The Wharton School University of Pennsylvania Entrepreneurial Marketing MKTG241/741 Fall 2017 Professors: Dr. Len Lodish Dr. Martin R. Lautman Teaching Assistant: Genevieve O’Mara
Class Location: JMHH F55 Tuesday and Thursday 1:30PM-2:50PM
Office: Lodish JMHH 772
Updated: August 31, 2017
Lautman JMHH 732
Office Hours: By appointment Course Website: Canvas Required Materials: Book, course pack and videos
Email: [email protected] [email protected] [email protected]
I. Overview This course will focus on providing a roadmap for successfully addressing the real world marketing challenges involved in launching entrepreneurial ventures or supporting growth and innovation in established companies. It will provide a roadmap for entrepreneurs, investors and managers for employing the tools and techniques of entrepreneurial marketing for growing and creating a competitive advantage in the marketplace. You will be working on a venture/idea of your choosing to learn the principles of Entrepreneurial Marketing. Two Wharton professors, both with extensive real world and academic experience, will teach this course. Professor Len Lodish, recently a full- time chaired professor at Wharton, is the co –founder of Wharton San Francisco and the founder of the Wharton Global Consulting Program. He has advised multiple start-ups, was the first investor and advisor to Wharton startups Diapers.com (sold to Amazon) and Milo.com (sold to ebay) and founded Management Decisions Systems (now Information Resources International (IRI). Professor Martin R. Lautman, a serial entrepreneur, was the CEO and President of GfK CR NA, a public top 40 marketing services company (DAX: GfK) and a co-founder and director of Stonemor (NYSE: STON), the second largest death-care service provider in the US. Prof. Lautman is currently an investor and advisor for multiple early stage ventures and serves on the boards of private equity funded companies. In addition to teaching at Wharton and Smeal (Penn State), he has lectured at Columbia, Princeton, and Cornell.
Drs. Lodish and Lautman are managing partners of Musketeer Capital, a venture capital firm. II. Scheduled Class Speakers Our scheduled speakers are all-star entrepreneurs and investors. They all represent multiple companies and funds that Professors Lodish and/or Lautman have invested in and advised. • Lucinda Duncalfe (Wharton, MBA), Turn Tide (exit Symantec) Click Equations (exit Channel Intelligence), Monetate. • Wiley Cerilli, Single Platform (exit Constant Contact), Seamless Web (exit Aramark), Good Uncle. • Brett Hurt (Wharton, MBA) Coremetrics (exit IBM), BazaarVoice (NASDAQ), Data.World • Seth Berger (Wharton, MBA) And1 (exit, American Sporting Goods), 76’er Innovation Lab
III. Entrepreneurial Teams for developing Marketing and Sales Plans Students (in groups of four to five) will select an idea/concept for their entrepreneurial venture. Preferably, the selected venture will be one that the team would consider implementing. This course will focus on how you and your team can effectively execute the marketing and sales function by: (1) Applying entrepreneurial concepts and methods for validating startup and/or new product ideas, (2) creating a competitive advantage by building out your competencies, (3) accelerating your growth and traction for customer acquisition, and (4) obtaining investor interest by pitching venture capitalists--all at warp speed and with a laser focus on the steps needed to enhance the likelihood of success. At the conclusion of this course all teams will be expected to have developed a detailed entrepreneurial marketing plan for their product idea/concept and a product prototype (such as, a computer wireframe, rough physical model/prototype or, at a minimum, a formal, detailed design). Final plans will be the result of a build up from draft plans that will be worked on and commented on by the class, professors and other venture capitalists during the semester. Each team member will be asked to rate the other team member’s contribution and participation in their venture. These ratings may affect your participation grades. Students who come to class with an idea/team will be able to work on their venture. Students who do not have a pre-selected venture/idea can either join a class team or assemble a new team. There may also be the possibility to form a new team to develop an Entrepreneurial Marketing Plan from one of the many Penn startups from the I-Corps, Wharton VIP program, or the Weiss Tech House programs. We are currently exploring that option with the organizers of those programs. IV. Video Market Research Student teams will have free access to the Video Ethnography platform of Mindswarms (www.mindswarms.com), a San Francisco startup, to test their ideas/concepts with potential customers. It will be to your benefit to begin this research effort as soon as possible. V. Class Sessions and Assignments Classes can be expected to be fun, engaging, informative and intense. In addition to formal lectures and discussion of the readings and videos we will spend class time reviewing team submissions. Class assignments will include providing (1) insights from readings and (2) drafts of a marketing plan to facilitate the development of a final written plan and (3) an in-class presentation to venture capitalists. Along with cases and articles we will be reading from the recently published book by Prof. Lodish, Marketing that Works: How Entrepreneurial Marketing Can Add Sustainable Value to Any Sized Company. Assignment 1: Basic Outline (Team Submissions). One (1) page Word document. Outline your team’s initial thinking on your proposed venture. You are to cover four areas: a. Product/Service concept--based on benefit(s) to be provided/job to be done/needs to be met. b. Target market (Bullseye) definition—demographic, geographic, psychographic, behavioral, etc. c. Most critical assumptions (bets) being made that underlie your venture’s thesis. d. Competitive frame—specific competitors and usage situations appropriate to your concept/idea. Assignment 2: Proof of Concept (POC) test for venture idea presented in class. One (1) page Word Document and one (1) PP slide (two line description of your study design and bullet point supports).
As a follow-up to an in-class exercise, each team will be asked to design a study to validate one key assumption (bet) that they would make in support of a POC test of their choosing for an advertising-based venture described in class. Each selected team’s representative will have up to two minutes to present their solution. This exercise will be helpful for you to understand how to develop a POC for your venture. Assignment 3: Interim Marketing Plan: Full Product Description, Market Opportunity, Market Structure, Differentiated Positioning, Product-Market Fit, Preliminary Pricing, Detailed Competitive Analysis (Team Submissions). 5-6 page Word document plus appendix presenting the following analyses: SWOT, Business Canvas, Product Compass™ and a Customer Journey Analysis. Fully describe your product/idea. Create a basic product development schedule (trajectory) and provide a rough description and estimate of uptake at each phase. Develop a preliminary (including a promotional, if relevant) pricing strategy. Develop a positioning plan, focusing on the differentiation and sustainability of your positioning. Include a SWOT analysis and basic Business Canvas. Create a Product Leverage Compass™ showing what companies/ideas are/would be complimentary/extensions to your startup. Expand on your assumptions from your first assignment to include and prioritize all of the important “bets” you are making and how you will prioritize and validate each of them. Be sure to include confirmation of your POC and product/market fit and how it will fit into customer’s current business/lifestyle frameworks. Prepare 10 second and 60 second pitches targeted to each of the different stakeholders and constituencies that are critical to your success. Be explicit in your description of the steps of the Customer Journey (adoption pattern/uptake funnel) from awareness through trial and on-going usage of your offering. Present a preliminary timeline with milestones to represent this development. Focus on your customer acquisition strategy (growth hacking) on how your product will acquire and retain customers. Clearly identify the metrics you will use at each stage of the journey. A Gantt chart and/or a table might help to illustrate your timeline and milestones. Assignment 4: Pitch Deck (Team Submissions) for presentation to venture capitalists Maximum of ten (10) minutes per group-6 minutes pitch; 4 minutes questions. All team members must present. Your deck should be sufficiently detailed to generate a go/no go follow-up meeting decision by sophisticated investors. Include estimates of the resources (funding, staffing, etc.) you will need to execute your venture. Assignment 5: Final Entrepreneurial Marketing Plan (Team Submissions) 16-20 page Word document plus appendix Your plan should be a build-up from your prior assignments augmented by the insights and knowledge gained in class and from all of the readings, speakers and in-class discussions since your original assignments were submitted. Be explicit on how your Marketing Model will tie in with your Business Model and Revenue Model. An example of the structure of these three models will be provided in class. To the extent possible, arrive at your decisions having conducted concept tests with stakeholders or some other feasibility evaluation for your chosen venture by using the Mindswarms video platform. If you can’t execute the testing or evaluation in time or that platform will not work for your concept, specify and outline (provide a brief operational plan for) any additional research you will need to validate your ideas.
Present detailed decisions on your product launch schedule/timeline (Gantt or other milestone charts), sales force decisions (inbound/outbound), distribution channels, traditional and guerilla advertising media, promotional activities (SEO and SEM), events, and PR plan. Describe at least three (3) low cost, innovative, engaging guerilla marketing/PR stunts and three (3) catchy Buzzfeed appropriate headlines for blogs to generate interest in your product/idea. Prepare two (2) Business Canvases--one an expanded Canvas describing your venture and the second a competitive Canvas for your main competitor. Using the Canvas compare and contrast how you are differentiating your offering and especially from your main competitor (if appropriate). Offer supporting evidence including any research (primary and secondary) you may have conducted to support your plan— specifically at it relates to customer targeting and metrics. Identify the partners/stakeholders/advisors (marketing, corporate and otherwise) that you will need and how you will entice/sell them to assist/advise/join your venture. Provide preliminary financials. Be clear on your unit economics, CAC, and CLV assumptions and estimates. Identify how you will optimize your pricing. Describe how you will deal with any competitive marketing activities (especially pricing) that you can anticipate. You can include an Appendix of up to a three (3) pages for supporting materials, such as analytics, charts, and tables. Be sure to fully address any issues or questions raised by the venture capitalists, professors and the class during your pitch. Assignment 6. Key Takeaways: Maximum of two (2) pages Each student will submit a list of ten key takeaways from the class. These will be reviewed in class and graded on the scope and quality of your insights. Reference to the source of each takeaway is required. VI. Assessments Assignments must be emailed and uploaded to your individual or team file (depending on the assignment) in Canvas by the stated deadline. ONLY ASSIGNMENTS SUBMITTED ON CANVAS WILL BE ACCEPTED.
Summary of Course Assessments Assignment
Class and Team participation
Attendance is mandatory. Be on time! Be prepared!
Assignment 1: Basic Outline of Startup
Assignment 2: Proof of Concept Exercise
Active and insightful participation based on lectures and readings
Monday, September 4, 9:00AM
Monday, September 11, 9:00AM
Assignment 3: Interim Marketing Plan
Friday, September 15, 5:00PM
One-two minute presentation per team. Team Captain to present
Assignment 4: Pitch Deck and Presentation
Monday, September 25, 5:00PM
Assignment 5: Final Written Marketing Plan Team
Wednesday, October 13, 5:00PM
Assignment 6: Ten key takeaways
Monday, October 16, 9:00AM
10% pitch deck; 10% presentation. A team members present Reference of the source for each takeaway should be included
Class Schedule and Assignments
Date 8-29 Tuesday
Class Topics and Assignments 1 Entrepreneurial Marketing Introduction –Lautman and Lodish Entrepreneurial Marketing and Venture Opportunities I -- Lautman Readings 1. LMAB, Introduction and Chapter 1. 2. Aaker, David. Be the Exemplar.
Identifying Entrepreneurial Marketing and Venture Opportunities II--Lautman Readings 1. Wells, Charlie. Piggybackers Hitch Themselves to AirBnB, Uber. 2. Dawar, Niraj. When Marketing is Strategy. 3. Baker, Derek. Getting More-Granular Data on Customer Journeys. 4. Blank, Steve. Why You Can’t Just Tell a Company “Be More Like a Startup.”
Positioning, Targeting Strategies and Competitive Advantage –Lodish New Tools of Entrepreneurial Marketing: The Crowd: Social Strategy and Trust--Lautman Readings 1. Case: Yelp. 2. Sinek, Simon. If You Don’t Understand People, You Don’t Understand Business (video). 3. Boudreau, Kevin J. and Lakhani, Karim R. Using the Crowd as an Innovation Partner. 4. Trout, Jack. Positioning Myopia.
Speaker Seth Berger, (Wharton MBA) And1 (exit American Sporting Goods), Philadelphia 76’er Innovation Lab Validating Your Concept/Idea--Proof of Concept (POC) and Thinking Lean—Lautman Readings 1. LMAB, Chapter 2. 2. Siroker, Dan. How Obama Raised $60 Million by Running a Simple Experiment. 3. Hassan, Ali. A Quick Way to Test Out an Idea Using Twitter. 4. Berger, Seth. On Building a Company from the Ground Up. Knowledge at Wharton (video).
New Tools of Entrepreneurial Marketing: Pricing and the Culture of Free-Lautman Readings 1. LMAB, Chapter 3. 2. Case: Radiohead: Music at Your Own Price (A). 3. Rampell, Alex. Don’t Leave Money on the Table with this Crash Course on Pricing. 4. Bertini, Marco and Koenigsberg, Oded. When Customers Help Set Prices.
Speaker Wiley Cerilli Single Platform (exit Constant Contact), Seamless Web (exit Aramark), Good Uncle Entrepreneurial Marketing Strategy and Sales Tactics for Customer Acquisition Readings 1. LMAB, Chapter 9. 2. Balar, Meenal. Here’s What a Real Growth Strategy Looks like Road Tested by Facebook and Remind. 3. Cerilli, Wiley. The 39 Best Pieces of Sales Advice You’ll Hear this Year. 4. Onyemah, Vincent, Pesquera, Martha Rivera and Ali, Abdul. What Entrepreneurs Get Wrong.
9-18 4:30PM6:00PM Monday
9-21 Thursday 9-26 Tuesday
SPECIAL LATE AFTERNOON/EARLY EVENING SESSION (WILL BE TAPED) Room: JMHH 240 Speaker Lucinda Duncalfe (Wharton MBA) Turn Tide (exit Symantec), Click Equations (exit Channel Intelligence), Monetate. 1. Fralic, Chris. How to Become Insanely Well-Connected. Speaker Brett Hurt (Wharton MBA) Coremetrics (exit IBM), BazaarVoice (NASDAQ), Data.World.org Readings 1. Loten, Angus. Entrepreneurs Shape Free Data into Money. 2. Introduction for Brett Hurt: http://lucky7.io/about NO CLASS Entrepreneurial Tools—PR, Advertising/Promotion, Distribution Channels, Sales Force Management-Lodish Gorilla vs. Guerilla Marketing-Lautman Readings 1. LMAB, Chapters 4 and 8. 2. Case: OnePlus. Crossing the Chasm in the Smartphone Market 3. The Second Album: The Untold Story Behind the OnePlus2 Launch (video) 4. Leslie, Mark and Holloway, Charles A. The Sales Learning Curve.
New Tools of Entrepreneurial Marketing: Buzz, Social Media, and Virality–Lautman Readings 1. LMAB, Chapter 5 and Chapter 6 pp. 163-175. 2. Case: Buzzfeed--The Promise of Native Advertising. 3. Steinberg, Jon. 10 Tips from BuzzFeed to Make Your Content Go Viral
Entrepreneurial Marketing for Recruiting A-Team Employees, Advisors, and Directors—Lautman Raising Money: Key Metrics and Sources of Funding–Lodish Readings 1. LMAB, Chapters 11 and 12. 2. Brier, Noah. Onboarding Team Members. 3. Lautman, Martin R. Catching Stars. 4. Baehar, Evan. Startups Need Relationships Before They Ask for Money.
10-10 Tuesday 10-12 Thursday 10-17 Tuesday
Summary: Entrepreneurial Marketing Tools, Techniques and Strategies Review of key takeaways,