Monthly Archives: August 2011

Fast Enough

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It pays to be second In the wide and weird world of business plans (and having sat on VC panels during start-up pitch parties, I have seen some mightily weird business plans) being a fast follower is the sanest approach. A fast follower lets another company prove that a market exists, then lets the follower rapidly become a competitor by mimicking the core features in their competitor’s ground breaking product while adding those that they missed. Risk is lower, development costs are lower, and if well timed you join the party at the moment early majority buyers raise their sluggish heads and open their tightly clasped wallets. I maintain that Microsoft made its fortune by being a fast follower. MS-DOS was a practical clone of CP/M which had proven that the personal business computer concept was viable. Microsoft also mimicked Macs when creating Windows and Apple mimicked Xerox’s pioneering of … Continue reading →

HP Hip Plop

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I would not want to be an HP employee this week. Well, actually I have not wanted to be one since Bill and Dave went to the big database in the sky. Last week, in rapid fire, HP said they will likely get out of the PC/laptop business (either through an Agilent-like spinoff or outright sale), killed their newborn webOS phone and slab business, and bought a relatively obscure software company for a huge premium. Their stock dropped about 30% and HP aficionados are still staring, jaws agape, in disbelief. Change is the only thing of permanence, and that applies doubly in the high tech business. Tech companies are the most agile known, and many have completely reinvented themselves when faced with undeniable market shifts. Others change because better opportunities exist. HP’s newest CEO, Leo the Lively, knows that software companies make significant margins (Oracle has an overall margin of … Continue reading →

Valuable Motives

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“Buy our features,” said the German software company representative. “You vill like our features.” The way he said it sounded vaguely threatening. More to the point is that nobody buys features, his or yours. Not in B2C markets and not in B2B ones either. Advertising features, and to a large degree benefits, misses the mark in marketing communications. The reason is that features and benefits do not describe what drives a buyer’s intent. What motivates buyers, both logically and emotionally does. Hunger provides motivation. So do natural sexual impulses (which often leads to children, which then launches a thousand new motivations, including the desire to find very dark and quiet places in which to hide). A person’s motivations force them into seeking ways to achieve something (their expected outcome) or make them instantly aware of a possible solution when it is thrust under their noses. That last one only applies … Continue reading →

Pest Promotions

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My web hosting company is a pest (I don’t want to out them, but let’s just say their name rhymes with Juan and Juan). In a few instances I consulted to a software company, which my web hosting service now resells. Thus, when my hosting company called one day to sell me on their “new and amazing” SaaS offering, I was amused.  I politely told the telesales monkey about my history with the system, and suggested that I was not going to be a customer. Then they called again … and again … and again. Eight times, and during each episode I asked with growing bluntness that they not disrupt my future days. They called this morning. Promotions, and the abjectly unpopular telesales routine, are essential to business. Making people aware of your products and value propositions are required as the first step in the marketing process. But like a … Continue reading →