RAZOR BRANDING BLOG: Seth Godin
Showing posts with label Seth Godin. Show all posts
Showing posts with label Seth Godin. Show all posts

Is Free a Strategy?

In May, I posted a blog called "To Be Free or To Be Premium, That is The Question". I wrote about the new book that Chris Anderson,Wired Editor-in-Chief, has written, called Free! Why $0.00 is the Future of Business.The blogs' main point being that a premium product can always command a premium price. You don't have to give it away.

There has been quite a bit of discussion around the book and where the business models should be heading.

Malcolm Gladwell's column in the July 6th issue of The New Yorker is titled "Priced To Sell" and reviews Anderson's book.

The article is a great read and does a very thorough job of dissecting the book and drawing the line from Anderson's theories to what is happening today with content providers - be it newspapers (NYTimes does not charge for content, Wall Street Journal has a million paid subscribers) or television (broadcast networks are struggling with only advertisers to pay the bills, yet cable networks offer specialty content at a premium price).

Now, Seth Godin has jumped into the conversation with a blog post entitled, "Malcolm Is Wrong". Godin's blog asserts that Free is where we are headed and there is nothing anyone can do about it so jump on board.

Mark Cuban has weighed into the discussion and thinks there is a big difference between "Free vs Freely Distributed".

You can take a look at the whole "Free Debate" on Squidoo and add your two cents (pun intended) to the discussion.

I am going to have to side with Malcolm Gladwell on this.

Free is not where we are headed.

Really, it seems pretty ironic that Free costs $17.81 on Amazon. Wouldn't it make more sense to support the theory of the book by giving it away as an e-book?

After reading all of the comments, and there have been plenty, I am sticking with my original point which is that a premium product can command a premium price. If you give it away, or discount it too deeply, it will lose brand equity in the hearts and minds of consumers.

But, what say you? Is the future going to be free?

Jaci Russo
Sr. Partner/Brand Strategist




Will you spend an extra $50?

Most people will. Most people will spend an extra $500 for a brand they believe in. They will spend an extra $5000 for the perception of better quality and longer lasting product.

So why do so many companies put all of their eggs in the price basket? Price doesn't build loyalty (don't tell Walmart, it will ruin the surprise). Price doesn't inspire advocacy. To paraphrase Seth Godin - price doesn't create a Tribe.

I love Nike. I mean really love them. My first pair of running shoes twenty years ago...Nike. If you look in my closet now, multiple pairs of...Nike. I identify with Nike. I am not the tall athletic woman running through the tv spot, but when I wear Nike I feel like her.

Every other pair of shoes in the store could be half the price, it won't matter, I will still buy Nike. I am a part of their tribe.

Isn't that how you want your customers to feel about your company, your product, your service. Don't you want to be chosen...no matter what?

Then change the conversation. Make it about your customer. About who they are. About what they need. Stop talking price. Start forming relationships.

Tribes - It's Where We Belong

Seth Godin's new book, "Tribes" is an interesting study of how marketing is changing. No longer can companies spend money to 'buy a crowd' and expect to stay in business.Members of the tribe share something in common...a common love for the product, activity, event, music, service or company that they have united around.

Godin's theory is this tribal culture is the true basis of brand advocacy and word of mouth marketing. When you belong, you support, you buy, you believe, you live the brand.

Review in USA TODAY
Author Seth Godin is all about change. In Tribes, as he has in his previous books such as Purple Cow and The Dip, he challenges the status quo with a straight-on, get-with-it kind of attitude, and you got to love him for it. His books are sweetly short, and they manage to be breezy and thought-provoking at the same time.

This time out he tackles the oft-dissected concept of leadership. But he does so with a twist. He delves into the surfacing of a new kind of leader - one who has emerged since the Internet has enabled and mobilized countless global tribes around passions ranging from global warming to politics to great restaurants.

Godin defines a tribe as a group of people connected to one another, connected to a leader, and connected to an idea that inspires their passion. He argues that human beings have a need to belong, "to be part of a tribe, to contribute to (and take from) a group of like-minded people. We are drawn to leaders and to their ideas, and we can't resist the rush of belonging and the thrill of the new," he writes.

If you are thinking, Barack Obama, and his astonishing political ascent and money-raising prowess, you're on to it. But of course, the Grateful Dead pushed this concept some four decades ago. "The Dead helped us understand how tribes work," Godin writes. "They didn't succeed by selling records (they only had one Top 40 album). Instead, they succeeded by attracting and leading a tribe.

"Thanks to the Web, the barriers to leadership have fallen. There are tribes everywhere, millions in search of leaders, waiting to connect to create change. And people yearn to belong to more than one tribe, according to Godin.

And therein lies the opening door for Net-savvy leader wannabes. Because the Internet eliminates geography, existing tribes are bigger and there are smaller tribes, too - tribes you work with, tribes you travel with, tribes that ride motorcycles, and more. There are "literally thousands of ways to coordinate and connect groups of people that didn't exist a generation ago," he writes.

Godin's mantra is that everyone can now find or assemble a tribe and lead it. The tools are there to lead the tribes that are forming from Facebook to Twitter to Craigslist.

"All that's missing is you, and your vision and your passion," he urges.

No one gives you permission or approval to lead. You can just do it. The only one who can say no is you. In other words, you can make a difference if you have something to say, and want to, that is, in his view.

He even has a name for someone who strikes out to assemble or lead a tribe, a "heretic." Heretics are no longer condemned or burned at the stake as they were in days of old. "The world has changed a lot. There are heretics everywhere you look," he writes. "Heretics are engaged, passionate, and more powerful and happier than everyone else," he explains. "And they have a tribe that they support (and supports them in turn)."

Heretics reach out to others and put their ideas on the line. Heretics believe. "Can you imagine Apple founder Steve Jobs showing up for a paycheck?" he asks. It's nice to get paid. It's essential to believe in what you do, Godin opines.

Faith is at the heart of the matter. It is one component of leadership that is underrated. "The only thing holding you back from becoming the kind of person who changes things is this: lack of faith," he writes. "Faith that you can do it. Faith that it's worth doing. Faith that failure won't destroy you."

So after all the pep talk and feel-good motivation, what's wrong with Godin's latest tribe manifesto? He tells you: "People might say that it's too disorganized or not practical enough or that I require you to do too much work to actually accomplish anything. That's OK. Criticism like that almost always accompanies change."


So what if he's right. Now go pursue something that matters. And lead.

Jaci Russo
Senior Partner
The Russo Group

Tribes Make The World Go Round

Seth Godin's new book, "Tribes" is an interesting study of how marketing is changing. No longer can companies spend money to 'buy a crowd' and expect to stay in business.

Members of the tribe share something in common...a common love for the product, activity, event, music, service or company that they have united around.



Review in USA TODAY

Author Seth Godin is all about change. In Tribes, as he has in his previous books such as Purple Cow and The Dip, he challenges the status quo with a straight-on, get-with-it kind of attitude, and you got to love him for it. His books are sweetly short, and they manage to be breezy and thought-provoking at the same time.
This time out he tackles the oft-dissected concept of leadership. But he does so with a twist. He delves into the surfacing of a new kind of leader - one who has emerged since the Internet has enabled and mobilized countless global tribes around passions ranging from global warming to politics to great restaurants.
Godin defines a tribe as a group of people connected to one another, connected to a leader, and connected to an idea that inspires their passion. He argues that human beings have a need to belong, "to be part of a tribe, to contribute to (and take from) a group of like-minded people. We are drawn to leaders and to their ideas, and we can't resist the rush of belonging and the thrill of the new," he writes.
If you are thinking, Barack Obama, and his astonishing political ascent and money-raising prowess, you're on to it. But of course, the Grateful Dead pushed this concept some four decades ago. "The Dead helped us understand how tribes work," Godin writes. "They didn't succeed by selling records (they only had one Top 40 album). Instead, they succeeded by attracting and leading a tribe.
"Thanks to the Web, the barriers to leadership have fallen. There are tribes everywhere, millions in search of leaders, waiting to connect to create change. And people yearn to belong to more than one tribe, according to Godin.
And therein lies the opening door for Net-savvy leader wannabes. Because the Internet eliminates geography, existing tribes are bigger and there are smaller tribes, too - tribes you work with, tribes you travel with, tribes that ride motorcycles, and more. There are "literally thousands of ways to coordinate and connect groups of people that didn't exist a generation ago," he writes.
Godin's mantra is that everyone can now find or assemble a tribe and lead it. The tools are there to lead the tribes that are forming from Facebook to Twitter to Craigslist.
"All that's missing is you, and your vision and your passion," he urges.
No one gives you permission or approval to lead. You can just do it. The only one who can say no is you. In other words, you can make a difference if you have something to say, and want to, that is, in his view.
He even has a name for someone who strikes out to assemble or lead a tribe, a "heretic." Heretics are no longer condemned or burned at the stake as they were in days of old. "The world has changed a lot. There are heretics everywhere you look," he writes. "Heretics are engaged, passionate, and more powerful and happier than everyone else," he explains. "And they have a tribe that they support (and supports them in turn)."
Heretics reach out to others and put their ideas on the line. Heretics believe. "Can you imagine Apple founder Steve Jobs showing up for a paycheck?" he asks. It's nice to get paid. It's essential to believe in what you do, Godin opines.
Faith is at the heart of the matter. It is one component of leadership that is underrated. "The only thing holding you back from becoming the kind of person who changes things is this: lack of faith," he writes. "Faith that you can do it. Faith that it's worth doing. Faith that failure won't destroy you."
So after all the pep talk and feel-good motivation, what's wrong with Godin's latest tribe manifesto? He tells you: "People might say that it's too disorganized or not practical enough or that I require you to do too much work to actually accomplish anything. That's OK. Criticism like that almost always accompanies change."
So what if he's right. Now go pursue something that matters. And lead.