Pragmatic Marketing recap by Brian Kelly
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Presented at the Ann Arbor Lean Startup Circle Meetup on Feb 9, 2016. Recording on YouTube: https://www.youtube.com/watch?v=DzI8UpGtIZ8
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Pragmatic Marketing recap by Brian Kelly
- 1. PRAGMATIC MARKETING TRAINING THAT DIDN’T SUCK Brian Kelly @resetbrian Feb 2016 Ann Arbor LSC Meetup
- 2. IN OCTOBER 2014, I ATTENDED A THREE- DAY TRAINING SESSION IN BOSTON.
- 3. PRAGMATIC MARKETING HERE’S WHAT I LEARNED ▸ Why this topic is relevant to Lean Startup Circle ▸ Who should care about it? ▸ What is Pragmatic Marketing? ▸ How you can apply it 3 Credit / Thanks / Disclaimer: Most of the ideas and content in this presentation are taken directly from Pragmatic Marketing, Inc. I wish they were all mine, but they’re not. I found these ideas so useful that I created this recap to share them with people who might not have heard of Pragmatic Marketing. I highly recommend that you take their training. pragmaticmarketing.com
- 4. IDEAS ARE CHEAP. IT’S ALL ABOUT EXECUTION. Lean Startup Fanboy PRAGMATIC MARKETING 4 WHAT’S MISSING?
- 5. STRATEGY FIRST. THEN A PLAN. THEN EXECUTION.
- 6. PRAGMATIC MARKETING WHO SHOULD CARE ABOUT THIS RECAP? ▸ Product Managers ▸ Product Marketers ▸ Engineers ▸ User Experience Designers ▸ Founders 6 AT COMPANIES OF ALL SIZES
- 7. TL;DR: FOCUS ON FINDING AN UNMET NEED, USE PRAGMATIC MARKETING TO REFINE, BUILD, BRING YOUR SOLUTION TO MARKET
- 8. PRAGMATIC MARKETING PRAGMATIC MARKETING, INC.? ▸ Yep. That’s the training company’s name. ▸ Established 1993 ▸ Focus: Product Management & Product Marketing at technology companies ▸ “Trained tens of thousands of professionals at thousands of companies.” 8
- 9. PRAGMATIC MARKETING COMPANIES THAT ATTENDED MY SESSION (BOSTON, OCTOBER 2014) ▸ Acquia ▸ Backupify ▸ Best Doctors ▸ Blackboard ▸ Bloomberg ▸ Canadian Medical Association ▸ Duo Security ▸ Equifax ▸ Everbridge ▸ IBM ▸ Ipswitch ▸ Polycom ▸ RSA / EMC ▸ Seagate ▸ Wolters Kluwer 9
- 10. PRAGMATIC MARKETING CURRICULUM ▸ Foundations ▸ Focus ▸ Build ▸ Market ▸ Launch ▸ Price 10 Product Management (PM) Product Marketing (PMM) This recap (a bit of each)
- 12. PRAGMATIC MARKETING WHY SHOULD YOU CARE? If you’re in the business of building and selling a product Pragmatic Marketing is a proven model for how be successful. ▸ How to determine if a product should be built ▸ What to do to bring that product to market ▸ Who does what (PMM, PM, MKTG, Sales, …) ▸ When to do it, and how to do it 12
- 14. PRAGMATIC MARKETING WHAT IS BEING “MARKET-DRIVEN?” ▸ Market-driven means we base our decisions on what that market is asking for. ▸ It’s being outside-in. ▸ It’s not thinking inside-out and focusing on what we can do. 14 What is being “market-driven”? Market-driven means we base our decisions on what that market is asking for. → Be outside-in. It’s not: Thinking inside-out and focusing on what we can do.
- 15. AN OUTSIDE-IN APPROACH INCREASES THE LIKELIHOOD OF PRODUCT SUCCESS PRAGMATIC RULE
- 17. THE AIM OF MARKETING IS TO KNOW AND UNDERSTAND THE CUSTOMER SO WELL THAT THE PRODUCT OR SERVICE FITS HIM AND SELLS ITSELF. Peter Drucker PRAGMATIC MARKETING 17
- 18. PRAGMATIC MARKETING SO, WAIT, WE DON’T NEED A SALES TEAM? If it was only that simple! ‣ Marketing gets customer attention… ‣ But, some customers prefer working with sales, and sales reps are often needed for large, complex deals. 18
- 19. PRAGMATIC MARKETING THE PRAGMATIC P’S 19 Product, Price, Promotion, Place What’s missing? Problem Which one do companies often put too much focus on?
- 21. Strategy Execution Less Technical Markets and Business More Technical Products and Technology
- 22. PRAGMATIC MARKETING TYPICAL APPROACH: EXECUTION-FIRST Problems with this approach ▸ Activities have a lot of guesswork ▸ It’s really hard to make an impact with tactics because we don’t yet have a strategic view of the market (a.k.a. we don’t know the problems well enough, yet). 22
- 23. PRAGMATIC MARKETING BETTER APPROACH: STRATEGY-FIRST ▸ Do everything from the left. ▸ This gives us everything we need for the right. 23
- 24. PRAGMATIC MARKETING START WITH THE PROBLEM ▸ Get this right, and it will multiply the effect of every single other activity. 24
- 25. GOAL: TAKE EVERYTHING THAT YOU KNOW ABOUT THE MARKET AND DISTILL IT INTO ONE PAGE. LinkedIn’s Series B Pitch to Greylock reidhoffman.org/linkedin-pitch-to-greylock/
- 26. PRAGMATIC MARKETING TYPICAL SOURCES OF IDEAS Loudest voices in the room ▸ Input from sales team, tech support, user groups, (some) execs ▸ This results in enhancement requests, special one-offs, etc. Don’t do this! ▸ This is the noisy 20% of the market ▸ We should be focusing on the quiet 80% 26 PROTIP: QUIET DOESN’T MEAN THEY’RE HAPPY
- 27. MARKET SEGMENTS
- 28. THE BUILDING IS FULL OF PRODUCT EXPERTS. YOUR COMPANY NEEDS MARKET EXPERTS. PRAGMATIC RULE
- 29. IN EVERY MARKET SEGMENT, WE HAVE Potentials Evaluators Customers Market Segment: A group of individuals or businesses that share a set of problems.
- 30. PRAGMATIC MARKETING CUSTOMERS ▸ People who have gone through the process to evaluate solutions to a problem they identified they have, and they have purchased something. 30 Potentials Evaluators Customers Our customers Customers of our competitors HOW ARE YOU REACHING YOUR COMPETITORS’ CUSTOMERS?
- 31. PRAGMATIC MARKETING EVALUATORS ▸ People who want to do something about their problem, but haven’t purchased anything, yet. 31 Potentials Evaluators Customers HOW ARE YOU REACHING EVERY EVALUATOR?
- 32. PRAGMATIC MARKETING POTENTIALS ▸ People that we believe have a problem, but they don’t know they have that problem, yet. 32 Potentials Evaluators Customers
- 33. PRAGMATIC MARKETING DEFINE YOUR MARKET SEGMENTS Market Segment: A group of individuals or businesses that share a set of problems. 33 ▸ Bad Examples ▸ Fortune 500 ▸ Global 2000 ▸ Mid-tier ▸ Wireless ▸ Good examples ▸ Organizations that must produce regulatory reports ▸ Field salespeople that need to update the home office from the road
- 34. PRAGMATIC MARKETING USE SEGMENTS TO FIGURE OUT YOUR POSITION ▸ For each segment, identify: ▸ Your distinctive competencies ▸ The competition ▸ Barriers to entry 34 ▸ Align with strategy ▸ Sales channels ▸ Development teams ▸ Technology direction
- 35. THE ANSWER TO MOST OF YOUR QUESTIONS IS NOT IN THE BUILDING. PRAGMATIC RULE PROTIP: SPEAK WITH A CUSTOMER EVERYDAY
- 36. PRAGMATIC MARKETING INTERVIEW EVERY TYPE, IN EACH OF YOUR MARKET SEGMENTS ▸ Customers tell us the past ▸ Evaluators tell you about the present ▸ Potentials tell you about the future 36 Potentials Evaluators Customers
- 37. PRAGMATIC MARKETING FIND THE QUIET 80% ▸ Training classes ▸ Conferences ▸ Associations ▸ Executives and colleagues ▸ Social networks 37
- 38. PRAGMATIC MARKETING ASK… CUSTOMERS AND POTENTIALS ▸ What drives you crazy about your job? ▸ What drives your buying decisions? ▸ What do you think of my company / product? ▸ Who are my competitors, and what do you think of them? ▸ What great products have you seen lately? 38
- 39. PRAGMATIC MARKETING OBSERVE ▸ Start with an open agenda ▸ Understand “a day in the life” ▸ When do they pick up a pencil? ▸ How do they survive without your technology? When in doubt, listening is better than talking. 39
- 40. PRAGMATIC MARKETING MANY INPUTS, ONE PROBLEM Problem Statements ▸ “I need a file-indexing database, coupled with a complex query engine, which would allow ad-hoc search and retrieval of documents by random criteria.” ▸ I look bad when I waste time looking through 20 directories and I can’t find the one file that we need.” 40 Bad. Good!
- 41. YOU CAN LISTEN TO WHAT PEOPLE SAY, BUT YOU WILL BE FAR MORE EFFECTIVE IF YOU LISTEN TO WHAT PEOPLE DO. Seth Godin PRAGMATIC MARKETING 41
- 42. PRAGMATIC MARKETING EVERYONE IS A PRAGMATIC MARKETER ▸ My buyers tell me that… ▸ I have a neighbor in our industry and she said… ▸ I met a competitor’s customer on the plane… ▸ I recently attended a conference and met… ▸ I made a cold call and heard… ▸ Our user group said… ▸ While visiting our clients I learned… 42
- 43. ONLY BUILD SOLUTIONS FOR PROBLEMS THAT ARE URGENT, PERVASIVE AND THAT THE MARKET WILL PAY TO SOLVE. PRAGMATIC RULE
- 45. PRAGMATIC MARKETING ORGANIZATIONAL STRUCTURE 45 DEV MARCOM SALES PRODUCT TEAM build stuff sell stuff promote stuff
- 46. PRAGMATIC MARKETING ACCOUNTABILITY ▸ Product Team: Collects and quantifies the problem ▸ Development: Solves the problem ▸ Marketing Communications: Promotes the product ▸ Sales Channel: Helps people buy 46 HOW WELL IS YOUR COMPANY KEEPING THESE RESPONSIBILITIES SEPARATE, TODAY?
- 47. IF THE PRODUCT TEAM DOESN’T DO ITS JOB, OTHER DEPARTMENTS WILL FILL THE VOID. PRAGMATIC RULE
- 48. 37 activities Which are the most compelling, right now?
- 50. Less Technical DEFINE OWNERS More Technical
- 51. PRAGMATIC MARKETING IN CLOSING ▸ Discover and validate market problems ▸ Focus on markets and problems to identify the best opportunities ▸ Create market-driven artifacts (personas, buying process, etc.) ▸ Clearly define the lines of each team: product, dev, comm, sales Run the product like a business of it’s own. 51
- 52. Brian Kelly @resetbrian Ann Arbor LSC Meetup Feb 2016 THANKS Now, go take this training! pragmaticmarketing.com