October 2, 2007

marketing: the cultral fault line inside microsoft?

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0710msftparty.jpg
[Good party. Impres­sive back­drop.]
Just got back from a mas­sive Mic­ro­soft party at the the Musee de l’Homme.
I have to get up early tomo­rrow. Big day at Ima­gi­na­tion 07. Steve Ball­mer is giving the key­note.
This con­fe­rence is built around the folk who think of Mic­ro­soft in terms of “media”, as oppo­sed to soft­ware. Which, as a for­mer adver­ti­sing hack, I find inte­res­ting.
A line I have used many times before, I found myself using quite a lot today: “Goo­gle is just one algo­rithm away from Obli­vion.“
I han­ded out A LOT of Blue Mons­ter busi­ness cards at the event. Though not every­body there had heard of the Blue Mons­ter, it see­med the peo­ple who did were really enthu­sed and pas­sio­nate about it.
The more I get into this con­ver­sa­tion, the more I’m star­ting to think that somehow I mana­ged stum­ble upon this cul­tu­ral fault line inside Mic­ro­soft, about what the com­pany actually means to peo­ple, and where “the con­ver­sa­tion” should be hea­ding. One Mic­ro­sof­tee con­fi­ded in me, “Our pro­ducts are fine. Our mar­ke­ting is the weak link, though.“
I would agree. Which is why I’m fond of saying, the future of Mic­ro­soft lies squa­rely in how they talk to peo­ple. That’s me thin­king as a mar­ke­ter, a “cul­tu­ra­list”, not as a techie.
i.e. If “mar­kets are con­ver­sa­tions”, then yeah, how you talk to peo­ple is the DNA of mar­ke­ting.
N.B. Unlike some of the stuff going on in Red­mond, none of this is roc­ket science. Which may explain why Red­mond seems to have so much trou­ble gras­ping this.

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17 Responses to “marketing: the cultral fault line inside microsoft?”

  1. Microsoft’s ‘mar­ke­ting is weak’ sch­tick is a well known industry issue that’s been going on for years. Check out the chao­tic rebran­ding around the Live stuff today.
    Mic­ro­soft has how much UK/EU/US mar­ket share in the ad world and they think a party is going to fix it? You often say you’d not bet against Microsoft’s millions or mar­ket share elsewhere.
    Same goes the other way when you look at the world through Google’s eyes. They’re a min­now in com­pa­ri­son but Mic­ro­soft just can’t get the buzz back. Nothing to do with con­ver­sa­tions, there are plenty of those. Just not the con­ver­sa­tions Mic­ro­soft wants.

  2. Hugh, It’s a great point to remem­ber when you see 1.4 billion writ­ten off by ebay. They never unders­tood how to con­verse with Sky­pers and help them create value. Today, I put the pro­blem down to mar­ke­ting on why Niklas and co didn’t get anywhere close to their ear­nout.
    This com­ment you heard; our mar­ke­ting is the weak link. I think we will hear that more and more from com­pa­nies. Com­pa­nies that grew up with a Brand 1.0 mind­set and have no idea that Brand 2.0 is a radi­cally dif­fe­rent ope­ra­ting sys­tem. While focu­sed in con­trol they for­get that all media is social and two way.
    The current crop of tra­di­tio­nal brand mar­ke­ters are not equip­ped to make the tran­si­tion. Worse the metrics used inter­nally won’t reward them even if they know how. Most of these com­pa­nies still have fire­walls up that block the con­ver­sa­tion.
    The only real excep­tion I’d take is that it isn’t how they talk.. it is how they lis­ten. lis­ten and res­pond. I think ulti­ma­tely we have to be care­ful with the talk word. To give a talk remains one way. At least in a mic­ro­soft world.
    Simi­larly in an eBay world… they could only talk and they des­tro­yed the con­ver­sa­tions that were the real life­blood and engine for a vibrant new brand. Today Skype is aging far fas­ter than it should.

  3. Hugh, it would be a mis­take to think that its only a mar­ke­ting issue, and I use the word mar­ke­ting advi­sedly, re pri­cing, pac­ka­ging as well as pro­mo­tion. Having jum­ped to Linux after being on DOS and Win­dows fore­ver, I see some key dis­tinc­tions in how the two sys­tems work. I think there are les­sons there for Microsoft.

  4. Nick says:

    “Goo­gle is just one algo­rithm away from Obli­vion.“
    You think so?

  5. Stuart makes a great point about lis­te­ning. This is something SAP has been wor­king on for 4 years and it is paying off big time.
    They now have the smarts to go into a whole new mar­ket Mic­ro­soft can only dream about. They’ve accu­mu­la­ted a shed load of skill plus 900,000 deve­lo­pers on one net­work and 200,000 busi­ness pro­cess experts on another. That’s awe­some.
    It’s equip­ped them to make their recent on-demand play stick. Even so, they’ve not done as good a job explai­ning it as they could. That’s not an impe­di­ment because they’re always willing to pick up the phone and lis­ten, or meet up with key influen­cers.
    And for pure kudos, how many CEOs — like Ball­mer —  are pre­pa­red to engage directly with the blog com­mu­nity? I can name one: Hen­ning Kager­mann, CEO of SAP plus his deputy Leo Apothe­ker.
    Those are the les­sons Mic­ro­soft should be dra­wing upon IMO. For­get bold sta­te­ments and one liners. Save those for the ad-men.
    Give the com­mu­nity subs­tance and lsten for the feedback.

  6. Frederic says:

    Remar­ka­ble pro­ducts get peo­ple con­ver­sing about you. As long as MSFT pro­ducts are per­cei­ved as average/normal/unremarkable, nobody will get exci­ted over the new products.

  7. John Dodds says:

    The pro­duct is the key buil­ding block of “mar­ke­ting” so if they are self-satisfied that their pro­ducts are merely “fine” and that that is good enough, then what they call mar­ke­ting will not be enough.

  8. Brian Sexton says:

    > “Our pro­ducts are fine. Our mar­ke­ting is the weak link, though.“
    >
    > I would agree.
    I might agree with you about Microsoft’s pro­ducts being fine if I hadn’t per­so­nally had more blue screens of death than I can remem­ber, a red-ringed Xbox 360, three short-lived Mic­ro­soft mice, standards-deficient ver­sion of Inter­net Explo­rer after standards-deficient ver­sion of Inter­net Explo­rer (now with a horri­ble inter­face too), the dri­ver and sys­tem resource night­mare that is Win­dows Vista, various Win­dows ins­ta­lla­tion night­ma­res (e.g., the fact that the Win­dows XP ins­ta­ller is too stu­pid to read dri­vers from a secon­dary CD/DVD drive or even to back up to ins­tall a mis­sed hard drive con­tro­ller dri­ver ins­tead of for­cing the user to quit com­ple­tely and res­tart), pre-installed Mic­ro­soft Office trial crap­ware with an unins­ta­ller that refu­ses to simply unins­tall the soft­ware until I regis­ter and obtain a trial serial num­ber, and on and on and on. Those are just off the top of my head.
    If you think Mic­ro­soft pro­ducts are fine and that mar­ke­ting is the weak link, I think you are in a state of market-blind delu­sion because as a con­su­mer, Microsoft’s mar­ke­ting is reaching me and I am hea­ring the mes­sa­ges about how Mic­ro­soft pro­ducts can empo­wer me to do great things or to con­nect with other peo­ple or simply to have fun, but I do not *TRUST* those mes­sa­ges — I don’t *BELIEVE* those mes­sa­ges — because my per­so­nal expe­rien­ces have shown that Microsoft’s pro­ducts are gar­bage, gar­bage, garbage.

  9. Stephen Dann says:

    “Goo­gle is just one algo­rithm away from Obli­vion.“
    Every­time I see the capi­ta­li­sed O, it turns that from “Goo­gle head to obs­cu­rity” into “Goo­gle is hea­ded to the video games mar­ket”.
    Goo­gle­Ga­me­Con­sole anyone?

  10. Hrishi says:

    Mic­ro­soft pro­ducts are fine. Just about fine, not awe­some. Isn’t that why you use an Apple, Hugh?
    I’ve read many times around here — ‘make pro­ducts worth tal­king about’. Well, we do talk about Mic­ro­soft pro­ducts, but Brian has very well sum­ma­ri­sed what those con­ver­sa­tions are like.
    Plus, your dooms­day theory for Goo­gle sounds a bit like glo­bal war­ming :P

  11. K says:

    Well, I used to be Microsoft’s big­gest fan
    until Vista.
    Not com­pa­ti­ble with any of my hard­ware
    and holy crap, what the H*** did they do to Excel?
    Accoun­ting is usually res­pon­si­ble for appro­ving IT spends. I don’t know an accoun­tant alive that likes that ver­sion.
    So do I think they only have a mar­ke­ting pro­blem?
    Nope.
    I’m hol­ding onto my older ver­sions of Excel for dear life.
    And I’m not appro­ving any upgra­des to Vista.

  12. Joe says:

    Hugh,
    Don’t let the Blue Mons­ter cloud your vision. Saying that Goo­gle is one algo­rithm away from obli­vion has a nice ring to it, and I’m sure it is a big hit with the Mic­ro­soft koo­laid drin­king crowd you are han­ging with.
    I don’t claim to be any expert mar­ke­ter of tech­no­logy or have a crys­tal ball to pre­dict the future. I just know that other than the OS on this com­pu­ter, Mic­ro­soft and I don’t really have a rela­tionship. I’ve shif­ted all of my work to Goo­gle online pro­ducts. That’s not an algo­rithm thing. It’s an ease of use thing. I have MS office on the same lap­top and still pre­fer Goo­gle online docu­ments. Just like music, Mic­ro­soft is mis­sing out again.

  13. Joe says:

    Most of the above com­men­ters are dead on. A pro­duc­tive mar­ket con­ver­sa­tion is more than dis­cus­sing what color of lips­tick you’d like on that pig.
    The pro­duct fea­tu­res for MS Office — are they dri­ven by cus­to­mer demand, or by some pro­gram­mers new bell-and-whistle? Fas­ter hard­ware should make the old pro­ducts per­form bet­ter, so ins­tead of fas­ter pro­ducts we get un-necessary fea­tu­res that clut­ter up a pre­viously use­ful appli­ca­tion. There’s the mar­ket dis­con­nect. Find a way to give me what I need (even if I don’t know yet that I need it) not what you want me to have.

  14. Andy Roberts says:

    Paris is kind of surreal isn’t it. I can unders­tand any­body get­ting get­ting caught up in it.

  15. pcg says:

    If the ave­rage Mic­ro­sof­tee thinks their pro­ducts are just fine, and that the com­pany is “only” suf­fe­ring from mar­ke­ting pro­blems, it’s all the bet­ter news for Apple. It seems they hand out the Kool-Aid at the door there, eh?
    “Everyone’s jea­lous of us, THAT’S why peo­ple hate us.” Uh, no. Peo­ple hate you because you pass off utter shite as “soft­ware” and try to bully open com­mu­ni­ties into follo­wing you into your abys­sal unders­tan­ding of what’s The Right Thing™ in today’s tech­no­logy lands­cape.
    Mic­ro­soft doesn’t have an image pro­blem. They have an image *symp­tom*, cau­sed by their real pro­blem: their com­plete lack of use­ful and inno­va­tive con­tri­bu­tions to the com­mu­nity. And peo­ple are star­ting to wake up and see that, espe­cially when they’re con­fron­ted with the truly use­ful and plea­sing pro­ducts coming out of Cuper­tino.
    Just another case of MS trying to con­trol the minds of the public in spite of overwhel­ming evi­dence against them.

  16. Adriana says:

    “If you think Mic­ro­soft pro­ducts are fine and that mar­ke­ting is the weak link, I think you are in a state of market-blind delu­sion because as a con­su­mer, Microsoft’s mar­ke­ting is reaching me and I am hea­ring the mes­sa­ges about how Mic­ro­soft pro­ducts can empo­wer me to do great things or to con­nect with other peo­ple or simply to have fun, but I do not *TRUST* those mes­sa­ges — I don’t *BELIEVE* those mes­sa­ges — because my per­so­nal expe­rien­ces have shown that Microsoft’s pro­ducts are gar­bage, gar­bage, gar­bage.“
    What he said and with extra added empha­sis. Hugh, how many Mic­ro­soft pro­ducts are you using at the moment? Perhaps you are happy with them, lucky you.
    But I make no sec­ret of my desire to migrate to another OS sys­tem before I am for­ced to ‘upgrade’ to Vista. I have already hap­pily switched to Ope­nOf­fice. http://www.mediainfluencer.net/2007/07/the-not-so-open-open-standard/
    … and there is simply no way I am going to be using any MS pro­ducts as soon as I work out how to migrate to Ubuntu or perhaps even get a Mac.
    No amount of mar­ke­ting can sway my opi­nion about pro­ducts that I had been for­ced to use for years and now there are alter­na­ti­ves. But I can’t even think of where I would see MS mar­ke­ting… online? I think not, what with Fire­fox adbloc­ker. :-)

  17. John says:

    Hugh,
    Since you’re rub­bing elbows with the Blue Mons­ter, maybe you could ask him who tal­ked him into slo­wing com­pu­ters to a crawl by loa­ding Vista with DRM and those biza­rre and tor­tuous secu­rity pro­to­cols.
    I know two peo­ple who have bought new com­pu­ters lately. One, the pre­si­dent of my com­pany, bought a Vista equip­ped com­pu­ter for home use. As a result, our com­pany will hang on to our old com­pu­ters as long as pos­si­ble and then con­si­der switching to Linux. True, it’s only one small com­pany, but I ima­gine this same scene is being pla­yed out everywhere.
    Another friend bought a Linux machine for multi-media. He raves about the speed he gets from it because of the redu­ced clut­ter in the ope­ra­ting sys­tem.
    Is mar­ke­ting a con­ver­sa­tion? Who the hell was the Blue Mons­ter lis­te­ning to when he drea­med up Vista?