As computers, software and other information systems products
have become more expensive and part of the foundation of most
businesses, decision-making about product purchases and upgrades has
migrated higher up in organizations.
Now those responsible for marketing these products must ensure
that the sale is positioned in terms of business benefits.
According to Patricia Harpell, president of high-technology
advertising and public relations firm Harpell/Martins & Co., Concord,
Mass., products must be positioned in terms of "benefits, results and
return on investment."
In this focus on benefits, the business-to-business market for
information systems products is making it behave more like a consumer
marketplace. "This is where consumer marketing has been for
eternity," says Harpell. "High-tech is finally catching up."
Technologists OK the Sale
Previously, when the sale only had to be made to information
systems staff, addressing product performance features--so-called
"feeds and speeds"--was enough. Now, however, information systems
staff often comes into the picture only after upper managers have made
a commitment to buy, says Harpell. At this point, managers will ask
technology staff to verify that the proposed purchase will meet the
technical needs and operate compatibly with existing equipment.
Product Advantages Short-Lived
Another reason not to focus strictly on communicating product
performance is that today any differences usually are short-lived,
says Harpell. Except in the case of breakthrough products, "the
competition is moving too fast" for companies to be able to stress
performance speeds or capabilities as the major differentiator for
their products, she says.
Third-Party Channels
An additional major shift in the marketing of information system
products is that more computers, software and related products and
services today are sold through several channels, rather than direct
to users, says Harpell.
Communications with this audience, comprised of VARs (value-added
resellers) and distributors, should emphasize product and service
quality, support and stability of a company, in addition to the
features and benefits of products.
Companies also should back up their communication with this group
with strong outreach to end-users to build brand awareness and demand
pull through third-party sellers, Harpell advises. (Harpell/Martins,
508/371-1510)
High-Tech Companies' Creative Use of Web
To reach their markets cost efficiently, many high-tech companies
today are using their Web sites in sophisticated ways beyond simply
placing a brochure online, says Patricia Harpell, president of high-
tech advertising and public relations firm Harpell/Martins & Co.
Companies are using their sites for customer purposes such as
archiving and distributing training materials, as well as product
information. For VARs and resellers, some even are loading complete
Powerpoint sales presentations, which these groups then can present to
end-user prospects, she says. "The cost of doing this is negligible."
PR Reading List
Do you suffer from hoarseness, nasality or a generally tired
voice? If so, you may find some ideas for addressing these symptoms
in Stop Committing Voice Suicide. By speech pathologist Morton
Cooper, Ph.D., the book addresses damaging habits, such as incorrect
breathing or speaking from the lower throat. To order for $10, call
310/208-6047...If you are trying to sort out the legal ramifications
of online communication and commerce, a useful source of information
is Online Law. The Software Publishers Association guide covers
information security, online transactions, copyrights and regulation
of online content and conduct. To order for $34.95, contact Addison-
Wesley at 800/822-6339...The Private Securities Litigation Reform Act
of 1995 provided new leeway to investor relations professionals
regarding communication of "forward-looking" information. Guidance on
handling such communication properly are found in a new information
resource from the National Investor Relations Institute (NIRI).
Corporate Disclosure and the New Safe Harbor covers such topics
related to forward-looking statements as liability, oral disclosure
and updating. To order for $35 ($25 for members), contact NIRI at
703/506-3570.