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It is generally estimated that 98% of all new
products launched in the UK market fail! The causes
of this startling statistic are many and varied.
However there are some things you can do to improve
your chance of being in the 2% that succeed. Here
are some tips ...
Do enough people really want it?
It
might seem like a great idea to you. A new 'widget'
that saves you a lot of time or money. Or a new
service that makes something much easier ... in
your opinion. Maybe close colleagues, friends
and family think it's a good idea as well. Maybe
even some of them would pay good money to buy
it.
But outside of your close circle of acquaintances,
would people really want to buy this? And by really,
I mean that they'd want it enough to forgo purchasing
something else that they are used to buying.
The only way to prove the answer is to test the
idea. Depending upon the nature of the new product
or service, it's always a good idea to try it
out on 'strangers'. If they can see that the benefits
apply to them are a) desirable and b) worth the
price, then you might well have a winner on your
hands.
If the nature of your new offer means that it
won't be sold directly to the end-users, then
you'll need to test it on intermediaries (shops,
recommenders, etc.). Again, they need to see that
the end-user benefits are real and believe that,
should they stock/recommend the item, it would
sell well.
Unfortunately, it's no good just testing it on
a few 'strangers'. You really need to prove to
yourself that there is sufficient volume of potential
buyers to justify the investment of bringing it
to market. That might mean testing it in a number
of different geographic areas, or in different
market segments, until you are sure of the level
of demand.
During this testing you will be able to get invaluable
feedback that you can use in your marketing as
well as tips to improve the product/service and
pricing ... but only if you ask and take the trouble
to analyse the answers. And in analysing the answers
you might uncover the message that your product
idea isn't as good as you thought. Better to find
out now than after you've spent a heap on launching
it to no avail.
Can you afford to launch it?
Assuming that you do get good response from the
market testing and that you're convinced that
there is a real demand for your new product or
service, the next area to manage is the launch
process ... and the funding in particular.
The are always options when launching something
new. These fall onto a scale ranging from 'launch
with big bang' at one end, to 'escapes with barely
a noise' at the other end. As you can imagine
there is a marked difference in cost between the
two ends of the scale. Don't let your ego drive
where on the scale your launch fits.
Launching is in essence the start of your marketing
communication activity to tell the market segments
that will most benefit from the new product/service
of its existence, its benefits and how they can
buy it.
I've seen many marketing plans that call for
a large and expensive launch and then ... nothing
much. Not surprisingly these products fail to
return the volume of sales predicted.
So whilst the launch is the start of the communication
process, it should never be the end as well. Marketing
communications is a long haul strategy and to
be successful you need to budget for continued
activity after the launch. A general rule of thumb
here is 'if you can't afford to finish, then don't
spend the money to start'. My own experience also
tells me that budgets that rely on revenue from
early sales to fund subsequent marketing rarely
work. Early sales almost never come at the rate
that you predicted, which then causes a diminution
in post launch marketing which ultimately slows
momentum ... completely.
Many of the 98% of new products that fail are
good products ... but marketed without sufficient
budget or foresight. Make sure that yours is not
one of them.
Memorable marketing
Thinking and working pragmatically like this
will help you to make your marketing work better
for you in a more memorable way. This means that
your target customers will be able to differentiate
your products and services from those of your
competitors and clearly see the value in buying
from you.
If you would like some advice on memorable marketing
techniques for your own business, or you know
someone at another business who might need help,
then please contact Neil Brooks. The sooner you
start, the sooner you will benefit.
Contact Adduce Marketing Limited
Adduce Marketing Limited
44 Walnut Tree Lane
Longwick
Buckinghamshire
HP27 9SJ
T: 05511 435 853
info@adducemarketing.co.uk
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