new product marketing: products only a mother would love.... shooting the puppies!

Bryan Cassady Guest Professor, [email protected]

KU Leuven Master Class: New Product Marketing2/11 What is a new product?

Products only a mother would love

Learning to shoot puppies


About this courseIt is a sad fact that most new businesses, products and service fail. Some estimate the failure rate is as high as 90%. This course is about why products fail and what you can do to increase your odds of success.

This lecture is a part of series of 12 lectures. In my classes I use a lot of videos. If you’d like to see the presentations with videos, go to: http://www.fast-bridge.net/resources/new-product-marketing/

I hope in the pages that follow you will find new ideas and inspiration… If you’d like to download the whole class go to: http://www.slideshare.net/bryancassady2/2009-course-new-product-management-by-bryan-cassady

If you have ideas on ways to improve this course or would like help with your new products, I’d love to here from you…

Bryan Cassady [email protected] +32-475-860-757

http://www.fast-bridge.net/resources/new-product-marketing/

http://www.slideshare.net/bryancassady2/2009-course-new-product-management-by-bryan-cassady


S imple

Unexpected

C oncrete

C redible

E motional

S tory Based


A less-than-optimal "configuration" of product or service attributes and benefits is selected.

Lack of a strong sustainable position in the market

Marketers fall in love with a product no one else loves

The marketing plan for the new product or service is not well implemented in the real world.

Marketers assess the marketing climate inadequately.

The plan is too complicated

A failure to ask the right questions and a belief that everything is a big idea

No Support to get things done

A questionable pricing strategy is implemented. A weak positioning strategy is used.

Cannibalization underestimatedThe advertising campaign generates an insufficient level of new product/new service awareness.

Over-optimism about the marketing plan leads to a forecast that cannot be sustained in the real world.

Too focused on the internal game not enough on the market

The Lemming effect


Marketing is the management process that identifies, anticipates and satisfies customer

requirements profitably.

The Chartered Institute of Marketing (CIM)


Sometimes you gotta shoot the puppy before he grows up


“There will always be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available.”Peter Drucker


Expected


Core Benefit

Generic Product

Expected Product

Augmented Product

Potential Product

Q: Why is the iPod a success…


What makes what you’re selling

Different and desirable


Business analysis

Evaluation of ideas

Making things happen

3 fundamental roles

Accountable for definition, development, marketing and profits of a product

Defines the business case, gets money, responsible for ROI

Managing a business

A baby CEO


Product Manager

CustomerService

R & D

Logistics

Advertising

TopManagement

Sales

Purchasing

MarketingResearch

Legal

Customers

Finance

Production


“Product management is one of the most common training grounds for senior executives. Many VPs and CEOs were

formerly product managers. The joy (and sometimes pain) of product management is it’s horizontal nature, working with Sales, Development, Marcom, Finance, Professional Services

and senior Executives. Product management is where we learn to lead through influence rather than mandate.”

Barbara Nelson, Pragmatic Marketing


You have to keep pulling


High

Low High

New product

lines 20%

Improvements to existing products

26%

Additions to existing

product lines 26%

New-to-world products10%

Repositioning's7%N

ew

ne

ss t

o c

om

pa

ny

Newness to market

Size of circle denotes number of introductions relative to total


Apple operating system vs. Windows

This South African Shiraz received 87pts from Rovani, Wine Advocate #155


“people look at what interests them and sometimes it’s your ad.”

Howard Gossage


1965 1974 1981 1986 1990 1997

34%

24%

13% 12%8%

?

Percent of adult viewers who could name one or more brands advertised in a TV program they had just watched:

Newspaper Ad Bureau


‘‘More than nine out of ten consumable products launched in the last ten years offered absolutely nothing new to the consumer.

More than eight out of ten new products fail. You don’t need to be a statistician to realize there’s a correlation between the two numbers.’’

-- Robert McMath


Idea Generation

Screening

Concept Development & Testing

Marketing Strategy

Business Analysis

Product Development

Test Marketing

Commercialization


Ideas, screeningConcept, analysis

Prod.devel

Testmktg

commercialization

The time toMake mistakes !

Budget


“I think there’s a world market for about five computers.”

(President of IBM)

“TV won’t be able to hold on to any market it captures after the first six months. People will soon get tired of staring at a plywood box every night.”

(President of 20th Century Fox)


“I think there’s a world market for about five computers.”

(President of IBM)

TV won’t be able to hold on to any market it captures after the first six months. People will soon get tired of staring at a plywood box every night.”

(President of 20th Century Fox)


today’s business


Study

Test

Do


Solution

Do more

But in my opinion, almost certainly wrong


Ready, Aim,Fire


Concept Development

Implementation

Project Start Concept Freeze Market Introduction

Concept Time Response Time

Total Lead Time


Post-It-Notes: the super glue

that wouldn’t stick

Levi jeans: the failed gold

digger feeding his family


Ready, Fire, Aim


Failure = Normal = Good.

(“Reward excellent failure. Punish mediocre success.”)

“Fail faster. Succeed sooner.“

“Fail. Forward”

Tom Peters


Concept Development

Implementation

Project Start Concept Freeze Market Introduction

Concept Time Response Time

Total Lead Time


Fire, Fire, Fire


"Life is what happens while you’re busy making plans"

--John Lennon


Exultation

Disenchantment

Confusion

Search for the guilty

Punishment for innocent

Distinction for uninvolvedIntroduction

Testing/Test MKTG

Screening & Refinement

Idea Generation


“Remember Perspective is everything.”

Two shoe salesmen... find themselves in backward part of Africa. The first salesman wires back to the head office.... there is no prospect of sales.. Natives do not wear shoes.

The second wires "No one wears shoes here. We can dominate the market. Send all available stock

Plus organization in groups

business ideas

Which puppy(ies) worth saving ?


Group

Number

Pets.com Kosmo Despair.com Etoys.com Petrock.com Flooz Webvan

Is there a benefit (real or

percieved)

People willing to pay (enough)

Cost of cut-through acceptable

People will see the benefit buy

again / recommend to others

Will someone hate it

Kill Puppy (0 = kill, 1 = love)

Member Views

Class ID

Pets.comPet supplies via the

internet

Save big, save time Stay at home

Kosmo.comInstant delivery of products purchased via the internet in big cities.

Order a wide variety ofproducts, from movies to snack food, and get themdelivered to your door forfree within an hour.


Despair.comWe hate all the senseless, wasted time on employee motivation and un-founded optimismWe imagine you do to, buy our products and show your true colors


Continuous effort is the key to unlocking your potentialWinston Churchill

Etoys.com

The new place to buy toys. Find you want on the internet

Petrock.comPets take a lot of time and energy. Your kids can have almost as much fun with a pet rock.

We even include a care guide


Webvan.comBuying groceries should be easier. With web van you can get all your groceries, so you have time for other things


Group

Number

Pets.com Kosmo Despair.com Etoys.com Petrock.com Flooz Webvan

Is there a benefit (real or

percieved)

People willing to pay (enough)

Cost of cut-through acceptable

People will see the benefit buy

again / recommend to others

Will someone hate it

Kill Puppy (0 = kill, 1 = love)

Member Views

Class ID

Where do big ideas come from ?


Distinguishing Characteristic:

Selecting between given means to achieve pre-determined goals

Sometimes new means may be generated

M1

M2

M3

M5

M4

GivenGoals


E2

E3

E . . .

En

M1 M2M3

M4

M5

Given Means

ImaginedEnds

E1

Distinguishing Characteristic:

Imagining possible new ends using a given set of means


Who is coming

What will they like

Plan a menu

Go Shopping

Make the meal

Enjoy

Traditional

What is in the Fridge ?

What can we do with that

Guess what is for dinner ?

Enjoy ?

Effectual


?


Leverage contigencies


Who I amWhat I knowWhom I Know

What can I do?Interact with

others

Stakeholder pre-

commitments

New goals

new means


CausalLogic

(predict)

VisionaryLogic

(predict)

AdaptiveLogic

(react)

EffectuationLogic

(negotiate)low

hig

h

low high

Pre

dic

tab

ilit

y

of

the

fu

ture

Controllability of the future

Effectuate …… under uncertainty… in new markets… for new products


The quickest easiest way to get started selling a product…

Objective: Fast failures and

maybe a big success


“Concepts are ideas that you think will resonate and mean something to people interested in a product or service. Good concepts are insight based.”

“You need to think about what are the real benefits consumers are looking for. Concept statements should be written in a manner that stresses the strategic benefits of any given concept vs. creative writing appeal.”

“While the copywriting should be neither boring nor bland, it is important to distill the idea down to its primary reason-for-being.”


or


Reciprocity

On is more willing to comply with a request for participation to the extent that compliance constitutes repayment of a perceived gift favour or concession.

Consistency

Once an individual has taken a freely chosen stand on an issue, he/ she will exhibit a tendency to act consistently with this commitment

Social validation

Individual commonly decide on appropriate actions for themselves by searching for information as to how similar other have acted or are acting in a similar situation

Authority

People are more likely to participate if a legitimate authority is asking for participation

Scarcity

Requests than emphasise the value of “making your voice hear” or “having your opinion count” will be more effective when coupled with information suggesting that such an opportunity is rare.


What you need to deliver Group

Core Concept + Loans: Home or personal 1 6

Core Concept + Credit Card 2 7

Core Concept + Insurance: Life, Home, Car, Travel… 3 8

Core Concept + Telephone/ Internet or Mobile 4 9

Core Concept + Utility: Gas, Electric, Water… 5 10


Accepted beliefs

Consumers are getting more and more frustrated with "unwanted mail“

The mail I send is not junk mail - it just needs to go to the right people

There is a shortage of relevant data. Data is often out of date/not updated very regularly

Benefit

Select Post gives you the information you need to reach consumers that want your mail

Reason to believe in the product

Proven to work in other countries. Response rates 20-400% higher

a program being developed with you in mind

with the support of the Belgian Post brand

Reassurance

Developed in collaboration with leading companies, and industry leaders

based on detailed consumer and advertiser testing

Brand Character

Always on the look out for win/win/ solutions. Always doing the right thing....

A good listener, willing to learn/open/progressive, well-informed/ever striving

new product marketing: products only a mother would love.... shooting the puppies!

Business

new products

new product marketing211

new ideas

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youbryan cassady

lovesthe marketing plan

service attributes

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