Many tech focused entrepreneurs believe that their product is made for one thing. That it can only satisfy the needs of one niche. In may ways, this is a good thing. It makes the entrepreneur think about how to service that particular customer group with regard to their specific situation. It also gives an unambiguous message to their customer base.

However, in many cases, other niches can be tapped with the same core technology. The important thing is to have different messages for each different niche. A good example of this is the iPhone App “Watch Me Change”.

This app reminds you to take a photo of yourself everyday. Then over time it creates a time lapse video for you to watch or share with others.

Who would want such an app you ask? Well plenty of people. The app is marketed to three specific niches. 1) Weight-loss 2) Pregnancy and 3) Aging/Growth.

On their website, specific landing pages are set up that relate specifically to each target niche. This dramatically increases the total target market for the app. The key to this is the positioning the technology to be relevant for a specific niche.

If you are relevant and useful to their specific needs/wants people will pay attention to your message.

For example, a pregnant woman would never dream about buying an app that created a time-lapse video on weight loss. However, she would jump at the chance to get an app that produces the same video over her pregnancy.

Likewise, a guy growing a mustache for Movember would not use an app that was targeted at pregnant women. However, a facial change app would be perfect for him.

By making their app relevant to different niches watchmechangeapp.com have increased the market size for their app without making dramatic changes to their technology.

Every start-up should consider how their product or tech can be leveraged by looking at how it can be made relevant to different niches.

What does marketing mean today?

Simple, it’s about creating art. Art is subjective. Not everyone will like your art but some people may. These people will identify with your product and hold your product as a badge for their own self image.

If you don’t get an emotional reaction with your product you are not creating art.

If you create something that stands out, you can’t please everyone. If somebody you talk to, does not hate your product you should be worried. Maybe eight of ten people will be repulsed by your product but two of ten will fall in love with it. That’s a big enough market to grow a business in.

More importantly, these people are likely to tell their friends about you.

Don’t sell cardboard. Don’t be bland. Have fun and mean something.

So many entrepreneurs that I talk to don’t fully understand advertising. They think that advertising is marketing and vice versa. They see advertising everyday. When they open a newspaper, when they watch T.V., when they visit a website, when they listen to the radio, as they are driving they are exposed to advertising.

We all know that most entrepreneurs are not from a business educational or business background. Therefore, they believe that they must advertise using the same media that they see everyday. In other words buy T.V., newspaper and radio ads. They don’t analyze the effectiveness of buying these ads. Instead, they just do it because they see others doing it. This is totally the wrong approach to advertising and marketing in general.

The most important issue when developing your marketing strategy which may include advertising is “Return on Investment.” This is where current display advertising on T.V., radio and in newspapers falls down. They are too expensive and therefore don’t give the return on investment required. In many cases, the return on investment is negative and that’s a great way to burn through all your cash. You are not in the cash burn business, you are in the cash making business.

Marketing has now moved away from advertising to “talkvertising.” This is because the math just doesn’t make sense for traditional advertising anymore. The approach to talkvertising is much different than the approach to traditional advertising for entrepreneurs. It’s about having your product so different, innovative, quirky, good that people talk about you.

Technology has supercharged word of mouth. Word of mouth can now turn your start-up global overnight. However, the biggest hurdle to achieving this is by following a “by the book” strategy. Grey is not a color worth talking about. If advertising rates come down to a level where they make sense for a start-up, then great. However, even if you can turn a good ROI from a traditional campaign it’s a good idea to talkvertise as well.

The key is to get the buzz going. After all, if your start-up is going to take off you need to be comment worthy. As you build your business always think about talkability. I’s like recruiting sales people who will work for free.

Remember, advertising won’t make your business, talkvertising will.

The recent uproar over Facebook’s privacy policy has led to the social network reverting to a more simplified privacy system. Facebook has faced the stern criticism for implementing a more complicated privacy policy in order to expand it’s business model. I believe much of this is unfair and undeserved.

Firstly, Facebook must innovate to stay alive. Currently they are the number 2 website in the world behind Google. However, the past evidence shows that if a social network remains static they will see a dramatic fall off in users. Just look at the once popular Bebo. If you look at the various innovations Facebook has introduced it’s obvious that their privacy policy would have to change accordingly.

No business get’s it right all the time. Facebook introduced a new privacy policy, listened to user feedback then made the appropriate changes. Start-ups can learn a lot from this approach. Of course there will be people who shout and yell. Of course there will be critics. These are the same people who would criticize Facebook for not making any changes and not introducing any new features. The key point start-up entrepreneurs need to take on board is that they put it out there and listened then did something about it.

When you work with techies they tend to over complicate things and make stuff seem much more difficult than it is. I believe that this is one of the core reasons why people did not warm to Facebook’s new privacy policy. Also, Facebook is a social network. The name is a big hint. Social implies, sharing so by joining Facebook people are doing it to share stuff. What sort of privacy policy would you implement if you were in Zuckerberg’s position?

Ultimately this controversy can be boiled down to snobby “right first timers” versus the more realistic and chilled out “incremental improvement” gang. See it’s all about making mistakes and learning from them.

Please comment especially if you have a different view.

I’m sure that you have heard about the huge success of the iPad. In fact, it could be argued that the iPad is the most successful launch of all time. Current economic climate considered, this is a jaw dropping achievement. But behind the headlines lie a valuable lesson for start-up entrepreneurs. You see, Apple have perfected marketing. They are to marketing what Chopin is to the piano concerto. The great thing for you is that you can apply the same model to your start-up. There is nothing better than getting off on the right foot.

Be warned, it’s not a quick fix – results overnight model. It surprisingly doesn’t focus on the launch. Instead it’s rooted in what has resurfaced as the fundamentals of marketing in the digital age. In a recent blog post on why Apple has been so successful with the iPad Seth Godin, lays out the core reasons. Here’s a quick summary. It’s worth reading the full post.

He reckons that Apple’s strategy can work better for smaller gigs and more focused markets. I totally agree.

1. Earn a permission asset.

2. Don’t try to please everyone.

3. Make a product worth talking about.

4. Make it easy for people to talk about you.

5. Build a platform for others to play in.

6. Create a culture of wonder.

7. Be willing to fail.

8. Give the tribe a badge.

9. Don’t give up so easy.

10. Don’t worry so much about conventional wisdom.

Surprisingly, not enough start-up entrepreneurs follow this model. Well if you want to join that club, you are free to do so. Go ahead and read that Marketing textbook that was published in the early 90s. The rest of us will be busy applying what is proven to work today.

As always comments welcome and appreciated. Especially those who disagree.

When most new entrepreneurs think about market research, they imagine questionnaires and focus groups. There is nothing wrong with that, is there? I mean, it appears on the curriculum for Marketing 101. However, focus groups and questionnaires are time consuming, relatively expensive to conduct, and not very accurate.  We all know that people don’t really say what they are truly thinking in focus groups and questionnaires.

For start-up entrepreneurs, these old school methods are out dated. There is a better, and for the cash conscious, a cheaper way. Remember the old saying “actions speak louder than words?” The same applies to doing market research for a new business. Observation is where it’s at. Proper desk research using the Internet will reveal a huge amount about your target market. More and more methodologies and tools are available for you to find out what your target audience is really thinking and doing.

It’s like a hunter following animal tracks in the forest. You are following digital footprints left by your target demographic online.

Using a combination of keyword research, ad planning systems, alexa, backlink research, forum research, business analysis, website analysis, news searches and simply asking questions, you can reveal a staggering amount of information that will really assist you in setting up and positioning your new venture in the marketplace.

Observation can help you understand a lot of things. It sounds easy, but are you prepared to open your eyes?

In his book Tribes, Seth Godin (haven’t read his latest “Linchpin” yet) laid out the relationship between leadership and entrepreneurship. This is particularly true when it comes to marketing in the digital age. I believe that leadership has transcended it’s traditional role and moved on to become the number one marketing skill that an entrepreneur can have.

Understanding leadership is really important for new entrepreneurs. In a previous post I have included an interview by Yanky Fachler with Dr. Edward De Bono.  I think it worked quite well. For this post, I will do something similar on the topic of Leadership.  Here is an Interview conducted by entrepreneurship evangelist and expert Yanky Fachler with Stewart D. Friedman. It highlights some key leadership issues that all entrepreneurs should consider. It originally appeared in Business Plus magazine and I have kindly been given permission to republish it here by the author. Enjoy.

Interview with Stewart D. Friedman conducted by Yanky Fachler.

Leadership and management professor Stewart D Friedman is the founder/director of Wharton’s Leadership Program. Friedman developed his Total Leadership ideas during a two-year spell as a senior executive at Ford, where he ran a 50-person, $25 million Leadership Development Centre. In his new book, Total Leadership: Be a Better Leader, Have a Richer Life, Friedman helps us identify our core values, and express ways in which we feel out of sync with those values. The programme is based on what Friedman calls four-way wins: our life at work, our life at home, our life in the community, and our personal development. Friedman emphasises three core aspects of leadership. Authenticity – being real – arises when leaders behave in ways that are consistent with their core values. Integrity – being whole – arises when the different aspects of life fit together coherently and consistently. Creativity – being innovative – arises when leaders question traditional assumptions.

BusinessPlus columnist Yanky Fachler interviewed Friedman in London’s Heathrow Airport recently. Despite having just stepped off a transatlantic flight, Friedman was passionate about his Total Leadership baby.

YF: All leadership philosophies claim that they help leaders stay ahead of the competition in the rapidly evolving business environment of the 21^st century. How does Total Leadership differ from other leadership concepts?

SF: What distinguishes the Total Leadership approach is that it’s a combination of two different streams: growing leadership talent, and integrating the different parts of life. We need to see leadership and life as pieces of the same puzzle. Total leadership is similar to traditional leadership models in its focus on concepts and tools for increasing performance. Where it differs is on the emphasis on the whole process.

YF: Traditionally, the different domains of a business leader’s life are seen as being in conflict. What convinced you that these conflicting domains can become allies in producing better business performance?

SF: When we think of a balance, we have a visual image of scales, now tipping one way, now tipping another. The term work/life balance implies an inherent conflict between two mutually destructive forces. Balance, by definition, implies a trade off, a sacrifice that has to be made. But it is also possible to find harmony if you look for it. The goal of Total Leadership is to leverage synergies across those domains of life that are traditionally seen as conflicting, and to synchronise them to produce results that matter. I know that pursuing the opportunities for 4 way win is possible, because I’ve coached thousands of people through this. People can achieve more than they currently believe. It’s not magic. It’s not a panacea. It’s a method that requires commitment, effort and investment.

YF: Is business leadership limited to top executives, or can it take place at all levels?

SF: Leadership means creating sustainable change, which certainly does not mean only top executives. Leadership must exist in every person, whether at the top, middle or bottom of any group. Leadership is not confined to work, but extends to one’s personal life, community involvement and family life. I’ve discovered that leadership is a subject that cannot be taught – but it can be learned. Many executives are not leaders, and many leaders are not executives. The more leaders there are in an organisation, the greater the capacity for sustainable change.

YF: What about owner-managers of small-medium businesses? Is there anything in your programme for them?

Absolutely. Total Leadership is ideal for SMEs because it can be tailored to fit everyone’s world. You build trust, a sense of community. The most frequent feedback we get from participants in our programmes is “I feel closer to the people I work with now.” This works equally for someone running a small enterprise as for someone running a major corporation. Through Total leadership, you get to know people at a deeper level. You help them – and yourself. In fact, this can often work better in smaller companies because it’s easier to be more flexible.

YF: You say that the discipline of Total Leadership de-emphasizes face time and focuses instead on initiating innovation both within and across life domains. Could you explain?

SF: We have more means at our disposal to connect to people who matter most to us than we had 10 years ago. New media are transforming virtually every aspect of human action. We struggle to find the best means of determining when, where, and how to meet the demands of stakeholders in all domains of our lives. How do we manage these technologies? How do we define the boundaries? How do we capture the power of these digital communication tools – without a sense of being overwhelmed by the data? The solution lies in the way we manage this process. What percentage of my time should I be with the people most important to me? In other words, where do I need more face time, and where do I need less?

YF: You refer to leaders losing authenticity by behaving in ways that are not consistent with their core values. Can you give an example?

SF: Each of us creates our own story. We all ask the same question: what impact do I intend to have on the world? Look what happened during the US presidential campaign. Each candidate identified three or four critical incidents that represented their story. Here’s the story of Obama. Here’s where he came from. Here’s what he has done. Here’s his vision. If you stay true to your story, you remain authentic. If you stray – and I believe that McCain lost ground because he strayed from his story – you lose authenticity. The sad thing about McCain is that he pandered to constituencies that were not part of his authentic story, and he paid the price.

YF: You claim that integrity – being whole – arises when the different aspects of life fit together coherently and consistently. How do leaders achieve this?

SF: Very few people manage to achieve this coherence fully, to ensure that who they are in one part of their life is completely congruent with all other parts. The first step to enhancing the sense of integrity is to identify who are the most important people in your life. What do they expect of you? How do these expectations impact on one another? How does our performance as a father affect our performance as a citizen, as a friend? We advise participants to conduct reality check conversations with these significant others. Using the 4 way win, we help people grasp the realpolitik of their most important relationships. By dialoguing in this way, most people discover that what others expect of them is less than was expected. This allows them to reallocate time and effort to other areas that are more useful.

YF: Like Bookbuzz, the company I co-founded that facilitates executives discussing an assigned book as a launch pad for fresh thinking, your programme suggests shared reading and discussion. Why?

SF: As part of creating coaching networks, we encourage participants to form their own club where they can discuss a book, an idea, or a specific issue. In my workshops, I also assign people into randomly selected groups of three who meet periodically and coach one another through the exercises in my book. Joining a club with co-workers helps people forge closer friendships with them. These discussion groups are the secret sauce, the magic, that bring out the best that peer-to-peer coaching has to offer. By sharing their stories, participants can mutually enrich, expand and support their thinking.

YF: Finally, I am intrigued about the transition you made from being a highly respected leadership professor to becoming a senior executive at Ford. What was that like?

SF:  In a word: challenging! Obviously, I had never managed anything of such a scale before, and at first I felt quite at sea. Hierarchical relationships took on a totally different quality. It took months to unravel the complexity of the job, but I was lucky to benefit from terrific mentoring and support from the guy who hired me. Actually, the reverse transition was even more mind-blowing than the original move. At Ford, I had been involved in very significant and powerful decision. Suddenly, I was back in the very different atmosphere of academia. It was culture shock all over again.

As you can see, the interview above highlights some very insightful points that relate to leadership within the context of entrepreneurship.

Leadership is a necessary skill to be a successful entrepreneur; Master of Public Administration degrees teach leadership traits to prepare individuals for a career in entrepreneurship or management.

Marketing in the context of a new business is often misunderstood. In many cases, it’s relegated to a number under the header “sales and marketing” in an excel spreadsheet.  This is sad, real sad. Relegating marketing to an after-thought puts a new start up at a distinct disadvantage.  This is particularly true in today’s economic situation.

The number one reason for this, is a complete misunderstanding of marketing. This is not the entrepreneur’s fault. They just haven’t been shown the light yet. You see, most start-up entrepreneurs are from technical backgrounds. They have no exposure to marketing. Most have never taken a marketing degree online course, meaning they know little on the subject. Therefore, they assume that all they need to do in order to market their start-up is run advertisements  in newspapers, on local TV, on radio and use Google AdWords (if they have heard of it).

This just doesn’t hack it for a start-up. It’s like a space shuttle being launched into space. A new business has to generate a lot of force to leave the atmosphere. It needs an extra kick than an established business. However, most start-up entrepreneurs take their marketing ques from established businesses. As a result, they miss the target.

The secret behind start-up marketing is really simple. It’s about getting people to tell their friends about you. In turn, they will tell their friends and the cycle continues. In order for this to happen there has to be a spark. It’s the first job of the entrepreneur to create that spark.

Creating this spark involves creating a product that gets people talking. The second step is to help people megaphone your start-up.  It’s about using word of mouth as a tangible marketing strategy.  It’s about turning your customers into salespeople who work for free.

For this to work you need a perfect storm of idea, vision and execution.  This is what entrepreneurs should work towards. Invest in making this happen instead of advertising.

Investors are looking for sustainable businesses. If your turnover depends on advertising spend then what happens when this is turned off?

By focusing on creating word of mouth generators for their start-up, entrepreneurs are taking the ideal approach to start-up marketing. Hopefully, more entrepreneurs will focus on this instead of apply clichéd marketing techniques.

Everybody knows that the early adopter is a start-ups best friend. The relationship between an early adopter and a new start-up is possibly the most important relationship that business will ever have. Like in Bushcraft, the early adopters are the tinder to the fire. Without it there is no fire.

Think about this, how many times has someone told you that your idea would never work. That they couldn’t see themselves ever using it. If they do not have a record of being an early adopter then there advice is irrelevant. They are followers, they base their decisions on being socially acceptable. The objective is to fit in. Unfortunately, this does not lend itself to trying new things. The reality is that the average person will not attempt to truly understand your product until they see others use it. Here’s where the early adopters come in.

They are the opposite of the average person. They like trying new things. In many cases, they want you to succeed. Also, they are the type of person to blog about things. They are they ones that their friends always ask before buying something. More importantly for you, they are the ones that could embrace and advocate your product.

The more advocates you have, the more you will succeed. It’s that simple. So remember, treat your early adopters well and they may hang in there long enough for you to make something remarkable.

As you have probably heard by now, Rupert Murdoch is looking to charge search engines for access to News Corp’s content online. It’s been in the news that News Corp and Bing (Microsoft’s search engine) are looking to ink an exclusive deal. Most notability, News Corp’s content will be de-listed from Google.

I wonder if this trend will continue with other news organizations? If it does, it seems to me to be a “record industry moment” that could be the final nail in the coffin for many once highly esteemed publications. Instead of trying to build a dam against the tides of change. News Corp should go with it. Simply put, they should try to better monetize the extra traffic that Google brings. In the long run, this would be much better for the organization as a whole. By assuming that de-listing from Google is the answer. They are forgetting about 1) Syndicated content and articles that other newspapers use, 2) Twitter, and 3) Blogs. You see their content will get on Google for free someway or somehow.

News Corp should attempt to use the attention their breaking news generates better. I’m sure that if they focused on improving conversion rates and click through rates without damaging the reader experience they could make some dramatic improvements. They may have to make some editorial policy changes to their websites in order to be more conducive to monetizing traffic. They may have to expand their horizon past CPC and CPM advertising.

Contrast Rupert Murdoch’s view with that of Chris Ahearn from Reuters. Chris offers a refreshing perspective on how the News industry can deal with the evolving way information is shared.

In a recent blog post Seth Godin hits the whole issue on the head. Rupert Murdoch does have it backwards. News Corp are throwing the gold back in the river.

As a new entrepreneur, it could be quite valuable to observe developments on this front. Who knows, it could present opportunities for you. Ultimately Rupert Murdoch are you have the same choice to make. Is giving something for free worth it?