Marketing Marketing -- SimplifiedSimplified

Distilled From One Of Al Ries’ & Jack Trout Books

by

Rajesh Sengamedu

13 Mar 2010

Disclaimer & NotesDisclaimer & Notes� This is not my original presentation. I thank the authors for their wonderful insights

� I prepared the presentation from my notes taken while reading the book (unfortunately forgot

to write down the name of the book)

� I found the simplicity of ideas expressed as the most compelling value proposition of the book.

� Our own experiences* in the startup, reaffirms some of the key points especially with

◦ Branding for product

◦ Distribution

◦ Pricing

◦ Promo tactics

◦ Market Research

� I think the book underplays the importance of Internet and considers it useful only as a promotional media, which I strongly disagree.

◦ Internet is not only a good promotional vehicle, but is also the most important and cheapest method of reaching a large consumer base spread across multiple geographies – both for selling products and services

*: Any one interested to learn more drop me an email: rajesh dot sengamedu at gmail dot com. Would help if you can explain the real world difficulties /dilemmas that you are facing wrt your marketing strategy for me to provide you with a better response.

What Is Marketing?What Is Marketing?

� Marketing is:

◦ “Simply figuring out what you have to do to sell your product or service for a profit”

◦ Like a Movie with the product as the star. Everyone and everything in the movie is part of telling a simple story about why my product is different and it should be bought instead of other products

How Much To Spend On How Much To Spend On Marketing?Marketing?� Spend enough to do the job� Ground Rules to spend:◦ Prepare marketing plans that present each

product in terms of its marketing life cycle ( Is it a new market, what is competition doing, what is differentiation etc)◦ Rank product opportunities (can we get

premium pricing?, is it a new idea that can establish leadership?, Is it commodity business?, Is the competition already established?)◦ Assign advertising tasks◦ Stop when you are out of money

Rules Of Distribution ChannelRules Of Distribution Channel

� The more direct the channel, the more

control

� Don’t compete with your customers

� Always ‘show the money’ to your

distribution channel

How to Brand?How to Brand?

� Figure out a simple brand name that

explains product benefit

� Figure out and communicate product

differentiation

How Should One Develop How Should One Develop Product Strategy?Product Strategy?� Product should always be either #1 or

#2 or something new

� Something new means

◦ Offering to a new sub-category (can be done if you segment the market well enough)

� Avoid line extensions as it dilutes the

brand

Pricing GuidelinesPricing Guidelines

� Always stay in the ballpark of competition

� People will pay a little higher for perceived value

� High quality products should be more expensive

� High priced products should offer prestige

� High prices & high profits attracts competition

� Its hard to win with low price

� Prices can go down

Market ResearchMarket Research

� Remember that most customers ‘talk

and act differently’ and ‘buy what

others buy’

◦ So, its pointless to research what customers want!

� Best way of spending money on

market research:

◦ Figuring out differentiators as it exists in a customers’ mind for a particular category

What Is Good Advertising?What Is Good Advertising?

� Should dramatize a product’s point of difference. It should supply a reason a buy

� Avoid meaningless slogans� Judge how well the ad dramatizes the

product difference� Judge how honest the message is, how

simply the message is presented and whether or not there is some interesting news for the customer that translates into a benefit

How to Pick The Right Medium How to Pick The Right Medium for Advertising?for Advertising?� Media with ‘sound’ is more powerful than without

sound

� Use the following◦ PR: To launch the idea, give it credibility, create a

buzz

◦ Advertising: To build the awareness rapidly for the idea

◦ Trade Shows: Generate excitement among industry insiders or distribution channels for the idea

◦ Internet: Offer more info on the idea (I disagree here)

◦ Direct Mail: Present the idea to a list of best or biggest customers

◦ Promotions: Generate trials for your new idea

What about product logo?What about product logo?

� Design a logo around the product

name

� A product name is more powerful than

a symbol