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On this episode of Lochhead on Marketing, let’s ask what is the role of business, beyond just business. Today marks the 5th day into the Russian invasion of the Ukraine, the first attack of its kind since Sept. 1, 1939 – the start of World War 2. So let’s talk about how this affects businesses, and how businesses can affect it. Roll Call for Companies According to the Wall Street Journal, the US is still buying 8% of its oil from Russia. On the commercial side, there has been no announcements by companies such as McDonalds, KFC, Burger King, and Papa John’s to name a few, on closure of their branches in Russia, temporary or otherwise. On the tech side of things, there have also been no word from Jeff Bezos, Bill Gates, Mark Zuckerberg, nor from Google CEO Sundar Pichai, Microsoft CEO Satya Nadella, as well as CISCO CEO Chuck Robbins and Oracle CEO Safra Catz on their stance and plans as things progress in Russia. I'm disheartened, somewhat defeated, and absolutely fucking royally mad about the silence from Silicon Valley on this topic. There are some exceptions, of course. Criticize the man all you like, but Elon Musk made a commitment to keep the Ukraine connected to the internet via his Starlink satellite internet. Less than 48 hours after he made that promise, a shipment of Starlink terminals arrived in the Ukraine. Businesses Getting Involved in War There are those on the web that criticize people who celebrate when big corporations do something in the situation. My response to them is this: “Anyone who supports in any way, a free democratic society, who is being invaded, attacked, and mass murdered is a hero.” – Christopher Lochhead Now, if you wish to join me in making a financial contribution, we took a list of charities helping in the Ukraine(published by NBC News). You can check out that list of charities and I encourage you to crack open your wallet and see if you can make a difference for the people of Ukraine. You can also donate to Doctors Without Borders as they mobilize to help Ukraine and nearby countries that were affected. The Role of Businesses beyond Business As a business owner or entrepreneur, you might be asking – how exactly can businesses help in this situation? Well, imagine what would happen if all the tech security companies pulled the plug on the Russian government and on major Russian enterprise. Imagine if all tech infrastructure companies pulled the plug on Russia. Imagine if all of the SAS application companies, the database companies, the gaming companies, the IT operations companies shut down Russia's digital world, the digital world is as important today as the analog world. if they manage to shut down the Russians government's ability to do things in the digital world, we're going to shut down a lot. Of course, there are certain companies and certain situations where it makes sense to keep doing business. In Russia, for example, communication, and social platforms is critical for Russian citizens to be able to see and hear what their government is doing in the Ukraine. So what leaders do in times of crisis matters, what you and I do in times of crisis matters. If the US federal government will not stop buying Russian blood oil, will we stop doing business with Russia? Will our CEOs put peace before profits? Or will businesses do whatever they want to do? It's easy to be great when everything's great. But what defines our lives is who we choose to be in times of crisis. Bio Christopher Lochhead  We hope you enjoyed this episode of Lochhead on Marketing™! Christopher loves hearing from his listeners. Feel free to email him, connect on Facebook, Twitter, Instagram and subscribe on iTunes!
On September 15 2022, Adobe announced it was buying startup Figma for 20 billion US dollars. This is one of the largest private company purchases in Silicon Valley history. They paid approximately 50 times Figma’s 2022 revenue, and Wall Street hated it. Skeptics are saying that Adobe paid an "astronomical price" for a company projected to book only 400 million in ARR annualized reoccurring revenue this year. And this is exactly what people who do not understand how categories work. The “experts” on Wall Street when deals like this go down, are almost always wrong. Welcome to Lochhead on Marketing. The number one charting marketing podcast for marketers, category designers, and entrepreneurs with a different mind. Wall Street Mercenaries Let’s start off with an interesting tidbit that I experienced by interacting with Wall Street. As I was doing a little bit of consulting and insulting back then, a group approached me about their matchmaking service. Simply put, they would match executives and experts to Wall Street folks, and they pay for your time so they could ask you questions and advise on certain things. The idea intrigued me, so I signed up for it. But it turns out, the Wall Street guys only wanted to ask for speculations and opinions on certain company’s performance and how it would affect the market, what stocks were going to tank, etc. The AHA here is that most people (this is a generalization) in Wall Street are mercenaries. They're looking to make money in the now term, short term. They don’t create a significant value in the economy. They just try to anticipate what might happen tomorrow, so that they can play a financialization game. While there are exceptions to this, it’s generally the perception most people have of them. How to Confuse a Wall Street Folk As we’ve discussed before, there are two kinds of acquisition deals when you look at them from the high level. There are consolidation deals and acceleration deals. Consolidation deals happen when a certain company is not growing anymore, and their solution for it is to merge with another company to get a bigger share of the market and look like they have “growth”. Value investors like the Wall Street folks typically thrive and look out for such deals, as it fulfills their requirements for “growth” and revenue increase. Acceleration deals is when a company acquires another because they see value on it once they have developed it. They company or IP they purchased may not have a huge valuation at the moment, but it could be a gold mine for them once it is fully fleshed out. Acceleration deals tend to confuse Wall Street folk, as they are focused in the “now”, and could not fathom the significance of such a deal entails, unless it affects the current quarter. Hence, they do not understand what Adobe did, which is why they hate it. To hear more about the Adobe deal and why Wall Street folks hate it, download and listen to this episode. Bio Christopher Lochhead is a #1 Apple podcaster and #1 Amazon bestselling co-author of books: Niche Down and Play Bigger. He has been an advisor to over 50 venture-backed startups; a former three-time Silicon Valley public company CMO and an entrepreneur. Furthermore, he has been called “one of the best minds in marketing” by The Marketing Journal, a “Human Exclamation Point” by Fast Company, a “quasar” by NBA legend Bill Walton and “off-putting to some” by The Economist. In addition, he served as a chief marketing officer of software juggernaut Mercury Interactive. Hewlett-Packard acquired the company in 2006, for $4.5 billion. He also co-founded the marketing consulting firm LOCHHEAD; the founding CMO of Internet consulting firm Scient, and served as head of marketing at the CRM software firm Vantive. We hope you enjoyed this episode of Lochhead on Marketing™! Christopher loves hearing from his listeners. Feel free to email him, connect on Facebook, Twitter, Instagram, and subscribe on iTunes!
Welcome to a special episode of Lochhead on Marketing, where we dive further into our new book called Snow Leopard. On this episode, we discuss the Content Pyramid, and how one can become a legendary creator, writer, and thought leader. But before all that, we’d like to say thank you very much to all who took the time to read our new book and share it around. It's also caused a tremendous amount of conversation in the entrepreneur, marketing, and writer/creator world. Because today, more than ever, being able to change the world with words, matters. Welcome to Lochhead on Marketing. The number one charting marketing podcast for marketers, category designers, and entrepreneurs with a different mind. The Problem Everybody wants to be a thought leader. They want to be seen as forward thinking, they want to be celebrated as the Guru, the expert, the All Knowing one in their industry, they want to be the keynote speaker, the bestselling author, the person listed in the next 10, marketers to watch in 2002 by Forbes, most of which are paid placements. Because now that the world has gotten exposed to the power of digital attention, and everyone believes the most valuable thing you could possibly have is an audience. Well, everybody wants one for themselves. Unfortunately, as we wrote about in our mini book, The Me Disease, the vast majority of people who want to be a thought leader, or bestselling author in today's digital gamified world, don't have any leading thoughts. That is to say, they're not actually contributing new differentiated ideas. What they want is to be seen as a thought leader, to collect badges of approval, and amass followers, and social metrics that send the signal that lots of other people say they are important, without having to say anything unique or meaningful, or different. More importantly, they want the audience without having to take the time to think deeply about who they are creating for and why they want the outcome without the process. Content-Free Content Since this has become such a desirable goal, there are now strategies for shortcutting your way to instant status gratification. The key is to cater to the lowest common denominator. The way the business world has been educated on how to become an overnight thought leader is to create content that doesn't threaten, doesn't challenge, and doesn't require the audience to think, as loud and as often as possible. This strategy caters to lazy button smashing consumers. We call this Content-free Content. It gets likes and views, and it lands you some followers. But after you the consumer, eat it, you sort of feel like a box full of Oreos. Zero nutritional value full of empty calories, and left feeling stupid. The Content Pyramid Ask yourself: do you want acceptance, or do you want to make a difference? If you want to be a legendary writer, creator, entrepreneur, executive or industry thought leader, you need to be honest with yourself about a how you measure success and be what category you're going to play in. Also, when you create you are creating something for someone. Anyone who says “Yeah, well I just want to create for myself” is a beginner and hasn't gotten far enough down the road to realize they aren't who matter: the reader, the listener, the viewer is who matters. To hear the full chapter about the Content Pyramid and how to become a successful thought leader, download and listen to this episode. Bio Christopher Lochhead is a #1 Apple podcaster and #1 Amazon bestselling co-author of books: Niche Down and Play Bigger. He has been an advisor to over 50 venture-backed startups; a former three-time Silicon Valley public company CMO and an entrepreneur. Furthermore, he has been called “one of the best minds in marketing” by The Marketing Journal, a “Human Exclamation Point” by Fast Company, a “quasar” by NBA legend Bill Walton and “off-putting to some” by The Economist. In addition, he served as a chief marketing officer of software jugge...
Peter Drucker is considered the father of modern business management. If there was a Mount Rushmore of business thinking, he'd be on it. Recently on Category Pirates, we’ve begun work on the evolution of Peter Drucker’s concept of a knowledge worker, to what can today be called as the emergence of an intellectual capitalist. So I wanted to look back on Peter Drucker’s ideas that had a huge impact on me, and see if we can apply more of them in our current endeavors. His book, The Effective Executive, helped me become an organized person and an effective executive of my own.  And when I read the foreword in the latest edition that was written by Jim Collins, it struck something profound, which I hope to share with you. Welcome to Lochhead on Marketing. The number one charting marketing podcast for marketers, category designers, and entrepreneurs with a different mind. The Effective Executive: Foreword Here’s the foreword by Jim Collins: My first meeting with Drucker is one of the 10 most significant days of my life. Peter had dedicated himself to one huge question: how can we make society both more productive and more humane? His warmth, as when he grasped my hand in two of his upon opening his front door and said, “Mr. Collins, so very pleased to meet you please come inside”, bespoke his own humanity. But he was also incredibly productive. At one point, I asked him which of his 27 books he was most proud of, to which Drucker, then 86, replied, the next one. He wrote 10 more. At the end of the day, Peter hit me with a challenge. I was on the cusp of leaving my faculty spot at Stanford, betting on a self-created path. And I was scared. “It seems to me you spend a lot of time worrying about how you will survive”, said Peter. “You will probably survive”, he continued, “and you seem to spend a lot of energy on the question of how to be successful. But that is the wrong question”. He paused. Then, like the Zen master thwacking the table with a bamboo stick, “the question is, how to be useful.” A great teacher can change your life in 30 seconds. I know that there have been moments in my life where I wondered if I was going to survive or make it. And the interesting teaching here that Jim is sharing with us from Peter, is that when we turn our effort, our focus on being useful to others, ourselves become less important. So if you're somebody right now, who's wondering how to be successful or worried that maybe you won't survive, or maybe that your startup or your career is on the wrong path. I would just underscore the story, you'll probably survive. Like Peter said, the real question is, how can we all be useful? Bio Christopher Lochhead is a #1 Apple podcaster and #1 Amazon bestselling co-author of books: Niche Down and Play Bigger. He has been an advisor to over 50 venture-backed startups; a former three-time Silicon Valley public company CMO and an entrepreneur. Furthermore, he has been called “one of the best minds in marketing” by The Marketing Journal, a “Human Exclamation Point” by Fast Company, a “quasar” by NBA legend Bill Walton and “off-putting to some” by The Economist. In addition, he served as a chief marketing officer of software juggernaut Mercury Interactive. Hewlett-Packard acquired the company in 2006, for $4.5 billion. He also co-founded the marketing consulting firm LOCHHEAD; the founding CMO of Internet consulting firm Scient, and served as head of marketing at the CRM software firm Vantive. We hope you enjoyed this episode of Lochhead on Marketing™! Christopher loves hearing from his listeners. Feel free to email him, connect on Facebook, Twitter, Instagram, and subscribe on iTunes!
On this episode of Lochhead on Marketing, Matt Johnson and I have a conversation about the book that changed my life. In my case, it was two books in particular that changed my life. We look into them through a category lens perspective in Matt Johnson’s new podcast, One Book That Changed My Life Podcast. Matt Johnson is the founder of PursuingResults.com. Matt and his firm were the original producers of my original Oddcast back in the Legends and Losers days, and he's taught me a ton about podcasting. He's got a legendary podcast called MicroFamous. Of late, he started a new podcast called one book that changed my life. Welcome to Lochhead on Marketing. The number one charting marketing podcast for marketers, category designers, and entrepreneurs with a different mind. Matt Johnson & Christopher Lochhead on how the two books made a difference After a brief introduction of who Christopher Lochhead is and his works, Matt Johnson starts the discussion on the book. Particularly on the topic of what the situation was when he was reading the books for the first time, and how it affected Christopher and his views. Christopher then talks about his background when he was first starting out his business as an entrepreneur and still learning the ropes. While there were a lot of books on marketing available, there was something about the 22 Immutable Laws the made him think, “this is the one.” “I started to read them early on, and, and it immediately spoke to me. What their work really spoke to was, if you want to stand out, if you want to be super successful, and you want to make a big difference, you got to do it by being kind of radically unique in some way.” – Christopher Lochhead Matt Johnson & Christopher Lochhead on the 22 Immutable Laws Of the topic of the 22 Immutable Laws book, the one law that really stood out to Christopher was the 2nd law, which is the Law of Category. It states that, “if you can't be first in the category, then set up a new category that you can be first.” Looking back, that law describes Category Design quite nicely. Christopher also brings up the idea of the importance of solidifying and codifying your ideas and defining them as a category, rather than just sharing new thinking without establishing it first. Because it leaves others the chance to improve upon it and move into the category before you, and by then you’ve lost the category despite being the actual first to think about it. Matt Johnson & Christopher Lochhead on Crossing the Chasm As for Crossing the Chasm, Christopher explains that the book presents a great framework for understanding how new markets in tech, and in these days, pretty much all digital-related markets. The book explains how new market categories develop. It has a standard kind of bell curve which introduces a non-obvious problem that anybody who's introduced a new tech category has experienced, but had no lens or way of understanding the concepts. On the side of the rising bell curve, you have the few innovators, followed by the slowly increasing number of early adopters. At the peak, you have the early majority, who mostly benefit from the experiments and not repeating the same mistakes as early adopters might have incurred. Then you have the downward slope, which features the late majority and the laggards who are late to the party. To hear more from Matt Johnson and the rest of the podcast, download and listen this episode. Bio Matt Johnson is a marketing agency founder, podcaster, and musician. He runs a podcast launch & production agency based in San Diego, an international team that helps business coaches, consultants and thought leaders use done-for-you podcasting to attract an audience, build influence & become MicroFamous. Matt is the author of MicroFamous and currently hosts the MicroFamous podcast. He is a frequent podcast guest and event speaker to audiences around the US, Canada, and Australia. Links Connect with Matt Johnson! PursuingResults.
On this episode of Lochhead on Marketing, our guest Al Ramadan talks about what’s at stake when it comes to category battles, how you can spot the category challengers who can become category kings and queens, and what they need to become category leaders that earn 76% of the economics. There comes a time in every startup’s life, where they face an epic, typically 18-to-36-month category battle. As we reported in our first book Play Bigger, the company that wins that battle earns 76% of the total value created in the category as measured by the market caps for public companies and valuations for private companies. What that means is, in any space, one company earns two thirds of the economics, which makes that category battle, which is typically 18 to 36 months long, arguably the highest stakes game in business. This episode will be available on both Christopher Lochhead: Follow Your Different and Lochhead on Marketing, because we think it is that important that everyone must hear about it. So without further ado, let’s dive into this dialogue. Play Bigger: Looking back, and its impact today Al Ramadan comes into the conversation bearing data about the businesses and companies we’ve observed when writing Play Bigger, as well as some new players that have achieve the same feat since then. To recap, Al Ramadan and Christopher Lochhead wrote a book back in 2014 called Play Bigger, which talks about category design and how it can make you become a category leader in your chosen space. One of the things they’ve found out in the course of their research is that Category Leaders tend to corner 76% of the value of said space. Though when they wrote Play Bigger, the world was nowhere near as digitized as it is today. So a lot of the research was based on tech companies back then. But now, as more and more categories are behaving like tech categories due to digital scalability and digital reach, these findings are becoming true for every category. Category Kings to Category Leaders Al Ramadan shares that he and his team looked into the 35 Category Kings that they have observed back in Play Bigger, and check on their current situation in the market sphere. In Play Bigger, we originally published a set of research and tracked 35 Category Kings in the tech space and their market caps at the time were 465 billion and those same companies today are now worth 1.9 trillion. “If you track what happened to those 35 kings, as we call them back then, between the year of 2014 to the year of 2021. You want to know what the numbers are? At the time in 2014, the entire pool of the 35 category kings were valued at 465 billion. They are now valued at 1.9 trillion. That is, they’ve created more than $1,000,001.5 in market cap and the annual for those people who care about this stuff like Investors and Financial people. The compound interest growth rate of those kings. Market cap wise, is 22.46%.” – Al Ramadan Given this data, it begs the question of how many understand that this is the new dynamic, and how many entrepreneurs and marketers still think that it’s a big leap of faith to follow. To hear more from Al Ramadan and how Category Kings can become legendary Category Leaders, download and listen to this episode. Bio Al Ramadan is a co-founding partner of Play Bigger Advisors and coauthor of the book, Play Bigger. He also co-founded Quokka Sports, which revolutionized the way people experience sport online. Al then joined Macromedia and Adobe, where he spent almost ten years changing the way people think about great digital experiences. At Adobe, Al led teams that created the Rich Internet Applications category and helped develop the discipline of experience design. In the early ‘90s he applied data science to Australia’s Americas Cup — an innovation in sports performance analytics. His work in sailing led directly to the idea for Quokka. He lives in Santa Cruz, California. Links Connect with Al Ramadan!
On this episode of Lochhead on Marketing, let’s talk about how marketing can drive revenue with White Space Analysis. We talked about how to drive short-term revenue via category design a few episodes ago (LOM 151). Today, we provide you with more options to make that cash register sing as soon as possible. Welcome to Lochhead on Marketing. The number one charting marketing podcast for marketers, category designers, and entrepreneurs with a different mind. White Space Analysis & White Space Marketing Let's talk about White Space Analysis and White Space Marketing. Essentially, it is doing data science analysis on consumers and the product they purchased. From there, you can see what products or services they have not purchased, which is the “white space”, so to speak. Now that you know this information, you can then focus on existing customers that have purchased some of your products, and target them with marketing for your products and services that they have not availed of yet. This drives revenue quickly for your company, as you provide consumers with a “need” for something they don’t have yet. How Mercury utilized White Space Marketing Back in my CMO days in Mercury, we had a team led by one of the most legendary executives in the industry, Sue Barsamian. Sue got quite complicated with White Space Analysis; she was able to utilize it in real-time during one of the Big Customer User Conferences. The team got the data on their big customers and found the products they do not use that go well with the ones they have purchased before from the company. Then, they made sure that the salespeople on the floor have this information, and subtly drove customers to product showcases and panels for the products they do not have. They made sure to precisely market into that customer’s white space, thereby saving time and effort, while having a higher chance of a purchase afterward. The fastest way to earn revenue One could argue that doing White Space Marketing is the fastest way to earn revenue, as you are already marketing to existing customers. As we know, if they bought from us once, the likelihood they're gonna buy from us again is very, very high. So it’s surprising that a lot of companies don’t employ this strategy, opting to do spray-and-pray tactics rather than doing White Space Analysis and focusing their marketing there. Once you have this information with you, your company can do a lot of things to funnel revenue and market share to your business. To hear more about White Space Marketing, download and listen to this episode. Bio Christopher Lochhead is a #1 Apple podcaster and #1 Amazon bestselling co-author of books: Niche Down and Play Bigger. He has been an advisor to over 50 venture-backed startups; a former three-time Silicon Valley public company CMO and an entrepreneur. Furthermore, he has been called “one of the best minds in marketing” by The Marketing Journal, a “Human Exclamation Point” by Fast Company, a “quasar” by NBA legend Bill Walton and “off-putting to some” by The Economist. In addition, he served as a chief marketing officer of software juggernaut Mercury Interactive. Hewlett-Packard acquired the company in 2006, for $4.5 billion. He also co-founded the marketing consulting firm LOCHHEAD; the founding CMO of Internet consulting firm Scient, and served as head of marketing at the CRM software firm Vantive. We hope you enjoyed this episode of Lochhead on Marketing™! Christopher loves hearing from his listeners. Feel free to email him, connect on Facebook, Twitter, Instagram, and subscribe on iTunes!
The Content Marketing category is almost 700 billion. Almost every company is working on content and increasing their content marketing investments. And yet, when was the last time you got a piece of content marketing and you said that was legendary? Let's dig into how the marketing world got duped into content free marketing, aka saying nothing everywhere, and why this is one of the largest opportunities hiding in plain sight. We recently launched our newest big book from category pirates. It's called Snow Leopard: how legendary writers create a category of one. What you're about to hear is the audio book read of me reading chapter three, which is all about content, free marketing, and why it's a giant opportunity for the rest of us. Welcome to Lochhead on Marketing. The number one charting marketing podcast for marketers, category designers, and entrepreneurs with a different mind. Content-Free Marketing The Content Marketing category is a $4 billion industry. And it's estimated by 2024, the content marketing industry will grow another 270 billion, bringing the grand total to 700 billion. But content marketing is broad and includes everything from creation to distribution to content management. For example, in 2020 the enterprise content management industry was valued at $47 billion and is projected to more than double over the next five years, to more than 105 billion translations of the soon to be 700 billion content marketing industry. 20% of the entire market is exclusively dedicated to managing the content that gets created. Well, what's the content? More importantly, how much of the content being created, especially by enterprise companies and b2c companies, is actually worth reading? When was the last time you clicked on a company blog post and opened a company newsletter or listened to a corporate podcast and said to yourself, “wow, sure am glad I clicked on that”? The fact that most content marketing is garbage represents one of the greatest marketing opportunities of our time, for those willing to buck current conventional wisdom. Content Management The Content Management subcategory of the mega content marketing category is growing faster than ever. And yet, the number one activity b2b companies outsource is content creation by a mile. Get this: 86% of b2b organizations surveyed said they outsourced content creation. The next closest activity is content distribution, which only 30% of b2b organizations surveyed said they did editorial planning. Now, let's connect these two data points. On one hand, Content Management is growing at breakneck speed, while Content Creation creates more to manage. On the other hand, content creation is often the number one most outsourced marketing activity. Which means companies are deferring the single most important aspect of content, which is the creation of each and every idea and who's coming up with these ideas. Gary Vee D As we wrote about in our mini book, The Me Disease, many marketers today have, unfortunately, caught Gary Vee D. It is a content disease that leads creators and companies alike to believe the whole purpose of content creation is to do it and do it as often as possible. It doesn't matter if it's good or if it's valuable. Just say it out loud and say it off and, “pump out 200 pieces of content today”. Gary Vee and other digital marketing “gurus” have led the masses to believe the fact that you did it means you're succeeding. More equals mo betta. And so, every marketer everywhere has adopted this spray and pray approach where 100% of the emphasis is on the output, and essentially zero of the emphasis is on the quality of the content, and what is actually being said. To hear more about Content-Free Marketing, and how to avoid falling into this marketing trap, download and listen to this episode. Bio Christopher Lochhead is a #1 Apple podcaster and #1 Amazon bestselling co-author of books: Niche Down and Play Bigger.
On this episode of Lochhead on Marketing, let’s talk about how you can be a Thought Leader. More specifically, we’ll discuss how to be a Solo Thought Leader and build yourself up with our guest, Diego Pineda. Diego Pineda is the author of the book The Solo Thought Leader: from Solopreneur to Go-To Expert in Seven Steps. Being viewed as a thought leader is a powerful thing. Becoming known for a niche that you own through leading thoughts is one of the most powerful ways to get there to either have a legendary career as a solo creator or a thought leader of some kind. Welcome to Lochhead on Marketing. The number one charting marketing podcast for marketers, category designers, and entrepreneurs with a different mind. Diego Pineda on Going Solo The conversation starts off with the topic of the recent great resignation, or rather the aftermath of it. According to the data gathered over time, it seems that most of the people who resigned went solo or opened their own businesses. “I actually talked to somebody who does this for a living, like helping people transition from being in a company to going solo. And he said, even just when the pandemic started, it was about 35% of the people were leaving their jobs. He thinks it is much larger than that. So there's a lot of people just going out of their jobs and going solo. So this is a trend. And I mean, I think it's gonna be growing.” – Diego Pineda Why People are Going Solo When asked why this was the case, Diego explains that it could be due to a number of things. “I think there's a few things. One is, people during the pandemic just realize what was possible, just working from home, having this freedom. They feel like managing their own time and not having to commute or being an office or all that BS that has to deal with our office politics. They realize there's this option, so why go back? Second, I think just the technology, the tools, and being able to just reach out people through LinkedIn, through social media and getting clients that way is possible. So people say it's possible, so why not? I can do it. Right. So and then you get people like that on the internet, saying, “Hey, I reached in two years while going solo, I went from zero to a million.” Of course, those are some exceptional cases, but then other people will think it's possible. “So why not me? Why not try it?” They just go for it.” – Diego Pineda With new technology and tools being developed at breakneck speed, and existing ones being improved to be more versatile than ever, it’s really no wonder why someone would think they could go solo, as long as they learn how to make use of these tools at their disposal. Be your own Thought Leader When the topic of influencers and content creators just spewing out the same thoughts of someone who is at the forefront of a certain category, Diego agrees that not only is it not sustainable, but you are also competing for a small piece of that niche. According to Diego, you need to be your own Thought Leader and come up with your own ideas. If nothing else, have a unique angle that can differentiate you from the rest. One way to do that is to find something that is dogma, or the “best” practice in an industry, and find if there is anything wrong with it. From there, you can come up with ideas that can fix the problem, or maybe come up with something entirely different as a solution. To hear more from Diego Pineda and how you can be a Solo Thought Leader, download and listen to this episode. Bio Diego Pineda is the author of two novels, 9 non-fiction books, and hundreds of articles and blogs as a science writer, a business writer, and a sales and marketing writer. He started his career as a medical writer while writing fiction on the side. Diego is also a book coach helping solopreneurs and business leaders write their first book fast so they can become thought leaders in their industries, gain authority and visibility, and make more money. Links
On this episode of Lochhead on Marketing, let’s talk about the three marketing metrics that matter. Because it appears as if there’s still a lot of confusion out there about this. So I thought we could unpack the real metrics that matter for marketing. Welcome to Lochhead on Marketing. The number one charting marketing podcast for marketers, category designers, and entrepreneurs with a different mind.   The Three Marketing Metrics Now, let’s talk about the three marketing metrics that matter, and break them down. Marketing that does not drive revenue is not marketing A lot of the counterarguments that I have received on this point is that marketing stuff people do can drive revenue. But the thing is, most of them do not drive long-term revenue. So if it doesn’t make the cash register sing consistently, It ain’t got that thing. But what about brand advertising or Awareness campaigns? Those things only matter if you already have revenue coming in over time. If you’re trying to build up awareness and brand before putting up a good product and making good revenue out of it, that’s like putting the cart in front of the horse. Marketing that does not drive category potential is not marketing Related to creating revenue, is building up category potential. It’s important, as it helps build demand for your product, whether you are creating a new category, or revolutionizing one with your product. Because when you have the ability to create demand, it will convert to revenue over time, which circles back to the first metric. Marketing that does drive increases in the market cap or valuation is not marketing Here’s the AHA for the third metric: investors in growth companies and stocks buy potential, not performance. What drives our market cap is the investor’s perception of the size and growth rate of the category that we're designing. Be their belief about our ability to prosecute the magic triangle, product, company, and category and earn 76% of the economics in the category that we are designing, because that's the average number that the average category cleaner can get. The other metrics like revenue growth, customer growth, margin growth, etc. are all metrics that validate that this company has massive potential.   How Legendary Marketing Executives do it The most legendary marketing executives, CEOs and entrepreneurs, when they talk to investors, the first thing they say is that we are designing a legendary new market category that has massive growth potential. And let me tell you why. So they start with the potential and marketing creates that perception and then helps the company turn perception into reality. Those are the metrics that matter: marketing needs to drive revenue, marketing needs to drive category potential, and then marketing needs to convert category potential in the eyes of investors into market cap. Because the company with the biggest market cap that is sustainable, I'm not talking about some kind of bullshit magic trick here. I'm talking about building enduring value over time. as measured by market cap, the number one market cap company in the category, always wins. Revenue, of course, is a critical metric for driving market cap. But it's not the only one. The perception of the future is actually more important from a market cap perspective. And so marketing drives revenue, short-term, medium-term, and long-term marketing drives market potential. To listen to a more detailed explanation of the three marketing metrics, download and listen to this episode.   Bio Christopher Lochhead is a #1 Apple podcaster and #1 Amazon bestselling co-author of books: Niche Down and Play Bigger. He has been an advisor to over 50 venture-backed startups; a former three-time Silicon Valley public company CMO and an entrepreneur. Furthermore, he has been called “one of the best minds in marketing” by The Marketing Journal, a “Human Exclamation Point” by Fast Company, a “quasar” by NBA legend Bill Walton and “off-putting to some...
On this episode of Lochhead on Marketing, let’s talk about the three stages of a legendary career. Let’s also talk about the lessons we can learn about it from a source you wouldn’t think about at first, Star Wars. Yes, that Star Wars. Welcome to Lochhead on Marketing. The number one charting marketing podcast for marketers, category designers, and entrepreneurs with a different mind. Three Stages of Legendary Career: Star Wars Style So how do we discuss legendary careers using Star Wars? Well, if you look at it on a higher level, the three stages of having a legendary career follow a Jedi’s progression. There’s being a Luke / Lucy Skywalker stage, where you are just starting out. If you’re lucky and successful, there’s the Obi-Wan stage. And if you are even more successful, and legendary at that, there’s the Yoda stage. Jedi Breakdown Let us explain even further. When you're first coming up, and if you are somebody who is gravitating towards the exponential different as opposed to the incremental better, or want to create, design, and dominate new future market categories, as opposed to just somebody who wants to kind of maintain the status quo, you get identified pretty quickly as being high potential. Much like Luke was as a padawan. If this person is lucky and successful, and becomes a mentor or teacher for other upcoming high potential individuals, they enter their Obi-Wan stage. And if you end up being a legend in your chosen career, much like Yoda, you will have the authority and success that befits the position. The True Reward When I myself was a Luke, I thought that the rewards for being a person with high potential who excels and produces great results was that you get the recognition and fame, as well as the riches that come along with it. But as you progress through the different levels of your career, you realize that while those rewards are worth pursuing, it is not the biggest reward out there. The real reward is you get to a place in your 40s or 50s, where the world acknowledges you, as a champion, as a legendary Luke / Lucy Skywalker, and you graduate. Now, the world grants you the Obi-Wan status. To hear more about the different legendary career and Star Wars, download and listen to this episode. Bio Christopher Lochhead is a #1 Apple podcaster and #1 Amazon bestselling co-author of books: Niche Down and Play Bigger. He has been an advisor to over 50 venture-backed startups; a former three-time Silicon Valley public company CMO and an entrepreneur. Furthermore, he has been called “one of the best minds in marketing” by The Marketing Journal, a “Human Exclamation Point” by Fast Company, a “quasar” by NBA legend Bill Walton and “off-putting to some” by The Economist. In addition, he served as a chief marketing officer of software juggernaut Mercury Interactive. Hewlett-Packard acquired the company in 2006, for $4.5 billion. He also co-founded the marketing consulting firm LOCHHEAD; the founding CMO of Internet consulting firm Scient, and served as head of marketing at the CRM software firm Vantive. We hope you enjoyed this episode of Lochhead on Marketing™! Christopher loves hearing from his listeners. Feel free to email him, connect on Facebook, Twitter, Instagram, and subscribe on iTunes!
On this episode of Lochhead on Marketing, let’s talk about how to use category design thinking to drive short term revenue. We talked a lot about what to do in a recession on our last episode, and on this episode, we're going deep on a very specific topic, about how to make the cash register sing immediately. Welcome to Lochhead on Marketing. The number one charting marketing podcast for marketers, category designers, and entrepreneurs with a different mind. Short Term Category Design One of the things that we hear about category design is category design is too expensive. Only big companies can design categories, or it takes too long it takes six to 10 years to build a category, we need revenue now. But the truth is that category design can drive revenue for you in the next immediate term days or weeks if you take a category science approach. As we talked about on the last episode, most companies in a downturn compete harder and harder for demand existing demand that is falling. And it's like fighting for the falling demand knife and cutting yourself into shreds. Category design is distinct from Legacy approaches to marketing is actually the cheapest, fastest way to make the cash register sing. Things to Consider What I'm about to share with you is work that call Eddie and I are currently in the process of helping a legendary b2c tech company who is scaling at over 100% a year. In spite of that, they wanted to get really focused, particularly with the economy doing what it's doing on how to continue their triple digit plus growth. First, it starts with an understanding of super consumers. The general idea is that a very small number of consumers, customers, clients, readers, you know, consumers of any kind customers of any kind, typically 10% or less are the ones that are on the bleeding edge of what makes a category go. They're super influential. They're super committed to the category and typically to the brand leader in that category. They also tend to drive a lot of innovation; they also tend to be the ones that evangelize the loudest. So the first step is knowing your super consumers, and observing them. This leads to the second point, which is a genius insight from Eddie, is that a super of one is a super of nine. That is to say, people who are passionate about something, tend to be passionate about several things. So what are the adjacencies that the Supers might also love? There's a whole bunch of categories that they might be interested in. To learn more about how to drive short term revenue through category design, download and listen to this episode. Bio Christopher Lochhead is a #1 Apple podcaster and #1 Amazon bestselling co-author of books: Niche Down and Play Bigger. He has been an advisor to over 50 venture-backed startups; a former three-time Silicon Valley public company CMO and an entrepreneur. Furthermore, he has been called “one of the best minds in marketing” by The Marketing Journal, a “Human Exclamation Point” by Fast Company, a “quasar” by NBA legend Bill Walton and “off-putting to some” by The Economist. In addition, he served as a chief marketing officer of software juggernaut Mercury Interactive. Hewlett-Packard acquired the company in 2006, for $4.5 billion. He also co-founded the marketing consulting firm LOCHHEAD; the founding CMO of Internet consulting firm Scient, and served as head of marketing at the CRM software firm Vantive. We hope you enjoyed this episode of Lochhead on Marketing™! Christopher loves hearing from his listeners. Feel free to email him, connect on Facebook, Twitter, Instagram, and subscribe on iTunes!
Welcome to a very special episode of Lochhead on Marketing, where we talk about how to make money in a recession. In times that are challenging, one of the greatest things we all can do is contribute what we can contribute. Given that it looks like we're about to be in a recession, what Eddie Yoon Nicolas Cole, and I aka the Category Pirates decided to do was to write a new mini book newsletter. It’s called How To Make Money In A Recession: Five steps to create demand for your product, service or platform. We elected to make the written version of this free. There'll be a link to it at the end of this show notes. So consider this episode, a mini book audio read.   We are in a Recession Dear Friend, Subscriber, and Category Pirate, We are in a recession. (Not officially, but it is not looking good.) Stocks are down. Startup valuations have plummeted. Bitcoin and Ethereum have lost more than 50% of their total value since their respective highs back in November, 2021. And sentiment around Silicon Valley is that the next 12-18 months are going to be challenging for companies looking to raise money. But where there is chaos, there is opportunity. Approximately 10% of companies get stronger in downturns. And you can’t be in the 10% unless you do some serious thinking. Through the category lens, downturns are simple to understand—and have a clear path to navigate. When times get tough, businesses, governments, households, and individuals all do the same thing: they create two lists. “Must Haves”“Nice To Haves” Then they start cutting the “Nice To Haves” to lower costs—as a direct response to their revenue / income / buying power shrinking.   The Question Every Business Should Ask Which means the seminal question is: what makes people put some categories/brands/products on the “Must Have” list versus the “Nice To Have” list?  Perceived value. (Everything we value, we’ve been taught to value.)  The difference between a dumb idea and a great one, or the difference between useful products and useless ones is the perception we have based on what we have been taught. (Don’t forget: pet rocks used to be in demand.) The trick is to get your product/service/platform on the “Must Have” list, and to be as high up on the list as possible. Because the higher the category is on the hierarchy of perceived value in the consumer’s mind, the greater the likelihood they will keep buying from you. Which is why savvy leaders market the category in downturns. Because people make their lists by category first, and brand second.   The Net-Positive Effects of Recession Elon Musk was a guest on the All In podcast and summarized the net-positive effects of recessions well: “Recessions are not necessarily a bad thing. I’ve been through a few of them. What tends to happen, if you have a boom that goes on for too long, you get misallocation of capital. It starts raining money on fools, basically. Any dumb thing gets money. At some point, it gets out of control… and the bullshit companies go bankrupt and the ones that are building useful products are prosperous.”  When most people hear the word “recession,” they imagine the housing crisis of 2008 or the dot-com bubble in the late 90s—and all of the businesses that went under as a result. But what doesn’t get talked about enough are the incredible companies that emerged out of these challenging times as well. Google and Amazon both came out of the dot-com bubble in the 90s (as did hundreds of other world-changing companies). And Uber, Spotify, Airbnb, Square, and dozens of other next-gen technology companies were founded between 2006 and 2009, right in the middle of the greatest financial crisis to ever threaten America. Recessions are pressure-cookers that rid the system of businesses failing to live up to the value they are promising society. To hear more on how you can make money even during a recession, download and listen to this episode.   Bio Christopher Lochhead    Links
On this episode of Lochhead on Marketing, let's talk about the big startup downturn marketing mistakes and what to do about it. We also talk about why people who create demand are in massive demand. Lastly, there is the topic about your career, and what to do when the economy goes sideways, both in your business and in your career. Welcome to Lochhead on Marketing. The number one charting marketing podcast for marketers, category designers, and entrepreneurs with a different mind. Startup Downturn Marketing Mistake The reality is, it's not just startups who make this mistake. But before that, let's go through the top 10 list of what happens when the recession hits. Number one, the recession hits. The immediate impact of that, of course, is number two, demand falls. So what do most companies do? Number three, they market hard in an effort to catch demand. Remember, when most people say marketing, what they mean is compete in an existing market category for existing demand. So when they do marketing, what they're really doing is demand capture. So when the recession hits to demand falls, three, they market hard to catch, falling demand or some people say catch a falling knife. As a result, number four, customer acquisition costs aka CAC goes up. Number six to nine is just running around in circles, repeating numbers two to four. Until you reach number ten, where they finally run out of time and money. Here's the big learning: He who competes for demand loses, she who creates demand wins. It also happens to be why category design is the most powerful underground skill in business. Most people don't understand that just like you can create and design a product and accompany you could also create and design a market category. Recession through a Different Lens I get into trouble for saying this, but most people immediately assume a negative defensive position in a recession or a downturn. However, approximately 10% of companies get stronger during the recession. In the last week, I have had many conversations with entrepreneurs and CEOs about how to take advantage of the coming downturn. I know that sounds crazy to a lot of people, but you can't be in the 10%, that gets stronger, and you can't be in the elite companies that actually are able to take advantage of a downturn unless you at least ask the questions. So I'm asking you to consider a different way. Choosing a Different Way So here's the different way and specific as it relates to shrinking demand. So there's three kinds of demand. Number one, as we talked about demand capture. Number two, demand creation. That's why some people call it category creation. One of the stupid arguments we hear all the time is, “well, category design is dumb, because why would we go to a market where there's zero demand, and we have to create it all, when we can just catch demand? Okay? She who creates the demand wins. That's why. Now in a downturn, here's the problem. It can take some time to create demand. People say, “well, we don't have time our revenues falling, we need to generate revenue now.” This is where the third type of approach, wherein we dam the demand. By doing so, you redirect demand from an existing market to a new solution that your product or services provides. To hear more about how to deal with Startup Downturn Marketing Mistake, download and listen to this episode. Bio Christopher Lochhead is a #1 Apple podcaster and #1 Amazon bestselling co-author of books: Niche Down and Play Bigger. He has been an advisor to over 50 venture-backed startups; a former three-time Silicon Valley public company CMO and an entrepreneur. Furthermore, he has been called “one of the best minds in marketing” by The Marketing Journal, a “Human Exclamation Point” by Fast Company, a “quasar” by NBA legend Bill Walton and “off-putting to some” by The Economist. In addition, he served as a chief marketing officer of software juggernaut Mercury Interactive.
On this episode of Lochhead on Marketing, let’s talk about a critical question: Who are you going to be when the shit hits the fan? As we have talked about in previous episodes, it is starting to look like the business environment could get very hard here. Some people in Silicon Valley are even saying that it could be like back in 2008. Sequoia Capital wrote their seminal “RIP, Good Times” presentation, and its final slide says, “Get real, or go home”. No matter what's going to happen next in the economy, or frankly, the world, it's probably time for all of us to get real or go home. So let's dig into why some people step up, and others melt down in times of crisis. Welcome to Lochhead on Marketing. The number one charting marketing podcast for marketers, category designers, and entrepreneurs with a different mind. The Signs When I was in my late 20s, and into my early 30s, I was the founding CMO of a company called Scient. We were a leader in the we called E-business Innovation Space, we were one of the very first consulting firms to focus on building E-businesses or Digital Businesses. We did incredibly well, as a matter of fact, the company was founded, I believe, in 98, maybe late 97. By 2000, we had grown to almost 3000 people, which is incredible for a consulting startup, essentially. We were public and had a market cap of about $9 billion. Now, if you were around back then, you've done your homework, and you know the.com bust happened. Like all bad things, they happen over time. It built starting by about February, March, we could feel things starting to get bad. Shortly thereafter, we could feel the rumblings our pipeline wasn't starting to look very good. There was weird shit happening with our customers. And there was a slow takedown that happened from about March, slowly, slowly, slowly, building over the summer, and by the fall, we were in a freefall. Sh*t Hits the Fan Due to all that, we had to do the first ever layoff in the history of the company. It was insanely painful. So when we announced the miss in the projected stocks, we do the layoff. The people we laid off are amazing. They were cheering the company on saying please go forward and be successful sign had an incredible culture. So as painful as it was, the exiting people were, were incredible warriors and supporters. And the people who stayed really wanted to make a go of it. However, people at management seemed to be focusing on the wrong things, rather than discussing how to move forward, given the resources we still had at the moment. This continued until I left the company, and from there the company continued on its freefall rather than picking itself up and starting anew. How People React to Disruption So why do I share that with you? It's a great example of the shit hitting the fan for a company. In my opinion, an executive team unwilling to deal with the reality of the situation, and unwilling to deal with it with any kind of speed is a bad way to go at it. That's why I got so mad and took off, and that's why the CEO of the company fired me. After that, the company vaporized. To hear more how legendary people react when disruption happens in the market, download and listen to this episode. Bio Christopher Lochhead is a #1 Apple podcaster and #1 Amazon bestselling co-author of books: Niche Down and Play Bigger. He has been an advisor to over 50 venture-backed startups; a former three-time Silicon Valley public company CMO and an entrepreneur. Furthermore, he has been called “one of the best minds in marketing” by The Marketing Journal, a “Human Exclamation Point” by Fast Company, a “quasar” by NBA legend Bill Walton and “off-putting to some” by The Economist. In addition, he served as a chief marketing officer of software juggernaut Mercury Interactive. Hewlett-Packard acquired the company in 2006, for $4.5 billion. He also co-founded the marketing consulting firm LOCHHEAD; the founding CMO of Internet consulting firm Scient,
As you all know, normally there aren’t any guests for Lochhead on Marketing. But today, we have a special episode for tech entrepreneurs and marketers, as we have a dialogue with Megan Bowen and Chris Walker of Refine Labs. Megan Bowen and Chris Walker are the COO and CEO of Refine Labs. They also have an amazing podcast, called The State of Demand Gen podcast. As there have been a lot of bad thinking in marketing, a lot of which stems from old thinking. Chris and Megan have been doing a lot in helping drive the conversation onto new grounds, and making tech companies become in demand again. So if you’d like to hear their thoughts on the matter, stay tuned. Welcome to Lochhead on Marketing. The number one charting marketing podcast for marketers, category designers, and entrepreneurs with a different mind.   Contributing to the Marketing World The conversation starts with lauding Megan and Chris on the wonderful work they are doing on their podcast, State of Demand Gen. Christopher himself has been a guest before; you can check the episode here. But while Refine Labs has been around for a while, there’s not really a lot of things that people know about Chris and Megan, and what they do. Megan shares that her background has always been in customer success and company operations. For her, Chris is the true visionary and disruptor when it comes to marketing. “What I think I really bring to the table is a different way to think about company building. And I've had a ton of fun becoming a marketer in how we think about acquiring great talent and positioning our company in the eyes of candidates.” – Megan Bowen Chris adds that without Megan, it would’ve been hard to make his ideas become reality.   A Clear Shift in the Market Chris comments that it has been obvious to him and the team that there has been a shift in how people in B2B actually want to buy things. But surprisingly, a lot of companies are not adjusting to that reality because they’re stuck in the old ways of marketing. “That shift sort of goes in line with what some of those topics that you talked about, Christopher. Native Digitals and Native Analogs is one piece of it. So how do people primarily want to engage research, discover, evaluate their suppliers and decisions and make decisions? How do they want to do that? As we start moving into the workforce, there's more, I think you've mentioned, a stat of like, at least 50% of actual decision makers in a B2B buying process are now Native Digitals.” – Chris Walker With this shift comes a lot of new opportunities and approaches to try out. So the slow adjustment of most companies nowadays to adapt to such things is what gives companies like Refine Labs to sort of “pop out of nowhere” and dominate the market.   On Native Digitals and Native Analogs On the topic of Native Digitals and Native Analogs, it seems that S&P 500 CEOs, who are still majority Native Analogs, are not aware that the buying market is being overrun by Native Digitals. According to Chris, those who have noticed have started to create categories and marketing catering to that demographic. But for Chris, that isn’t nearly enough. “I think that it's important to look more holistically at the overall business. So some of the things that power our advantage. We think about our culture and our talent, talent, experience and talent management from a native digital lens. We think about building future products and experiences for customers through a native digital lens. And so when you look at the entire business, not just your marketing, there's a lot of companies that can go out and put nice wallpaper on their marketing. Well, the foundations and stuff is cracking inside of the actual building.” – Chris Walker Megan adds that it’s not only an approach that one should take in marketing, but in other aspects of the business as well. “I think that a core component of any business, being successful and continuing to grow is attracting and retaining the r...
On this episode, let’s talk about some of the smart assumptions we can make about the rest of 2022. Of course, this is based on the numerous dialogues I’ve had in the past months with some of the smartest entrepreneurs, VCs, CEOs, and executives in Silicon Valley. If you’re interested in those conversations, check out Christopher Lochhead: Follow Your Different in your podcast feed today. Welcome to Lochhead on Marketing. The number one charting marketing podcast for marketers, category designers, and entrepreneurs with a different mind. Assumptions for 2022 Without further ado, here are the assumptions that could happen during the rest of 2022: A Recession will happen – Most of the smart people in Silicon Valley and beyond are strategically planning for a recession, both in their business and in their personal lives. If it doesn’t happen, great. But it’s still better to have options should it be the case. Inflation will continue – The US government and the US Treasury trying to grapple with it right now. Wages are also going up, and supply lines are still challenged in many categories and industries. The Ukraine-Russia War will continue, and it will be long – David Gergen (FYD 266) said that he thought they would likely be sort of punch-drunk fighters before this thing ended. But we also had Dmitri Alperovitch (FYD 269), a renowned security expert, say that the war, or at least the major aspects of it, would be over within the month. Though there are still possibilities of digital skirmishes between the two. Regardless, the effects of this war will be far-reaching, and have humanitarian and economic impacts even after the war. David Sacks (FYD 267) says that there might be a GOP landslide in November – Right now, Biden's approval ratings are some of the lowest in history, and Democrats don’t seem to have a way to rally themselves, or show a specific point of view or plan to hold their position. People are Hurting – People are on the edge. You can see it all over the place. People’s mental health seem a little fragile right now. These past couple of years have really taken its toll, and you can feel that fights could break out at the drop of a hat. It will take at least 5 years’ time before Native Analog CEOs, CMOs and C-level executives to understand that Native Digitals are the new category of human – A great example of this is you hear people talking about returning to work. We're not returning to work, people might go back to physical offices, but we're not returning to work native, Digital's want to live in a native digital world. As long as Native Analogs executives do not recognize this, there will be a disconnect with the old and new categories, and those who fail to cope could be left behind. Variations and Market Caps will almost certainly continue to come down – That is what smart VCs are saying right now. So right now, they are “adjusting their thinking”. Given the data they have received over the past 12-24 months, they are expecting that there will be down runs that will happen. As a result of no. 7, raising money will be harder, and going public will also be harder – Most companies may very well have a tough time going public in the relative near term. But that should not discourage those who think that they have a new category opportunity to pursue them. It might just be the thing that helps you gather resources to go public. Cash is King again! (So manage it carefully) – This is also the result of both no. 7 and 8, so wise executive teams are managing their assets carefully. No one ever cost cut themselves to greatness – While it’s all well and good that you are able to manage your resources carefully, don’t be parsimonious. Recessions are not fun, but they can make good companies legendary – It is wise in tough economic times, to look for the growth opportunities to look for ways to make changes, and to look for ways to take your good company and make it legendary.
On this episode, we talk to David Sacks of Craft Ventures, on what every startup leader needs to know in the current business landscape. If you didn’t know, I recently talked with David Sacks about a variety of topics, including business, current affairs, and how the two are interconnected. Even when we don’t always see it. If you want to check that out, go to Follow Your Different episode 267. This episode is a certain portion of that, which I thought bears highlighting here on Lochhead on Marketing. So listen up, and listen good. Welcome to Lochhead on Marketing. The number one charting marketing podcast for marketers, category designers, and entrepreneurs with a different mind. How 2022 will play out for VCs and Startups The conversation starts on how 2021 was for venture capitalists and startups, which saw great growth on new businesses and new deals. Though the question that remains, according to David Sacks, is how sustainable it will be. He notes that the huge growth was caused by certain situations in 2021, and how the public market reacted to it. But it seems that the market is slowly correcting itself, so we might expect to see a “slump” this year. “Well, it's gonna be very different than 2021, for sure. There's a HUGE CORRECTION that's been underway really since November, the public markets started correcting in November.” – David Sacks Part of the huge growth was that there was an enormous liquidity injected into the markets as a result of the government reacting to COVID to act as a stimulus for the economy. The issue lies on the fact that they seem to have overdone it. To correct it, the market has seen inflation rise to new heights over the past months. It will seem erratic for now, but as the demand goes back and the excess stimulus wears off, we will see the market stabilize once more. Consolidations and Mergers One of the things that you often see during this time of sudden rise and slump in the market, is that a lot of acquisitions and mergers happen. It is because company’s valuation tends to drop during this time, so you could probably acquire one for far lower its original, especially compared to the high-rise last year. One example is Salesforce, who acquired Slack on the height of the market boom last year. If they were to buy it at this current market, they might have gotten it for about 75% or less of what they originally paid for. That goes for everybody. On paper, this should be the best time to acquire or merge with new assets. Yet that’s not what always happens because… Prices are Sticky On the other hand, it can be hard to get a lot of deals happening because they are still clinging onto the prices of the past. “One of the reasons why there's not a lot of deals happening right now is because in VC land is because prices are kind of sticky. I mean, all the founders remember the glory days, just six months ago, 100 times ARR. They're still anchored on that. And they don't believe that, like, there's been this giant repricing, and that things could really be at 20 times ARR.” – David Sacks They cling to this because most of them know that all they need is just one VC that is still willing to drink the Kool Aid and pay for 100 ARR, and they’re all set. So there's going to be resistance to these changes and price levels. To hear more from David Sacks and know what most startups need to know now, download and listen to this episode. Bio David Sacks is co-founder and general partner at Craft. He has been a successful founder and investor for over two decades, building and investing in some of the most iconic companies in tech. He has invested in over 20 unicorns, including Affirm, AirBnB, Bird, ClickUp, Eventbrite, Facebook, Houzz, Lyft, OpenDoor, Palantir, Postmates, Reddit, Slack, SpaceX, Twitter, Uber, and Wish. David is also co-host of the popular “All-In Podcast” with Chamath Palihapitiya, David Friedberg, and Jason Calacanis. David first got involved in the technology industry in 19...
Welcome to a very special episode of Lochhead on Marketing. This episode is based on a recent Category Pirates newsletter that we wrote, which is about Ukraine, the Native Analog and Native Digital war, and what it means for every business person. If you haven’t subscribed to Category Pirates?‍☠️ yet, click the link and check it out. You’ll find a few goodies and mini-books waiting for you there. That said, think of this episode as more of an audiobook than a podcast, as I will be reading the article for you. Without further ado, let’s get to reading. Part I Over the past year, we have written extensively about the bifurcation between Native Analogs & Native Digitals. Native Analogs are Baby Boomers and Gen Xers born anywhere from the 1940s all the way up to the early ‘80s. Today, they range between the ages of 40 to 75, and make up approximately 136.8 million Americans. Native Digitals are Millennials, Gen Zers, and beyond, born between the early 1980s to as recently as the 2010s. These demographics are around 35 years of age on the high end, down to as young as 6 years old, and make up approximately 140.1 million Americans. Much has been written in the past 20 years about “Digital Natives,” but this is a loose understanding of the chasm between these two demographics. When we say “Native Analogs” and “Native Digitals,” we are not talking about age. We are talking about identity. “Native Digital” is not a mindset. It does not mean “some people embrace technology while others do not.” It also doesn’t mean if you’re old, you’ll never “get it.” We created the terms Native Analog and Native Digital to introduce shared language that would allow society to discuss the differences between people whose primary life experience is Analog-first (in the real world) from people whose primary life experience is Digital-first (online). Again, this is not an Old vs Young issue. This is a first-time-ever-in-human-history phenomenon: Native Analogs are the last of a dying breed, and Native Digitals are a new category of human. And from here on out, there will never be another Native Analog generation born ever again. Think about that. Part II Native Digitals grew up integrated with the digital world. They had smartphones before they had college degrees, high school diplomas, or (for Gen Zers) a bicycle to ride around the neighborhood. (“Bicycle? Why? All my friends are online.”) They grew up integrated with the cloud. They don’t know what it’s like to not have the answer to any and every question in their pocket, two taps and a swipe away. The digital world is where they primarily live. (And when parents restrict their screen time, whether they realize it or not, they are removing them from their primary lives and threatening their core life experience.) The Native Analog & Native Digital lens is fascinating in and of itself, but it gets more powerful when changes in the world are viewed and understood through it. For example: nowhere in the media have we seen anyone discuss the Russia/Ukraine war through the Native Analog & Native Digital lens.  Most people think this support for Ukraine “just happened” (the same way most business media think demand for a given business just “happens,” like the weather). It did not. The support was created—in exactly the same way Category Designers create net-new demand out of thin air. Volodymyr’s digital dominance has led to historic pressure being put on governments and corporations to inflict more economic pain on Russia than has ever been levied on any country, ever. It used to be that what happened in the analog world dictated what happened in the digital world—but now, the two have flipped (and most people don’t see this radical transformation happening in plain sight). Digital stories, digital messages, digital photos, digital conversations, and the subsequent digital movement in support for Ukraine that has had catastrophic consequences for Russia in the analog world.
On this episode, let's talk about one of the things that drives me the craziest and more importantly, ruins marketing results and careers on a regular basis. That is, why marketing's job is NOT serving internal customers. Speaking of which, I want to thank you from the bottom of my heart for making our new books into bestsellers at Amazon Books. You can check the whole list Category Pirates mini-books at Amazon Books, and expect more in the near future! Welcome to Lochhead on Marketing. The number one charting marketing podcast for marketers, category designers, and entrepreneurs with a different mind. The Concept of Internal Customers is Dumb The idea of an Internal Customer is dumb. Listen to it: Internal Customer. First of all, what does a customer do that an internal department or “internal customer” doesn’t? That’s right, customers actually pay you money. Companies who are so internally focused and direct marketing inwardly, that they are confused as to what it should be targeting is a company destined for disaster. So point number one is this: “There is only one customer, and those are your actual customers.” – Christopher Lochhead You can put whatever modifier in front of customer you want, but customers or consumers and putting a stupid modifier in front of them is well, frankly stupid. What Marketing should be doing That said, what really is marketing? Firstly, Marketing is a leadership function. Its job is to lead the company, lead the category and ultimately design and dominate a legendary category that matters around solving problems or creating opportunities for customers. Second, marketing organizations often get trapped in this feeling of being an internal service bureau. That's ridiculous. Marketing is no is no more of a internal service function than finance than engineering or products. d in this being of being an internal service bureau. HR is not a service function either. It's a leadership function. So the first thing to understand is marketing is a leadership function, whose job is to partner with the rest of the organization in creating, designing, and dominating a market category that makes a giant difference for customers who pay us money. How Marketing works within the Organization Now, what does that mean for how marketing works within the organization? You do it as leaders, as you partner with other leaders. So is Sales Enablement important? Yes, of course it’s important. As a marketing leader, we want the sales organization to love us. Are there a certain set of things that we want to deliver to sales to help them be successful in their job? Of course, there are. But we're not order takers, we're leaders. And we're partners. We're in a co creation relationship. You're in the business of co-creating a legendary relationship. Are there some service elements of that? Sure, there are. But that is not the primary paradigm, the primary paradigm is a co-creation relationship. That's the relationship marketing wants to have with sales, that is to say, both of which should get together and say, what are our objectives for the year for the quarter for the month? How do we partner together to produce legendary revenue with the exact kind of customers that we want? So in that regard, marketing and sales work together, hand in glove. To hear more on how Marketing should be done in your business, download and listen to this episode. Bio Christopher Lochhead is a #1 Apple podcaster and #1 Amazon bestselling co-author of books: Niche Down and Play Bigger. He has been an advisor to over 50 venture-backed startups; a former three-time Silicon Valley public company CMO and an entrepreneur. Furthermore, he has been called “one of the best minds in marketing” by The Marketing Journal, a “Human Exclamation Point” by Fast Company, a “quasar” by NBA legend Bill Walton and “off-putting to some” by The Economist. In addition, he served as a chief marketing officer of software juggernaut Mercury Interactiv...
Comments (3)

Chris McNall

Thank you for great content that you could easily charge for!!!

Sep 12th
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Real News

Lochhead distilled; the podcast which captures the essence of Lochhead's marketing philosophy surrounding category design. For a long time I have been looking to capture his pearls of wisdom in an easy to digest manner so that I could serve this up to friends and give them an insight into how to be the category king; the company that captures 76% of the market value rather than be one of the many companies slogging it out to capture 24% Sit back and drink in the wisdom!

Aug 19th
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Jeff Blain

The podcast that gives back! I first got infected by the first version this contagious Lochhead podcast, Legend and looser. The gene mutated to follow your different and now, marketing content. Its un curable, you binge them one after the other. Fantastic host, exceptional guests. Give Lochhead 20 minutes he will allow you to have a second life. This is no BS, the content is genuine. Last word would be, like the Ramones would say, Hey-ho, let's go!

Aug 12th
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