New Product Marketing: Products only a mother would love.... Shooting the puppies!

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
KU Leuven Master Class: New Product Marketing
2/11 What is a new product?
Products only a mother would love
Learning to shoot puppies

About this course
It 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
bryan@fast-bridge.com
+32-475-860-757

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 underestimated
The 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
Customer
Service
R & D
Logistics
Advertising
Top
Management
Sales
Purchasing
Marketing
Research
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 products
10%
Repositioning's
7%
Newnesstocompany
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, screening
Concept, analysis
Prod.
devel
Test
mktg
commercialization
The time to
Make 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

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 uninvolved
Introduction
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

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.com
Pet supplies via the
internet
Save big, save time
Stay at home

Kosmo.com
Instant delivery of
products purchased via
the internet in big cities.
Order a wide variety of
products, from movies to
snack food, and get them
delivered to your door for
free within an hour.

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

Continuous effort is the key to unlocking your potential
Winston Churchill

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

Petrock.com
Pets 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.com
Buying groceries should
be easier. With web van
you can get all your
groceries, so you have
time for other things

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
Given
Goals

E2
E3
E . . .
En
M1
M2
M3
M4
M5
Given Means
Imagined
Ends
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 am
What I know
Whom I Know
What can I do?
Interact with
others
Stakeholder
pre-
commitments
New
goals
new
means

Causal
Logic
(predict)
Visionary
Logic
(predict)
Adaptive
Logic
(react)
Effectuation
Logic
(negotiate)
lowhigh
low high
Predictability
ofthefuture
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

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