Marketing for µISVsEmbracing the dark side?<br />ESWC2009<br />Andy Brice<br />Oryx Digital Ltd<br />http://www.successful...
Introduction<br />A quick dash through the vast subject of marketing<br />Misconceptions developers have about marketing<b...
About me<br />Writing software professionally since 1987<br />Full-time µISV since Jan 2005<br />product: www.perfecttable...
Myths of marketing<br />Myth #1: Marketing is unnecessary<br />Myth #2: Marketing is advertising<br />Myth #3: Marketing i...
Myth #1: marketing is unnecessary<br />If you:<br />Decide which product to create<br />Name your product<br />Create a we...
Marketing vs development<br />For a successful product we need to:<br />Identify a need (marketing)<br />Identify our cust...
Good programming isn’t enough<br />It doesn’t matter how well written your software is if no-one:<br />knows about it<br /...
Myth #2: Marketing is advertising<br />Marketing includes:<br />Research<br />Promotion<br />Pricing<br />Branding<br />Po...
Advertising in only one type of promotion<br />There are many ways to promote your product:<br />
Myth #3: Marketing is easy<br />Marketing combines:<br />Psychology, economics, statistics, writing and much more<br />Non...
Product lifecycle<br />Your marketing needs to change as your product passes through the product lifecycle<br />
Myth #4: Marketing is guesswork<br />It is difficult to guess what customers want<br />People are not rational<br />Testin...
Myth #5: Marketing is number crunching<br />Marketing is a battle for the mind<br />If someone thinks your product is bett...
Myth #6: Marketing requires lots of money<br />It doesn’t require a lot of money to be noticed if you are creative enough<...
Myth #7: Marketing is ‘evil’<br />Marketing is evil when it manipulates, deceives or intrudes inappropriately<br />It isn’...
Tools of persuasion<br />Social proof<br />Authority<br />Reciprocation<br />Urgency<br />Scarcity<br />Contrast<br />Stat...
Shades of grey<br />The line between good and evil, persuasion and manipulation, isn’t always clear<br />Rebates<br />Perm...
Word of mouth marketing<br />Evil marketing may work in the short term, but hurt you in the long run<br />The best marketi...
Some marketing concepts<br />Brand<br />Positioning<br />Pricing<br />Segmentation<br />
Brand<br />The product is what the customer downloads<br />The brand is what the customer pays for<br />Brands:<br />build...
The power of brand<br />Branding means people will pay $50 for an item of clothing that costs $1 to make<br />Branded pain...
Creating a brand<br />Key elements of a brand:<br />Story/image/myth<br />Consistency<br />Mismatch <br />difference betwe...
Positioning<br />You need to position your product in the mind of the consumer.<br />Only one product can occupy a positio...
Positioning<br />
Positioning<br />
Positioning<br />
Positioning<br />
Positioning<br />
Positoning<br />Positioning statement = Superlative (why) + Label (what) + Qualifier (who)<br />Examples<br />Superlative ...
Pricing<br />When setting a price you have to think about:<br />Perceived value<br />Price as signal<br />Lifetime value o...
Optimal price<br />
Segmentation<br />Ideally we want to charge different amounts to different customer segments<br />Various approaches:<br /...
Segmentation<br />
Conclusion<br />Good marketing:<br />is essential for commercial success<br />requires time, effort, knowledge and creativ...
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Marketing For microISVs

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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.

Published in: Business, News & Politics
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    http://successfulsoftware.net/2009/11/23/marketing-for-microisvs/
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Marketing For microISVs

  1. 1. Marketing for µISVsEmbracing the dark side?<br />ESWC2009<br />Andy Brice<br />Oryx Digital Ltd<br />http://www.successfulsoftware.net<br />
  2. 2. Introduction<br />A quick dash through the vast subject of marketing<br />Misconceptions developers have about marketing<br />Some marketing concepts<br />No recipes<br />the optimal approach depends on you, your product and your market<br />Questions at the end (if we have time)<br />
  3. 3. About me<br />Writing software professionally since 1987<br />Full-time µISV since Jan 2005<br />product: www.perfecttableplan.com<br />Consultant to µISVs<br />specialising in one day consultations to help µISVs, especially with marketing and usability<br />Blog: www.successfulsoftware.net<br />Email: consulting@oryxdigital.com<br />
  4. 4. Myths of marketing<br />Myth #1: Marketing is unnecessary<br />Myth #2: Marketing is advertising<br />Myth #3: Marketing is easy<br />Myth #4: Marketing is guesswork<br />Myth #5: Marketing is number crunching<br />Myth #6: Marketing requires lots of money<br />Myth #7: Marketing is ‘evil’<br />
  5. 5. Myth #1: marketing is unnecessary<br />If you:<br />Decide which product to create<br />Name your product<br />Create a website<br />Decide the features of your product<br />Set a price<br />Then:<br />You are doing marketing<br />The question is whether we are<br /> doing it well or badly<br />
  6. 6. Marketing vs development<br />For a successful product we need to:<br />Identify a need (marketing)<br />Identify our customer (marketing)<br />Decide how best to fulfil that need (marketing+development)<br />Create the product (development)<br />Make potential customers aware of our product in a cost effective way (marketing)<br />Communicate the value of our product (marketing)<br />
  7. 7. Good programming isn’t enough<br />It doesn’t matter how well written your software is if no-one:<br />knows about it<br />cares about it<br />understands what it does<br />is prepared to take the time to try it<br />is prepared to pay for it<br />
  8. 8. Myth #2: Marketing is advertising<br />Marketing includes:<br />Research<br />Promotion<br />Pricing<br />Branding<br />Positioning<br />Segmentation<br />
  9. 9. Advertising in only one type of promotion<br />There are many ways to promote your product:<br />
  10. 10. Myth #3: Marketing is easy<br />Marketing combines:<br />Psychology, economics, statistics, writing and much more<br />None of the following are easy:<br />Deciding which product/market <br />will be the most profitable<br />Deciding features/differentitation<br />Deciding pricing<br />Deciding positioning<br />Deciding your promotional strategy<br />Copy writing<br />
  11. 11. Product lifecycle<br />Your marketing needs to change as your product passes through the product lifecycle<br />
  12. 12. Myth #4: Marketing is guesswork<br />It is difficult to guess what customers want<br />People are not rational<br />Testing is as important in marketing as<br /> it is in development<br />Google analytics<br />Google adwords<br />Google website optimizer<br />Measure what they do<br />What people say and what they do<br /> are often not the same<br />
  13. 13. Myth #5: Marketing is number crunching<br />Marketing is a battle for the mind<br />If someone thinks your product is better – it IS better<br />You need to understand the customer<br />You need to be creative<br />You need to know what to test<br />
  14. 14. Myth #6: Marketing requires lots of money<br />It doesn’t require a lot of money to be noticed if you are creative enough<br />
  15. 15. Myth #7: Marketing is ‘evil’<br />Marketing is evil when it manipulates, deceives or intrudes inappropriately<br />It isn’t necessary to be evil if you have a good product<br />
  16. 16. Tools of persuasion<br />Social proof<br />Authority<br />Reciprocation<br />Urgency<br />Scarcity<br />Contrast<br />Status anxiety<br />
  17. 17. Shades of grey<br />The line between good and evil, persuasion and manipulation, isn’t always clear<br />Rebates<br />Permanent ‘sale’ price<br />Opt-out extras<br />FUD marketing<br />Fake awards<br />Fake testimonials<br />SPAM<br />Hidden extras<br />Outright lies<br />
  18. 18. Word of mouth marketing<br />Evil marketing may work in the short term, but hurt you in the long run<br />The best marketing is done by your customers<br />Massive reach<br />Maximum credibility<br />Free<br />
  19. 19. Some marketing concepts<br />Brand<br />Positioning<br />Pricing<br />Segmentation<br />
  20. 20. Brand<br />The product is what the customer downloads<br />The brand is what the customer pays for<br />Brands:<br />build trust<br />add value<br />Strong software brands<br />Apple<br />Microsoft<br />47 Signals<br />Fog Creek<br />
  21. 21. The power of brand<br />Branding means people will pay $50 for an item of clothing that costs $1 to make<br />Branded painkillers work better than generic ones<br />‘No one ever got fired for buying IBM’<br />Marlboro associated cigarettes <br /> with cowboys (not cancer)<br />
  22. 22. Creating a brand<br />Key elements of a brand:<br />Story/image/myth<br />Consistency<br />Mismatch <br />difference between the way consumers are and how they wish they were<br />But:<br />It takes a lot of time, effort and<br /> resources to create a brand<br />Brands make more sense<br /> when you have multiple products<br />
  23. 23. Positioning<br />You need to position your product in the mind of the consumer.<br />Only one product can occupy a position.<br />“The basic issue in marketing is creating a category you can be first in” Trout & Ries<br />Once a position is established it is <br /> very hard to change<br />If you don’t choose your position,<br /> your competitor might do it for <br /> you<br />
  24. 24. Positioning<br />
  25. 25. Positioning<br />
  26. 26. Positioning<br />
  27. 27. Positioning<br />
  28. 28. Positioning<br />
  29. 29. Positoning<br />Positioning statement = Superlative (why) + Label (what) + Qualifier (who)<br />Examples<br />Superlative : easiest to use, most powerful etc<br />Label: table planner, ToDo list, spreadsheet<br />Qualifier: for Excel, for Mac, for lawyers,<br />in Spanish<br />
  30. 30. Pricing<br />When setting a price you have to think about:<br />Perceived value<br />Price as signal<br />Lifetime value of customer<br />Approval thresholds<br />Can price by:<br />user (named or concurrent), use, time, <br /> processor, server<br />Pricing is hard!<br />
  31. 31. Optimal price<br />
  32. 32. Segmentation<br />Ideally we want to charge different amounts to different customer segments<br />Various approaches:<br />Features<br />Geography/Language<br />Usage<br />Time<br />Discount<br />Coupons<br />
  33. 33. Segmentation<br />
  34. 34. Conclusion<br />Good marketing:<br />is essential for commercial success<br />requires time, effort, knowledge and creativity<br />doesn’t have to be about dishonesty and manipulation<br />isn’t that common in software<br />developer don’t understand marketing<br />marketers don’t understand software<br />Links and more on some of these topics on my blog:<br />www.successfulsoftware.net<br />consulting@oryxdigital.com<br />

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