Day 1: Introduction to Global Entrepreneurial Marketing GEM

1
Day 1 Introduction to Global Entrepreneurial
Marketing (GEM)

• Also known as MSE 271, Winter 2009
• The GEM Teaching Team
• Captain Tom Kosnik
• Co-Captain Lynda Kate Smith,
• Guest Lecturers Donna Novitsky, Lena Ramfelt
• Course Assistants Ariel Liu, Dong Dong Ge
• Entrepreneurs in Residence Laina Raveendran
  Green
• And Ozlem Ozturk
• Web Master Dong Dong Ge
• Admin Lead Isabel Cossio
• Plus global entrepreneurial marketing leaders as
  guest speakers
• GEM Final Project Sponsors, GEM Final Project
  Coaches
• and GEM alumni as graders for your Strategic
  Thinking Papers

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Our Agenda for Day 1

• Admissions
• The GEM learning community
• What are our expectations?
• What is Global Entrepreneurial Marketing (GEM)?
• The Marketing Toolkit
• Tool 1 TALC
• Why we should care about GEM

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Admissions

• You are all qualified. There are not enough
  seats
• We use a lottery for admissions
• CAs will collect the GEM signup sheet today
• All GEM applicants must complete and submit a
  short application with your resume.
• We will inform you who is admitted to GEM and who
  is on waitlist by email not later than start of
  Class 2.
• Name, email, and telephone information will be
  compiled for the GEM phone book for exclusive use
  of class participants.

4
The GEM Learning Community
Your GEM Learning Team Mates Other GEM team
mates Stanford on campus SCPD and NUS Silicon
Valley College STP graders (GEM alumni) GEM
final project coaches and sponsors GEM
entrepreneurial guest speakers ETL speakers (Wed.
430 530 PM) SCPD production team GEM
administrative lead Isabel Cossio GEM Course
Assistants (CAs) Ariel Liu and Dong Dong
Ge Entrepreneurs in Residence Laina Raveendran
Greene and Ozlem Ozturk GEM Instructors Tom
Kosnik, Lynda Kate Smith, Donna Novitsky Lena
Ramfelt
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Our Expectations
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Learning Teams

• Form GEM Case Learning Teams by 7 AM, Monday, Jan
  12, 2009
• 6 people (no variance unless approved by CAs)
• Make sure you have diversity
• Mix Stanford on-campus with NUS and SCPD
• Men and women
• Not all the same degree
• Different countries of origin
• Why diversity?
• To increase your understanding about how
  different people (employees, investors,
  customers) think and make decisions
• To prepare you to work in virtual global teams

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Teams Are Everywhere Learn to Work in Them
Source Kosnik, Blair, Ramfelt, and Pfeifer
(1986, 2000) 1 to 1 Diagnosis.
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Honor Code Strictly Applied

• The following are violations of Stanford honor
  code for GEM
• Being coached by others who have done the cases
  in past
• Reviewing other peoples DDARTS or notes about
  cases assignments
• Copying the work of another GEM learning team
• Contacting case actors to find out what happened
• Reviewing any source (including WWW) to find out
  what happened in a case study
• Anything else that prevents you from practicing
  DDART, using your own brains and judgment
• Failure to footnote and give credit for
  intellectual property you did not create

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Class and Web Participation is Critical

• Treat our class sessions like high priority
  meetings with your most valuable customers
• Be here.
• Be on time.
• Be well prepared
• Participate thoughtfully and effectively
• Listen to respect one another.
• Take the initiative.
• Have fun!
• Note Attendance is mandatory, unless you have a
  valid reason.
• Unless you are an off-campus student
• Absences will be excused for serious illness,
  hardship, weddings, critical job interviews,
  company requirements for out of town travel.
• Everyone gets 2 absences or late arrivals out of
  20 with no penalty

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Quality, Not Quantity!

• We use 7 criteria to assess quality of comments
  questions in class on the web site
• Clarity
• Rigor logic evidence assumptions
• Conciseness
• Relevance timing fit with the flow
• Synthesis
• Creativity
• Humor

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Quality Beats Quantity in GEM!
High
Average Quality of Most Peoples Comments
Low
0 10 15 20 gt25
of in-class and web contributions during the
quarter
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Web Discussion Forum

• GEM discussion forum is handled through
  coursework.
• To register for the forum, add MSE271 as a
  course in http//coursework.stanford.edu
• Access to the discussion forum will be
  automatically activated in approximately 24
  hours.
• All off-campus GEM participants must make an
  introductory posting Web Discussion Forum in
  either Session 3 or 4 by 700 PM Friday, January
  16, 2009

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DDART Openings(Diagnosis, Decisions, Analysis,
Reality Test)

• 5 PowerPoint slides (plus cover page with team
  names) and two 8.5 X 11 inch Excel spreadsheet
  pages
• Extra slides and worksheet pages NOT graded
• Speaker notes that exceed the 8.5 X 11 inch
  Notes View of each PowerPoint slide NOT graded
• Apply tools from assigned readings, ETL speakers
  and Marketing Toolkit to analyze cases.
  Footnotes required!
• Only some tools apply to each case dont
  force-fit
• DDARTS posted to GEM website after 7 PM lose
  points
• DDARTs that exceed 10 min. will lose 1 point/min.
  
• See Openings grading sheet on GEM website

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Strategic Thinking Papers (STPs)

• You are the product
• Determine your strategic vision 10 yrs forward
• Apply what we are learning in GEM to achieve your
  goals
• How are you positioned today what do you need to
  do to get there
• Deliverable is a 15 page paper, including
  exhibits
• Grading done in pairs by teaching team and GEM
  alumni
• Grading based on application of GEM concepts
• Integration of concepts from class and readings
• Your ability to think strategically
• Your proficiency with the DDART framework and
  marketing tools
• STP is not a value judgment of your vision or
  direction

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Grading Individual and Team Work
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Teaching Team Office Hours

• Who? Individuals or teams
• What? Course related or career issues
• Where? Terman 402 and vicinity
• How? Sign up in advance on the GEM website
• Written agenda strongly encouraged
• How long? 25 minute slots every half hour
• When? See below
• Tom Kosnik Tues Thurs 430 630 PM
• Donna Novitsky By appointment only
• Lynda Smith By appointment only
• Ariel Liu TBD
• Dong Dong Ge TBD
• Open the door to Terman 402 at the time of your
  meeting

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What Is GEM?
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GEM is NOT a Salesman in a Full Cleveland

• Were looking for an aggressive, tenacious
  salesperson, like, for instance, the one who sold
  you that suit.

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GEM is Start Up Marketing In 10 Weeks

• Marketing toolkit
• Marketing strategy
• Evaluating Market Attractiveness
• Targeting markets and customers
• Managing International Expansion
• Managing Market Evolution and Change
• Product development and product management
• Branding
• Pricing
• Sales and negotiation
• Partners and distribution
• Outbound marketing
• Customer marketing

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DDART Organize Chaos with GEMs DDART Architecture
DIAGNOSIS - What is the problem/opportunity? DECIS
ION - What is your plan of action? ANALYSIS - Why
is your plan the best alternative? REALITY TEST
- What are the risks? How to manage them?
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The Marketing Toolkit(To be used for cracking
cases in class and beyond)

• TALC (and CALC, and The Dip!)
• Competitive SWOT analysis
• Whole product
• Positioning statement
• Marketing communication 6Ms
• Market map
• Market segmentation charts
• Partner matrix
• Economic analysis
• Reality test matrix

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DDART Caution Tools Will Apply Differently In
Different Cases
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Tool 1 Technology Adoption Life Cycle

Pragmatists create the dynamics of high-tech
market development
Source Moore (2002), Crossing the Chasm
Wiefels (2002), The Chasm Companion.
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Types of Adopters

• Each adoption type describes individuals
• With different risk orientations toward
  technological innovation
• Who are make decisions about whether and when to
  adopt the innovation
• On behalf of
• Themselves
• The organization where they work
• Their family
• Their community

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Innovators - Technology Enthusiasts

• Primary Motivation
• Learn about new technologies for their own sake
• Key Characteristics
• Strong aptitude for technical information
• Like to alpha test new products
• Can ignore the missing elements
• Do whatever they can to help
• Challenges
• Want unrestricted access to top technical people
• Want no-profit pricing (preferably free)

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Early Adopters - The Visionaries

• Primary Motivation
• Gain dramatic competitive advantage via
  revolutionary breakthrough
• Key Characteristics
• Great imaginations for strategic applications
• Attracted by high-risk, high-reward propositions
• Will commit to supply the missing elements
• Focused on gains so not price-sensitive
• Challenges
• Want rapid time-to-market
• Demand high degree of customization and support

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Early Majority - Pragmatists

• Primary Motivation
• Gain productivity improvements via evolutionary
  change
• Key Characteristics
• Astute managers of mission-critical applications
• Understand real-world issues tradeoffs
• Focus on proven applications
• Like to go with the market leader
• Challenges
• Insist on good references from trusted colleagues
• Want to see the solution in production at the
  reference site

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Late Majority - Conservatives

• Primary Motivation
• Just stay even with the competition
• Key Characteristics
• Better with people than technology
• Risk averse
• Price-sensitive
• Reliant on a single, trusted advisor
• Challenges
• Need pre-assembled solutions
• Would benefit from value-added services. Do not
  want to pay for them

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Laggards - Skeptics

• Primary Motivation
• Maintain status quo
• Key Characteristics
• Good at debunking marketing hype
• Disbelieve productivity-improvement arguments
• Believe in the law of unintended consequences
• Seek to block purchases of new technology
• Challenges
• Not a customer
• Can be formidable opposition to early adoption

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What kind of adopter are YOU for each of the
innovations below?
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People adopt for different reasons at each phase
of the technology adoption life cycle (TALC)
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The Chasm occurs because pragmatists refuse to
follow visionaries in the case of Discontinuous
Innovations
vs.
Visionaries
Pragmatists

• Adventurous
• Early buy-in attitude
• Think Big
• Go it alone
• Spend big
• First strike capability
• Think Pragmatistsare pedestrian

• Prudent
• Wait-and-see
• Manage expectations
• Maintain relationships
• Spend to budget
• Staying power
• Think Visionaries are dangerous

Pragmatists don't trust visionaries as references.
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Technology Adoption Life Cycle (TALC) Diagnose
and adapt as markets evolve
Main Street
Tornado
Early Market
Total Assimilation
Bowling Alley
Chasm
Early Adopters
Early Majority
Late Majority
Laggards
Innovators
Source Moore (2002), Crossing the Chasm
Wiefels (2002), The Chasm Companion.
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Category Maturity Life Cycle (CMLC)
Indefinitely elastic middle period
C
Early Main Street
D
Revenue Growth
Mature Main Street
B
Declining Main Street
A
End of Life
Technology Adoption Life Cycle
Time
Source Moore, Geoffrey A. (2005) Dealing with
Darwin
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Marketing Toolkit

• Marketing Toolkit Numbers 2 through
• 10 to be continued in our next session

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Why We Should Care About GEM
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Loyal Customers Create A Wave
Surf across chasms and tornadoes
Hostages
Die-Hard Loyalists
High
Customer Loyalty
Defectors/ Terrorists
Mercenaries
Low
High
Low
Customer Satisfaction
Adapted from Jones and Sasser (1995) Why
Satisfied Customers Defect, HBR
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GEM is Prep for Great Jobs in Marketing
Tech Mktg/Applications Engr
Field Marketing/Sales Support
Product Designers/Architects
Vertical Mktg/Business Dev.
Channel Mgmt/Programs
PR/Advertising/Branding
Lead Gen/Lead Qual
Product Marketing
Product Developers
Product Manager
Sales Engineers
Sales Reps
Marketing Roles
Development
Sales/Customers
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Next Steps

• Make sure GEM Course Assistants have your
  application TODAY.
• Go look at GEM final projects on GEM website
  http//www.stanford.edu/class/msande271/
• Form a diverse Case Learning Team of 6.
• Look for people who are interested in same
  project to form a Final Project team of 2-6
  people
• Read Course Description, Course Calendar.
• Bring a hard copy of your resume to Class 2.
• Come to project Pitches Fri Jan 9, 600830 PM.