Product Features vs Benefits, Services vs Goods, Branding, and Innovation

Products: Features vs. Benefits

People don't buy products because of features; they care about the value and benefits. For each feature, you should be able to explain how it benefits the customer. Backpack example:
- Features: material (leather, cotton, polyester), water-resistant, pockets, water bottle compartment, padded straps, adjustable straps.
- Benefits: carry heavy school supplies and tech, organized pockets/storage, weather protection, trendy, security (hands-free).
Locks on a backpack:
- Feature: locks.
- Benefit: theft deterrent, especially while traveling (though not foolproof).
Compartments/pockets:
- Feature: different compartments and pockets.
- Benefit: organization of items.
Reinforced design:
- Feature: reinforcement for laptops and books
- Benefit: items are kept from moving about inside the backpack.

Services involve someone performing a function or helping you, not selling something physical. Example: serving food. Netflix as an Example:
- Service: streaming movies.
- Physical good: a DVD with a movie.
- Renting a DVD is a service.
- Downloading a movie or using streaming services is a service. Purchasing the device (Apple TV, computer) is buying a physical good, often coupled with a trial subscription (service).
Warranty for a laptop: the laptop is a physical good, but the warranty is a service.
Experiences: You don't know what to expect from a service until you experience it. Example: a haircut. Testimonials are crucial to assure customers.
Selling services: harder than selling physical goods because they cannot be touched or sensed beforehand.

Physical products/goods: tangible, can be inventoried (stocked), and tried before purchase. You can build a stock of iPhones.
Services: intangible. There's no stock of my class. You cannot have an inventory of architecture services.

For services like building a home, talk to previous customers to assess the architect or engineer's delivery.
Need to offer early adopters something different (e.g., cheaper price) to get testimonials.
Early adopters: different from the mainstream market; you need them when starting a new business.
After 2-3 testimonials, acquiring more customers becomes easier.
Radical actions: some organizations do extreme things to gain attention.
Volunteering/donating:
- People donate time/money to non-profits for a feeling of release of guilt.

Established brands (e.g., Coca-Cola) are instantly recognizable; no explanation is needed. Building such a brand takes significant time and money.
Small businesses: lack the time, money, and people to compete with established brands.
Solution: create a specific target audience and create content via social media.
- Content should be useful, educational, or entertaining for your audience (not about your company).
- Consistent posting helps familiarize people with your brand.
- Build trust so customers will choose you when ready to buy.
Big mistake: trying to apply big-company strategies to small businesses.
- Small companies need employees who think like owners and deliver results quickly.
Steve Jobs was obsessed with fonts and design for the Macintosh, demonstrating the importance of design and attention to detail.
New logos/companies: hard to trust since you don't know what to expect. Don't confuse customers.
Expansion: be careful expanding your brand. It should be related (Tesla selling electric cars).
Strong brands need less advertising and can command better profits because of perceived high quality.
Returning to Apple: Steve Jobs returned to Apple after being fired and eventually bought out a marketing executive because marketing wasn't improving sales.
Value: Always know how much value you bring to your company. Be proactive about asking for raises if you're underpaid. Otherwise, maybe you will be fired.

Markets and competition change; you must evolve and innovate to avoid falling behind.
The difference between free and 1 is huge.
Evaluate results, get customer feedback, and continuously improve your product.
Innovators vs. Conservative People:
Some people want to see that it’s working for someone else. Some are the first to try it. Some people will never try a new product. These individuals are too conservative.
New Restaurant Example:
- Some willing to take the risk, others rely on reviews.
- Innovators/early adopters are willing to provide feedback in exchange for a lower price.
- Later, charge a higher price after improvements and reviews.
It's not about you; it's about your customers. Trial and error are essential.
Even Apple’s successes came after many failures.
Government Relationships. Some business activities depend on government that they exploit.