Major Fallacy of Thinking/Marketing. "Want/Need" Baloney. This is Controversial.

> ... "Focus" by Al Ries.
Yeah I like that one but this stuff
isn't new...I have a book about
concentration from a metaphysical bookstore
called(how's this for a title"?)

"The power of concentration"
by Theron Q. Dumont

the book is straight and to the point....
Introduction

" It is of the utmost value to learn how to
concentrate. To make the greatest success of
anything you must be able to concentrate your
entire thought upon the idea you are working
on. The person who is able to concentrate utilizes
all constructive thoughts and shuts out all destructive ones. The greatest man would accomplish nothing if he lacked concentration. "
"
Also another great book and it's hard to find..
you can find it in many second hand book stores

"Information Anxiety" by Richard Saul Wurman

" Information anxiety is produced by the ever
widening gap between what we understand and
what we think we should understand. It is the
black hole between data and knowledge, and it happens when information doesn't tell us what
we want or need to know."

These are behavioral indicators of information anxiety:
"
*chronically talking aboutnot keeping up with
what's going on around you.
*nodding your head knowingly when someone mentions a book that you've actually never heard
of
*not being able to explain something that you
thought you understood
*feeling depressed because you don't know what
all the buttons are for on your vcr
*signing the exact time in an office building
logbook that you know no noe will ever read.
*panicking when you hear that the dow jones has
dropped 500 points-although you don't reallly
know what that means
*thinking that the person next to you understands
everything you don't
*being embarrassed to say " I don't know"
If you identify with even one of the above
symptoms...then this book is required reading."

>

> ONE. Why Focus? Because the Average Mind
> Gets: * 9 hours of TV, radio, newspapers,
> magazines, books, and videos a day.
> * 40,000 words a day.
> * 280,000 words a week.
> * 14 million+ words a year.

> The competition for your prospect's mind is
> fierce. So in an overcommunicated society,
> oversimplify your message.

> TWO. Enjoy The Benefits - A Narrowly
> Focused Company: * Is more likely to get a
> big market share
> * Is perceived as higher quality in the
> customer's mind.
> * Can dominate its category. Reward? Good
> profits, almost competition-proof.
> * Knows large markets need more
> specialization, smaller markets need less,
> so products decrease as market size
> increases.
> * Knows the enemy & what they are doing.
> * Gets more specialized in a global economy.
> * Realizes perception is reality. The
> driving force in business isn't quality, but
> perception of quality.
> * Realizes ALL business is a niche business.
> (Leader's niche is bigger, but still a
> niche.)

> THREE. Being Unfocused Undermines Your
> e-Business Because You: * Try to appeal to
> everybody, so you choose a vague concept to
> cover all products & services. Result?
> No identity in the customer's mind = small
> market share.
> o Core customers feel neglected
> o You open the door for narrowly focused
> competitor to take those customers.
> * Waste time & money searching for
> opportunities in other markets because more
> is better. But loss of focus = loss of
> power.
> * Ruin your quality perception, because, to
> consumers, specializing = quality.
> * Wind up weak everywhere instead of strong
> somewhere = no power.
> * Struggle to manage unrelated products
> & services, divisions & departments
> in a potpourri of businesses you don't know
> well.
> * Watch helplessly as one product line
> undermines another. E.g., why would Domino's
> or Little Caesars buy Pepsi when PepsiCo's
> Pizza Hut is their top competitor?
> * Become a big target. Coke ad: "Has
> PepsiCo opened a restaurant near you yet?
> Wait four hours. Every four hours PepsiCo
> adds another unit to their restaurant
> empire. Another unit that competes with your
> business and feeds your customers."
> (Focus, p.
> * Use money from your successful lines to
> subsidize unsuccessful ones.
> * Lose sight of your old enemy
> * Gain unknown enemies.
> * Often turn aggression inward, because no
> definite enemy means no external focus.
> * Lose efficiency
> * Lose competitiveness
> * Lose leadership over time. E.g., IBM was a
> $35 billion leader before anyone heard of
> Michael Dell. Now, a few years later, Dell
> beats IBM in personal computers. Why? Dell
> focused.

> FOUR. Describing The Perfect Focus: *
> Requires fewer ideas and better judgment.
> * Can be almost trite, yet powerful in your
> market.
> * Is memorable because in 1-2 words, it
> creates an idea in the minds of customers,
> employees & media.
> * Plays to human nature and common sense,
> not corporate logic.
> * Is simple (but recognizing it isn't so
> simple).
> * Tells your customer what you stand for.
> * Creates a belief in your customer's mind
> that you'll be a big success.
> * Tells employees where they are going.
> * Gives you power over those with no focus.
> * Attracts exactly the right employees to
> reinforce your strength.
> * Concentrates & enhances employee
> dedication to a goal.
> * Doesn't have to be a single product. It
> can be several products with a shared
> attribute.
> * Excites employees because they're part of
> something big. Excited employees mean a lot.
> * Owns the category. E.g., think of brand
> names for:
> o aspirin
> o cola
> o canned soup
> o instant photography

> (Bayer, Coke, Campbell's and Polaroid)

> FIVE. Be Aware of Consumer Beliefs: *
> "The specialist knows more." True
> or not doesn't matter. That's the
> perception.
> * "The better-quality product will
> win." So the easiest way to a quality
> perception in the mind is:
> * "You can't have high quality AND low
> price. It's one or the other."
> * "High price means high quality."
> A high price is a benefit to the customer.
> E.g., there'd be no prestige in a $20,000
> Cadillac.
> * "Low price means low quality."

> Consumers avoid a company with a
> bad-sounding name. If it doesn't sound good
> to your ear (test it with others, too),
> don't use it.

> SIX. How Consumers Measure Quality: *
> Consumers have many choices. How do they
> compare and evaluate? Most don't.
> * They talk about quality. But usually, they
> can't tell which is better. Products that
> cost the same often look and feel similar.
> * Many customers believe the best-selling
> product is better quality, because they
> think the best quality will win. That's why
> it pays to be the leader.
> * So quality differences are hard to
> measure. Perception differences are real
> & measureable. Your objective: improve
> customer quality perception of your
> products/services.

> SEVEN. Focus & Employees: * Good
> people want to work with good people at a
> good company.
> * Unfocused companies want well-rounded
> execs, so they shuffle people between
> divisions, hurting morale.
> * Specializing = power. So a focused company
> develops focused managers.

> EIGHT. How to Focus Your e-Business 1. Do
> a simple search for a simple idea. (The more
> searchers, the less likely you'll get
> anything good.)
> 2. Possibility: Whatever position the leader
> holds in the mind, you do the opposite. If
> they're expensive, you're cheap, etc.
> 2. Narrow your business to dominate a
> segment. This step is counterintuitive. Grow
> faster with fewer product lines? How ? Why?
> Because you don't have to:
> a. Satisfy everyone.
> b. Compromise on design, packaging, pricing,
> distribution.
> 3. Stake out your ground. Put your best
> people & resources on the product or
> idea of the future. Write off the rest.

> a. If you can't walk away from part of your
> business, you can't focus.

> b. Sacrifice defines "who you are
> not."
> 4. You don't have to focus everything to be
> successful. But you do have to focus
> something. At a minimum, cut back. Restrict
> growth outside your focus area (like pruning
> a plant so it grows in one direction).
> 5. Stock in depth
> a. How many donuts does your bakery sell? 3
> or 4 varieties? A big Dunkin' Donuts has
> 50+.
> b. Your local coffee shop has regular &
> decaf. Starbucks sells 30 kinds.
> c. The coffee shop has vanilla, chocolate,
> and strawberry ice cream. Baskin-Robbins
> sells 5 varieties (regular, yogurt, etc.) in
> 31 flavors.
> 6. Concentrate your efforts & marketing
> dollars on the fewest activities that will
> bring the most revenue E.g., consider Rocket
> Chemical:

> a. a 3-person company making aerospace
> lubricants.

> b. developed airplane anti-rust product:
> WD-40.

> c. phased out its other products.

> d. changed its name to WD-40 Company:

> 1) owns "slippery" in consumer
> minds.

> 2) in 77% of American homes.

> 3) reported $144 million net on $864 million
> sales in decade ending 1996.

> 4) Net income = 17% of sales. (Fortune 500
> averages 5 % of sales.)
> 7. Market to increase your share of chosen
> product/service/idea.
> 8. Be patient & brave. The market won't
> come overnight.
> 9. Use repetition to motivate employees
> & consumers.
> 10. Think long-term. It's not, "Will
> this decision improve our numbers?"
> It's, "Will this decision improve our
> focus?"
> 11. Develop specific plans to deal with the
> enemy.
> 12. To own the prestige position, you
> usually must be first AND charge high
> prices.
> 13. Merge ONLY with a similar company to
> increase focus. (Merging with a dissimilar
> company decreases focus.)

> NINE. If Someone Beats You To The Category
> You Want: 1. Do what made the leader
> successful.
> 2. Narrow your focus.
> 3. Invent and own a sub-category.
> 4. Move fast. Create the perception you
> invented the sub-category.
> 5. Get ingrained in that narrow segment.
> 6. Own a piece of the customer's mind.
> 7. Tell everyone about your leadership, not
> just your quality.
> 8. Become an institution.

> TEN. Benefits of Being the Leader in a
> Category: * You get time to react to other
> new products. (Just copy the competition to
> keep your lead).
> * You can hire better people.
> * You get first crack at distribution.
> (Outlets want the leading brand.)
> * Power = owning a word in the mind
> * You attract customers who want the same as
> others are getting.

> ELEVEN. Focusing Can Be Torture. Obstacles:
> * Selecting one concept to focus on. (Logic
> says, bet on several.)
> * You may need one step backward for 2 steps
> forward. You may lose sales short-term. Be
> patient.
> * Logic gives you bad ideas::
> o Consider each division equal to the
> others, no matter how unproductive.
> o Combine 2 different entities so when one's
> down, the other's up.
> * To focus, you must subtract. Logic says,
> add products to spread costs & increase
> sales. But it rarely works. Example:
> o A1 Steak sauce dominates its market.
> o People eat more chicken. What to do?
> o New product: "A1 Poultry."
> o But in the mind, A1 isn't a brand. It's
> the sauce itself.
> o Result? Despite large ad budget, A1
> Poultry flopped.
> * Best way to improve short-term numbers?
> Launch new products & services. In other
> words, unfocus.
> * It's not logical: "To increase sales,
> narrow the focus." But if it were
> logical, everyone would do it. You'd get no
> advantage.
> * Over time, you naturally lose focus with
> no conscious effort. (Clean the garage. In 2
> months, it's a mess again.)

> Factories, facilities, products, &
> people don't spell success. You must own a
> piece of the prospect's mind.

> TWELVE. Beware Traps! * Distribution
> thinks, "What else can we sell?"
> * Manufacturing thinks, "What else can
> our factories be making?"
> * Marketing thinks, "What else can we
> market?"
> * Management thinks:
> * "What happens when our customers
> outgrow our products?"
> * "We're doing great locally. Let's go
> national."
> * "Some customers can't afford us. What
> do we do?" Answer: Offer noncustomers
> deals and incentives." (You get more
> business, but alienate old customers.)
> * "Customers want more flavors, more
> variety, more choices."
> * "We'll make more money if we offer
> products to that other market."
> * "Our competition is REALLY tough.
> Let's go someplace else."
> * "If we have more variety, we'll sell
> more products."
> * "We succeeded here. Now, let's
> broaden our base."
> * "How do we sell to our
> non-customers?"
> * "WHAT? Let go of a piece of our
> business? Are you crazy?"
> * "Let's just offer this new one along
> with the old one. Let the customer
> decide."

> Motto: Put all your eggs in one basket and
> WATCH THAT BASKET!

> Richard Dennis