2. Disclaimer & Notes
This is not my original presentation. I thank the authors for their wonderful insights
I prepared the presentation from my notes taken while reading the book (unfortunately forgot
to write down the name of the book)
I found the simplicity of ideas expressed as the most compelling value proposition
of the book.
Our own experiences* in the startup, reaffirms some of the key points especially
with
◦ Branding for product
◦ Distribution
◦ Pricing
◦ Promo tactics
◦ Market Research
I think the book underplays the importance of Internet and considers it useful only
as a promotional media, which I strongly disagree.
◦ Internet is not only a good promotional vehicle, but is also the most important and cheapest
method of reaching a large consumer base spread across multiple geographies – both for
selling products and services
*: Any one interested to learn more drop me an email: rajesh dot sengamedu at gmail dot com. Would help if you can explain the real
world difficulties /dilemmas that you are facing wrt your marketing strategy for me to provide you with a better response.
3. What Is Marketing?
Marketing is:
◦ “Simply figuring out what you have to do
to sell your product or service for a profit”
◦ Like a Movie with the product as the star.
Everyone and everything in the movie is
part of telling a simple story about why my
product is different and it should be
bought instead of other products
4. How Much To Spend On
Marketing?
Spend enough to do the job
Ground Rules to spend:
◦ Prepare marketing plans that present each
product in terms of its marketing life cycle ( Is
it a new market, what is competition doing,
what is differentiation etc)
◦ Rank product opportunities (can we get
premium pricing?, is it a new idea that can
establish leadership?, Is it commodity
business?, Is the competition already
established?)
◦ Assign advertising tasks
◦ Stop when you are out of money
5. Rules Of Distribution Channel
The more direct the channel, the more
control
Don’t compete with your customers
Always ‘show the money’ to your
distribution channel
6. How to Brand?
Figure out a simple brand name that
explains product benefit
Figure out and communicate product
differentiation
7. How Should One Develop
Product Strategy?
Product should always be either #1 or
#2 or something new
Something new means
◦ Offering to a new sub-category (can be
done if you segment the market well
enough)
Avoid line extensions as it dilutes the
brand
8. Pricing Guidelines
Always stay in the ballpark of competition
People will pay a little higher for perceived
value
High quality products should be more
expensive
High priced products should offer prestige
High prices & high profits attracts competition
Its hard to win with low price
Prices can go down
9. Market Research
Remember that most customers ‘talk
and act differently’ and ‘buy what
others buy’
◦ So, its pointless to research what
customers want!
Best way of spending money on
market research:
◦ Figuring out differentiators as it exists in a
customers’ mind for a particular category
10. What Is Good Advertising?
Should dramatize a product’s point of
difference. It should supply a reason a
buy
Avoid meaningless slogans
Judge how well the ad dramatizes the
product difference
Judge how honest the message is, how
simply the message is presented and
whether or not there is some interesting
news for the customer that translates
into a benefit
11. How to Pick The Right Medium
for Advertising?
Media with ‘sound’ is more powerful than without
sound
Use the following
◦ PR: To launch the idea, give it credibility, create a
buzz
◦ Advertising: To build the awareness rapidly for the
idea
◦ Trade Shows: Generate excitement among industry
insiders or distribution channels for the idea
◦ Internet: Offer more info on the idea (I disagree here)
◦ Direct Mail: Present the idea to a list of best or
biggest customers
◦ Promotions: Generate trials for your new idea
12. What about product logo?
Design a logo around the product
name
A product name is more powerful than
a symbol
