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36 hours of lectures onProduct management in 25 Minutes
Product MarketingBryan Cassady
2
Most new products and services will fail …
– they fail is because:
• we get lost in the thick of thin things• we build products and services no one cares about
– worse yet, product successes are getting smaller
• too much incrementalism• formula driven marketing vs. inspired marketing
Product MarketingBryan Cassady
3
Building successful ideas and successful brands is hard work
• A study by Nielsen 862 packaged goods promotions. 50% no impact, less than 1 in 10, plus 10%
– 90% of new products fail– Few companies have proven their advertising works
Product MarketingBryan Cassady
4
My personal view on marketing
• I think there are 3 types of marketers– Risk takers (they like the macho bit)– Risk reducers (they like getting house odds), but scare to act– Risk reducers ready to act…
• A good marketer will build a strategy that increases odds of success from– 10%– to 20%– to 50%
A great marketer will
also do lots of stuff that fails
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“Let’s make sure we follow the books…
A typical Marketing MBA
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An interesting book…Counterintuitive Marketing
Studying brands in 48 categories
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Airlines Gas Stations Mid-priced American Cars Athletic Shoes Haircare Products Mid-priced Foreign Cars Auto Insurance Headache Remedies Motor Oils Banks Health & Fitness Clubs Newspapers Beers Home Entertainment Equip. Office Supply Stores Bookstores Hotels Personal Computers Bottled water Household Cleansers Pet Supply Stores Catalog clothing Internet Search Engines Political Parties Cigarettes Internet Service Providers Potato Chips Colas Jewelry Rental Cars Cold Cereals Laundry Detergents Soaps Cookies Liquor Spaghetti Sauces Cosmetics Long-Distance Telephone Toothpastes Credit Cards Luxury American Cars TV Networks Department Stores Luxury Foreign Cars Weight Loss Programs Fast Food Restaurants Major Household Appliances Wireless or Cellular Tel.
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Out of 48 product categories, Brand Equity scores are:
• Decreasing in 39• Stable in 5• Improving in only 4
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M.B.A. stands for
“Murderer of Brand Assets”
In a connected world, little incremental stepsare the slow death of a brand
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“Learn not to be careful.”
—Photographer Diane Arbus to her students (Careful = “The sidelines,” per Harriet Rubin in The Princessa)
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Target ROI for a VC companyInvestment Investment Return ROI Cum_invest Cum_Return Cum ROI
1 100 2000 2000% 100 2000 2000%2 100 150 150% 200 2150 1075%3 100 100 100% 300 2250 750%4 100 100 100% 400 2350 588%5 100 50 50% 500 2400 480%6 100 50 50% 600 2450 408%7 100 25 25% 700 2475 354%8 100 25 25% 800 2500 313%9 100 10 10% 900 2510 279%
10 100 10 10% 1000 2520 252%11 100 5 5% 1100 2525 230%12 100 4 4% 1200 2529 211%13 100 3 3% 1300 2532 195%14 100 2 2% 1400 2534 181%15 100 1 1% 1500 2535 169%16 100 1 1% 1600 2536 159%17 100 1 1% 1700 2537 149%18 100 0 0% 1800 2537 141%19 100 0 0% 1900 2537 134%20 100 0 0% 2000 2537 127%
Totals 2000 2537 127%
Throw out 4 losers and your ROI increases 159%Throw out the winner and your ROI falls to -72%
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“Let’s make a dent in the universe.”
Steve JobsApple Computer
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Class Summary
Thoughts to leave with
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Meaningful differentiation
Is there something that makes you specialNormal = nothing !
1
Product MarketingBryan Cassady
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3 Laws of meaningful differentiation
• Law # 1: An overt benefit– 1 maybe, 2 things better than anyone
• Law # 2: Real reason to believe– Credible, honest, memorable
• Law # 3: DRAMATIC difference– Not itsy bitsy differences, but something that sticks in
people’s brains
Example: Student applicationsand the 10,000 pound cookie
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Dramatic Difference is a the best predictor of success
Dr. Robert CooperFactors of Successful New Products
#1 Unique Benefit (Dramatic Difference)
#2 Fit with Company (Resources, skills, abilities)
#3 Large &/or Growing Market
McMaster UniversityHamilton, Ontario, Canada
218
142
100
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Clarity in communication
Your advertising needs to be as good as your best
salesman
2
18
YOU
arebombarded
by up to 4,000 ads
Every day
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Quick test...What is it?
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Confusion is not a good strategy for success.
Clarity
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Let a customer say NO because what you offer doesn’t apply to them.
But NEVER let a customer say NO because
they don’t understand what you’re offering.
Golden Rule of Clarity
Product MarketingBryan Cassady
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First Law of Marketing Physicssource: 2002 Eureka! Institute
• Overt Benefit• You TRIPLE the effectiveness of
• your marketing efforts by OVERTLY • communicating your customer benefit
Overt Benefit Level Probability of Success
Low Overt Benefit
Medium Overt Benefit
High Overt Benefit
13%
26%
38%
23
3 Chefs - 3 Years - World Cooking Competition Medalists
Reason To Believe Story
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Everything Sells
Are you offering, value, innovation or service
(you need to choose ! )
3
25
Everything you do with a brand is selling…
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1 + 1 + 1 + 1 = Beauty
1 + 1 + 1 + 0 = Failure
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Good Marketing is about [part 1]
Dramatic differencesClarity in communicationEverything Selling
What…
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Be Real
Candor Counts !
4
Product MarketingBryan Cassady
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Why Candor counts…
• People want authentic brands• They don’t trust advertising
– 93% of consumers do not have confidence in the advertising messages of major corporations. (Yankelovic)
• Hated brands can win ! (polarization is good !)– Build a brand consumer hate, and there is a good chance
you’ll build your bank account
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If you lie, consumers will punish you. (Dell Hell = 366,000 hits !)
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Be connected
Good advertising = niceGood word of mouth = Great !
5
Product MarketingBryan Cassady
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The Law of 250
• Every person knows at least 250 other people.• Each of your contacts knows at least 250 people.
So that’s 62,500 at your 2nd level.• Each of your 2nd level contacts knows 250 people
- and that’s over 15,000,000
Product MarketingBryan Cassady
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Corollary to Law of 250
• It is typically not your first level contact that eventually hires you - in fact, you’ll probably find that the hiring contact may be 2, 3 or 4 levels deep.
• Some sociologists have found that “acquaintances are more likely than family members to give individuals direct information and to recommend them for opportunities.”
(Mark Granovetter, “The Strength of Weak Ties”
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4 Layers of Separation
Level 1Contact
Level 2Contact
Level 3Contact
Level 4Contact
Your FriendAlice
Alice’s UncleBill
Bill’s FriendCarol
Carol’s BossDavid
You
These are the contacts likelyKey to most success
35
Gain exposure to the envelope of serendipity: go to parties
36
Don’t be fooled by the experts !
Develop gut feelingsTalk to non-experts
6
Product MarketingBryan Cassady
37
Wisdom of crowds in action
• Who Wants to Be a Millionaire?
15 questions = $ 1 millionPhone a friend vs Audience
61% vs 91% accuracy
Product MarketingBryan Cassady
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An example
• What makes new products successful– A better product– Market potential– Market synergy
All the things covered in the article, winners and losers…
39
Yes
Yes
2 out of 10 real differences, the rest statistically significant
Source: New products what separates winners from losersCooper & Kleinschmidt
40
Personal opinion:
All the success criteria identified in the winners/losers article are relevant. But what makes a product a success is
An exceptionally high score on 1 criteria or more likely…
A good score on a range of criteria
41
Have fun
If you enjoy what you do… you’re likely to do it well
If you believe you’ll do it even better
7
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• Increase the quality of life • Right a wrong • Prevent the end of something good
43
Expand your horizons
Good marketing is about business and people.
Understanding business is easy… understanding people takes lifetime
8
Product MarketingBryan Cassady
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Make it your job to learn
• What you should be learning…– Organizational behavior– Psychology– Design
• Collect stuff– Cool advertising– Great product ideas– Beautiful design
Product MarketingBryan Cassady
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A few good books
Fun• Re-imagine• The Cluetrain Manifesto• All marketers are liars• Paradigms• Funky business• Influence: The Psychology of Persuasion• A Mind of Its Own: How Your Brain Distorts and Deceives
Quasi-Academic• The Black Swan or Fooled by Randomness• Linked
Academic• Judgment Under Uncertainty: Heuristics and Biases• The Difference: How the Power of Diversity Creates Better Groups,
Firms, Schools, and Societies
Not fun, but worth reading• The Pyramid Principle
46
But remember…
Your education is what you remember long after what you have been taught is forgotten…
Make it yours, make it fun …
47
Dramatic differencesClarity in communicationEverything Selling
What… How…
Be Real Be connectedDon’t be fooledHave funLearn
Good Marketing is about [part 2]
48
Share of customer
Never think you own your customer… you earn them
every day
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Product MarketingBryan Cassady
49
A traditional view of the market
Product MarketingBryan Cassady
50
"Our buyers"
The reality
Product MarketingBryan Cassady
51
Not Aware
Sole Buyer
A continuum of loyalty
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A brand’s most valuable customers give most of their business to competitive brands
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11 Representative FMCG Brands
69% tothe competition
the brand31% to
Not Aware
Sole Buyer
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Keep a dialogue open
Remember to talk with your customers on a regular basis.. What they want is important
10
Product MarketingBryan Cassady
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Using advanced marketing techniques for lunch...
• RFM– This is what you ordered
last time– And this is how much you
ate...• Analysis techniques
– Based on your weight, height, social background
• You expect them to ask, why don't you ?
56
Dramatic differencesClarity in communicationEverything Selling
What… How…
Be Real Be connectedDon’t be fooledHave funLearn
Measures
Share of customerOngoing dialogue: what do they say
Good Marketing [the full picture]
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“Life [and your career] is not a journey to the grave with the intention of arriving safely in a pretty and well-preserved body—but rather a skid in broadside, thoroughly used up, totally worn out, and loudly proclaiming, ‘Wow, what a ride!’ ” —anon.
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Magic
1. What you areGood at
2. What are youMade to do
3. What will peoplepay for
A simple 3 step program for brands and people
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