5_ProductMarketing

[|Andreas Weigend] MBA 267, Spring 2009-B Haas School of Business, University of California at Berkeley
 * Marketing 2.x: The Social Data Revolution**

=**Class 5: Product Marketing**= April 23, 2009 Audio recording and transcript: [|mp3] [|transcript]

=**Objective**= To understand how the communication and expectation shift of Web2.0 impacts product marketing through feedback and community. Our guest speaker will be David Riemer, Executive-in-Residence, Haas Institute for Business Innovation, and former Vice President of Marketing at Yahoo. He will discuss the role customers play in evolving the product, including the feedback mechanisms in Web 2.0.

How would you define Product Marketing?
Class responses

There is not universal agreement on what Product Marketing entails, it can and often does mean different things for different organizations. A comprehensive, if somewhat broad, definition of Product Marketing would posit that it is the collection of all the activities through which the customer and the product interact in some manner, right from customers influencing the design of the product to various campaigns designed to communicated the product's value proposition to the customers. If Product Marketing involves bringing the customer into the process, web 2.x brings you many tools to do that. Example of product marketing gone wrong (funny "Stop Sign" [|video])
 * Determining the product
 * Developing value proposition and communicating it to customers

1. Category and target definition

 * Key Target Segments**
 * even mass products have key segments
 * figure out most profitable segments (Yahoo! has the concept of the chief household officer - brings the money)


 * Use data, data, data to gain insights of our customers**
 * know your customers/target segments by collecting data
 * gain access to deep insights
 * customers inform the products
 * set up experiments and conditions
 * drill-down via clicks
 * make data your friend
 * how do people make purchasing decisions


 * Consider the example of the Dove True Beauty Campaign ([|website])**
 * Identified a target segment and the issues that were most relevant for that segment.
 * Began conversations around self-esteem that would not have been possible in a web 1.x world. Great example of engaging customers in a conversation and using the insights that are discovered to further the campaign.
 * Dove "Evolution" [|commercial].

2. Value proposition "Have a reason to exist"
create something worthwhile, base it on an insight, hold it sacred in product decisions and reinforce the insight in the development of the brand

**
 * Keep it SIMPLE, especially in the web 2.0
 * ie. Twitter: What are you doing right now?
 * Dress Vault ([|website]) -dress rentals, economy tough, innovate in context. Based on an insight about what customers needed. DressVault is a great example of a firm whose business model, while plausible now, would not have been possible in a pre-Web2.x world
 * ie. OXO grips ([|website]): big grips based on arthritis in hands (clear problem/need); ask customers what is currently hurting them; help us make your life better


 * Embrace feedback! Refine your value proposition based on feedback, usage data**
 * After the initial launch of the YahooGo product, market research was undertaken that highlighted the most common ways in which the product was being used. These uses were at some variance with how the product's developers intended/wanted the product to be used, the value proposition was refined to focus on the benefits associated with such use of the product

3. Positioning "See where you fit"

 * position against a category/competition**
 * eTrade - set out to wean customers away from traditional brokers. Positioned itself as allowing people to "take control" of their investments, supported this transition by having an online school (on its website) where users could teach themselves the basics of investing
 * brought this idea into commercials ([|example])


 * position yourself as the alternative**
 * classic PC vs. Mac ([|ad]); general theme "I'm a PC" ([|website]) now features and affordability "not cool enough to be a Mac person" ([|ad])
 * Microsoft used Web 2.0 by having PC users create videos about "being a PC" on Microsoft's website
 * Subway: people want to get food fast but be healthy - in a way, turned the whole negative image of fast food on its head and used it to its own advantage in its messaging

4. Storytelling / Brand defined by consumers "Tell a story"
a good story is one that anyone can tell (and is true), then your brand becomes the story

Four key parts of story: Characters; Insight / context; Plot (Problem / Solution); Mnemonics, visuals


 * good stories**
 * blackberry: met the needs of the consumer, had an insight, understood the environment (meetings all day, need to be in touch)
 * gatorade: users put up video after Florida football team won mimicking "G" commercial [|(original ad)], fan base carried message forward; Florida football team, needed hydration. Refresh your story as needed. [|ad]
 * mountain dew: artists creating bottle designs "green label art", help create feel of brand [|(Green Label Art website)]


 * controlling the story**
 * "blog comment trolling" following postingand spreading same comment on all sites, then promotes
 * Yelp [|(website)]: one idea - for a fee, can remove negative comments, did not get approved


 * get the story back on track when needed**
 * JetBlue:bring humanity back, create bill of rights
 * Discussion of JetBlue's "Valentine's Day Crisis" and the company's response can be found [|here].

5. Whole Product / Experience "Know what the 'whole product' looks like"

 * Understand the whole product wheel, have it drive your product/partner priorities**


 * think through the entire consumer experience**
 * iPhone network, interface, applications, charger, packages, online provisioning service, etc
 * Timbuk2 ([|website]): made to order, custom made, green, great online process to build stuff, good tracking, warranty, give place for people to tell stories about bag


 * study feedback to understand user experience**
 * Apple feedback on discussion board allowed them to see that the biggest concern was the iPhone playing music while in customers pockets.

6. "Get the product right"

 * focus on function, not form; delight your users; let them help you make it better**


 * pushing the value proposition point**
 * "lightest" Macbook air (no ethernet, disc drive, ie outrageous product decisions)
 * "functional and flexible" Honda Element ([|website])


 * add the consumer's voice to decision-making (12 inputs - 3rd party, website, ...)**
 * macys.com feedback online for service levels
 * follow product buzz
 * seek deep feedback (especially at launch)
 * use strong data platforms to track experience over time
 * listen AND respond [huge effect if giving customers what they want by responding quickly]
 * invite help on new sites
 * let your customers help you innovate (feedback large button - tell us what's wrong, good and do you have any ideas?)
 * ex. Carsala ([|website]) - a Haas company
 * follow the fans for inspiration
 * Twitter is a great platform for getting real-time information on your product

8. Pricing and Product Enhancement (Next Time)
= =

Comments from Class

 * Offline brands are using tools to build online relationships, experiences
 * Private to public. Why? it's easy and there's a shift in mindset.
 * Complements TV advertising, Gatorade fan example
 * GM - comments on SUVs. lots of negative comments, but dramatic increase in sales of SUVs. negative PR helped sell cars (tough guys, etc fell into negative comments)
 * Triumph of an average man (dove, PC girl on budget, Jetblue walk of shame, etc)

Wiki Contributors:

 * Ryan Curtis
 * Lana German
 * Beth Favorite
 * Raja Mukhopadhyay
 * Jessica Lopatka