Founder institute 36 hours of courses in 25 minutes
1. 36 hours of lectures on
Product management in 25 Minutes
2. Most new products and services
will fail …
– they fail is because:
• we get lost in the thick of thin things
• we build products and services no one cares about
– worse yet, product successes are getting smaller
• too much incrementalism
• formula driven marketing vs. inspired marketing
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3. Building successful ideas and
successful brands is hard work
• A study by Nielsen 862 packaged goods
promotions. 50% no impact, less than 1 in 10,
plus 10%
– 90% of new products fail
– Few companies have proven their advertising works
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4. My personal view on marketing
• I think there are 3 types of marketers
– Risk takers (they like the macho bit)
– Risk reducers (they like getting house odds), but scare to act
– Risk reducers ready to act…
• A good marketer will build a strategy that increases odds of
success from
– 10%
– to 20% A great marketer will
– to 50%
also do lots of stuff that fails
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6. An interesting book…
Counterintuitive Marketing
Studying brands in 48 categories
6
7. Airlines Gas Stations Mid-priced American Cars
Athletic Shoes Haircare Products Mid-priced Foreign Cars
Auto Insurance Headache Remedies Motor Oils
Banks Health & Fitness Clubs Newspapers
Beers Home Entertainment Equip. Office Supply Stores
Bookstores Hotels Personal Computers
Bottled water Household Cleansers Pet Supply Stores
Catalog clothing Internet Search Engines Political Parties
Cigarettes Internet Service Providers Potato Chips
Colas Jewelry Rental Cars
Cold Cereals Laundry Detergents Soaps
Cookies Liquor Spaghetti Sauces
Cosmetics Long-Distance Telephone Toothpastes
Credit Cards Luxury American Cars TV Networks
Department Stores Luxury Foreign Cars Weight Loss Programs
Fast Food Restaurants Major Household Appliances Wireless or Cellular Tel.
7
8. Out of 48 product categories,
Brand Equity scores are:
• Decreasing in 39
• Stable in 5
• Improving in only 4
8
9. M.B.A. stands for
“Murderer of Brand
Assets”
In a connected world, little incremental steps
are the slow death of a brand
9
10. “Learn not to
be careful.”
—Photographer Diane Arbus to her students (Careful = “The
sidelines,” per Harriet Rubin in The Princessa)
10
15. 3 Laws of meaningful
differentiation
• Law # 1: An overt benefit
– 1 maybe, 2 things better than anyone
• Law # 2: Real reason to believe
– Credible, honest, memorable
• Law # 3: DRAMATIC difference
– Not itsy bitsy differences, but something that sticks in
people’s brains
Example: Student applications
and the 10,000 pound cookie
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16. Dramatic Difference is a the best predictor of success
Dr. Robert Cooper
Factors of Successful New Products
#1 Unique Benefit
(Dramatic Difference) 218
#2 Fit with Company 142
(Resources, skills, abilities)
#3 Large &/or Growing Market 100
McMaster University
Hamilton, Ontario, Canada
16
21. Golden Rule of Clarity
Let a customer say NO
because what you offer
doesn’t apply to them.
But NEVER let a customer say
NO because
they don’t understand
what you’re offering. 21
22. First Law of Marketing Physics
source: 2002 Eureka! Institute
• Overt Benefit
• You TRIPLE the effectiveness of
• your marketing efforts by OVERTLY
• communicating your customer benefit
Overt Benefit Level Probability of Success
Low Overt Benefit 13%
Medium Overt Benefit 26%
High Overt Benefit Product Marketing 38% 22
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23. Reason To Believe Story
3 Chefs - 3 Years -
World Cooking Competition Medalists
23
29. Why Candor counts…
• People want authentic brands
• They don’t trust advertising
– 93% of consumers do not have confidence in the
advertising messages of major corporations. (Yankelovic)
• Hated brands can win ! (polarization is good !)
– Build a brand consumer hate, and there is a good chance
you’ll build your bank account
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30. If you lie, consumers will punish
you. (Dell Hell = 366,000 hits !)
30
31. Be connected
Good advertising = nice
Good word of mouth = Great !
31
32. The Law of 250
• Every person knows at least 250 other people.
• Each of your contacts knows at least 250 people.
So that’s 62,500 at your 2nd level.
• Each of your 2nd level contacts knows 250
people - and that’s over 15,000,000
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33. Corollary to Law of 250
• It is typically not your first level contact that
eventually hires you - in fact, you’ll probably
find that the hiring contact may be 2, 3 or 4
levels deep.
• Some sociologists have found that
“acquaintances are more likely than family
members to give individuals direct information
and to recommend them for opportunities.”
(Mark Granovetter, “The Strength of Weak Ties”
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34. These are the contacts likely
Key to most success
You
4 Layers of Separation
Level 1 Level 2 Level 3 Level 4
Contact Contact Contact
Contact
Your Friend Alice’s Uncle Bill’s Friend Carol’s Boss
Alice Bill Carol David 34
36. Don’t be fooled by the
experts !
Develop gut feelings
Talk to non-experts
36
37. Wisdom of crowds in action
• Who Wants to Be a
Millionaire?
15 questions = $ 1 million
Phone a friend vs Audience
61% vs 91% accuracy
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38. An example
• What makes new products successful
– A better product
– Market potential
– Market synergy
All the things covered in the article, winners and losers…
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39. Yes
Yes
Source: New products what
separates winners from losers
Cooper & Kleinschmidt
2 out of 10 real differences, the rest statistically significant
39
40. Personal opinion:
All the success criteria identified in the
winners/losers article are relevant. But what
makes a product a success is
An exceptionally high score on 1 criteria or
more likely…
A good score on a range of criteria
40
41. Have fun
If you enjoy what you do… you’re
likely to do it well
If you believe you’ll do it even better
41
42. • Increase the quality of life
• Right a wrong
• Prevent the end of something good
42
43. Expand your horizons
Good marketing is about business
and people.
Understanding business is easy…
understanding people takes lifetime 43
44. Make it your job to learn
• What you should be learning…
– Organizational behavior
– Psychology
– Design
• Collect stuff
– Cool advertising
– Great product ideas
– Beautiful design
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45. A few good books
Fun Academic
• Re-imagine • Judgment Under Uncertainty:
• The Cluetrain Manifesto Heuristics and Biases
• All marketers are liars • The Difference: How the
• Paradigms Power of Diversity Creates
• Funky business Better Groups, Firms,
• Influence: The Psychology of Schools, and Societies
Persuasion
• A Mind of Its Own: How Your Not fun, but worth reading
Brain Distorts and Deceives • The Pyramid Principle
Quasi-Academic
• The Black Swan or Fooled by
Randomness
• Linked
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46. But remember…
Your education is what you
remember long after what you have
been taught is forgotten…
Make it yours, make it fun …
46
47. Good Marketing is about [part 2]
What… How…
Be Real
Dramatic differences Be connected
Clarity in communication Don’t be fooled
Everything Selling Have fun
Learn
47
50. The reality
"Our buyers"
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51. A continuum of loyalty
Not Aware
Sole Buyer
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52. A brand’s most valuable customers
give most of their business to
competitive brands
52
53. 11 Representative FMCG Brands
Not Aware
31% to
the brand
69% to
the competition
Sole Buyer
53
54. Keep a dialogue open
Remember to talk with your
customers on a regular basis..
What they want is important
54
55. Using advanced marketing
techniques for lunch...
• RFM
– This is what you ordered
last time
– And this is how much you
ate...
• Analysis techniques
– Based on your weight,
height, social background
• You expect them to ask,
why don't you ?
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56. Good Marketing [the full picture]
What… How…
Be Real
Dramatic differences Be connected
Clarity in communication Don’t be fooled
Everything Selling Have fun
Learn
Measures
Share of customer
Ongoing dialogue: what do they say
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57. “Life [and your career] is not a
journey to the grave with the
intention of arriving safely in a
pretty and well-preserved body—
but rather a skid in broadside,
thoroughly used up, totally worn
out, and loudly proclaiming,
„Wow, what a ride!‟ ” —anon.
57
58. A simple 3 step program for brands and people
1. What you are 2. What are you
Good at Made to do
Magic 3. What will people
pay for
58