Market Analysis - Tennant Consulting

Report
Avoiding the
Top 7 Mistakes
In Bringing New
Products to Market
By Steve Tennant
Meet Alex
Also known as…
Ms. Product
Manager
Alex lives in…
Flickr: http2007
and went to school at…
Flickr: matsuda.yukihiro
She drives a…
and has been asked
to bring a new …
Can she avoid common new
software product …
Today,
50-95% of
new products
fail.
Why do new products fail?
Primary Causes of Product Failure
Inadequate Market Analysis
Product Problems or Defects
Lack of Effective Marketing Effort
Higher Costs Than Anticipated
Competitive Strength or Reaction
Poor Timing of Introduction
Technical or Production Problems
All Other Causes
0%
10%
20%
50%
30% 40%
Percentage of Companies Citing (n=233)
Source: Conference Board as cited by R.G. Cooper, Winning at New Products
The reasons
The reasons products
products
fail
fail can be addressed.
can be
addressed
Flickr: Cynfreelancer
To do so requires a
paradigm shift
that challenges many of your current
beliefs
.
These Flawed Beliefs
Help Cause “Train Wrecks”
1. “We need to complete the product before I can show
it or talk to customers.”
2. “Our (business and/or compensation) plan says we
must ship a new product in six months.”
3. “Once we’re done building, we’ll give it to sales…”
4. “We’re opportunistic. If we find one customer who
wants something, we’ll build it.”
5. “The answers to our most important questions can be
found from inside our four walls, or on the Internet.”
Alex began to wonder, what
can I
do to
make my new
product…
How would you
help Alex answer
that question?
Before we build a better mousetrap,
we need to find out if there are any
mice out there.”
- Yogi Berra
Tip 1
Clarify your target market
Tip 2
Draft the buyer personas:
titles, roles, goals, top 2-3 problems
Tip 3
Validate the problem, roles, goals
and your prototype with 20-30
prospective customers
What’s frustrating
about doing Job X?
Our new
employees run
screaming they
hate it so much.
Sample Interview Questions
•
•
•
•
•
•
•
•
What are your top 3 goals? Challenges?
Typical day in your life?
How do you solve this problem today?
Who would you trust for advice?
How would you want to buy it?
What would you expect to pay?
What services would come with it?
If you had three choices in front of you, what criteria
would you use to evaluate them?
• What did you expect to talk about that we haven’t?
Tip 4
Perform a market sizing, market
analysis and competitive analysis
Tip 5
Use a new product process
Tip 6
Prove with early adopter
customers before launching
Tip 7
Develop a realistic marketing plan
and customer-centric message
Tip 8
Use a Proven Sales Model and
Enable Sales With What They Need to Win
Unprofitable:
You lose
Investment in each
transaction by Your
Company
Enterprise
Selling
Consultative
Selling
Transactional
Selling
Investment in each transaction
by Customer
Recommended reading: Neil Rackham, Rethinking the Sales Force
Poor service:
You lose
Now Alex
knows…
What her customers need
…how her
product
is different
…what her sales force needs
…and how to
make her
new product
Thanks to…
Grow your technology company. Faster.
Tennant Consulting Services
Strategy
Capital
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Marketing
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Facilitation
Financing
Assessment
Product Mgmt
Assessment
Marketing
Assessment
Alliance
Assessment
Vision & Mission
Business Plan
Market Needs
Interviews
Positioning &
Messaging
Alliance Strategy
Market Trends &
Analysis
Investor
Presentation
Win/Loss
Analysis
Website Strategy
& Content
Alliance Programs
Competitive
Analysis
Investor Meetings
Product Business
Plan
Marketing Plan &
Budget
Alliance Marketing
Opportunity
Assessment
Due Diligence
Support
Product
Messaging
PR & Thought
Leadership
Alliance Partner
Recruiting
Strategy
Development
Term Sheet
Support
Beta Customers
Trade Shows &
Events
Relationship
Rescue/Facilitation
Strategy Execution
& Metrics
Board
Communications
Launch
Sales & Customer
Conferences
Alliance Scorecard
& Metrics
Project Management
Leadership Feedback & Coaching
Organization Design, Staff Recruiting & Development
Collaborative Operating System
Alliances
Tennant Consulting Services
Strategy
Capital
Products
Marketing
Executive Team
Facilitation
Financing
Assessment
Product Mgmt
Assessment
Marketing
Assessment
Alliance
Assessment
Vision & Mission
Business Plan
Market Needs
Interviews
Positioning &
Messaging
Alliance Strategy
Market Trends &
Analysis
Investor
Presentation
Win/Loss
Analysis
Website Strategy
& Content
Alliance Programs
Competitive
Analysis
Investor Meetings
Product Business
Plan
Marketing Plan &
Budget
Alliance Marketing
Opportunity
Assessment
Due Diligence
Support
Product
Messaging
PR & Thought
Leadership
Alliance Partner
Recruiting
Strategy
Development
Term Sheet
Support
Beta Customers
Trade Shows &
Events
Relationship
Rescue/Facilitation
Strategy Execution
& Metrics
Board
Communications
Launch
Sales & Customer
Conferences
Alliance Scorecard
& Metrics
Project Management
Leadership Feedback & Coaching
Organization Design, Staff Recruiting & Development
Collaborative Operating System
Alliances
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Market Analysis
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