Genre, marketing and cooperation
are key
by Joey Tamer
At a recent dinner with new media
title developers, I was presented with a question that had been debated inside
their companies for several months: Should a developer place a game title, for
example, with a distributor that predominantly distributes reference and book
titles, so that the game title stands out and gains more mindshare? Or should
it be placed with a game distributor, where it might potentially be lost in
the crowd? Of course, the developers assumed that a "hot title" would become
a best-seller anyway, and gain its own attention. But if the title is placed
with the wrong distributor, it may not gain enough coverage, shelf space or
marketing attention to be discovered as a best-selling title. So what are the
best strategies for placing a new media title with the correct distributors,
and then maintaining their attention?
Stand by your genre.
We resolved during dinner that titles of one genre should be placed with the
distributor who is strongest in positioning and distributing that genre, even
if the developer and the title may get lost in the crowd. Inevitably there will
be a shakeout among new media distributors as the market broadens, and more
players will compete for the attention of both developers and retailers. Therefore,
the titles that require the support of an additional or different channel will
be most threatened when the hard times come. And generally, hard times come
during shakeouts that affect all distributors at once. For example, if a new
media distributor focusing on education and entertainment finds itself in financial
hot water, or chooses to focus on gaining major market share in a single niche,
the distributor is more likely to let contracts lapse for new media titles in
the areas of reference and business. So if a business title is dropped by one
distributor, it may have difficulty finding placement with another, even one
that specializes in the business genre.
Don't leave marketing to the distributor alone.
However, strategies to maintain the attention of a distributor are separate
from those that lead a developer to place a given title with one in the first
place. Market demand is key to maintaining a distributor's attention, both for
the winning product of today and the new products of tomorrow. Intensive direct
mail and aggressive marketing by the title developer, not the distributor, must
be done to create this market demand.
Small developers in particular often don't believe the distinct language in
all distribution contracts pointing out that marketing the product is the responsibility
of the developer, not the distributor. This language should be taken seriously.
Distributors will pitch with all their might to get rights to sell a title,
and will talk about all the marketing they can do for the developer. But no
matter what a distributor says he'll do, it will not be enough. To create demand
for new media, marketing must go far beyond the distributor's market development
and cooperative programs. These programs should be pushed to the limit, of course.
But if title developers are not willing to commit the resources and time to
create demand for a product, then they should consider signing on with a publisher --
who is responsible for marketing the product -- rather than a distributor.
Get your list and learn to cooperate.
Developers dealing with either publishers or distributors should give special
attention to promotional programs that return to them the customers' names and
create a strong end-user mailing list for their installed base. They should
gather as much information about their customers as possible, and use it in
direct mail, upgrade and new product campaigns. This is not just a good idea
from a business standpoint, but is also protection against the nonrenewal of
their distribution contracts. With an up-to-date customer list, they will be
armed with the necessary information -- i.e., how many products
are actually sold, and to whom -- for whatever kind of distribution
deal they need to cut next.
Guerrilla marketing.
And they should learn the skills of guerrilla marketing -- seeking
out fellow developers whose markets are similar but not identical (for example,
a house-designing product with a product about interior design), but whose target
customers are likely to be interested in both products. They should gang up
and share each other's lists, bundle promotional literature in each other's
packages, share ad space, and, in general, cooperate to expand the installed
base that they control.
With an up-to-date customer list,
they will be armed for whatever kind of distribution deal they need to cut next.
This is a new market, and creative marketing will win a place in it. By the
end of our dinner, we had answered our question about distribution, and thought
up two or three new guerrilla marketing tactics never tried before. As always,
it is useful to keep the talk going!
Joey
Tamer refines the vision, strategy and success of companies --
Fortune 1000, capitalized start-ups and investment fund.
www.joeytamer.com
(310) 245 5310 joey @ joeytamer.com