-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 ___________________________________________________________ [EMAIL PROTECTED] http://www.FourthWorld.com
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