> advocacy
Example Workflow
Target Audience Discovery
Problem Recognition
Objective: Who’s bleeding? Do they want to change behavior?

What is the business problem Consumer Insights Market


to be solved? ● Google Trends New Diversification
Development
● Reddit.com
How are potential customers ● SparkToro.com Markets
currently solving this problem? ● UbberSuggest.com Market Product
● Amazon.com Existing Penetration Development
Is the problem painful enough
to warrant an alternative Competitive Audit

Existing

New
solution? ● Website review

/ Service
Product
● Path to purchase opportunity
How easy is this solution to analysis
replicate? ● Identified revenue drivers

Why is now the right time to


solve this problem?

What is your unfair competitive


advantage?
Audience Alignment
Objective: Who’s bleeding? Do they want to change behavior?

Does my idea target a small/rapidly growing


market or an old/dying market

What is the total and available market size for


this product?

What are the demographic / psychographic


traits for the primary audience?

What is customer journey for an idea


customer?

Industry Trends
● Trade publications
● Mintel
● IBIS
● Statistia
● ABI/Inform
● Statistical Abstract
● BLS
Target Audience Example

----------------------------------------------------------
SparkToro.com
Target Audience Example

----------------------------------------------------------
Keyword: Woodworking
Identifying Search Volume

----------------------------------------------------------
Keyword: Woodworking
Planning a web presence
Goals + Content + Targeting
Marketing Measurement | Customer Journey

LOYALTY ADVOCACY
AWARENESS CONSIDERATION PURCHASE

Metric / Stage Awareness Consideration Purchase Loyalty Advocacy

Measurement Search Prospect:Lead Revenue/


Conversion Life-time value
Focus volume ratio referral source

Impression
KPI CPC CPA LTV CPA
share

CPL CTR ROAS

CPM TOS
Marketing Math
Conversion Calculations
Click-Through Rate (CTR) Return on Ad Ad Spend (ROAS)
Cost Per Click (CPC) Cost Per Thousand (CPM)
Cost Per Lead (CPL)
Cost Per Acquisition (CPA)
Customer Lifetime Value (LTV)

Google Glossary: https://support.google.com/google-ads/topic/3121777?hl=en&ref_topic=3119106


Meaningful Measurement
Growth Oriented Metrics

KPIs | Awareness Stage


- Impression share
- Brand search volume
- Referral traffic

KPI | Consideration Stage


- Bounce rate
- Page/visit
- Average TOS
- Shares/comments/likes
Where can we connect with
our audience KPI | Purchase
- Sales efficiency (CPL, CPA, LTV)
1 - Average order size
Paid - Owned - Earned - Shared
What would we - Revenue/margin
measure? - Marketing ROAS
Sales - Enrollment -
Leads - Awareness - 2 KPI | Advocacy
Referral
What KPIs would be - Customer satisfaction rating
meaningful
KPI | Loyalty
3 CTR - CPM - CPA - LTV - Returning user engagement
- Repeat conversion rate
Framework
6M FRAMEWORK
Objective: Designing a multi-channel framework to deliver consistent and unified messaging to the most relevant people
in your target audience as possible.
Mission Market Message

Media Money Measurement

----------------------------------------------------------
Market: Whom are you addressing? Are you speaking to the right target and are you crafting messages that are specific to them?
Mission: What is your objective?
Message: What are the specific points you want to communicate?
Media: What communication vehicles are you using to get your message across?
Money: How much is budgeted? And how can you perfect your combination of mediums to maximize your budget?
Measurement: How will you assess the performance of your campaign?
Total vs. Available Universe
Top Target Markets to Consider _______________________________

Size of
Total
Universe

End User Size of Identifiable Entrenched Accessible to Urgency Willingness to Frequency of


Available Reason to Competitor Salesforce (1-10) Need (1-10) Change (1-10) Purchase (1-10)
Market Purchase
Next Week
Quiz Next Week
● Vocabulary and marketing terminology
● Understanding the different types of media exposure opportunities
● Understanding the different types of ad placements opportunities
● How and when you might use different advertising tactics based on the customer journey moment (Awareness ---> Advocacy)
● Understanding Inbound vs outbound marketing campaigns
● Re-visit the HBR Core Curriculum
● Review assigned readings and articles

Note: Quiz is closed notes and to be completed individually.


The quiz is timed and will be administered via Canvas
Student Profiles
Digital Experience SMU Concentration Student Profiles

Entrepreneurial Future
Student Profiles
What skill, insight, or direction are you looking to take from this class?
● Develop more confidence in the marketing arena
● How to find a target audience and engage them
● How to tell a better story
● How to market a product to specific target audiences using social media
platforms
● Learning how to build a brand, create a go to market plan, and how to break into
new demographics
● Mastering the power of entrepreneurship and social media ads
● The ability to develop a digital marketing strategy to apply to a start-up
● To figure out what is the right type of online presence
James Loomstein, MBA
CISB 6220 | Spring 2020
1,000 True Believers | Finding An Audience
Ideation Framework (IAPE)

Ideas - Audience - Product - Execution

QUANTITY Co. Growth Engine


MORE CUSTOMERS

QUALITY
MORE CUSTOMERS BUYING MORE

FREQUENCY
MORE CUSTOMERS COMING BACK MORE OFTEN
Framework

Company Strategy Targeting Strategy

New Market Target


Diversification High Foster Loyalty
Development Promotion
Markets Customer Value
Market Product Increase
Low Minimum Effort
Existing Penetration Development Transactions

New Existing Inactive Active


Product / Service
Customer Status
Minimally Viable Marketing
MVM
How It Started How It’s Going
● Spark of genius
● Mom loves it Facebook ads? Google ads? No, content marketing… err, maybe
● Friends love it SEO? Wait, what about Reddit—that’s supposed to be good. But
● Buy a website domain
which one first? Forget all of that… maybe Snapchat instead?
● Order SWAG
● Launch company website Wait...Clubhouse.
● Queue the revenue
There is no shortage of marketing advice, suggestions, tactics,
and strategies online—how do you find the right strategies for
your business? And, what’s more, how do you actually take the
steps to implement these strategies?

“The two most important roles at a company are


those of innovation and marketing”

- Peter Drucker
Test + Validate
Audience Discovery - Does your product serve a pain point? Or a personal passion?
- What level of competition currently exists for your product and niche?
● Primary / secondary research
- Is your product and niche a trend, fad, stable or growing market?
● Identified customer segment
- Is your product accessible locally, nationally, or internationally?
Product Identification - What is the potential price for your product? Margin?
- What is the size/weight and durability of your product?
● trendhunter.ai/ - What is the lifespan of your product?
● trends.google.com
● producthunt.com - Can you scale your product and business if demand increased significantly
● amazon.com/Best-Sellers/zgbs

Audience Validation Campaign Ideation

● Demographic ● Idea 1, 2, 3, 4, 5, …….. 10% or 10X Initiatives


● Psychographic ● Prioritization
● Buying trends ● Budgeting
● Search trends ● 10% // 10X
● Social media insights
● Survey / focus group

Product Validation

● Hypothesis: __________________________
● Industry growth drivers
● Competitive landscape / challengers
Test + Validate
Creative Assets Optimization
● Landing page with clear CTA - MailChimp.com ● Browser Push Notifications
● Survey response - https://typeform.com/ ● Upselling & Cross-Selling Tactics
● Survey panel - https://surveys.google.com/
● Optimize Image Size
● Creative - https://www.canva.com/
● Improve On-Page SEO
● Improve Off-Page SEO
Generate Traffic ● Implement Social Proof
● Influencer Marketing ● Improve Customer Support
● Create a Giveaway ● Send Customer Feedback Surveys
● Create Google Ads ● Update Website with FAQs
● Reddit Strategies ● Write & Publish Blog Posts
● Interact on Niche Forums ● Create an Email Welcome Sequence
● Join Relevant Facebook Groups ● Automate Abandoned Cart Emails
● Create Facebook Ads ● Create a Post-Purchase Sequence
● Facebook Retargeting ● Upselling & Cross-Selling Through Email
● Blog Post Mentions ● Email List Re-Engagement Campaigns
● Niche Media Outreach ● Create an Email Newsletter
● Create Helpful Content ● Contact Cart Abandoners
Campaign
Framework
Solo Stove
About John Merris, Solo Stove CEO

John Merris, CEO of Solo Stove, has been an entrepreneur all his life.
Having been raised by entrepreneur parents, John has always had a
natural draw to taking on the seemingly impossible. After graduating
from college, John started a residential alarm company and recruited
door to door salespeople to grow the business. At its peak, it employed
over 100 employees. John then returned to school at the University of
Texas at Austin and obtained his MBA. While there, John revolutionized
the company’s trade association partnership business and later helped
launch a new advertising product that generated over $40M in revenue
in its first year. After 3 years at the View, John joined Clarus
Glassboards as Chief Revenue Officer. There he helped lead the
company to nearly 3X growth over a 2.5 year period.

His current time at Solo Stove has been his most impressive, leading
the company through exponential growth while building a team 15X
what it was two years ago. Solo Stove has become a direct to consumer
phenom, leveraging technology to directly serve consumers and create
the perfect model for today’s business environment. While the past
decade has been pretty remarkable, the best is yet to come.

John resides in Southlake, TX with his wife and five children.


James Loomstein, MBA
CISB 6220 | Spring 2021
Rewind
Framework

Company Strategy Targeting Strategy

New Market Target


Diversification High Foster Loyalty
Development Promotion
Markets Customer Value
Market Product Increase
Low Minimum Effort
Existing Penetration Development Transactions

New Existing Inactive Active


Product / Service
Customer Status
Rapid Foundation | Business Model Canvas CUSTOMER SEGMENTS
Who are they?
What do they think?
What do they do?

INFRASTRUCTURE OFFERS VALUE PROPOSITION


What’s compelling?
What’s your unfair competitive advantage?
Why do they buy from you?

CHANNELS
How are you positioned to sell your product?
INFRASTRUCTURE

Deliver?

CUSTOMERS
CUSTOMER RELATIONS
How do you interact throughout the customer
journey?

REVENUE STREAM
How do generate revenue from your value
proposition?

KEY RESOURCES
What assets are required to deliver?

KEY ACTIVITIES
What things do you need to deliver?

KEY PARTNERSHIPS
What can you not do (who do you need) so you
can focus on delivery?

GENERATING EFFICIENCY CREATING VALUE COST STRUCTURE


What are the cost drivers? How are they linked
to revenue?
Business Model | Marketplace + DTC Economy
Business Model Approach
Key Questions

● What is a sustainable business model?

● How much capital do you need?

● How can you estimate when you’re going to run out of cash / reach positive cash flow?

● What are your available sources of capital?

● What financial analyses do you need for fundraising?

● What other information do investors typically require?

● What is your exit strategy?

“A business model is a framework for making money. It is the set of activities which a firm performs, how it performs
them, and when it performs them so as to offer its customers benefits they want and to earn a profit.”
Business Model
Four Questions

● What is your value proposition for customers?


Business models are
● How will you build your pro useful for two reasons
● duct or services to deliver this value?
Compelling narrative
● How will you bring your product or service to market?
And a useful checklist
● How will you make money from your product or service?

Business models
aren’t a strategy
Business Model Variations
Example

● Architectural
A business models
○ Built around platforms is the story of how


Create a new value chain to bring multiple parties together
Ex: Ebay (marketplace), Uber (technology intermediary)
your business
works….
● Disruptive
○ Competing against a larger incumbent
○ Ex: Salesforce, Warby Parker

● Value chain / efficiency


○ Control resources / extract value
○ Ex: Instacar, PickUp
○ Ex: Harry, Dollar Shave Club

● Subscription / Freemium
○ Spotify, Adobe, Barkbox,
Marketplace Economy
A16Z Marketplace 100

https://a16z.com/marketplace-100/
Marketplace Economy
KPI Metrics

Term Definition Example

Match Rate How successfully can the two Driver utilization time for ridesharing — what % of the time are drivers
sides of the marketplace find driving around with a passenger, vs. empty?
each other? How often are employers actually filling their posted role in job
marketplaces? And how often are job seekers finding jobs?

Market Depth Is there enough supply? Does it fit Consumer product - how many listings will they see, and how likely will
users’ needs? they be to find an item they want to buy or home they want to rent

Time to match How long does it take for P2P marketplaces - how long does it take for each side to engage in a
(inventory turnover, supply and demand to match? transaction? How long does it take users to receive the first quote? How
or days to turn) long does it take for a seller to sell their product?
Marketplace Economy
KPI Metrics

Term Definition Example

Prevalence of How many of your users also use other similar Share of wallet metric
multi-tenanting services? How many users are active on similar
services?

Switch rate How easy is it for users to join a new (or even Friction point metric
nonexistent) network? How much value can users get
as a new user from joining a different network?

User retention cohort Is retention, as defined by users taking a core action Engagement metri
for the product, improving for newer cohorts?

Power user curve Are users becoming more engaged over time? Adoption rate

Take rate How valuable is the marketplace? Gross merchandise volume (GMV)
Marketplace Success Path
The Holy Grails: These are companies that customers use multiple times per month and regularly spend substantial
money on, typically more than $100 per transaction.

The Occasional Splurges: These businesses provide a lot of value and have price tags to match. I.e., big ticket items like
travel lodging, conference room bookings, and furniture purchases, (1-3/year. +$1,000 AOV)

The Everyday Necessities: These are companies that users rely on for everyday tasks like getting their kids to school
(Zum), walking the dog (Wag), or picking up lunch (Snackpass). (5- 7/mo. <$100 AOV)

The Fits and Starts: Low-cost and relatively infrequently used. (1-2/ mo. <$100 AOV)
Zooming Out
Cohort

Home Automation

Gaming

Mental
Health/Wellness

Gig + Maker
Marketplace

Real Estate

Diet / Exercise
Cohort

Home Automation

Gaming

Mental
Health/Wellness

Gig + Maker
Marketplace

Real Estate

Diet / Exercise
Cohort

Home Automation

Gaming

Mental
Health/Wellness

Gig + Maker
Marketplace

Real Estate

Diet / Exercise
Cohort

Home Automation

Gaming

Mental
Health/Wellness

Gig + Maker
Marketplace

Real Estate

Diet / Exercise
Cohort

Home Automation

Gaming

Mental
Health/Wellness

Gig + Maker
Marketplace

Real Estate

Diet / Exercise
Cohort

Home Automation

Gaming

Mental
Health/Wellness

Gig + Maker
Marketplace

Real Estate

Diet / Exercise
Final Exam Prep
Concepts | Additional Review
● Vocabulary and marketing terminology
● Understanding the different types of media exposure opportunities
● Understanding the different types of ad placements opportunities
● Understanding the different types of business models
● How and when you might use different advertising tactics (Facebook - Awareness, etc.)
● Understanding Inbound vs outbound marketing campaigns
● Re-visit the HBR Core Curriculum

Clicks / impressions = CTR


# conversions / # interactions = CR
Revenue / cost = ROAS
Sales & marketing expense / new customers = CAC

Resources:
https://neilpatel.com/blog/how-to-calculate-lifetime-value/
https://headerbidding.co/calculate-cpm-cpc-cpa-ecpm-ecpc-ecpa-roi/
https://www.entrepreneur.com/article/278758
James Loomstein, MBA
CISB 6220 | Spring 2021
HBR Case Analysis | Glossier
Plan On a Page

Objective*
Draft an executive summary that contains your objective—a brief explanation of what you’re doing and why.

Opportunity
What is the opportunity you see for your product or service? What niche is unserved? Why should customers buy from
you and not others?

Audience
What customer segment(s) have you identified? Describe the different customer groups and how you will target them.

Landscape
What is the competitive landscape? Who offers a similar product, and what market share do they hold

Threats
What are the potential threats? What companies could become competitors?

* Because your objective and executive summary should be the clearest, most compelling part of your plan, return to this step and polish your executive summary after you’ve
established the facts and ideas in other sections.
Plan On a Page
Product
Describe the product or service. What will it help customers achieve? How does it differ from what competitors sell?

Price
What will the product or service cost? Will you offer discounts or other deals?

Channel Strategy
Where and how will you sell the product or service? Will you use a distributor or outlet? What is your online strategy?

Position
How will you market the product or service? How will you convey your brand’s story through packaging, advertising, social
media, and public relations?

Budget Allocation
What do you plan to spend on marketing? Create a breakdown of how you’ll spend this, by task and by month.

Financial Model
What are your projections of revenues and profits?
Summarize main points. End with a strong, forward-thinking statement about the potential of this project. Revise your executive summary, including your objective. Make it
clear, concise, and compelling.
Plan On a Page

Objective

Opportunity

Strengths Channel Strategy


Weakness / Distribution
Opportunity
Threats

Target Audience Competitive


Landscape

Brand Position Product

Price

Budget Allocation Financial Model


Building a Digital Toolbox
Rewind | Building a Digital Toolbox
Tools + Process
- Growth opportunity analysis - Developing a platform strategy
- Connected economy - Building your digital toolbox
- Case study analysis - Establishing a marketing vocabulary
- Industry speakers - Data driven business decisions
- Marketing framework - System > tactics

What we want to achieve


As future executives
• Identify a target audience
Creating a scalable framework and a path forward
• Create a platform strategy
• Optimize a paid media approach
• Deploy a marketing amplification strategy
• Identify white space opportunities
Built on a growth model
• Develop data driven marketing insights
● Opportunity analysis
● Prioritization strategy
● GTM frameworks (marketing)
● Strong digital vocabulary
Framework

QUANTITY Co. Growth Engine


MORE CUSTOMERS

QUALITY
MORE CUSTOMERS BUYING MORE

FREQUENCY
MORE CUSTOMERS COMING BACK MORE OFTEN
SMU Cox School of Business @2021 | CISB 6220, Professor James Loomstein, MBA
Rapid Foundation Checklist | Competitor Assessment

Building a strategy that works requires knowledge about what others are saying… and not saying. It’s
about identifying your whitespace and finding creative and opportunistic ways to highlight the
things that help you stand apart.

Competitor Things Competitor We Should Win Customers Would Ultimately be


Does Well Though, Because... Sorry to Select This Competitor
Because...

Competitor 1

Competitor 2

Competitor 3
Rapid Foundation Checklist | Content Assessment

Launch Grow Scale Keyword-Driven Optimization

1. Identify term(s) you want to rank


Goal: Get Traffic Goal: Loyal Audience Goal: Turn Audience to Leads for based on objective (traffic):

Metric Metric Metric - Keyword 1


- Keyword 2
- Keyword 3
Current Pageviews: ______ Current Email Subscribers: ___ Current CPL: ___
2. Establish credible support stat
Pageview Increase: ______ Subscriber Increase: ___ CPL Decrease:___ - Stat 1 on landing page
- Stat 2 on landing page

3. Clear audience action


- What to do
- How to do it
- How results achieved

4. Clear CTA
- Target takes action
Campaign Prioritization Framework

MESSAGE
WHAT WILL I SAY?
WHY WILL THEY PICK
ME?

REACH
WHAT CAN OTHERS
SAY ABOUT ME?

ACQUISITION
HOW WILL I REACH
THEM?
Content Amplification Framework
VISUAL AUDIO
● Instagram story / post ● Podcast PAID
● You Tube video ● Audio ad (Pandora) GOOGLE ADWORDS
● Facebook Live FACEBOOK ADS
● Webinar INSTAGRAM ADS
YOUTUBE ADS
WRITTEN LINKEDIN ADS
● Blog post NATIVE ADS
● Guest post
● E-book
● Case study EARNED
● FAQs YELP REVIEW
GOOGLE REVIEW
PUBLICATION REVIEW

OWNED
WEBSITE
BLOG
SOCIAL CHANNEL
Rapid Foundation Checklist | Marketing ROAS

Channel Annual Spend CPC ($)

Budget ($)
FB
Total Clicks (#)
LinkedIn
Action Rate (%)
Search
Unique Actions (#)
Display
Conversion Rate (%)
Remarketing
Visitors (#)
[OTHER]

Annual Budget
Rapid Foundation | Business Model Canvas CUSTOMER SEGMENTS
Who are they?
What do they think?
What do they do?

INFRASTRUCTURE OFFERS VALUE PROPOSITION


What’s compelling?
What’s your unfair competitive advantage?
Why do they buy from you?

CHANNELS
How are you positioned to sell your product?
INFRASTRUCTURE

Deliver?

CUSTOMERS
CUSTOMER RELATIONS
How do you interact throughout the customer
journey?

REVENUE STREAM
How do generate revenue from your value
proposition?

KEY RESOURCES
What assets are required to deliver?

KEY ACTIVITIES
What things do you need to deliver?

KEY PARTNERSHIPS
What can you not do (who do you need) so you
can focus on delivery?

GENERATING EFFICIENCY CREATING VALUE COST STRUCTURE


What are the cost drivers? How are they linked
to revenue?
Rapid Foundation Checklist | Pilot Campaign Roadmap

Business Objective: Select Target Message Strategy Channel / Media-Mix


TBD Audience Allocation

Pilot Conversion Asset Creation / Pilot Campaign Objective / KPI to


Goal Platform Load Performance lead into Phase II
Metrics
Framework

B2B Strategy B2C Strategy


- Solution focused - Customer experience/loyalty focused

- Bottom/up targeting (ABM) - Top/down targeting

- Transform business model - Customer insight driven

- Product life cycle focused - Amplified by community (social)

- Resource based / problem solving - Product/ market expansion (inflection point)

- Market response (inflection point)


Resources + Tools
Tools | Resources
Marketing Assessment
● What is the primary goal of your marketing efforts?
● What is the primary goal for online marketing?
● What internal constraints are holding the company back?
● What external constraints are holding the company back?
● How are you currently tracking your marketing efforts?
● How effective do you believe your marketing efforts are in achieving your primary online marketing objective?
● How would you characterize marketing’s role in sales?
● How would you characterize marketing’s role in product/service innovation?
● How would you characterize marketing’s role in organizational vision?

Digital Landscape
● In terms of conversion, what are the most common customer journey?
● Which pages currently generate most leads and sales? How can these be enhanced?
● How can social media sharing be enhanced?
● Does the company use landing pages to drive conversion?
● Does the company use owned social media channels (Facebook, Twitter, LinkedIn, etc.) to drive lead generation?
Social Media Best Practices | Content Ideation
● Follow an 80/20 rule - 80% of your content should be engaging and only 20% should be promotional content
● Post industry relevant topics and use hashtags when appropriate
● Share, retweet, regram - promote other relevant content - articles, photos, and videos from your followers or industry publications
to show that you are part of the conversation
● Bite-sized video clips - video content gets more shares than text only posts
● Respond to your followers - your audience’s time is valuable and responding
shows a level of care and appreciation
● Conduct a social media takeover - hand over your social media account to an an employee of another team, an influencer, or a
business partner for 24 hours
● Team up with a partner or another brand on a campaign or piece of content such as a webinar, e-book, or a special promotion
● Tutorials and How-to’s - provide step-by-step instructions on specific features
● Go Live - live videos are compelling
● Take advantage of trending topics
● Poll your audience
Resource List
Content Sources Profiles Creative Sources

Pocket LinkedIn Upwork

Buzzsumo Twitter 99 Designs

Alltop Facebook CrowdSpring

Feedly Pinterest PeoplePerHour.com

AnswerThePublic.com Instagram ReciteThis.com


250+ tools sourced by area of focus and
Product Hunt Snapchat Iconfinder.com goal (i.e., influencer - content)
https://prstack.co/#/
Reddit Medium MemeGenerator.net

YouTube
Tools | Stay Smart

Additional Link (Quora): https://www.quora.com/What-are-the-favorite-blogs-and-podcasts-you-follow-on-a-regular-daily-or-weekly-basis-related-to-digital-marketing


Startup Resources
● Top 34 Best Startup Tools For Entrepreneurs In 2021
● 73 best sites to find awesome free images
● How to Interview your Customers
● Which Experiment Should We Run?
● The Ultimate Product Launch Checklist
● TED Talk: Why Startups Succeed
● TED Talk: How to Think Like an Entrepreneur
● Start-Ups Need a Minimum Viable Brand
● The 30 Best Startup Tools & Resources to Grow Your Business
● People Don’t Want Something Truly New, They Want the Familiar Done Differently
● 21 Things You Need to Know to Validate Your Startup Idea
● Why Creativity Matters Most for Entrepreneurs
● 15 Incredibly Useful Market Research Tools
● Build an app from a Google Sheet in five minutes
Final Exam Prep
Concepts | Additional Review
● Vocabulary and marketing terminology
● Understanding the different types of media exposure opportunities
● Understanding the different types of ad placements opportunities and uses of social media platforms
● How and when you might use different advertising tactics (Facebook - Awareness, etc.)
● Understanding Inbound vs outbound marketing campaigns
● Review the different types of business models
● Re-visit the HBR Core Curriculum

Clicks / impressions = CTR


# conversions / # interactions = CR
Revenue / cost = ROAS
Sales & marketing expense / new customers = CAC

Resources:
https://neilpatel.com/blog/how-to-calculate-lifetime-value/
https://headerbidding.co/calculate-cpm-cpc-cpa-ecpm-ecpc-ecpa-roi/
https://www.entrepreneur.com/article/278758

You might also like