Revenue Planning Topics

Frost & Sullivan offers a good definition of market size and some of the variables to consider.

Here are some useful articles by a VC on Addressable Market Size:
Addressable Market
Making the Estimate
Is Your Addressable Market Size Realistic?

It is important to understand some of the terminology ... this blog site has some great definitions and a diagram:

TAM: Total Available Market – i.e. how big is the overall market?

SAM: Served Available Market – how much of that market is actually served by market participants?

TM: Target Market – how much will you reach within a given time frame (in diagram aove this is a called a Serviceable and Obtainable Market)

Here is the methodology that Macromedia used to estimate Total Addressable Market Size for its products. Here is another example of calculating a TAM.

Some tips to learn how to develop revenue projections for your plan.

A VC's guide to startup market sizing from OVP.

And an excellent market sizing example from Lightspeed Ventures.

Market Targeting Topics

Before you begin targeting, you need to do proper segmentation. Here is a review of the segmentation concepts.

This is a good summary article on B2B market segmentation concepts.

This NetMBA article is a review of variables you need to consider in selecting target market segments. Here is a detailed article describing B2B segmentation variables.

Here is an Oxford lecture discussing market segmentation on how proper segmentation can avoid a common pricing trap:

Competitive Strategy Topics

We discussed the use of a Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis and the basic questions you need to answer along with some examples can be found at this site. Then later, we showed a video by an Oxford professor pointing out that the analysis must be uniquely relevant, concrete and based on specific segments:

This QuickMBA article is a good overview of Porter's Five Forces model for competitive strategy.

We talked about the strategies outlined in the Marketing Playbook, so you can visit the site for that book for more resources. Here is a summary of the 5 strategies:

• No. 1: Drag Race: Pick a company and try to beat it in head-on competition. Example: Microsoft Excel vs. Lotus 1-2-3.
• No. 2: Stealth: Remain under the radar, slowly gaining on the competition. About 90 percent of startups begin in stealth mode. Example: when Enterprise Rent-a-Car focused on in-city rentals rather than airport business. It handles replacement cars for people who have been in accidents and loaner cars for repair shops.
• No. 3: Platform: This is where a company allows others to succeed. Example: A mall that draws in shoppers for multiple stores.
• No. 4: Best of Both: Bringing two ends of the market together. Example: Volkswagen, which ties the reputation of an economical, high-performance, German-engineered car for regular people.
• No. 5: High-Low Play: A product that can be both a big-margin product and a low-end product that sells a lot. Example: Michael Graves, the architect known for hip teapots, has crossed the chasm by selling both expensive ones and a mass-produced version at Target.

We highlight how Apple has been using differentiation as a key element in its advertising. Here is a video with many of those famous tv ads:

Channel Validation Topics

This Microsoft article is a good summary of the process of deciding on a channel strategy. This BNET article is also a good review of the concepts covered in Seminar 2. This article provides a simple list of questions you must ask yourself.

In the seminar, we showed the following video from Motorola that provided an excellent example of the key elements of a channel program to make sure it benefits prospective partners:


For more details on the Motorola partner program, here is a brochure that outlines the elements of the program.

Dell changed its "direct-only strategy" in 2008, to include multiple types of channel partners. Here is a 20 minute interview discussing this strategy decision:

Customer Validation Topics

In seminar 2, we discussed how to understand the customer better and how to find what words the customer would use to describe your solution. We also discussed how to leverage customer testimonials to prove your value proposition.

I showed this video at the beginning of the seminar to highlight the importance of talking to customers instead of guessing what they are thinking:

Here is a Harvard Business School article on customer experience. And this eHow article is a simple overview of "How to Integrate Voice of Customer into Marketing Programs".

Casey Hubbard's Stories That Sell is a book that I recommend on the value and methods around using customer case studies to market your offering in the marketplace, and the website has some great resources.