Thursday, September 6. 2007

Pitney Bowes Lowers Boom on the MapInfo Name

It's a marketing blunder only a billion dollar company could make. Pitney Bowes (PBI) announced that they were merging the vestiges of MapInfo and Group 1 into a single division called Pitney Bowes Software. Let me try to articulate this travesty of marketing without offending Reis and Trout:

1. MapInfo had one of the more recognizable brand names in the geospatial business and was proud, as Mark Cattini, the former CEO, told me once was "the only 'pure' mapping company" in the geospatial arena. So now, Pitney Bowes comes along and slaps vanilla icing on top of the company name and the market awareness it had built employing the "location intelligence" tag line in which MapInfo invested so heavily, taking with it a unique position in the minds of many prospects.

2. Group 1 Software, though not having a particularly well-defined corporate identity, made lots of noise positioning themselves as both a "business intelligence" and "business geographics" solution provider. Its solid business model of providing address validation and geocoding software made it one of the standards in the geodemographic industry. It stands to lose that position with the prospects by now having to remind both new and old customers what they offer.

3. "Merging the businesses is both a natural evolution and an exciting step forward for Pitney Bowes," said Leslie Abi-Karam, executive vice president and president, Document Messaging Technologies." Merging, yes; destroying their identity, NO. It's made it nearly impossible to distinguish the unique selling proposition of the combined entity that, while as separate companies, positioned themselves in an emerging industry that has enormous upside potential. By sanitizing the new division name they've relinquished any possibility of brand significance.

4. In my mind, a marketing icon has crumbled. For anyone who cares to remember, back when MapInfo was recognizable by the 1-column inch ads with a yellow background run in PC Magazine in the early 90's touting this new "PC mapping software" they were shouting in directions the GIS industry couldn't touch. Advertising in a consumer magazine? It was just unheard of at the time especially when GIS software was selling for tens of thousands of dollars, MapInfo 1.0 was selling for $795 occupying both the low-price competitor position and using an operating system that was scoffed at by its UNIX brethren.

I'm sure there were other extenuating reasons for the name chosen by PBI. However, the name recognition they are surrendering under the guise of corporate unity seems pointless. Sure, they want to combine other marketing software solutions the company now has in addition to MapInfo and Group 1. But, here is a wonderful opportunity to capitalize on the fact that each entity within Pitney Bowes contributes powerfully to an overall marketing solution suite in geocoding, visualization, channel marketing, CRM...and location intelligence. I think I'm more dissappointed that we are losing solid voices for the "location intelligence" movement. Vox clamantis.

Reis and Trout said it best in The 22 Immutable Laws of Marketing when they stated, "All that exists in the world of marketing are perceptions in the minds of the customer or prospect." What kind of perception is PBI creating with this new name?

Posted by Joe Francica in PBBI [MapInfo] at 20:37 | Comments (5) | Trackbacks (0) |

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More from Cattini from Albany Times Union:
http://timesunion.com/AspStories/story.asp?storyID=620028&category=BUSINESS&BCCode=HOME&newsdate=9/7/2007
(quote)
Cattini, who still works out of MapInfo's North Greenbush offices as president of Pitney Bowes Marketing Services, said the loss of the MapInfo name is sentimental.

...

"MapInfo means a lot to a lot of people, especially myself," said Cattini, who became MapInfo's CEO in 2001. "But the products live on. The people in the Capital District live on. It's a great thing for MapInfo. It's a great day."
(end quote)

#1 Adena Schutzberg (Link) on 2007-09-07 07:27 (Reply)

Dear Joe,

Thanks for your post. You raise some excellent points regarding the brand essence/identity of both MapInfo and Group 1 and I want to clarify a few things.
Please be assured that the last thing we intend to do is walk away from the MapInfo brand and our location intelligence position. If anything, you will see us more aggressively carve out this category and clearly establish ourselves as the leader.

Our name, Pitney Bowes MapInfo, will continue for the
foreseeable future. We have no immediate plans to drop the brand name from our product portfolio or external communication efforts.

It is important to point out that we are going to great lengths to transition MapInfo and the location intelligence brand to Pitney Bowes Software. We will soon embark on a quantitative and qualitative research project with our customers and prospects to ensure we are maximizing the transition of our equity to Pitney Bowes Software.

As Reis and Trout point, our customers' perception of the brand is not something you change overnight - it requires careful planning and time and we will invest that time and effort to ensure we do this the right way.

Please be assured that the "marketing icon" will live, until the equity is properly transitioned.

Regards,

Reid Hislop
Vice President of Marketing
Pitney Bowes MapInfo

#2 Reid Hislop (Link) on 2007-09-07 10:09 (Reply)

The first post was right. Even the concept of "proper transition" is the one of turning something into pure vanilla, which IS Pitney Bowes. This move will go right along with one of those really dumb moves that may large companies make. I bet your outside agencies have even helped you justify why this is a good idea?

If you have a location intelligence company, and a business intelligence company, maybe it is time to get rid of the "postal machine intelligence" name...and upgrade your market positioning to identify more with the portfolio of great assets you have acquired, rather than the old businesses your existing corporate name conjures up. But of course, that would take courage to admit

#2.1 bphelan on 2007-09-09 10:53 (Reply)

From all of the employees of a former MapInfo competitor (now Pitney Bowes software), thank you Pitney Bowes for making the road a litle less bumpy. Millions spent by MapInfo building a name and we all know the rest of the story.

#2.2 Wayne on 2007-09-10 13:04 (Reply)

Can you say Etak?

#3 John Fix (Link) on 2007-09-10 07:27 (Reply)

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In reply to	[ Top level ]#1: Adena Schutzberg on 2007-09-07 07:27 #2: Reid Hislop on 2007-09-07 10:09   #2.1: bphelan on 2007-09-09 10:53   #2.2: Wayne on 2007-09-10 13:04 #3: John Fix on 2007-09-10 07:27
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