Open Letter to CBM
08-Oct-91 08:23:59
Sb: #15014-Open Letter to CBM
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
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