This (longer) episode focuses on the latest research from the Ehrenberg-Bass Institute for Marketing Science.

The discussion delved into B2B marketing myths, emphasizing evidence-based insights from the Ehrenberg Bass Institute. We specifically analyze and debunk several marketing myths that are often wrongly applied to B2B,

• including the myth that brands should focus on retaining a loyal base of customers.
• Findings emphasize that in order to grow, brands need to reach a wider audience, and not just target their current customers.
• They also explore the importance of distinctive brand assets
• and the impact of category entry points, which can be leveraged to make a brand more readily available in a consumer's mind.
• Finally, we provide an overview of the Duplication of Purchase Law, which describes the tendency for customers to share across multiple brands,
• as well as the Double Jeopardy Law, which demonstrates the correlation between market penetration and loyalty.

References:
- "Advertising effectiveness and the 95-5 rule: most B2B buyers are not in the market right now | Ehrenberg-Bass Institute for Marketing Science": https://www.marketing.unisa.edu.au/Ehrenberg-Bass-Institute/our-work/publications/advertising-effectiveness-and-the-95-5-rule-most-b2b-buyers-are-not-in-the-market-right-now

- "Brand Rejection in B2B: Incidence, Reasons and Implications | Ehrenberg-Bass Institute for Marketing Science": https://www.marketing.unisa.edu.au/Ehrenberg-Bass-Institute/our-work/publications/brand-rejection-in-b2b

- "Category Entry Points in a Business-to-Business (B2B) world | Ehrenberg-Bass Institute for Marketing Science": https://www.marketing.unisa.edu.au/Ehrenberg-Bass-Institute/our-work/publications/category-entry-points-in-a-business-to-business-b2b-world

- "How do Business-to-Business (B2B) brands compete? | Ehrenberg-Bass Institute for Marketing Science": https://www.marketing.unisa.edu.au/Ehrenberg-Bass-Institute/our-work/publications/how-do-business-to-business-b2b-brands-compete

- "The Double Jeopardy Law in B2B shows the way to grow | Ehrenberg-Bass Institute for Marketing Science": https://www.marketing.unisa.edu.au/Ehrenberg-Bass-Institute/our-work/publications/the-double-jeopardy-law-in-b2b-shows-the-way-to-grow

"Scaling startups: shoot for the stars, but build your rocket first" uses the analogy of building a rocket to demonstrate the importance of understanding and mastering business fundamentals for startup success. We draws parallels between Francis Bacon's inductive reasoning and the evolution of naval engineering to highlight the importance of observation and experimentation in understanding underlying forces. We further uses the examples of Uber and Airbnb to emphasize that replicating a concept without understanding the core driving forces behind its success will not lead to sustainable growth. Just as space travel required an understanding of astrodynamics, the author argues that startups need to grasp the six stages of business growth described by the Greiner Curve in order to avoid potential pitfalls and ensure successful scaling.

References:

• https://medium.com/@alexandra.najdanovic/scaling-startups-shoot-for-the-stars-but-build-your-rocket-first-1221afe16580
• https://medium.com/@alexandra.najdanovic/scaling-startups-shoot-for-the-stars-but-build-your-rocket-first-1221afe16580

As Carrie Bradshaw says:
“the more words we invent, the harder it becomes to define things”.
She talked about relationships, I’m talking about innovation.

Another fav-of-mine: Larry Keeley's 10 Types of Innovation. It is not about post-its on walls (or Miro boards...)

We explore the 10 types of innovation- providing descriptions and examples of how companies have used them to achieve breakthrough success, and offers tactics for organizations to implement each type.

The discussion delves into the 10 types of innovation, emphasizing that true innovation is about sustainability and elegant integration rather than being first. Based on Doblin's research of over 2,000 innovations, the framework includes:

• profit model (e.g., McDonald's franchising),
• network (Google's ecosystem),
• structure (Google's 20% time policy),
• process (Amazon Prime's optimization),
• product performance (Tesla's electric cars),
• product system (Apple's ecosystem),
• and experience types like service (Amazon Prime's shipping),
• channel (Netflix's personalized recommendations),
• brand (Apple's emotional connection),
• and customer engagement (World of Warcraft's community).

Our conversation highlights that innovation is not just for large companies and encourages experimentation and platform thinking.

References:

• [PDF] https://www.deloittedigital.com/content/dam/digital/global/legacy/confidential---legacy-assets/dd-marketing/general/300---pr---communications/330_-_dd_com_website/051-offerings_detail/doblin-transition/10-types-of-innovation/design/pdf-updates/offering-20221202-doblin-10-types-brochure_download-02.pdf
• [URL] https://www.visualcapitalist.com/10-types-of-innovation-the-art-of-discovering-a-breakthrough-product/
• [Video] https://youtu.be/OUImLQ1lUXk?list=TLGG1qtgx2p82t0xODEwMjAyNA

This conversation provides a guide to understanding and conducting cohort analysis in SaaS companies. It covers basic concepts like customer churn and revenue churn, explains how to create a cohort analysis using spreadsheets, and provides practical advice on how to interpret the data. The guide also dives into more advanced topics such as hidden churn and Net Dollar Retention, and how to leverage cohort analysis for fundraising.

Reference

• Brilliant paper by Point Nine Land:
  https://medium.com/point-nine-news/the-p9-guide-to-cohort-analysis-in-saas-v0-9-63ce366ab427
• Go further with https://medium.com/point-nine-news/why-your-ltv-might-be-higher-or-lower-than-you-think-f355392917011

This discussion emphasized the importance of pricing in startups, highlighting four main challenges: adoption obsession, cross-functional nightmares, data deserts, and moving target syndrome. A study by Simon Kucher and Bessemer revealed that optimizing pricing can lead to a 32% revenue uplift.

The conversation introduces pricing archetypes—mice, elephants, gnomes, and godzillas—each representing different market maturity and customer lifetime value. We explain why founders are advised to build a pricing feedback loop and take ownership of pricing to align with business goals and sustainability. The key takeaway is that pricing strategy is crucial for startup growth and should not be neglected.

Read the below for more tactics.

Reference:
The Startup Pricing Journey: How to efficiently monetize products and services
[URL] https://www.bvp.com/atlas/the-four-ironclad-laws-of-b2b-saas-pricing-that-can-boost-your-revenue-up-to-32
[PDF] https://www.bvp.com/assets/uploads/2021/05/the-startup-pricing-journey.pdf

Crafting an Impactful Pitch Deck
In this segment, our lovely NotebookLLM hosts outline key strategies for developing an effective pitch deck, stressing the significance of keeping it concise with a maximum of 16 slides.
They advise on crafting a captivating opening, clearly presenting the problem and solution, and showcasing the team’s strengths. The discussion also touches on the importance of understanding market metrics and avoiding generic presentations.

• Strategies for capturing investor attention (opening act, unique selling points) - 1 min 42
• Key metrics and financial projections that matter to investors (CAC, LTV) - 3 min 44
• The significance of storytelling and building a connection with investors - 8 min 40
• Importance of a concise pitch deck (16 slides) - 9 min 05

References:

• https://www.linkedin.com/pulse/answer-3-big-sales-questions-why-anything-now-you-ken-rutsky/
• https://www.docsend.com/blog/what-vcs-really-want-to-see-inside-your-seed-deck/
• https://techcrunch.com/2023/08/30/pitch-deck-slide-suggestions/

I fell in love with Philippe Meda's critique of the business model canvas years ago (2016)...and have been in love with his focused, innovation based simplified approach since.
The elegance of it: it focused on the pain point you are trying to solve as a business and as an innovator, and is ruthlessly aiming to help you identify where and how you plan to create value.

Enjoy!
Alex
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Chapters & Topics:

Exploring Focused Innovation in Business Models
The meeting highlights the shortcomings of the Business Model Canvas, especially in addressing the needs of disruptive ventures. Philippe Meda proposes the Focused Innovation Canvas, which prioritizes identifying specific problems before considering added value and product. This approach aims to provide a more tailored tool for innovators tackling complex challenges.

• Limitations of the Business Model Canvas
• Introduction of the Focused Innovation Canvas

[4 min 56] Types of Innovators and the Focused Innovation Canvas
The conversation explores the characteristics of market-driven, future-driven, and process-driven innovators. Market-driven innovators act as market anthropologists, identifying customer needs, while future-driven innovators, like Elon Musk, focus on visionary solutions that may not yet be recognized as problems. Process-driven innovators experiment with technology but must ensure their innovations address real-world needs.

• Types of Innovators: Market-driven, Future-driven, and Process-driven [5 min 10]
• The concept of "superpowers" and unique strengths in innovation [11 min 22]

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References:
(2016) https://www.icopilots.com/its-time-to-let-go-of-the-canvas/

(2019) https://www.icopilots.com/business-model-for-innovators/

Let's figure out what a good strategy, and how to get one.
Spare us 10min to get acquainted with useful concepts from 2 masters of business strategy: Roger Martin (Playing to win) and Richard Rumelt (Good strategy, Bad Strategy).
Guess what... having a good product is not enough. You don't want to chase outcomes without a clear map.

Enjoy!

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Chapters & Topics:

Strategic Thinking and the Choice Cascade
The conversation highlights the distinction between superficial strategic discussions and true strategic genius, as noted by Roger Martin and Richard Rumelt. Speaker 2 explains Martin's strategy choice cascade, which includes defining a winning aspiration, selecting a competitive battlefield, and identifying unique advantages. They stress that a successful strategy requires not only clear goals but also the capabilities and systems to execute it effectively.

• The rarity of genuine strategic thinking in business.
• Martin's strategy choice cascade and its components.

Strategy Development and Diagnosis [3 min 53]
The conversation highlights the significance of diagnosing a situation before developing a strategy, referencing Steve Jobs' approach when he returned to Apple. Speaker 2 explains that Jobs recognized Apple's issues, such as being unfocused and bloated, and made the bold decision to streamline operations. This strategic focus allowed Apple to concentrate on its strengths and regain its competitive edge.

• Practical tools and frameworks for applying strategic principles.
• The importance of diagnosis in crafting a winning strategy.

Crown Court Conceal: A Case Study in Niche Marketing [6 min 23]
The discussion centers around Crown Court Conceal, a company that produces metal containers and successfully carved out a niche in a market filled with giants. Instead of competing head-on with larger companies, they focused on short production runs and rush orders, which the bigger players deemed unworthy. This strategy allowed them to build a strong reputation for flexibility and customer service.

Strategy Toolkit for Success [7 min 35]
The conversation highlights that success is not solely about having good ideas but understanding how to navigate challenges strategically. Speaker 2 introduces a toolkit that begins with clearly defining obstacles and recognizing personal strengths. They stress the importance of testing assumptions to refine strategies continuously.