Archive for January, 2009
Like any ‘vicious circle,’ the more equity you already have invested, the more likely you are to invest more. Companies are often so eager to get the product or service to market, that they begin to allocate budget to engineering, production, marketing and promotional elements, adding more burden. In so doing, they forfeit the possibility of changing a large portion of what might make their idea more valuable. By the time most companies realize that the product isn’t creating a better experience for people, so much time and money has already been invested, it’s too late or expensive to change course. In some cases, quite literally, “the die is cast.”
The problem is compounded by the fact that the ultimate costs of production and implementation are often determined by decisions made quite early in the development process. It is estimated that over 80% of a project’s costs are determined during the first 20% of its design phase! So it becomes critical for firms to develop an understanding of what it takes to make customers and users happy early in the process, when equity in any one “version” is at a minimum.
The costs of proceeding with development without an early understanding of the user issues can be substantial. In the case of Dell Computer Corporation, a new line of notebook computers that had already been introduced to the market had to be scrapped because it was so frustrating to use. The product was “too late to market and too clunky to compete.” In addition, the new machines suffered from hard-to-read displays, awkward keyboards and a mouse that was difficult to use. They decided to cut their losses, which ultimately amounted to much more than the amount invested in the product development. The move lowered Dell’s first-quarter pretax income by $20 million and reduced per-share earnings by 35 cents, sending the company’s once high-flying stock down 23%.
Dan Droz is Chairman and CEO of Droz & Associates: Marketing, Branding, Design, Public Relations, Advertising, Web Design, Interactive Marketing for Pittsburgh and surrounding regions.
Tuesday, January 27th, 2009
Branding, Design, Marketing, Pittsburgh No Comments
Most people find that throwing things out does not come naturally, for four important reasons:
Ego. First, we’ve got our egos to protect. If you made it, it’s got to be good. Even the simple act of writing something down can imprint a psychological connection to that idea, even if you didn’t agree with it before. Marketers have used this technique for decades to get us to by more consumer goods, through the use of ‘write-in’ contests. “In 25 words or less, describe why you like Cheerios.” Even if you’ve never bought the product, data shows that just by writing a positive review, you start to like it. And buy it.
Equity. A second reason we hold on: we’ve got equity in those ideas. Most of us think our time and money is worth something, so we’re often persuaded by our own conviction to keep working on the same version of an idea. We continue to invest because of the investment we’ve already made. For example, even with the ease with which editing can be done with word processing, many writers would admit that the time and effort that one puts into a project easily becomes a substitute for quality or success. We hate to change things in which we’ve become invested because ‘rewriting’ may feel like a waste of invested time. ‘Sunk cost,’ then, becomes the ultimate cause of resistance to change, the belief that change will cost us the equity of what’s already been invested.
Value. A third reason is the inability to know what customers or users would really perceive to be valuable. It’s hard to imagine that someone else could want something other than what we want for ourselves. People who develop new things are essentially doing the learning for an entire set of users or customers, before the users have to experience the product. If you don’t have a way to test the ideas before you market them, it becomes your opinion against that of the market.
An Alternative. Finally, we may not have another version to replace it. We’ve been spending so much time on idea #1, that there hasn’t been time to devote to any alternatives. Without another path to take, we just keep plodding down the one we’re on.
Dan Droz is Chairman and CEO of Droz & Associates: Marketing, Branding, Design, Public Relations, Advertising, Web Design, Interactive Marketing for Pittsburgh and surrounding regions.
Tuesday, January 20th, 2009
Branding, Design, Marketing, Pittsburgh, Sales No Comments
Even as I write these words, I know they will not survive as originally written. Better words spring to mind. Ideas are being defined as they’re being made. The humor of the writer’s adage, “there’s no such thing as writing… only rewriting,” derives from the fact that from the second grade, students are taught (or mistaught) that writing is about writing what you’ve learned rather than learning what you’ve written.
The principle goes far beyond writing. Thomas Edison tested over 3000 filaments before he came up with his version of a practical light bulb. Paul Rand, the designer of logos for IBM, UPS, ABC and Westinghouse moved elements around on a page, often for days, until one found the right positioning. Today, powerful tools allow businesses to model, simulate and test products, services and experiences to reduce time-to-market, cost and market risk.
This approach where solutions are successively approximated through sometimes dozens of iterations, could be called the “Ready, Fire, Aim” method of development. Through prototyping and simulation, you see what you’ve got, then recalibrate and try again. It’s reinventing as you go. But, generating options and testing are still an undervalued and misunderstood stage of development that is often neglected by businesses.
Dan Droz is Chairman and CEO of Droz & Associates: Marketing, Branding, Design, Public Relations, Advertising, Web Design, Interactive Marketing for Pittsburgh and surrounding regions.
Tuesday, January 13th, 2009
Design, Marketing, Pittsburgh No Comments
The New Year is a good time to develop good marketing habits. Here are 10 Simple Marketing Resolutions to Recharge Your Marketing for 2009.
1. Give Out More Business Cards. The most natural way to give someone a business card is to ask for theirs. Tit for Tat. Start with 10 a week and progress to 20.
2. Add 20 Names To Your Contact Database Every Week. By the end of the year, that’s over 1000 new contacts. (These can be from the business cards you collect).
3. Start a Blog. Blogs make it easier for search engines to find you, give people something to read when they find you and provide a great platform for creating connections.
4. Join a Networking Group. Professional organizations or other networking venues provide a great foundation for creating referrals and prospects.
5. Send a Newsletter. Creating a printed or outbound (online) newsletter or bulletin allows you to keep in touch with prospects, clients and referral sources.
6. Eat Lunch. Take a prospect, client or referral source to lunch once a week. This is a great opportunity to cement relationships, develop referrals and tap more business.
7. Toot Your Horn. Send press releases to print and online media when you do something special, add a staff member or introduce a new product or service.
8. Write Notes. When you meet someone or if someone sends you a lead, write a note. A real one, not an email. And be sure to enclose your card. (see #1)
9. Return Calls. The easiest way to frustrate a client or prospect is to postpone a call back. Return calls the same day.
10. Call Droz. These are just the beginning. Droz can help you Recharge! your marketing program to drive down cost, increase sales and create a pipeline of new business.
Dan Droz is Chairman and CEO of Droz & Associates: Marketing, Branding, Design, Public Relations, Advertising, Web Design, Interactive Marketing for Pittsburgh and surrounding regions.
Monday, January 5th, 2009
Design, Interactive Marketing, Marketing, Pittsburgh, Public Relations, Sales No Comments