Brand vs Product | Salesforce

Tim Draper walks through how to build a brand before you have a product, using Magic Leap, TOMS, Snapchat, and Magic Bullet as examples. He breaks down a pitch framework: the problem, why it's hard, your solution, why buy now. Includes a live volunteer demo.
Chapters
No, you answered it. OK. You had a question? Can you build first the brand and after that the product? Can you build a brand before the product? Yeah. There's lots of examples of that. What's a name? The one that comes into mind right away was a company that does not exist anymore. But yeah, they had an issue where— so basically, here's the thing. Have you guys heard of Magic Leap? Yeah. Augmented reality, like super cool, right? That company was known before they even had it. They still don't really have a product. Like go back when they did that TED Talk. It was the most confusing TED Talk I've ever seen. It was like a guy in an astronaut suit. That is a brand. You all know what it is. I would love for you to tell me exactly what the product does. Does anyone know? No. Okay, so there's an example. So you can build a brand. Sometimes that's gonna be connected to the people starting it because they might be certain influencers that people get excited about. Sometimes it's extremely strategic and efficient marketing where they're able to build a brand before they even have a product. Or sometimes it's an idea that people fall in love with that creates the brand. And I'll give you another example. TOMS. Everyone knows TOMS? So they're a Salesforce customer. They built a brand on being— what do you guys know? OK, I won't even say it. What do you guys know about TOMS? Someone give me a— Shoes. Shoes. They give away one pair of shoes. Donate one pair of shoes. You guys all said shoes. Did you know they also sell sunglasses? And they sell a bunch of other stuff. They are known for their brand of giving away something. You guys all didn't just say shoes. You all added giving away something. And so that's, it's very possible. I think that it's very hard to do, but there's plenty of examples where it exists. What's the shortcut? The shortcut in this? The shortcut in this, if I had to, if you, I would say there is none. It still happens, it's just how it happens. If you're trying to make time go faster, sometimes it's how you build the product. Sometimes it is brand recognition. You can't, people go through this whether you want them to or not. Now, it might be super scrunched together where a lead is actually the intro, discovery, and proof all at once because you're solving such a specific simple problem that is so like aha that people do it. I'll give a consumer company. Snapchat. Everyone knows Snapchat. No. It solves a very simple problem. And if you think about it, all this stuff happens super quick because of the product. One, negotiation, that's super easy because it's free. But what you're negotiating actually is your privacy. And you're okay giving that away because we're used to it now. What's the problem with it? Sorry? What's the problem with it? The problem with Snapchat? Why do you use Snapchat? Do you use Snapchat? Who uses Snapchat? Someone give me why they use it. Share what's happening. It's too fast. It's fast. Everyone uses it and it disappears. Everyone uses it, it's fast. So I would give you— there's 3 problem statements right there. One is, I want to be connected to everyone around me, and without Snapchat I'm not. What was the— what did you say? It disappears. It disappears. I want to be able to send lightweight messages, and right now I can't, and this makes it so that it doesn't have as much social weight. What was another one? It's fast and easy. It's fast and easy. It's faster than anything I use today. Everything's too slow. I want it to be quick. So like the thing is, like it's solving people— people wouldn't use it if it didn't solve a problem. It would just sometimes you— Would it be helpful— so the other thing I do sometimes with some people is I walk them through how to build a sales pitch. Would that be helpful? Yeah. Okay. Has anyone watched any infomercial lately? No. I love those infomercials. They get a bunch of people to buy a bunch of stuff that I think are pointless. It's like the perfect sales example. Just stay up till like 1 or 2 in the morning and learn from them. But here's the thing. So— What's the name of the show? Just an infomercial. So like, you know, like 1 in the morning they have those like Buy the magic knife. Has anyone seen the blender one? Yeah. OK, the blender one. We'll go with the blender one. OK. So the blender. The blender is the Magic Bullet. It's what it's called, right? OK, so all of these follow such a simple recipe that you guys can use. And what I actually recommend to people is when they're building their pitch, I say just start with this. It'll feel awkward, but then evolve. And what I think you guys will find— I'll give you a really ridiculous example so that you can see how it sounds, with something I don't believe in at all, so that you can see how the framework works. So the Magic Bullet, what's the problem we're solving? And I'll switch over to that example in a second, but let's go to the Magic Bullet since everyone knows it. What's the Magic Bullet? What's the problem it's solving for? It's really light and quick. Quick, light. Yes. So the problem is that I can never, when I have my— so I have a blender. Who has a blender? Or have had a blender at some point in their life? Okay, there we go, that's a better question. The problem is that when I make a juice or a soup, it's never the right size just for me. And so I always have to measure it out, I never can get the right one. And you know what, it's really tricky. It's tricky because when I use the blender today, I have to be precise with all these different ingredients, and I don't ever know, and honestly it's too much of a hassle. The solution is if I just had such a simple, easy-sized blender that I could use specifically for me, I wouldn't have to think through this so much. I'd be able to pull it all in. But guess what? Now I can for the first time. I have Magic Bullet. I can easily put all the ingredients in, carry it around. It's portable, lightweight, and it's easy to use. And just like that, you can have one serving-sized blender. You don't have to use them all. And that's the same cup as well. And it's the same cup, right? So that's how you do it. But now how do you translate that into something that I don't believe in to give you an idea how it sounds? Did that sound okay? I was just making it up, okay. Sounded pretty okay, okay. So let's think of something that we don't like. Well, I don't wanna, I feel like this is a polarizing one, but I'll use it anyways. So personally, I don't smoke. I have no problem if people smoke here, but I'm just gonna give you the example of how, so smoking, right? So let's try, is everyone okay if I use that example? Yeah. 'Cause I'm about to sell e-cigarettes. Okay, so, Smoking. So what's the problem with smoking? Lung cancer. OK. So the problem with smoking is it's deathly. OK? So that's the problem. So the format, by the way— I'm sorry, I forgot to mention this. It goes, what's the problem? Why is it tricky? What's the obvious solution? And why do you need to buy this now? That's all the format is. I can repeat— I can write it down if you guys want. But what's the problem? Why is it tricky? What's the solution? Why do you need to buy it now? So the problem is that smoking kills. It's really tricky, though, because it's addicting. It's really hard to stop. But what would be easy to do if I wanted to avoid this is just to stop. But it's so hard. So what you could do is you could actually buy electric cigarettes, because electric cigarettes are the first step to quitting smoking. All right. So I'm just giving you an example that was something like not as fun as a magic bullet, Because you can frame it in a way that gives a logical argument. People buy these things because it is a step-by-step process where you're basically creating empathy with a problem that they have. And you can do anything. Like, just if you give me— I like that what I'm going to do after this, if you guys are OK with it, is I'll bring someone up and I'll have them try it. OK? So let's do that. You OK if I do that? Yep. All right, who wants to be— if you don't decide, I will pick for you. Okay, we have a volunteer here. Come on up.
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