CompuServe Messages

Open Letter to CBM

    08-Oct-91 08:23:59
Fm: Harold W. Grigdesby 76304,3030
To: Steve Ahlstrom 76703,2006
Steve, In your reply to Charles Hill, you agreed with him that Amiga doesn't truly need an integrated software package like MS-Works because our Amy multitasks. Here's the problem: 1. Customers want MS Works. What customers? Customers with million dollar budgets, i.e. the Indiana Department of Education amongst others. Is this bad? Read on. 2. The job of marketing is two-fold: a. Act as liaison for the company in sensing what customers want and then helping the company in its strategy of obtaining greater market share. b. Shaping the marketplace through information (advertising) and other product awareness strategies. We know what advertising is, but what are other strategies? Remember the genesis of microwave ovens? Amana spent millions selling microwaves at 85% of their cost to manufacture in order to grow the market. They spent time and money on training a professional RETAIL sales force, i.e. the distribution channel. The invested in cooking schools for training new owners. (Unfortnately, Japan waxed Amana. It went from an early lead of 65% market share to almost nil in a few years). 3. Brand awareness can have spill-over effects. People may have a neutral attitude to Commodore and a PC Clone maker. They may have positive feelings toward Microsoft. They may ask a question like, "Can I buy MS Works for the Amiga. for the PC?" Charles and Steve, this really does happen more times than I'd like to remember. I respect where you're coming from but understand that in the scheme of things, it is the marketplace that determines the right course. Hal Grigdesby, Krannert Graduate School of Management, Purdue University – via Whap!