Is marketing necessary? How can we market effectively as microISVs? Is it possible to market effectively without being evil? Marketing myths, positioning, brand, pricing, promotion...and as much else as I could fit into 45 minutes.

1. Marketing for µISVsEmbracing the dark side? ESWC2009 Andy Brice Oryx Digital Ltd http://www.successfulsoftware.net

2. Introduction A quick dash through the vast subject of marketing Misconceptions developers have about marketing Some marketing concepts No recipes the optimal approach depends on you, your product and your market Questions at the end (if we have time)

3. About me Writing software professionally since 1987 Full-time µISV since Jan 2005 product: www.perfecttableplan.com Consultant to µISVs specialising in one day consultations to help µISVs, especially with marketing and usability Blog: www.successfulsoftware.net Email: consulting@oryxdigital.com

4. Myths of marketing Myth #1: Marketing is unnecessary Myth #2: Marketing is advertising Myth #3: Marketing is easy Myth #4: Marketing is guesswork Myth #5: Marketing is number crunching Myth #6: Marketing requires lots of money Myth #7: Marketing is ‘evil’

5. Myth #1: marketing is unnecessary If you: Decide which product to create Name your product Create a website Decide the features of your product Set a price Then: You are doing marketing The question is whether we are doing it well or badly

6. Marketing vs development For a successful product we need to: Identify a need (marketing) Identify our customer (marketing) Decide how best to fulfil that need (marketing+development) Create the product (development) Make potential customers aware of our product in a cost effective way (marketing) Communicate the value of our product (marketing)

7. Good programming isn’t enough It doesn’t matter how well written your software is if no-one: knows about it cares about it understands what it does is prepared to take the time to try it is prepared to pay for it

8. Myth #2: Marketing is advertising Marketing includes: Research Promotion Pricing Branding Positioning Segmentation

9. Advertising in only one type of promotion There are many ways to promote your product:

10. Myth #3: Marketing is easy Marketing combines: Psychology, economics, statistics, writing and much more None of the following are easy: Deciding which product/market will be the most profitable Deciding features/differentitation Deciding pricing Deciding positioning Deciding your promotional strategy Copy writing

11. Product lifecycle Your marketing needs to change as your product passes through the product lifecycle

12. Myth #4: Marketing is guesswork It is difficult to guess what customers want People are not rational Testing is as important in marketing as it is in development Google analytics Google adwords Google website optimizer Measure what they do What people say and what they do are often not the same

13. Myth #5: Marketing is number crunching Marketing is a battle for the mind If someone thinks your product is better – it IS better You need to understand the customer You need to be creative You need to know what to test

14. Myth #6: Marketing requires lots of money It doesn’t require a lot of money to be noticed if you are creative enough

15. Myth #7: Marketing is ‘evil’ Marketing is evil when it manipulates, deceives or intrudes inappropriately It isn’t necessary to be evil if you have a good product

16. Tools of persuasion Social proof Authority Reciprocation Urgency Scarcity Contrast Status anxiety

17. Shades of grey The line between good and evil, persuasion and manipulation, isn’t always clear Rebates Permanent ‘sale’ price Opt-out extras FUD marketing Fake awards Fake testimonials SPAM Hidden extras Outright lies

18. Word of mouth marketing Evil marketing may work in the short term, but hurt you in the long run The best marketing is done by your customers Massive reach Maximum credibility Free

19. Some marketing concepts Brand Positioning Pricing Segmentation

20. Brand The product is what the customer downloads The brand is what the customer pays for Brands: build trust add value Strong software brands Apple Microsoft 47 Signals Fog Creek

21. The power of brand Branding means people will pay $50 for an item of clothing that costs $1 to make Branded painkillers work better than generic ones ‘No one ever got fired for buying IBM’ Marlboro associated cigarettes with cowboys (not cancer)

22. Creating a brand Key elements of a brand: Story/image/myth Consistency Mismatch difference between the way consumers are and how they wish they were But: It takes a lot of time, effort and resources to create a brand Brands make more sense when you have multiple products

23. Positioning You need to position your product in the mind of the consumer. Only one product can occupy a position. “The basic issue in marketing is creating a category you can be first in” Trout & Ries Once a position is established it is very hard to change If you don’t choose your position, your competitor might do it for you

24. Positioning

25. Positioning

26. Positioning

27. Positioning

28. Positioning

29. Positoning Positioning statement = Superlative (why) + Label (what) + Qualifier (who) Examples Superlative : easiest to use, most powerful etc Label: table planner, ToDo list, spreadsheet Qualifier: for Excel, for Mac, for lawyers, in Spanish

30. Pricing When setting a price you have to think about: Perceived value Price as signal Lifetime value of customer Approval thresholds Can price by: user (named or concurrent), use, time, processor, server Pricing is hard!

31. Optimal price

32. Segmentation Ideally we want to charge different amounts to different customer segments Various approaches: Features Geography/Language Usage Time Discount Coupons

33. Segmentation

34. Conclusion Good marketing: is essential for commercial success requires time, effort, knowledge and creativity doesn’t have to be about dishonesty and manipulation isn’t that common in software developer don’t understand marketing marketers don’t understand software Links and more on some of these topics on my blog: www.successfulsoftware.net consulting@oryxdigital.com