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Showing posts from 2015

NEW PRODUCT AND NEW MARKET LAUNCH CHECKLIST

For those of you that are looking for a simple process for launching a new product or entering a new market, I have developed a checklist below that can be used for either.
Checklist
1.State your company mission – This is why the business exists or will exist. Coca Cola is a good example, their mission talks about refreshing the world, creating value and inspiring happiness and optimism. Note there is nothing said about selling Coke. 2.State your company vision – This is how the company will create value for the company, the customer and collaborators. Again, Coca Cola is a good example. The coke vision talks about being a great place to work, building a portfolio of quality beverage brands, nurturing a winning network of customers and suppliers, being a responsible citizen, being a profitable company and being a lean, effective and fast moving company. 3.Does the new product or new market fit with the mission and vision? – Clearly introducing products other than beverages would not fi…

Advertising Sales Success For Media Companies

When I worked as a newspaper executive we had a special sales group called print specialists. This group typically was comprised of the more senior and gifted sales personnel. These specialists had knowledge of ROP (in-paper) advertising, preprints, commercial printing, direct mail and production processes.
This group sold the more complicated products and assisted sales people selling more traditional lines of newspaper products in broadening the scope of sales opportunities.
A print specialist was able to set down with an advertiser and develop an advertising program that best suited the customer’s needs. The program could include ROP ads coupled with a direct mail campaign with customized brochures reaching targeted audiences.
Sales commission programs encouraged all sales groups to use the expertise of the print specialist. Using this approach all sales personnel had an opportunity to increase their income while improving the newspaper’s profits and providing real value to the …

How to Avoid Being Displaced by Market Disruptions

Disruptive Innovation theory holds that disruptive innovations result from a new industry entrant finding a way to better serve the industry leader’s least profitable customers. After the new entrant has captured the least profitable customers from the industry leader it begins to pursue the next level of customers that are underserved by the industry leader. This process continues until the new market entrant displaces the industry leader.
This is well researched and there is a large body of evidence to support this theory of market disruptions. It does not, however, explain disruptions that seem to take place at the top of the customer value chain.
For example the disruption of the nylon tire business by the steel belted radial tire was not due to unprofitable customers being underserved by the industry leader (DuPont). Rather it was the need for a superior tire that was sought by the most profitable customers.
For newspapers, the first segment of business to be lost was classified…

Creating Value for New Products

Value creation is a phenomenon that is much discussed and is the basis for all economic activity. That is, for a product or service to be sold it must be viewed as providing some value for the purchaser.
In some instances, value is based on long-standing measurements and is tied to supply and demand. The more some thing is demanded when there is a limited supply results in an increase in its value.
For individuals with new products or services, determining value is critical to the success of a new venture. In these situations there is no history to gauge value that might be based on supply and demand. There is only anecdotal and (at times) research based evidence on the potential value of the new offering.
In the early 1970s Gerald Zaltman (Processes and Phenomena of Social Change, Wiley Interscience, 1973) conducted research based on social change. In these studies he determined that there were several factors that caused societal change.
In the late 1970s I used these factors to es…

BUILDING THE OPTIMAL MARKETING STRATEGY

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In order to develop any marketing strategy, a strategist must consider how value will be created for the company, the customer and the collaborators. Pictured in the graphic below, the highest strategic value is created when the value for each of the participants (customers, collaborators and the company)  coincide or overlap. 
The larger the area of common value, the greater the chance for strategic success. As the overlapping areas decrease in size the more difficult the strategy will be to execute successfully.  
As discussed in earlier blogs value is created by using the 4 Ps of marketing: Price, Place, Product and Promotion.  In the grid below a strategist can address the value for each of the four Ps as it relates to the customers, collaborators and the company. Each of the four Ps must be in alignment with each other and create the intended value for each of the participants.

When the area of the participants'  common value is identified for each of the 4 Ps an overall str…