Notes - Marketing Innovations to Consumers - Marketing Innovations to Consumers Innovations are fraught with uncertainties of all kinds and that is what

Notes - Marketing Innovations to Consumers - Marketing...

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Unformatted text preview: Marketing Innovations to Consumers -­‐ Innovations are fraught with uncertainties of all kinds and that is what makes marketing them difficult. Point of Advice #1: Place your product firmly in ONE recognizable category -­‐ -­‐ -­‐ -­‐ One reason for doubts about ease of use and uncertainty about product performance is that consumers often can’t place innovations firmly into one familiar product category Consumers use heuristics (simple decision rules) to make sense of new products. They draw from their existing knowledge to interpret the selling proposition presented to them. Unless the product is strong enough to create its own new category, it makes sense to ‘attach’ your innovation to an existing product category to enable consumers to use their heuristic skills to make sense of the offer. E.g. Colgate 2-­‐in-­‐1 toothpaste & mouthwash Point of Advice #2: Get to know your customers -­‐ -­‐ -­‐ -­‐ Emotional attachment to an invention poses a problem when it comes to marketing Investors tend not to be good judges of what matters most in a product: Consumer perception of the product’s benefits Don’t use traditional market research techniques since customers may find it difficult to articulate a need, preference, or desire for products that they can’t see or easily understand. Consult Lead Users (individuals that are willing to adopt and try out innovative products before these products are introduced to the mass market; They are innovators in their own right since they are willing to take risks with new and unproven concepts). Lead users provide a glimpse of what future needs may look like. Point of Advice #3: Choose Your Market Segment and Your Story … Wisely -­‐ -­‐ -­‐ -­‐ -­‐ -­‐ Hard to select the best target market Innovations: Radically new products Reliable market knowledge about concerning adoption rates is hard to obtain Unfocused marketing (distributing risk over too many marketing segments) is ineffective because you spread resources thinly and no segment can be conquered Initial target market selection should be guided by a rigorous weighing of the consumer’s perceived cost/benefit ratio because this is ultimately is what determines product adoption Preparing and presenting a clear, simple, and unified story regarding the benefits of the innovation is the key to success -­‐ -­‐ -­‐ -­‐ -­‐ -­‐ -­‐ -­‐ Today, consumers are time-­‐starved and demanding – You need to have a good story to tell, and you need to tell them fast To practice, pretend you’re the consumer and ask yourself “What is the one thing about your product can do for me?” “Why is it better than what I currently use?” Selecting and communicating with the initial target market must take place with the future in mind Good innovation marketers select the initial target market for its ability to help spread adoption to adjacent market segments Capturing more segments likely means making more money on your innovation. It also allows the investor to extend the life cycle of the invention by continuously administering small changes to the initial product that specific segments perceive as valuable improvements Marketing innovations is difficult but essential since, by nature, the product creates uncertainty Innovators should regard marketing as a mediating institution between their innovations and the consumers – through marketing, consumers learn how to approach, imagine, and interpret the new product Through consumers, marketers learn how to approach, imagine, and create new innovations ...
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  • Fall '11
  • DetlevZwick
  • Marketing

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