Tonight I led a panel discussion on startup marketing, as part of the Vilna Shul Speaker Series. The panel featured MedicalRecords.com Founder Ace Bhattacharjya, CityVoter CEO Josh Walker, Serial Entrepreneur Rachel Blankstein, SherpaReport President Nick Copley, and Terametric VP of Marketing Chris Selland. It was a small but savvy crowd, and a lively back and forth spilled into the audience more than a few times.
The dialogue boiled down to a debate about what marketing really is in a startup environment, and what it’s becoming more generally.
So what is marketing in a startup? Well, bottom line, it’s a lot more than advertising. Most people agreed, and yet the two words are often used interchangeably in the panel, as they so often are in the wild. When someone talks about how marketing doesn’t matter much for a startup, they’re really talking about marketing communications… the importance of which seems to have declined precipitously not only for startups, but for businesses and brands across the board.
5 Levers of Startup Marketing
Advertising – marketing communications, really – is just one lever of Marketing (note capital “M”) in a startup. And it’s often the least important one.
Inbound marketing, to borrow a phrase from the HubSpot juggernaut, is another lever. Call it social marketing, content marketing, blog/twitter/facebook marketing… It’s the place most startups begin, in large part because it’s powered by passion instead of cash. But more than a cheap advertising, it’s also a great toolkit for pulling the other 3 levers.
Lead generation, or more specifically Funnel Development is the third lever. Dave McClure put this idea on the table a while ago, and David Skok has since taken it to a whole new level of science. It’s rooted in the belief that marketing is really just a process of breaking the bottlenecks in your sales funnel. If you can instrument your marketing process in a way that finds those bottlenecks, then execute to bust them open, you win. It’s interesting to me how much momentum this idea seems to have in VC circles right now, and that’s probably equal parts because it works and because it’s reassuring to the engineering types that lead most startups.
The fourth, and I would say most important lever of startup marketing is Product Strategy. Alex Bogusky’s Baked In really brought this idea into focus for me, but it boils down to the idea that, today, your product is your most important marketing vehicle. It needs to tell your story in a way that resonates in the marketplace, and if it doesn’t, no amount of “bolt-on” marketing is going to solve the problem.
The fifth and final lever, and the one which polarized the audience most intensely, is that of Brand Strategy. On one hand was the cheap logo crowd, noting the availability of great crowdsourcing options where all you need to get a logo is a dream and a $100. On the other were those who felt equally strongly that understanding the emotional value proposition of your offering, and placing that at the core of your entire marketing program, is the absolute key to success.
I closed the panel with a variation on a simple question: If you had $10 to spend on marketing an early stage, tech-oriented B2C startup, how much of it would you spend in each of these five dimensions of Big M Marketing?
Answers from the panel and the audience varied widely. So what’s yours?
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Mike,
I agree with all 5 of your observations here. The tricky part for marketing is when your product development (Customer Feedback mechanism) is mostly handled by your salesperson. This makes the most sense to me since the salesperson has the most intimate knowledge about the customer. Eric Ries would tell us that in a "lean startup" Marketing needs to take on a Product Development role - which you echoed clearly here. More specifically I see Marketing's role as "What can I do to prop up my sales guy?"
- What content can marketing create to close the deal? (Funnel Bottlenecks)
- How can marketing better learn the language and jargon of the customer and adjust the message accordingly?
Even if your product is in the development (prototype) phase of the lifecycle marketing can still create content to sell the vision. What better metric is there in a startup than seeing pent up demand. The often orated startup question "Where do we go next?" is easy...your customers just told you. As Eric Ries (forgive me from the double reference) explained this is an old direct marketing trick - market a product that might not even exist to see if there is demand. If there isn't, don't build the damn thing.
One thing that I would add to this and it follows a content marketing strategy is building authority. Startups always throw bull out there about we need "thought leadership" without any idea of the how, what and why surrounding it.
- "Why" do I want to buy a product from someone I don't trust, or that doesn't appear to be an expert in their field?
- "What" can you produce to show that your startup actually as brainpower around your product and industry pain. This is hard to fake...and if you have to it's time to pivot.
- "How" can you create this? It won't happen overnight, but here's where your content or creative marketing comes in. I'm actually a big believer that white papers (or eBooks) if created with mindful quality demonstrate the brains behind your product (assuming your marketers know how to write...if they can't they shouldn't be working with you at such an early stage). The beauty of a white paper is that you can always repurpose the content into PPTs, blog posts, info graphics, videos, etc. Just make sure the content intelligently defines your company's position, and why your solution is the best pain killer.
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