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The Product Marketing Handbook for Software, 4th Edition
Rick Chapman is also the author of In Search of Stupidity: Over Twenty Years of High-Tech Marketing Disasters (previously reviewed on Slashdot.) He is also the publisher and editor of Soft*Letter and the Software Success Newsletter. The Handbook presents today's best practices based on Chapman's extensive experience, and includes up-to-date information on everything from advertising to OEM agreements, pricing to visual identity.
The book offers practical insights into vexing product marketing-problems. Throughout the book, Chapman gives relevant, down-to-earth descriptions of how to (and how not to) plan and deliver product-marketing efforts. There are case studies from every aspect of the high-tech industry, as well as detailed lists of dos and don'ts.
This is a great, safe place to learn about marketing, distributing and selling software before putting your own time and money at risk; the Handbook includes comprehensive checklists to help manage the product-marketing process. (These lists are also provided on a CD that accompanies the book.)
The text starts with an overview of some changes the software market has seen since the book's first edition. Chapman focuses on one of the most significant changes since then and discusses the rise of open source computing and Linux. He then continues to the book's raison d'être with a brief discussion of why software companies fail.
The first chapter covers market research. Before spending resources on writing code, it is always best to know if there is a real need for the product, and what other companies are up to in the intended market space. The chapter starts with an overview of several research techniques such as conjoint analysis, focus groups and competitive intelligence.
The next chapter discusses some of the hardest issues in marketing software: positioning, pricing and naming. A great example, the OS/2 debacle is a classic study in how not to name or position a product.
These chapters detail how to position a product, how to brand it, and how to price it so both you and your sales channels can make money off of it.
Chapter 3 discusses channel distribution. Channels are the organizations that move a product to the customer. First, you have to decide if you will provide the product as an ASP or shrink wrapped. In the latter case, selling the software requires a logistics backbone that small independent software vendors (ISVs) may not be able to afford. While some software packages can be successfully sold using online channels exclusively, these are the exceptions. Other ISVs have to utilize distributors, VARs, store chains and catalogs to move their products. Getting these channels to distribute the product is not as easy as sending them a copy and expecting them to "see the light." It takes a good understanding of the channels' business models and capabilities (as well as hard work on your part) to get to the point where a customer sees your product in a CompUSA or a printed catalog. Channels have to be located, contacted, convinced, trained and constantly supported to make this happen. This chapter also covers OEM and international distribution issues.
The next chapters discuss collateral advertising (brochures, white papers etc.), PR, advertising and sales promotions respectively. While none of these are rocket science, getting them wrong is a costly proposition. In addition to the effort involved and their cost, there are legal implications as well. For example, not properly estimating the return rate of a rebate coupon or making an inaccurate claim in a piece of collateral can land a company in hot water. Most ISVs outsource these activities to experts, but even doing that successfully requires at least a general understanding of these topics.
Chapter 8 discusses direct marketing. Some of the topics covered in this chapter are direct mailings, infomercials, telemarketing, mailing lists and fulfillment.
Chapter 9 covers software bundling. Bundling is where companies offer two or more products as a bundle. You're almostly certainly familiar with this from the way companies like Amazon offer two related products for a slightly better price then their combined prices. How and why to bundle are explained in this chapter.
Chapter 10 discusses the topics Internet marketing. In theory, the easiest way to market a product these days is over the web. One creates a website, submits it to Google and Overture (Yahoo!), and presto, there are visitors who buy the product. It's not so simple,though: The problem is luring potential customers to the website, keeping them there, and leading them to purchase the product. This chapter covers designing and optimizing websites as well as managing discussion groups, list servers and online ad campaigns. Another important topic is search engine optimization (in simple English, getting your website to the top of the Google and Overture Results pages). The text includes many dos and don'ts on how this is done.
Chapter 11 discusses trade shows. I don't think highly of tradeshows (see the rightful demise of Comdex) but if you decide to go down this road, here's how to do it properly.
Chapter 12 discusses sales methodologies and strategies. It opens with the trick question that most people get wrong: What is the number one reason that software companies fail? The correct answer, of course, is "not enough sales."
There are inherent reasons that you are a developer writing code or a sales rep doing sales. There are the basic character traits that make each of you good at what you do. I'm not saying that as a developer you can't sell. You may be able to -- but probably not as well as a seasoned sales rep. As with other issues, you will need to understand the dynamics of the sales process so you can create a product that makes it easier to sell. This chapter will introduce you to basic concepts such as the pipeline, prospecting and, the software selling cycle. It will also take you through the multiple steps of complex sales cycles which are a painful part of selling large systems. But, as bank-robber Willie Sutton supposedly said, that's where the money is. No less important is the discussion of negotiation and presentation techniques.
The last chapter in the book gives a brief overview of product management and the processes involved. While relevant and accurate, I would defer to other texts on the subject for a more thorough discussion of product management. See, for instance, Software Product Management Essentials by Alyssa S. Dver, or The Product Manager's Handbook by Linda Gorchels.
The book includes three appendices: A product marketing cost matrix, a product marketing resource directory and a product marketing timeline, and ends with a glossary and index. Attached to the book is a CD which includes all the checklists that are dispersed throughout the book as well as several sample files.
The Handbook's depth and breadth as well as the author's experience make it the best book on product marketing I've encountered.Reviewer Daniel Shefer is a Software Product Management expert and has written numerous articles on this topic. The Product Marketing Handbook, 4th Edition is available only through the author's website. For more about product marketing see: www.ProductMarketing. com.
Yes, it's a great example of why you should be very cautious when working with Microsoft.
Yuck, marketing. Right up there with Lawyer and Politican for 'most fundamentally corrupt occupation'. 99% of the job is to trick people into buying shit that they neither want nor need.
I can't stand adverts these days--and I live in the UK, where advertising is relitively subtly. I think if I ever returned to the US I would die from an overdose.
The software business is already oversaturated with people trying to sell code. Its a dead end, and this is why every diversified IT firm is going into services and why MSFT can't get above $30 to save its life.
That pretty much assures me the author does not know what he's talking about. The vast majority of software packages are sold exclusively via the web. They are mostly Windows software, mostly small companies (<10 people, skewed towards the 1-man band), and mostly make such a modest amount of money that the author should perhaps be forgiven for not noticing where the bulk of the software market iceberg lies.
If you want to really learn about selling software, join the ASP and talk to the little guys who (cumulatively) are making most of the software that gets sold in the world today.
Disclaimer: I'm a member, but I (alas) make no money for telling people to join :-).
I view this from a software developer point of view. This book is good and bad. It is good because it helps a programmer get the whole picture and in that may have a better understanding of his/her role. It is bad if a programmer uses a book like this for anything more than just a clearer picture of how things work. I have never met a great programmer that could also be a marketer of software. I am not saying it can't happen, I am just saying that I have known and do know a lot of programmers, the great ones would tend to find marketing software as boring and un inspiring. If you are a bad programmer, think about a career in marketing...it will make the programming area much happier.
Nuttles
Saved by Grace
The real problem was that nobody was pre-installing it, and IBM was also trying to push their own bus architecture on the PS/1, and people got confused about that too.
:-)
It was not hard to install if you knew what you were doing, but it could be impossible if you didn't.
Also, IBM just assumed all the printer and video companies would put out drivers, and they didn't. The smart thing would've been to PAY them and ship 'em with the package, but that didn't happen. So even if you got it installed it was entirely possible you wouldn't be able to get a decent printout or use your video card to the max.
The printing fiasco was a real shame, because Presentation Manager gave you great support for fonts, shearing, a lot of cool stuff. DeScribe was a really decent word processor/layout package.
I ported a DOS control system to OS/2 V1.3, and it rocked. Ran on a 25Mhz 386 with 8M of RAM, 50 threads, named pipes and shared memory between control processes and a separate graphics display, and it was solid as a rock in power plant conditions.
Now it sits next to my Amiga.
The revolution will NOT be televised.
The stories (not just UL|FOAF) are rampant. Basically, "take our offer, or you'll face us a competitor."
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You also have to be careful (in Olympic lingo) "synchronized software development". Once the partnership is over, guess what's on their drawing board?
These should be considered using the word "together - a simple quiz for those who have been around for some time.
n.b. No google- or wick-cheaing!!! The answers should be clear enough.
1) Microsoft & IBM work on a windows-like product together what happened when they parted ways?
2) Microsoft & Sybase worked on a DBMS together. What Microsoft product arose when they parted ways?
3) Microsoft signed a contract to consult with Compu$serve to help them shore up their operations, etc. What online service arose when that contract was over?
4) When the specs for OLE2 were released, Microsoft was left in the dust. A company named Shapeware wrote a software product which was fully OLE2 compliant -- something Microsoft didn't accomplish until much, much later. (not unlike the fact many of their products do not make the same standards they hold 3rd parties to. Microsoft was in the process of writing a competitive product and decided to shop outside. What was that product?
I'm certain others can add - I'm just going to stop here so I'm not hogging the microphone.
\ As far as the naming conventions go, in the 10-15 years ago range, this was a common statement to those who were trying to make a move to OS/2:
DB/2, OS/2, PC/2
Half of a database running on half an operating system running on half of a PC.
Gotta love the peanut.
______________________________________ My Trunk Monkey can beat up your Trunk Monkey. http://www.suburbanautogroup.com/ford/trunkmonkey