Category Archives: Marketing Mistakes

Magnificent marketing mistakes recorded online for permanent humiliation purposes

Muddy Models

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To dominate or not to dominate. That is the non-rhetorical question. Being a former IT guru, I hang-out virtually with some of my former peers in forums where we argue about everything from driver code to global warming. Many years ago I announced to that cabal that Android would dominate the smart phone market due to its business model. iPhone fanbois who littered this clan insinuated I had lost my mind – that Apple’s elegance, simplicity and market lead would forever overwhelm Android’s then 3% market share. This week Gartner announced Android makes up 75% of all new smart phone sales. My prognostication was based on market mechanics while my techie chums were enamored by Apples early technology differentiation. But like Microsoft before them on the desktop, Google decided to use the ecosystem to spread an operating system, which is a good way to get a lot of companies to … Continue reading →

Lavish Leadership

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“Maybe Microsoft suffers from too much leadership.” That surprising statement came from an industry analyst with one of the major groups. We were recently splitting lunch and enjoying some obscenely great Silicon Valley weather, discussing the tech industry as a whole and wondering if Microsoft might soon be known only as “The Xbox Company.” We mutually marveled at how seemingly inept Microsoft has become, with one market disaster after another. Since we both had experience with start-ups and big vendors alike, the discussion focused keenly on leadership and ossification. You never want to be the leader for the former. Microsoft has two primary problems when it comes to innovation, the first of which is that they remain consumed by former glories and the old ways of thinking. This same analyst told me that – at least until recently – Microsoft sized their markets based on the number of PCs in … Continue reading →

Managing Market Movement

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You have to go through Step-B before reaching Step-C … or Step-Z. Try telling that to a start-up CEO and you’ll earn some nasty looks. One of the greatest errors of leaders, political or business, is to move too fast. Many militarists believe Hitler could have ruled Europe had he taken his time and not rushed to open fronts everywhere at once. Great products have vanished because CEOs aggressively tried to push it into every segment simultaneously. Make too many changes while delivering too little value and you’ll have too few customers. This topic gurgled forth because J.C. Penny, a company born over 100 years ago and thus slightly older than my jokes, ditched their CEO. His overhaul spiraled the once legendary retailer nearly into ruin and its share price was cut in third. Nothing nice has been said about CEO Ron Johnson’s re-rigging, but a common complaint was that … Continue reading →

Evil Email

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The worst thing you can do to a good bar is to make it popular. Once everyone goes there, it isn’t worth going there anymore. Email advertising and online surveys used to be good bars. When email first commercialized, it was a great and inexpensive tool for lead generation, prospect follow-up and brand reinforcement. But as emails popularity exploded, so did the number of marketers who abused the process. Today people dread reading their morning email – it has become a disappointment filled chore. Email open rates have been dropping. This has caused some marketers to get smarter and create better and more targeted emails. Lousy marketers just find bigger lists and thus annoy more people, which will continue to drive down open rates. Something related is occurring to surveys. Once online survey tools became cheap and easy to use, every man, woman and hermaphrodite with an email account started … Continue reading →

Promotional Propaganda

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Perception is reality, until reality overrides perception. Marketers are branded as liars in no small part because many of them are. So pervasive is the trait that certain smart people have made good money writing on the subject. Marketers are charged with promoting products, which entails setting public perception about the product. In modern use of the word, this often devolves into propaganda instead of persuasion. Effective in the short term, setting unrealistic public perception about a product will eventually backfire. This happens to politicians all the time. Since perception is reality, at least in the short term, you need to have a clear notion of the reality you create for the market. Like the elastic in a fat fellow’s waistband, it can only be stretched so far before it fails. Since product disappointment is the essence of negative buzz, the greater the degree of potential disappointment you create, the … Continue reading →

Mystique Mistakes

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An ounce of image is worth a pound of performance. This is sadly true, and for marketing mavens it is a cursed blessing. The fact is that people buy image. This occurs in faddish B2C markets and function-driven B2B sectors. Image is often the single most motivating factor in a purchase decision. From Louis Vuitton to Barack Obama to IBM, sales are made on the strength of image. Craft a certain image and people will lob lucre at you or elect you to high office. Fail that image and disaster is almost certain. Reliance on mystique is both the essence and the failure of branding. Mystique is defined as “an aura of mystical power … a framework of beliefs constructed around a person or object, endowing the person or object with enhanced value or profound meaning.” In no sense of the word does mystique equate with reality. Many Hollywood stars … Continue reading →

Ill-Lumina

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Launching a late-comer product into a maturing market is like pushing a salmon up Niagara Falls. Some folks (with perhaps a bit too much time on their hands) have estimated that about $450 has been spent marketing each Nokia Lumina sold … which currently retails for $49 (with the ubiquitous two-year contract). You don’t need an MBA to see that this is not an entirely profitable go-to-market plan. The Lumina was the first serious attempt to lift Microsoft’s mobile market share, and managed push fewer than two million of them into users hands (though it is uncertain if this includes the number of devices Nokia gave to AT&T employees in an attempt to evangelize in-store sales staff). There are about as many Android activations each day as Luminas now in use. The marketing puzzle that Microsoft failed to solve was getting consumers to believe that WinPhones were better gizmos than … Continue reading →