Marketing for µISVsEmbracing the dark side?

ESWC2009

Andy BriceOryx Digital Ltd

http://www.successfulsoftware.net

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)

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

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’

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

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)

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

Myth #2: Marketing is advertising

Marketing includes: Research Promotion Pricing Branding Positioning Segmentation

Advertising in only one type of promotion

There are many ways to promote your product:

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

Product lifecycle

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

Myth #4: Marketing is guesswork

It is difficult to guess what customers want People are not rational

Testing is as important in marketing asit 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

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

Myth #6: Marketing requires lots of money

It doesn’t require a lot of money to be noticed if you are creative enough

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

Tools of persuasion

Social proof Authority Reciprocation Urgency Scarcity Contrast Status anxiety

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

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

Some marketing concepts Brand Positioning Pricing Segmentation

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

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)

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

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

Positioning

Positioning

Positioning

Positioning

Positioning

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

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!

Optimal price

Segmentation

Ideally we want to charge different amounts to different customer segments

Various approaches: Features Geography/Language Usage Time Discount Coupons

Segmentation

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