Friday, November 25, 2005

Law #5: The Law of Focus

07 Jun 2004


This is one of my favorite chapters. The Law of Focus says that "the most powerful concept in marketing is owning a word in the prospect's mind."

This law challenges us to boil our marketing message down to just one idea. If you can teach your market segment to associate your product with a single idea, perhaps even a single word, you can be a market leader.

Count Your Words When entrepreneurs ask me for advice, I usually ask them to explain their product in 25 words or less. Hardly anybody can do it. The software developer is in love with his product and is unaware of the fact that nobody else is. Ask him to talk about his product and he will give you twenty minutes of rambling love poetry starting with a feature set and ending with a description of some arcane aspect of the product's underlying architecture.

The customer has lost interest after the first ten seconds. The wire between your marketing efforts and your customer's mind is an extremely low bandwidth connection. Less is more. During the dotcom bubble, as we all wasted three years of our lives chasing venture capitalists around like groupies, they taught us one useful concept: The elevator pitch. This is a major step in the right direction.

The idea is that you have to explain your product and its benefits in the amount of time you spend in an elevator. In other words, you've got well under a minute. No time for product love poetry. But the Law of Focus would claim that an elevator ride is far too long.

The Law of Focus would insist that a 25 word description is about 24 words too many. The Law of Focus demands that we explain our product in one word.

Ries and Trout say, "No matter how complicated the product, no matter how complicated the needs of the market, it's always better to focus on one word or benefit than two or three or four." Examples

· What shipping company comes to mind when you hear the word "overnight"? (Federal Express)

· Which ketchup comes to mind when you hear the word "slow"? (Heinz)

· What insurance company comes to mind when you hear the word "hands"? (AllState)

Each of these companies has used a single idea or word as the basis for its primary message.

For another example, take a look at two of the major wireless phone providers in the United States today. Each of them has carefully chosen just one concept as their message.

· For Sprint, the concept is Clarity. Ten times a week we hear their spokesman clearing up some goofy misunderstanding caused by the unclear calls of one of their competitors.

· For Verizon Wireless, the concept is Coverage. Twenty times a week we hear their spokesman saying, "Can you hear me now? Good!" These two companies each have plenty of other benefits they could be talking about. They could tell us about their great selection of phones. They could brag about their pricing. They could talk about safety issues. Instead, they have each focused their marketing message around just one idea.

As the chapter says, "The essence of marketing is narrowing the focus. You become stronger when you reduce the scope of your operations." Crafting Your Message It's okay to have more information handy. Datasheets and whitepapers are great. Once people get interested, they will probably want all the detail you can provide. But for first impressions, you should tell the world only one thing about your product. You can use 2-3 words as long as you are not trying to sneak in extra ideas. Usually, you need only one word. But which word to pick?

· Pick a reasonably common word out of the dictionary. It should be a word that everybody understands. Don't invent a new word that nobody has ever heard.

· Don't try to associate your product with a word in the customer's mind if that word is already associated with your competitor.

· Don't pick the word "cheap" or any of its synonyms. Very few businesses can thrive while making low price their primary message. Wal-Mart is one of those businesses. Your small ISV is not.

· Don't pick the word "quality" unless you can prove that you care about quality a lot more than everybody else.

As Ries and Trout say, "everybody stands for quality. As a result, nobody does." Sheepish Confession Among the many violators of Law #5 is SourceGear itself. Shameful as it seems, we built the marketing message for Vault around three ideas, not one:

· Reliability

· Internet-readiness

· Seamless transition from SourceSafe

We've been very consistent about using the same three talking points in all of our advertising materials and presentations. We sometimes vary the way we explain them, but we always work with these same three points. This campaign has worked out very well for us, but Law #5 says we would be even more effective if we replaced our three-point message with a one-point message. In the future, we will probably move in that direction.

Monday, November 07, 2005

Qoute of the day

During times of universal deceit, telling the truth becomes a revolutionary act.


George Orwell

Law #4: The Law of Perception

The Law of Perception says that in the battle between products, perception is more important than reality.

People tend to think that the best product will win. However, as Ries and Trout say, "Marketing is not a battle of products, it's a battle of perceptions." Sometimes the best product does not win.

This concept seems unfair, but it's fundamental and we might as well get used to it. Ries and Trout go so far as to say that "Most marketing mistakes stem from the assumption that you're fighting a product battle rooted in reality. All the laws in this book are derived from the exact opposite point of view."

Subjectivity

The real issue here is that the words "better" and "best" are subjective terms. People have different requirements and preferences upon which they form very different opinions. There are very few absolutes.

One could credibly argue that OS/2 was "better" than Windows 3.x. The 68k chip was better in some ways than the x86 line. But those are perceptions and opinions. In hindsight, we can simply say that more people perceived Windows and the Intel chip to be better.

Reality Still Matters

My only gripe with this chapter is that it sometimes tries to convince me that perception and reality are entirely disjoint. They're not. Quite frequently, perception is merely an exaggeration of reality.

Here at SourceGear we've got quite a few servers. We have Windows servers and we have Linux servers. Our internal file server is named "Mufasa". Every once in a while, Mufasa gags for no apparent reason and requires a reboot. I can't remember this ever happening to a Linux box here. This experience has caused me (and others) to perceive Windows as being less stable than Linux. But that doesn't mean I think it is fair to categorically label Windows as an unstable product. After all, our phone system is running on Windows and it never has any problems. There is reality here, but there is exaggeration here as well.

I think it's important to remember the Law of Perception, but I would worry if small ISVs started taking it too seriously. Specifically, let's not just give up on our desire to make our products better choosing instead to spend all our resources on the
management of customer perception. The Law of Perception can help us understand when things don't seem to make sense, but it's not so powerful that product excellent doesn't matter.

One Final Thought

The Law of Perception is just one more reason why small ISVs need to get specific as they choose their competition. Don't try to create a "better" product. That strategy is too vague. Instead, try to create a product which is better for a specific group of people with specific problems that are not being solved very well by others. That specific group of people will perceive your product as the best.

· If most of your mindshare inventory is in early adopters, you are in trouble. Early adopters don't stay anywhere very long. Eventually, you will lose most of them.
· Your valuable mindshare is among conservatives. It will be very expensive for anyone who wants to take these people away from you.
· If you are a new player trying to gain mindshare, don't be afraid to steal early adopters from your competitor. It's easier than you think. Just remember that the next guy is going to steal them from you.

This is why Tivo will lose. They built enormous mindshare among the early adopters, but never really made it into the mainstream markets of the pragmatists and conservatives. In the end, Tivo will end up in the same place as the dotcoms, at the bottom of the chasm.
http://software.ericsink.com/Act_Your_Age.html

Sunday, November 06, 2005

Quote of the day

The one resolution, which was in my mind long before it took the form of a resolution, is the key-note of my life. It is this, always to regard as mere impertinences of fate the handicaps which were placed upon my life almost at the beginning. I resolved that they should not crush or dwarf my soul, but rather be made to blossom, like Aaron's rod, with flowers.-
Helen Keller

NeoEarth