As a marketing guy, I get to do many exciting things. One of the most interesting is deciding on which new products to develop – a very challenging task. I’ve come up with the analogy below to hopefully describe what this is like.
Scenario #1: If you are walking down the street and see a twenty dollar bill on the sidewalk with no one around to claim it, what would you do?
OK, that was easy. So, let’s make this a bit more difficult…
Scenario #2: If you are walking down the street and see a twenty dollar bill but the money is in a ravine below, which you would need to climb down to get, what would you do?
The answer may depend on:
(a) how deep the ravine is; and
(b) how hard the ravine is to climb down.
Analogy to Marketing: Marketeers see the world scattered with twenty dollar bills in ravines. The trick is to choose which opportunities to go after (i.e. which ravines to climb down).
Scenario #3: If you are walking down the street and see a twenty dollar bill but…
• The money is in a ravine below you which you would need to climb down to get.
• And you are not certain that it is a twenty dollar bill (it could be a one dollar bill or a fifty dollar bill). It is too far away to be able to see the bill to know for sure.
• And you see 3 other people at the top of the ravine near you who are also looking at the money trying to assess whether to climb down and get it.
…what would you do?
The answer may depend on:
(a) how deep the ravine is; and
(b) how hard the ravine is to climb down; and
(c) how certain you are of the amount the bill is worth; and
(d) how certain you are that you can get to the bill before the others.
Analogy to Marketing: Marketeers must deal with considerable uncertainty in their business. Very often it is difficult to judge how big an opportunity is upfront.
Scenario #4: If you are walking down the street and see several twenty dollar bills but:
• The money is in a ravine below which you need to climb down to get.
• You are not certain that they are twenty dollar bills (they may be one dollar bills or fifty dollar bills or a combination). It is too far away to be able to see the bills to know for sure.
• You see 3 other people trying to assess whether to climb down and get the money.
• Each person has a particular challenge to get to the bill from where they are standing. Some have long gently slopped paths, others have short steep paths.
• Some have repelling gear, some have boots, some are barefoot, etc.
• Some people already seem to have a head start.
…what do you do?
The answer may depend on:
(a) how deep the ravine is; and
(b) how hard the ravine is to climb down; and
(c) how certain you are of the amount the bills are worth; and
(d) whether or not you believe you can get to the ravine in time to harvest enough bills before your competitors can.
Analogy to Marketing: Marketing is difficult! There are many variables to trade-off in making good marketing decisions.