Andy's comments and positioning...

[Jerry Daniels]

Oops... example two was supposed to be for education market, not 
hobbyists.

-JD

On Feb 5, 2004, at 12:24 PM, Jerry Daniels wrote:

> 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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