Start-up Marketing

It has been noted many times that technology startups often have a challenging time bridging the gap between a great idea and articulating the benefits of the idea to a target audience that cares and will pay real money for it. I've seen multiple times where they struggle and endlessly discuss who the best customer is and which segment to target. However, what is more subtle and often glossed over is the positioning statement to the customer. This will prove whether or not the idea has merit and will stick with the customer.

The positioning statement needs to clarify to your target customer:

- For (for example, small businesses)
- Who need or have the problem of ____, (such as growing their base through social marketing)
- The ____ (your product name)
- Is an _____ (social networking marketing service)
- That ______ (such as economical setup of social
marketing without requiring you to take your eye off of your business)
- Unlike_______ (such as wasting time doing it yourself or hiring a big
marketing firm)
- Our product ________ (such as we offer personalized,
knowledgeable service at reasonable rates)

From that you can build a value proposition for this segment that is short and measurable. It should describe what the product does and its benefits to the target customer. An example might be:

Grow your customer base by 20% with targeted social marketing strategies.

Hoping for Notice

Often the best marketing is the most outrageous. This is risky, however, because the stunt needs to reinforce your brand. Recently a clothing store called the South Butt gained nationwide publicity with North Face sued them. Without the lawsuit, the South Butt would have toiled in obscurity in St. Louis. The About page for the South Butt says "...all I ask is that you make decisions and purchases based on what you like; not what you are expected to". Hopefully his clothes will reflect the same alternative approach as his positioning. He has the opportunity if he seizes it.

What aisle, what shelf?

Whenever you go to a store, you subconsciously position products by the aisle and shelf on which they reside. Premium products are often on the shelf that is shoulder height so you can easily see and select them.

Selecting a profitable target customer segment and then attractively positioning value to them is one of the most difficult aspects of Marketing. We see every day where organizations and companies struggle to position themselves.

For example, Sears has struggled for years to differentiate itself first from K-Mart, and now Target, Costco, Wal-Mart, and many other more specific retailers, such as tire, clothing, appliance, and tool stores. Sears is now going online, repeating pretty much every cyber move that other retailers have already done. Instead of becoming more specific and differentiated, Sears has become broader and more non-descript. Also, is Sears clear on who their target customer is?

Accenture positions itself as using a research-driven approach to assist companies in developing a strategy for success. Its advertising campaign with Tiger Woods was very effective because the golfer appeared thoughtful, analytical, and driven to success. Now that the world knows differently about Woods, Accenture is coming out with a new campaign using animals, such as an elephant on a surfboard. Other animal stars will include frogs, fish, and chameleons. I haven't seen the ads yet, but I have a hard time understanding how they will support the company's positioning to its intended audience: senior business executives.

Ski areas are struggling in the vice grip of lower snowfall and higher operating costs. The percent of new entry-level skiers and snowboarders is decreasing. One of the main reasons is the cost of skiing -- with lift tickets, accommodations, meals, equipment rentals, and gas, a family weekend can easily cost hundreds of dollars. How can a ski area profitably attract more skiing customers?

Bear Valley, a moderate-sized area in the California Sierras is now touting itself as the "Friendliest Ski Area in the West". When we recently visited they had customer service employees sprinkled around the lodge and at the base of several lifts. They were helpful, but is it differentiated and will it be profitable? By the time I ran into one of their friendly employees, I'm already committed and I've spent the money I'm going to spend. And also, employees are costly and often provide little leverage (will you tell another person who will tell a third person that will tell a fourth person that Bear Valley is a friendly ski area?).

The area's terrain is moderate so it cannot be position as big or difficult. The nearby village is aging. It is not a destination resort for high-end clients. At this point, it might make sense positioning itself as an area that is ideal for families, developing transportation options, lodging, daycare, lessons, pricing packages, a lively atmosphere, a range of winter and summer activities, and fun events for families with kids from 0-18.

As you can see, differentiated positioning in a way that matters to your target audience is key.

It's all about hope

Charles Revson, formerly of Revlon famously stated that "I'm not selling cosmetics, I'm selling hope". He may have been the first to recognize the essence (no pun intended) of Marketing. Whether it promotes easier, cheaper, richer, longer, more popular, or more beautiful living, the practice of Marketing is the culprit behind the daily bombardment each of us endure. This blog will explore the practice, its tactics, and effectiveness. Stay tuned!