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Andy Brice
Successful Software

Doug Nebeker ("Doug")

Jonathan Matthews
Creator of DeepTrawl, CloudTrawl, and LeapDoc

Nicholas Hebb
BreezeTree Software

Bob Walsh
host, Startup Success Podcast author of The Web Startup Success Guide and Micro-ISV: From Vision To Reality

Patrick McKenzie
Bingo Card Creator

Marketing Tidbits

I just watched a video of Seth Godin giving a talk at Google, that I found interesting.  Of particular interest is the model of permission marketing he gives near the end of his talk.  For those of you familiar with Godin, this is nothing earth-shattering, but is a valuable perspective to take when planning how to market your products.  In summary, this model consists of four repeating steps:

Fashion / Permission Model
1) Make something worth talking about
2) Tell it to people who *want* to hear it
3) They talk about it with their friends
4) Ask permission to tell about the next thing: goto 1

This contrasts with the previous marketing model, that I still think permeates people's thinking:

TV / Industrial Model
1) Buy ads
2) Get more distribution
3) Sell more products
4) Make more profit: goto 1

Although a lot of us like to think we are doing the "Fashion/Permission" model because we are blogging, or buying adwords, if we are honest with ourselves - we may still be more like the TV/Industrial Model. 

Also, it is easy to trick yourself into thinking that what you just designed/produced is worth talking about because its "your baby".

Anyhow, if anyone is interested, you can find the video on Google Video (Beta(R)) by searching for Seth Godin, or try this link.

Loren Charnley Send private email
Friday, March 31, 2006
> 2) Tell it to people who *want* to hear it

Absolutely right.

>Although a lot of us like to think we are doing the "Fashion/Permission" model because we are blogging, or buying adwords, if we are honest with ourselves - we may still be more like the TV/Industrial Model.

This ties back to your point 2. Many people who produce a product, put up a web site, write a blog etc. expect consumers will magically come knocking on their door. If you're very lucky or once you are successfull and well known, then some will, but that's not how it works.

You need to go out and promote your product, move in circles where people interested in "the product" congregate and then you will slowly start to attract people who want to *hear* about you and your product. This takes time, perseverance and hard work.

If you think people will come to you all of their own accord you may as well give up before you start.
Neville Franks Send private email
Friday, March 31, 2006
Good one Loren! Thanks!
Bob Walsh Send private email
Friday, March 31, 2006
Both models are as old as voluntary exchange among individuals; trying to go for both you will probably always fare better than picking just one exclusively.
Philipp Schumann Send private email
Friday, March 31, 2006
What are some reasons that new model is better?
Friday, March 31, 2006
Targeted marketing is potentially more effective and cheaper at the same time.

I didn't find the video very enlightening. He spent the first 10 minutes telling them how wonderful they are.
MBJ Send private email
Saturday, April 01, 2006
OMG, it gets worse. Seth Godin says Ford defrauded people, saying SUVs are reliable, efficient and safe, when in fact they are inefficient and lead to wars.

The guy's a loon.
MBJ Send private email
Saturday, April 01, 2006
>SUVs .. are inefficient and lead to wars.

He's a marketing guy. They like to restate the obvious.
Andy Brice Send private email
Saturday, April 01, 2006
+100000 for Neville.

Marketing your product is as much work as creating it.  That is why you have to really believe in your product.  You have to feel you are doing people a misdeed by NOT telling them about your product.  It's fine to make something useful, but that doesn't mean a thing unless you let people know about it.
Tim Weiler Send private email
Saturday, April 01, 2006
Scott wrote: "What are some reasons that new model is better?"

Hmmm, I am hesitant to anoint it as "better" in any absolute sense.  The "Fashion/Permission" model may be worth looking at for smaller organizations because it is naturally "niche-based".  That is to say, that a primary tenet is to "Tell people who want to hear about it".  This is always going to be a smaller subset of the demographic who might be able to benefit from, or need the product.  This translates into a number of potential benefits.

1) Lower risk/return profile than the traditional "Ad-based" model.  In other words, if you are telling people who want to hear about it, you are inherently going to spend less money per new customer.

2) Geometric progression.  If you make something worth talking about (as proven by people actually talking about it), you might have a geometric progression (...and they'll tell two friends,etc), the classic word of mouth effect.  This is what turned "The Sixth Sense" into a blockbuster.  Now, just bear in mind that this does not mean a geometric progression based on the number of people who "receive" your message, but the number that initially repeat it - which you cannot know.

3) Loyal Customer Base.  If you never contact a customer with a message that they don't want to hear, and you are always gaining incremental permission to send them that message, the lifetime value of that customer will be tremendously higher than with the more traditional TV/Industrial model.  Lifetime Value = ($/purchase)*(Total # Purchases).

4) Lower capital requirements.  The Fashion/Permission model lends itself well to "bootstrapping".  The older style depends on the statistics of larger numbers (i.e. 0.01% of 20,000,000 might be worth your time).  Getting your message in front of the required number of people might (will?) be prohibitively expensive for a small company.

So - these are just a few that I can think of - they might not be the same as in Godin's books or materials (I have not read them).  Also, I only put this out there as something I found interesting, and rings true to me.  I simply submit it as something to consider when you think about marketing strategy.  And we should *all* be thinking about marketing.
Loren Charnley Send private email
Saturday, April 01, 2006
That was an excellent, excellent video, thank you very much for the link!

I'm gonna go hunt around for some other lectures / seminars by that guy.

Thank you!
Cory R. King
Sunday, April 02, 2006
I recently read "Purple Cow", and I think what Godin is saying is that the "old way" ("interruption-based advertising") doesn't work anymore because people are so bombarded with advertisements that there's just no room left in people's heads.  He talks about the end of the "TV-industrial complex"; that people just aren't listening like they used to be.  So now you need to catch them while they're actively searching for information.

Actually, this is not much different from what Ries & Trout were saying 20 years ago in "Positioning" or "22 Immutable Laws of Marketing", really.  Their central point was also that "ideaspace" is so crowded that you need to find a position that uniquely defines you, rather than just hammering away at your name via advertisements.

Godin's message does seem to jibe better with "hit"-based products with potentially wide appeal.  I'm not sure it would work so well if you are a small software company making dentist office management software.  But maybe I'm wrong - I'm sure there are plenty of "sneezer" early adopters among dentists as well.

He's a good speaker, for sure.  I like how he uses his slides, instead of just reading the PowerPoint bullets.
Jesse Smith Send private email
Monday, April 03, 2006

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