The Four Steps to the Epiphany
Author:Steve Blank [Blank, Steve]
Language: eng
Format: epub
ISBN: 9780989200516
Publisher: K&S Ranch
Published: 2013-10-01T20:00:00+00:00
Customer Creation Versus Marketing Communications Execution
In the Customer Development model, the phrase “customer creation” represents the essential marketing activities necessary to help customers learn about a product and create a desire to buy it. In most startups this job falls under the general rubric of marketing communication. I call these activities Customer Creation rather than marketing communication to make the points that (1) in a startup these events are occurring for the first time; (2) they are not about the marketing department, they are about customers; (3) they are creation events, not follow-on execution activities; and (4) the types of appropriate marketing programs differ widely, depending on Market Type.
Why is this distinction important? Traditional marketing communications strategy has six elements: (1) an internal and external PR audit to understand customer perceptions, (2) development of a unique company and product positioning, (3) enlistment of key industry influencers and recommenders, (4) recruitment of enthusiastic beta customers ready to sing the praises of the product, (5) product launch at first customer ship, and (6) ramped-up demand creation spending (advertising, public relations, trade shows, etc.). However, the implicit assumption is that all startups are in existing markets. And these six steps work in every existing market. However, in at least two of the four types of startups these traditional rules don’t work. Unfortunately, in lieu of developing a strategy that fits their own particular circumstances, most startup marketers tend to fall back on timeworn marketing phrases and programs, typically those they used at their last company. This is a mistake. Launching a new product and company should not be confused with executing a laundry list of marketing tactics. What every startup needs is a thoughtful Customer Creation strategy and plan tailored to their Market Type. My emphasis on Customer Creation rather than marketing communications execution is meant to make clear the people involved need to be strategists rather than tacticians.
To develop a successful Customer Creation strategy, you must answer two questions: (1) What type of startup are you? (2) What are your positioning messages (based on your deep understanding of who the customers are and what they want)?
In Customer Discovery and Validation you identified who will buy your product and acquired extensive information about those customers. In Customer Creation you will use that information to forge a strategy—not disconnected tactics—to reach customers.
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