PLAY BY YOUR OWN RULES


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How to define and dominate your billion dollar category Mark Organ, CEO @ Influitive @markorgan @influitive PLAY BY YOUR OWN RULES


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TAKE A NEW ROAD


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WHAT IS A CATEGORY?


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a transformational experience + driven by disruptive forces MY DEFINITION OF A CATEGORY: For a distinct segment of the market, A revolutionary business model


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TESLA: Electric high-performance luxury cars 2010-2013


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SALESFORCE.COM: Cloud CRM, 1999-2004


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ELOQUA: Cloud marketing automation 2005-2013


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INFLUITIVE: Advocate marketing platform 2010-2???


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WHY WOULD YOU WANT TO BUILD A NEW CATEGORY?


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Revenue growth (2004-2005) Note: Relative Market Share is each company’s revenue divided by the market leader; the market leader’s revenue is divided by the 2nd place company’s revenue; Precise revenue not available for Upshot and Salesnet, figures represent approximate revenue and growth estimates Source: Gartner (http://www.gartner.com/newsroom/id/493005) Relative market share Salesforce.com’s status as a category creator enabled rapid growth several years ago


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Revenue growth (2011-2012) Note: Relative Market Share is each company’s revenue divided by the market leader; the market leader’s revenue is divided by the 2nd place company’s revenue. Source: Gartner (http://www.gartner.com/newsroom/id/2459015) Relative market share This led to a dominant market position today


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US unit sales 2013 Source: Business Insider (http://www.businessinsider.com/tesla-is-not-really-outselling-bmw-audi-2013-5) Tesla currently has tiny share vs. all luxury vehicles – similar to salesforce.com’s broader CRM broader market in 2002


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BUT Tesla is now dominant in the space closer to its category of all-electric luxury high-performance sedans US unit sales 2013 Source: Business Insider (http://www.businessinsider.com/tesla-is-not-really-outselling-bmw-audi-2013-5)


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* Fisker filed for chapter 11 protection in Nov 2013 Source: Yahoo! Finance, Corporate filings, Analyst reports; Market caps are USD & as at Oct 2014 Fisker* Tesla’s category creator status and rapid growth drive valuation multiplies far higher than other carmakers Market capitalization / global 2013 unit sales


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CNN/Fortune top 20 fastest growing companies (2010) Category creator premium Category creators enjoy nearly a 5X valuation premium on revenue growth! Incremental market cap per $1 of additional revenue Source: Cambridge Partners in HBR Blog, 09/2011


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WHERE DO NEW CATEGORIES COME FROM?


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VS Category creators have missionary zeal about their category vision, not just their company vision. MISSIONARY MERCENARY


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THE 6 RULES OF CATEGORY CREATOR GO-TO-MARKET


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MARKET THE CATEGORY 1


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Tesla Salesforce.com Software-as-a-Service Electric car Source: http://www.google.com/trends/


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Tesla Salesforce.com Software-as-a-service Electric car Period in which interest in the category tracks with interest in the category creator Source: http://www.google.com/trends/


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Tesla Salesforce.com Software-as-a-service Electric car Period in which interest in the category creator far outstrips interest in the category Source: http://www.google.com/trends/


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Do not call yourself the leader in your category. That is the job for your advocates, not your marketing department. (NOT INFLUITIVE)


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ELEVATE THE UNDER-SERVED MISSIONARY 2


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Advocate Marketing: CREATE POWERFUL WORD OF MOUTH 3


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4 Influencer Marketing: LEVERAGE INFLUENCERS TO RECOGNIZE THE CATEGORY


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Community Marketing: ENABLE PRACTITIONERS TO CO-OWN THE CATEGORY 5


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Category Creator Biz Dev: INTEGRATED PARTNERS ? TRANSFORMATIONAL EXPERIENCE 6


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NEW CATEGORIES ARE BUILT ON TOP OF DISRUPTIVE TECHNOLOGY BLOCKCHAIN


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How to define and dominate your billion dollar category Mark Organ, CEO @ Influitive @markorgan @influitive PLAY BY YOUR OWN RULES


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