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Software and Technology by
Hari
Posted on Sat, Oct 8, 2005 at 23:24 IST (last updated: Wed, Oct 29, 2008 @ 22:10 IST)
Being an MBA student, I'm just beginning to learn the ins and outs of a subject called Marketing Management. There is a book written on this subject by Philip Kotler which is supposed to be a bible on Marketing and a reference for students on this subject. (by the way, I'll be posting a review of this book on LiteraryForums.org soon).
It's an interesting subject and in many ways, it has helped me solve a very complex issue that was perplexing me. Sure, I've talked about this in my Reverse Elitism essay, but that's from a totally different angle altogether. So why is it so hard to change perceptions about Linux, even though it is painfully obvious to any (honest) lay user that Linux has been continuously improved by the community over the years to a point where its superiority over commercial OSes is so marked? Why is it that people prefer to pay a hefty price to Microsoft even when the quality of their offerings don't match that price?
I think it has a lot to do with some of the marketing concepts I learned. Here are some of my observations. Though a detailed discussion on each concept is beyond this blog, I think Linux enthusiasts could gain a lot from reading Kotler.
Quality and price are not everything
Sad, but true. This is an established theory of marketing, not just my general observation. Quality and price are just two of the factors in a complex web that influence purchase decisions among consumers. Add to that, the fact that different kinds of markets and market segments exist for a bewildering range and categories of products, the quality and price of the product become mere variables in the complex marketing equation.
Linux suffers from a lack of "positioning" or marketing focus
Many people have criticized that there are too many distros and too many choices in Linux which make it so tough for a newbie to adopt Linux. This is only partially true. It's not about too many or too little choices, but too little focus in highlighting the very best aspects of Linux at all. Many Linux enthusiasts today make the mistake of touting Linux as a solution for all ills, when marketing principle says that you should really target and focus on just a couple of Linux's best USPs (Unique Selling Propositions) and ignore the rest. The consumer doesn't want to be bombarded with an array of information. That just confuses and bewilders him. Hammer away at a couple of simple points till they are firmly entrenched in the mind of the target audience. Products which are touted as "jack-of-all-trades" end up being a "me-too" or an "also-ran". That's why it's so hard to change perceptions on Linux on the desktop, because Microsoft is clearly entrenched in that market firmly and it's so tough to dislodge that position.
Moral? Stop trying to attract every possible user to Linux and just focus your efforts on attracting the ones who are clearly most likely to adopt Linux based on a study of their requirements. In other words, converting a user who is well entrenched in Microsoft Windows to Linux is probably not such a great idea. Try focussing on the groups who are most likely to adopt Linux, for example new computer users.
It's about perceived value, not just about true value
There is a very different concept called "value" in marketing. Consumers attach value to a product or a service which is very closely related to the price and quality of the product. "Wait a minute" you might say. Linux is zero-price (well, mostly) and the quality is so high. Surely, Linux offers such high value to the end user. Well, that's the difference between true value and percieved value. In an ideal world, perception matches reality. Unfortunately in the real world, sometimes perceptions can be so far removed from reality. Marketing is about dealing with consumer perceptions and managing that rather than focussing on realities. This may sound cynical and it probably is, but that's what the so-called "free-market capitalism" does to you. The market is consumer driven and the average consumer typically thinks:
"Hell, this OS is zero cost, but there must be a catch in it somewhere. Is there anybody to provide after-sales service? But then there's no sale at all, so nobody's responsible for the product! How can I use a product for which I can sue nobody to claim damages for malfunction/inefficiency? It must be a low quality product then, if it's free!"
This may sound like total crap to Linux zealots, but that's perception. Educating them about Open Source, Free Software and the concept of community support may just be like teaching calculus to somebody who's totally new to math. It's just a big effort with little returns and a waste of time and energy.
How to solve this problem? Unfortunately the answers aren't simple to this one. Perceptions are traditionally so hard to change. However with the growth of the commercial, Linux-oriented software service industry, this aspect might well be addressed and it will surely help enhance the perceived value of Linux as opposed to true value.
Stop talking about mainstream and stay in the niche segment
Mac is a case in point. Mac doesn't want to be a low end computer. Apple has always targetted the high-income group and Apple positions the Mac as a superior product for an exclusive market. Microsoft has gone the other route and made a computer a reality for the ordinary man. Both enjoy high brand recognition and customer loyalty. Both clearly recognize the market they serve. Mercedes will never make a car for the man in the street. The day they do that, they will lose their carefully built image as a "status" product and possibly even lose a large share of the high-end market they serve.
It may sound politically incorrect, but Linux really should disdain the "mainstream" or "average Joe user". Bad-mouthing is a very negative phenomenon. Marketing theory says that you stay clear of the segment that is least likely to accept your product. But Linux being a free OS cannot really choose its customers and that's what makes it that much harder. But we can always stop trying to "hard-sell" Linux and hence attract that very negative publicity which "hard-selling" brings.
This does two things: one is the negative publicity of the new users. Second is the disgruntled segment of the "traditional" users who consider their product as above the range of the average consumer and hence detest the way it is becoming a mass product. Imagine how a Rolls Royce owner will behave when he finds out that the product is now being mass produced at one-twientieth of the cost and is being sold at one-tenth of the price he paid for it. Not only does he feel disgruntled about the price he paid, but more importantly he loses that sense of "exclusivity" that means so much with a product like that. It might also show the company in bad light - "they either made hefty profits earlier or are now cutting corners in quality to lower the costs."
Moral? Never try and project Linux as a mass OS! It is almost always a way of playing right into the hands of the opponent. Maybe it's time for Linux to go back to its traditional Unix roots.
There are probably many more technical points that can be raised, but being a blog and not a book, it's hard to try and fit all that into the scheme of things. Nevertheless, I have given some of the more important points.
So why did I write this somewhat long article? Because I believe that many of us are falling into the same trap of trying to defend Linux from hostile propaganda without really understanding the psychology of how the market works. Linux, to be sure, is not a commercial product, but it still exists as a product - and any product (whether commercial or otherwise) requires savvy marketing on the part of "seller" so to speak. That's why we should stop hard-selling Linux because Linux simply is not that kind of a product anyway. Today most of the arguments countering anti-Linux propaganda almost always fails to understand these psychological issues while focussing exclusively on realities. A very good example of a pointless discussion is this one and it's typical of a thousand such Linux vs. Windows debates.
Unfortunately reality and perception will never meet in an imperfect world. Otherwise there would be no need for a subject called Marketing at all!
3 comment(s)
Comment by aysiu (visitor) on Sun, Oct 9, 2005 @ 01:25 IST #
Comment by hari (blog owner) on Sun, Oct 9, 2005 @ 07:34 IST #
Comment by Anantha (visitor) on Tue, Dec 20, 2005 @ 18:06 IST #