MARKETING - ADVERTISING AND SELLING

Marketing != Advertising .and. Marketing != Selling Barry Sharp AMA Management What is it not equal to? • Advertising: The science of arresting the human intelligence long enough to get money from it. Stephen B. Leacock (Humorist) • Selling: The fact is, everyone is in sales. Whatever area you work in, you do have clients and you do need to sell. Jay Abraham (Marketing Guru) So, what is it? • Marketing is what you do when your product is no good. Edwin Land (Founder, Polaroid) • In the factory we make cosmetics; in the drugstore we sell hope. Charles Revson (Founder, Revlon Cosmetics) • Give a man a fish and he will eat for a day. Teach a man to fish and he will eat for a lifetime. Teach a man to create an artificial shortage of fish and he will eat steak. Jay Leno • It will work. I am a marketing genius. Marketing Definitions • Learning from mistakes and constantly improving products is a key in all successful companies. Listening to customers is a big part of that effort. You have to study what customers say about their problems with your products and stay tuned into what they want, extrapolating from leading-edge buyers to predict future requirements. Bill Gates Barry’s Definition • Marketing is really simple. You just have to put yourself in your prospective customer’s shoes and answer one simple question..... “Why should I choose your business over every other competitor out there?” How do you do it? • People who are only good with hammers see every problem as a nail. Abraham Maslow • I have never let my schooling interfere with my education. Mark Twain Who is responsible for Marketing? • The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself. Peter Drucker (Management Guru) • Marketing is too important to be left to the marketing department. David Packard (co-Founder, Hewlett Packard) Why Bother? “Marketing and innovation are the two chief functions of business. You get paid for creating a customer, which is marketing. And you get paid for creating a new dimension of performance, which is innovation. Everything else is a cost center.” Peter Drucker Who really wants your product? People don’t buy needs, they buy wants. Do you want one….. Iridium (Satellite Phone System) • • • • • • • • • An Element A Transition Metal Symbol = Ir (Pronounced “Err”) Atomic Number = 77 Planned # of satellites = 77 Final # of satellites = 66 Project start – 1987 Project cost $5 billion Project end - 1999 - Bankrupt What happened to Iridium? • • • • • • • A cool idea in 1987 was not cool in 1999. Times changed (in 12 years !!) Iridium needed a subscriber base of 1 million. They had about 60,000 subscribers. Cell phones were small, sleek, and cheap. Sat phones were large, clunky and expensive. Oh yeah, they only worked outside! How do you know what they want? • Research • Research • Research • No great marketing decisions have ever been made on quantitative data John Scully (CEO, Apple 1983-1993) How much? (Price) What does it really cost your customers? – – – – – – – – – Your selling price Additional hardware Additional software Installation costs Consulting Upgrade fees Training Support Five year cost ……TCO Positioning (Market Segmentation) Criteria Who is the target customer? Positioning For (target customer) What is the compelling reason to Who (compelling reason to buy) buy? What is the product category? The product is (product category) What is the key benefit of that product category? That (key benefit) Who is the main competitor? Unlike (main competitor) What is the key differentiation of The product (key differentiation) this product? © Rocket Builders Positioning Statement iPod – Pre Production For mobile, high income individuals who need a way to listen to their entire music collection in different settings, the Apple iPod is a small, portable digital music player that offers elegance of design, the ability to store an entire music collection, and easy purchasing of new digital music. Unlike Flash mp3 players (Creative, Rio, etc), the product stores an entire music library and is integrated into a service to purchase new digital music (iTunes) © Rocket Builders Key Market Research Questions  What is your target market?  How big is it?  Who buys your product?  Why do they need it?  Who pays for it?  Who uses it?  How does the customer fix the business problem you are addressing today?  How much are they willing to pay?  Why would they buy from you?  What business problems are more important to them than this one? “Business Week - October 20, 2004” Who Said It? Any sufficiently advanced technology is indistinguishable from magic. Things should be made as simple as possible, but not any simpler. J.K. Rowling Arthur C. Clarke Frank Lloyd Wright Albert Einstein Computers are useless. They can only give you answers. Real programmers can write assembly code in any language. Pablo Neruda Pablo Piccaso Allan Kay Larry Wall Never trust a computer you can't throw out a window. They have computers, and they may have other weapons of mass destruction. Steve Jobs Steve Wozniak George Bush Janet Reno Microsoft & IBM • Pricing: I think these things (social networks) are going to have some legs, and yet there’s a faddishness about anything that basically appeals to younger people. Steve Ballmer – October 2nd 2007 Microsoft invests $249 million in Facebook, valuing Facebook at $15 billion. MSN – October 24th 2007 • Timing: 640K ought to be enough for anybody. Bill Gates (1981) I think there is a world market for maybe five computers. Thomas Watson (Chairman of IBM, 1943.) Keyboard not found. Press < F1 > to RESUME. Phrase found in many BIOSes What’s the plan, Boss? • A Marketing Plan does not say: “There is a fifty million dollar market in Vancouver and we are going to get 2%. That will give us sales of $1,000,000.” • Your Marketing Plan is a document that shows how you are going to make your prospective customers want to buy your product or service. Make A Plan It’s as easy as 1, 2, 3. 1. Failing to Plan = Planning to Fail - Anonymous 2. Reduce your plan to writing. The moment you complete this, you will have definitely given concrete form to the intangible desire. - Napoleon Hill (“Think and Grow Rich”) 3. Plans are nothing more than good intentions until they are converted into hard work. - Peter Drucker Higher Intelligence • • • • • • • • • • If it keeps up, man will atrophy all his limbs but the push-button finger. ~ Frank Lloyd Wright The drive toward complex technical achievement offers a clue to why the U.S. is good at space gadgetry and bad at slum problems. ~ John Kenneth Galbraith Never trust anything that can think for itself if you can't see where it keeps its brain. ~ J.K. Rowling Man is the lowest-cost, 150-pound, nonlinear, all-purpose computer system which can be mass-produced by unskilled labor. ~ NASA in 1965 The only thing that I'd rather own than Windows is English, because then I could charge you two hundred and forty-nine dollars for the right to speak it. ~ Scott McNealy Microsoft isn't evil, they just make really crappy operating systems.~ Linus Torvalds The Linux philosophy is 'Laugh in the face of danger'. Oops, wrong one. 'Do it yourself'. Yes, that's it. ~ Linus Torvalds Doing linear scans over an associative array is like trying to club someone to death with a loaded Uzi. ~ Larry Wall Java is C++ without the guns, knives, and clubs. ~ James Gosling (co-inventor of Java) Be nice to nerds. Chances are you'll end up working for one. ~ Bill Gates