Re: New Pricing Model

From: Ivan Weltman <>
Date: Thu 13 Dec 2001 10:34:57 -0500

Rob Frankel <> wrote:

>On 12/11/01, Ivan Weltman <> wrote:
>>Oh dear - here we go again - Rob Frankel with blinkers.
>Blinkers? They're so fifties. I think not. Blinders?
>Nah. They don't go with my shoes.

Blinker: A leather flap on a bridle, to prevent a horse
from seeing in any direction but straight ahead. Websters

>>Actually, first one creates the product (or service),
>>makes it available through one channel or another, then
>>one tells people about it. In that order. If the product
>>is needed, unique in one way or another, and of good
>>value, you'll have a marketing success. It's really that
>Skipping a step there: Right between "creates the
>product/service" and "makes it available" is "Create and
>implement the brand."

Optional - neither necessary nor advisable.

>>Branding? Well, it all depends. In an unsaturated market
>>awareness is king - and this is an advantage, as one may
>>find out who is using the product, how they are using it,
>>and why, before settling on a brand strategy.
>Wow -- you really want to launch with no direction? That's
>living pretty dangerously. If you brand before you launch,
>you'd have done all that work and know pretty much that
>what you're offering is way more likely to be evangelized
>by those with whom it comes into contact.

Launching without a firm brand strategy is not launching
without direction. It might be enough to highlight the need
and promise need satisfaction. The essential point is that
early strategy should avoid strong user typing and strong
product imagery, allowing for easy changes in positioning
when more user information is available. It usually takes
time for a clear brand personality to develop, and long
term brand success is much more likely if the brand users
contribute towards the eventual brand personality. Classic
examples of the success of this approach are Jack Daniel's
and Marlboro. In fact it was nine years after the brand
was re-launched before the Marlboro Man was established.

>>In a
>>saturated market product differences are likely to be
>>trivial, and thus perceived rather than actual. Then
>>branding is king. But who, in their right mind, will
>>attempt to market a new brand into a saturated market
>>unless they have discovered a niche with incipient or
>>latent demand? Then, of course, the niche becomes the
>>unsaturated market!
>Gotta disagree with you on that, Ivan. The brand
>belongs in the business plan. If you get it right from
>the start, everything moves along much more accurately
>and smoothly and profitably -- even as the
>market progresses from unsaturated to saturated.
>When you step back from it, you can see that saturation
>or non-saturation has very little to do with branding.
>It's just got to be done, regardless, so you might as
>well do it early on and benefit from the time it takes
>to develop its market.

Blinkers again. Market saturation has everything to do
with the timing of branding. Do it too early in an
unsaturated market, and it will be very expensive indeed
to change to a better positioning if you didn't get it
right first time.

Ivan Weltman

Received on Thu Dec 13 2001 - 09:34:57 CST


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