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| Subject: Marketing Leverage | |
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Author: Dennis S. Vogel |
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Date Posted: 10:17:47 08/20/06 Sun In reply to: Huh? 's message, "I don’t understand some things" on 16:05:22 08/18/06 Fri Hi, I don’t remember Jay explaining these either. The short explanation is: We use ads to attract people to come to our store. These ads ask prospects to come in. Headlines & graphics advertise the ads & “ask” prospects to pay attention to the ads. (The longer explanation is below.) Clayton answered your question briefly in “The Innovator’s Dilemma.” It’s in his analogy of being an electric vehicle project manager. I don’t remember if this is in both editions of his book. You can find it in Chapter 10 of the updated edition or maybe both. If you looked for something specific about small businesses, it may be why you missed it. He wrote about a big company forming a small division or separate company to make electric vehicles. Now The Longer Explanations I’ll try to tie these concepts together in a meaningful way. To add what I’ve learned from other sources, the task would be to determine which niches might be able to use the innovation. Determine if the innovation: 1) Improves how they do things, if they can already do what they want. 2) Would help them do what they have trouble doing. 3) Would help them do what they think they need/want to do. Each of these calls for speculation, so what you find today could be outdated by the time you’d produce a solution or find a supplier. When you market your solution, it may undershoot the need by being a partial or inconvenient solution. People can use the solution, but they wish they’d have something better. If you anticipate what they’ll need in the future, based on what they need now & what they say they’ll need in the future, you may overshoot their need. Then your solution would have too many features (with POTENTIAL benefits, but no CURRENT/ACTUAL benefits). Example: If you need a knife, a Swiss Army Knife would overshoot your need to cut or carve. The extra features wouldn’t provide benefits, unless you’d use them. Persuade people to use the products (hopefully to buy or at least use free samples). Then observe how they use the product & get their input about improvement, including which features to eliminate. Extra features add more expense but no extra benefits for particular users. (Many those in the Swiss Army get full use & benefit of each Swiss Army knife feature, but most of us don’t.) I’m taking a chance on this explanation overshooting your questions & curiosity. 8^) But I want to cover what may be your next questions or what I think your next questions should be. I want you to get a full benefit from the short answers I gave. To Take A Stand, You Need A Place To Stand I think Archimedes said, give me a lever long enough & a place to stand & I’ll move the move the Earth. He may’ve added the need for a fulcrum. But what if he didn’t have a long enough lever? Or what if he had a long enough lever to reach past Pluto, but no place to stand to get the maximum use from it? If he had many friends, who each had strong levers & places to stand (on Mercury, Venus, Mars & Jupiter), they could move the Earth. If they each put their levers & fulcrums in advantageous places, they could exert pressure at the same time & do the work. (You may’ve heard of Rube Goldberg. Or you may’ve seen the Mousetrap game. Putting things together in strange configurations [somewhat like my explanations {8^{] to do something relatively simple.) This next concept may seem like a Rube Goldberg. In theory (mine), if you had good levers, but not a convenient place to stand, you could use a lever to push another well-placed lever, which would move a load. These are examples of leverage on leverage. Since these examples are so confusing, they may show why Jay didn’t explain what he meant. Leo Burnett advised, “Plan the sale when you plan the ad.” “The sale” can be a sales event with discounts. It can also be the act of selling something. Retail displays, sales techniques (what we do & say, plus how we do & say them), point-of-purchase signs, ads/commercials, referrals/testimonials/ endorsements are “levers.” Each should be planned as much as is practical. (Each of these is also something we should test by trying variations.) What I wrote in another post about blaming versus accepting responsibility for what you can do applies here with a small change. To figure how to change a situation, we need to start somewhere. If we start with a person having a problem, we still need to figure how to induce the person to buy a solution from us. A journey starts with the first step, but it’s easier to map a route by starting with what we know. What we know is OUR current situation. The mousetrap fallacy doesn’t address this, it states people will beat a path. If it were true, business failures would be very rare. This is like thinking, “If people don’t know I have a better mousetrap, it’s their tough luck. I won’t tell them. So, it’s their fault if my business fails.” It’s our job to accept responsibility & beat the path. It’s usually easier starting the path from where we are, while we look ahead for a destination. In general, I recommend finding people who have a problem before finding or inventing a solution. But it doesn’t guarantee when we find a solution we’ll have enough expertise & production capacity to provide what people need. Clayton’s books for innovators focus on disruptive technologies that were discovered or developed before a problem to solve was discovered. In effect, it means disruptive innovators work backwards. This approach can be used when demand for a product/service is low or nonexistent, as in mature markets/product categories or new product/service categories. Dennis S. Vogel thrivingbusiness@email.com After you build “a better mouse trap,” you’ll still need effective marketing tools to beat a path to your door so people will find you. You can find a lot of what you need here. http://web1.lakefield.net/~thrivingbusiness/ http://www.voy.com/31049/ [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| The Leverage Process | Dennis S. Vogel | 23:21:43 08/20/06 Sun |
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