Andy's comments and positioning...

[Jerry Daniels]

Imagine that you have a pie chart with four slices, when you change the 
size of slice 1 you change the size of  slices 2 to 4 as well.

That's the four P's of marketing. I don't think we can talk about the 
Price without talking about the nature of the Product, the way it is 
distributed (Place) and the way it is Promoted.

Discussion of one P changes the other three. If the name changes, the 
way it's promoted, the nature of the product and it's price are 
affected. Here follows some very quick (and not necessarily accurate or 
thoughtful) examples:

EXAMPLE ONE (quick 'n' dirty):

Product: Professional development tool with documentation, support, 
third party add-ons, certification program for dev. and support
Place: web site download; printed docs shipped; support online; site 
for extra dev. tools
Price: $500-1,000; tech. add-ons extra; varying degrees of tech. support
Promotion: online adds; tech mags; sales/pr activities in other tech. 
forums and ours; tech. trade shows; tech. conferences

EXAMPLE TWO (quick 'n' dirty):

Product: development tool for hobbyists with documentation, support, 
third party educational add-ons and templates and curricula
Place: web site download; printed docs shipped; support online; site 
for extra tools
Price: $500 per classroom/99 per student/5,000 per school; educ. 
add-ons included; train-the-trainer for certified support
Promotion: online adds; educ. mags; sales/pr activities in educ. 
forums; educ. trade shows; conferences

  I think this discussion needs to be steered like this by someone at RR.

My 2 cents.

-Jerry

On Feb 5, 2004, at 10:52 AM, Richard Gaskin wrote:

> Jerry Daniels wrote:
>
>> Maybe there are sales figures and cash flow to back the $99 approach. 
>> I
>> don't know. Do people convert to more expensive licenses after getting
>> a taste for 99 dollars? Do ten times the number of people buy the $99
>> version than would have purchased the $995 version? Is $495 best?
>> People are buying miniPods for $249 and they have to wait for one! And
>> that's an entertainment item--a toy. This is a professional tool--MUCH
>> more than HyperCard.
>
> Aiming the marketing message at pros also benefits sales to hobbyists:
> while professionals won't touch a tool seen as aimed at hobbyists, 
> every
> hobbyist wants to feel they're using a tool capable of professional 
> results.
>
> If the positioning includes reference to how easy Rev is to build 
> with, both
> audiences will sit up and pay attention when the focus is on
> professional-quality results.
>
> In a noisy world it's hard being heard, let alone understood, so the 
> message
> must be well-honed and concise.  It's far easier to elevate the 
> message and
> keep it simple than to lower it and explain how you're not really 
> lowering
> it.
>
> -- 
>  Richard Gaskin
>  Fourth World Media Corporation
>  ___________________________________________________________
>  Ambassador at FourthWorld.com       http://www.FourthWorld.com
>
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