strategy

  • Even though sales is everywhere, most people underrate its importance. Silicon Valley underrates it more than most.

    The geek classic The Hitchhiker’s Guide to the Galaxy even explains the founding of our planet as a reaction against salesmen. When an imminent catastrophe requires the evacuation of humanity’s original home, the population escapes on three giant ships. The thinkers, leaders, and achievers take the A Ship; the salespeople and consultants get the B Ship; and the workers and artisans take the C Ship. The B Ship leaves first, and all its passengers rejoice vainly. But the salespeople don’t realize they are caught in a ruse: the A Ship and C Ship people had always thought that the B Ship people were useless, so they conspired to get rid of them. And it was the B Ship that landed on Earth.

    Distribution may not matter in fictional worlds, but it matters in ours. We underestimate the importance of distribution — a catchall term for everything it takes to sell a product — because we share the same bias the A Ship and C Ship people had: salespeople and other “middlemen” supposedly get in the way, and distribution should flow magically from the creation of a good product. The Field of Dreams conceit is especially popular in Silicon Valley, where engineers are biased toward building cool stuff rather than selling it.

    But customers will not come just because you build it. You have to make that happen, and it’s harder than it looks.

    — Zero to One: Notes on Startups, or How to Build the Future by Peter Thiel, Blake Masters

  • I think of product culture along two dimensions.

    The first dimension is whether the company can consistently innovate to come up with valuable solutions for their customers. This is what product discovery is all about.

    The second dimension is execution. It doesn’t matter how great the ideas are if you can’t get a productized, shippable version delivered to your customers. This is what product delivery is all about.

    — INSPIRED: How to Create Tech Products Customers Love (Silicon Valley Product Group) by Marty Cagan

  • Archetypal brands are classless, ageless, and regionless, and their deep meaning must be inviolate. That’s why it matters that the brand’s story (not just its advertising, but the whole myth or legend surrounding the brand) must be congruent with the brand’s core archetype.

    Brands are trusted to the degree that everything they do is consistent. Products seem right when everything about them is aligned with their informing archetype. This obviously includes the product’s logo, tag line, product design, packaging, and placement in stores, as well as the design of the story, the environment surrounding the sale of the product, and the look and story line of all promotional materials, including your Web site. They all should tell your story.

    — The Hero and the Outlaw: Building Extraordinary Brands Through the Power of Archetypes by Margaret Mark, Carol S. Pearson

  • Product-Led Growth (PLG)

    Go-to-market strategy that relies on the product to acquire, activate, or retain customers. It is seen as one of the more cost-effective ways to create a customer base, in particular to engender organic growth and evangelism. It’s particularly popular for developer tools, as it’s always presumed developers like to try something before they believe it will work for them, as well as consumer-facing companies.

    In B2B companies, it can mean using product data to drive sales actions. The idea with PLG is that people like the product so much, they use it with others, which grows the number of users organically or vastly simplifies the sales process.

    — Loved: How to Rethink Marketing for Tech Products (Silicon Valley Product Group) by Martina Lauchengco

  • The way you break through to the mainstream is to target a niche instead of a huge market. With a niche, you can segment off a chunk of the mainstream, and create an ideavirus so focused that it overwhelms that small slice of the market that really and truly will respond to what you sell.

    The early adopters in this market niche are more eager to hear what you have to say. The sneezers in this market niche are more likely to talk about your product. And best of all, the market is small enough that a few sneezers can get you to the critical mass you need to create an ideavirus.

    — Purple Cow, New Edition: Transform Your Business by Being Remarkable by Seth Godin

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