As part of Minnebar last Saturday I had the pleasure of sitting in on the “7 Deadly Mistakes of Start-up Marketing” presented by Curt Prins, marketing consultant focusing on emerging technology companies. In a full board room at Coffman Union on the U of M Campus, Curt took us through what he considers to the most common mistakes entrepreneurs make as they begin to develop and market their company or products. (I had a chance to Twitter those “mistakes” live but they deserve just a bit more focus.)
Mistake #1 Target Market Greed. A common problem that afflicts most new companies. In the quest to market to the most bodies, they target way beyond their sweet spot. The tighter the niche that you focus on the better results you will get. Curt demonstrated his point with a very simple “pie” chart. Cut out a slice, and then cut it again. Reaching that small piece of the pie will yield tastier results. Not to mention it’s a much better use of your marketing budget.
Mistake #2 Prospect Gluttony. Similar in nature to the above Target Market Greed, the more you wander outside of the group that really needs your product the more disappointing the results.
Mistake #3 Product Pride. It’s your baby! Clearly, it’s the answer to everyone’s needs…or do they even give a #*@? (Curt’s word, or rather, punctuation.) Your product is an extension of you and of course benefits you. Does it benefit your prospects?
Mistake #4 Branding Pride. According to Curt, as a start-up your job is to build sales not your brand. Customers control your brand identity for you. What you can control is selling the product. If sales grow so will your brand.
Mistake #5 Sales Sloth. Nothing is more important than sales. This isn’t about lazy sellers, though that can be a problem, it’s about investing in lead generation and sales training. Your sellers are marketers they need to know everything about the product as well as finding those that need it. Think of sales and marketing together…not apart.
Mistake #6 Impatience. Too many start-ups expect to be successful overnight and be snapped for millions. Curt points out that you’ll spend at least 10-18 months to see a return on investment. Build it and they will come, yes. But it will take time for them to get there.
Mistake #7 Budget Frugality. Launching a company or product is not easy and it’s not cheap. You truly do get what you pay for. Be prepared to spend what is necessary to do it right.
I’ll add another mistake…not taking time to be aware of these seven deadlies.