Marketing Joint

Let Customers Tell YOU What Their Benefits Are ...

Every good marketer talks about their products in terms of benefits. Every good sales pro sells benefits - not the product's features. Then, what could possibly go wrong? Plenty.

In order to create demand for a product, it is true that you must seek to solve customer problems through their eyes. Thus, you have to speak in the language of "acquiring benefits." Where most startups trip up is in the actual carrying out of that chore. You see ... most sales and marketing people have a habit of drawing up the benefits themselves and thrusting it upon the customer. This is a common pitfall.

Switching Costs

In technology marketing, switching costs are a big barrier for startups. A customer will make drastic changes to their existing infrastructure … very rarely. Most often, customers will make incremental improvements to their infrastructure to support its business.

Due to this reality, startups run into a steep hill when it tries to sell to customers without an in-depth understanding of switching costs. This is why low TCO (total cost of ownership) and “transparency” have been effective themes for B2B technology marketing. Transparency just refers to changing what goes on internally (e.g., how data is treated inside a box) without changing what a user or customer perceives externally.

Switching costs rarely get a lot of attention by vendors and customers alike when times are good. When the focus is on top line growth, customers assume that the downside of making a change (or, switch) is dwarfed by the upside of the new product. When the focus is overly placed on the bottom line (as it is during bad times), customers exaggerate the downside of making anything but a mandatory change and, thus, high switching costs become anticipated and feared.

Startups must incorporate a way to minimize the burdens of switching costs. That’s not a job you should let customers figure out. Do it for them. They’ll appreciate you for it. It’s no different than pleasing your boss. The more you can anticipate and do for them, the better off both of you will be.

- John

Selling Mattresses

Selling mattresses must be tough. Mattresses all look alike. So, stores that sell mattresses usually ask customers to "lie down and take it for a sleep." Then, you realize that mattresses don't just look the same but they also feel the same. This is why most mattress stores are in rundown neighborhoods. They need a gigantic store to showcase all of their mattresses!

Product Reviews: You Could But Should You?

The product review is a time consuming, risky endeavor that – if done properly, for the right reasons – can payoff big (no, HUGE!) for a startup. The key to running an effective product reviews program is to know when not to do it. Marketing gets pressured into doing product reviews. The pressure is mostly self-imposed but it is also frequently externally imposed. The people who do not understand the intricacies of a product review program will be the ones who inevitably blurt out, “why aren’t we in these product reviews” or “we need to do product reviews!” Not quite folks … not quite.

Difference Between Product Marketing and Product Management: Simplified

The difference between product manager (PM) and product marketing manager (PMM) is a topic that's hotly debated and discussed by those in the technology arena. Most of the descriptions of the similarities and differences between these two critical marketing functions inevitably dive into specific task comparisons. So, here, I'd like to simplify the description by observing the inherent goals of each ...

Chrysler's $2.99 Per Gallon Promo

When I first saw the Chrysler's $2.99 per gallon gas offer, I thought it was a good marketing campaign. And, when I READ THIS it made me believe it was working fairly well. Then, I READ THIS MORE RECENT STORY and now wonder if Chrysler extended the offer not because it was working but rather because it wasn't working ...

We'll have to wait and see if their June and July sales figures look better.

- John

IronKey Makes Fort Knox of Flash Drives

IronKey is a startup that sells what it calls the "world's most secure flash drive." This is a company that understands how to market with "simple but extraordinary" in mind. I was talking to a friend earlier today and mentioned how very few marketers know how to be simple but extraordinary. Steve Jobs? Yup, he fits the bill.

IronKey's website is elegant and simple. You could see the attention to detail. They're proof positive of the common saying that companies that need to actually sell via the site have much better sites than their traditional B2B counterparts.

Marketing Technology to Businesses

When it comes to hiring the marketing head, I have always preached hard the importance of looking at a marketing professional’s breadth of experience and hands on skills across ALL marketing functions and disciplines. Specific domain is important but secondary. Get a great chef and he can figure out the recipes. Get a line cook and you’ll need to give him specific recipes. At a startup, you often don’t have recipes etched in stone. So, go for the chef. I guess I should’ve also mentioned that preceding any of this is the more basic question of “consumer or business?”

"Refer A Friend" -- PRESS HERE, PASS IT ON!

A lot has been written lately on the similarities and distinctions between … viral marketing vs. word-of-mouth … telesales vs. telemarketing … and network effect vs. bandwagon effect. In this entry, I’ll attempt to bring it all together as best as a 1,500 word entry could do with particular focus on the enterprise B2B startup.

Packaging and the Paradox of Choice

We love to have choices. By definition, it implies freedom and control. I can choose from the multiple options and get exactly what I want, something that uniquely fits my needs. What could possibly be wrong with that?

Two Deadly Habits of Tech Marketing Pros

Everybody loves lists just ask David Letterman’s viewers and fans) so I found it necessary to write my own list of the “Two Deadly Habits of Tech Marketing Pros.” I know ... two makes a short list. Both of these maladies are largely observed most frequently at tech startups. I’ve decided to tailor this piece to startups mainly because it’s easier that way. Maybe calling these deadly habits is a bit weak since habits are sometimes never broken. Let’s call them bullsh*ts since habits can be ignored but bullsh*ts have to be confronted.