New Product Marketing: Increased your odds of new product success...30 hours of lectures in 60...

Bryan Cassady Guest Professor, [email protected]

KU Leuven Master Class: New Product Marketing11/11 Course Summary

Increase your odds of new product success

30 hours of lectures in 60 minutes


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


When I was growing up, my parents told me, “Finish your dinner. People in China and India are starving.” I tell my daughters, “Finish your homework. People in India and China are starving for your job.”


“Let’s make a dent in the universe.”Steve Jobs

Apple Computer


Let’s make sure we follow the books…A typical Marketing MBA


An interesting book…Counterintuitive Marketing

Studying brands in 48 categories


Airlines Gas Stations Mid-priced American Cars Athletic Shoes Haircare Products Mid-priced Foreign Cars Auto Insurance Headache Remedies Motor Oils Banks Health & Fitness Clubs Newspapers Beers Home Entertainment Equip. Office Supply Stores Bookstores Hotels Personal Computers Bottled water Household Cleansers Pet Supply Stores Catalog clothing Internet Search Engines Pet Supply Stores Cigarettes Internet Service Providers Political Parties Colas Jewelry Potato Chips Cold Cereals Laundry Detergents Rental Cars Cookies Liquor Soaps Cosmetics Long-Distance Telephone Spaghetti Sauces Credit Cards Luxury American Cars Toothpastes Department Stores Luxury Foreign Cars TV Networks Fast Food Restaurants Major Household Appliances Weight Loss Programs


Decreasing in 39 Stable in 5 Improving in only 4


The study also showed that in two-thirds of all product categories, a low price is becoming more important than brand driven product features, attributes, and benefits.


The study led us to conclude that far more brands are being transformed into commodities than commodities are being transformed into brands.


14% Above

Average

2% Well below

average

68% Average Marketing

Program

The Zone ofExceptional Marketing

The Zone ofConventional Marketing

14%Below Average

2% Well above

average

The Marketing Performance Bell Curve

Source: Counter-Intuitive marketing (2002)

In a connected world, little incremental stepsare the slow death of a brand


“Learn not to be careful.”—Photographer Diane Arbus to her students

(Careful = “The sidelines,” per Harriet Rubin in The Princessa)


Google, 9/11, the Internet

Banking: : 1982/Default Latin America = Total historical earnings; 1992/S & L; 2002/dot.com

Wall Street: “In the last 50 years, the most extreme days in the financial markets represent half of the returns. Ten days in 50 years. Meanwhile, we are mired in chitchat.”

The 3 of biggest inventions of the 20th century were accidents: The Laser, the computer, The internet

The Black Swan: The Impact of the Highly Improbable, Nassim Nicholas Taleb


“This book is about luck disguised and perceived as non-luck (that is, skills) and more generally randomness disguised and perceived as non-randomness. It manifests itself in the shape of the lucky fool, defined as a person who benefited from a disproportionate share of luck but attributed his success to some other, generally precise reason.”“We underestimate the share of randomness in just about everything, a point that might not merit a book—except when it is the specialist who is the fool of all fools.”“Mild success can be explainable by skills and labor. Wild success is attributable to variance.”

Source: Fooled by Randomness: The Hidden Role of Chance in Life and the Markets —Nassim Nicholas Taleb


Scientific Research Biotech Movies Publishing Venture Capital

Military Catastrophe insurance Homeland security Banking, lending

10Class Summary

Thoughts to leave with

1Meaningful

differentiation

Is there something that makes you special Normal = nothing !


218

142

100

McMaster UniversityHamilton, Ontario, Canada

2Your advertising needs to

be as good as yourbest salesman

Clarity in communication

Every dayYou are bombarded

by up to 4,000 ads


Let a customer say NO because what you offer

doesn’t apply to them.

But NEVER let a customer say NO because they don’t understand

what you’re offering.


3 Chefs - 3 Years - World Cooking Competition Medalists


18%

29%

42%

3Are you offering, value, innovation

or service(you need to choose ! )

Everything Sells


1 + 1 + 1 + 1 = Beauty

1 + 1 + 1 + 0 = Failure

Dramatic differencesClarity in communicationEverything Selling

4Candor Counts !

Be Real

5Good advertising = nice

Good word of mouth = Great !

Be connected


You

6Develop gut feelingsTalk to non-experts

Don’t be fooled by the experts !

2 out of 10 real differences, the rest statistically significant

Yes

Yes

Source: New products what separates winners from losers Cooper & Kleinschmidt


Personal opinion:

All the success criteria identified in the winners/losers article are relevant. But what makes a product a success is

An exceptionally high score on 1 criteria or more likely…

A good score on a range of criteria

7If you enjoy what you do… you’re likely

to do it wellIf you believe you’ll do it even better

Have fun

8Good marketing is about business

and people.Understanding business is easy…

understanding people takes lifetime

Expand your horizons


What…

9Never think you own your

customer… you earn them every day

Share of customer

Bryan Cassady Guest Professor, [email protected] MarketingBryan Cassady 07/08


"Our buyers"


Not Aware

Sole Buyer

11 Representative FMCG Brands

69% tothe competition

the brand31% to

Not Aware

Sole Buyer

Dramatic differencesClarity in communicationEverything Selling

What… How…

Be Real Be connectedDon’t be fooledHave funLearn

Measures

Share of customerOngoing dialogue: what do they say

Thomas L. FriedmanNew York Times ColumnistAuthor “The World is Flat”

When I was growing up, my parents told me, "Finish your dinner. People in China and India are starving."

Today I tell my daughters, "Finish your homework. People in India and China are starving for your job."

New Product Marketing: Increased your odds of new product success...30 hours of lectures in 60...

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