New Product Marketing: What really happens at work.... Getting out of the thick of thin things!

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
KU Leuven Master Class: New Product Marketing
6/11 The real role of marketing
What really happens at work
Getting out of the thick of thin things

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

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

- Startup firm

Convert the value proposition into
a market offering
Inbound
Product Development
Outbound
Product Marketing
Take the offering and the
value message to market

“Outbound/Tactical”
 Outbound-heavy role
 Understanding of product
 Understanding of vertical markets
 Less authority and direct influence
 Ability to manage interfaces
 Ability to communicate internally
“Inbound/Strategic”
 Inbound-heavy role
 Close interaction with engineering
 Defining target markets
 Generating customer wins
 Broad authority and influence
 Ability to think strategically

Market requirements
Positioning framework
Product launches
List pricing/SKUs

Product Manager Influence
(1-None, 10- Complete)
Defining Product Specifications 7.23
Managing Product Releases 6.96
Product Positioning 6.93
Product Upgrade Decisions 6.28
Managing Launch Events 6.44
Product Pricing 6.28
Product Packaging/SKU Decisions 6.31
Customer Segmentation 5.62
Consumer Promotions 5.48
Channel and Partner Promotions 5.15
Product Advertising 5.26
Channel Selection 4.78
Corporate Branding & Advertising 4.46

Product
Development
Product
Conception
Product
Launch
Product
Sustaining
Responsibilities:
 Market research
 Target market definition
 Competitive analysis
 Positioning
 Market Requirement
Forecasts
Interfaces:
 Customers
 Research firms
 Engineering
 Finance
 Sales
Responsibilities:
 Refine market
requirements
 Customer research
 Trade-off schedule
vs. features
Interfaces:
 Engineering
 Customers
 Partners
Responsibilities:
 Product introduction plan
 Customer demos
 Refined forecasts
 Sales training
 Press kits
 Trade shows Events
collateral
 Promotion/Advertising
 BOM/Inventory
Responsibilities:
 Sales training
 Customer promotions
 Trade promotions
 Product updates
 Next version planning
Interfaces:
 Customers
 Engineering
 Tech support
 Sales
 Partners
Interfaces:
 Customers
 Sales
 Analysts
 Press
 Engineering
 Finance
 Tech support

Yes No
Product Revenues 62.2% 37.8%
Product Profitability 61.5% 38.5%
Market Share 46.9% 53.1%
Customer Satisfaction 19.7% 80.3%

Business
Knowledge
Business
Knowledge
Business
Knowledge
Business
Knowledge
Business
Knowledge
 “What it does”
 “What it needs to do”
 Product functionality
 Product roadmap
 Product architecture
 Core technology
 Product bugs/gaps
 Product usability
 Complementary products
 Competing products
 Who - Customer segments
 Why - Customer needs
 Where – End-use scenarios
 How often – Usage levels
 Why not – Usage barriers
 Who else – Customer DMU
 How – Customer DMP
 Purchase drivers
 Upgrade drivers
 Installation experience
 Usage experience
 Customization experience
 Support experience
 Upgrade experience
 Partner/VAR experience
 Unmet needs
 Known product problems
 Known service problems
 Brand/company image
 Customer satisfaction
 Key demand trends (by
segment)
 Key technology trends
 Key alliances/partnerships
 Competitive products
 Competitors’ motivations
 Potential competitors
 Strengths/weaknesses
(company)
(product)
(partners)
(brand)
 Customer insight process
 MRD development process
 Product planning process
 Budgeting process
 Product development
process
 Product testing process
 Product launch process
 Partner management
process
 Company values
 Company vision/strategy
 Company image/brand
 Vision of the business
 Goals of the business

Importance (10 point scale)
Customer knowledge 8.81
Product knowledge 8.65
Competitor knowledge 8.21
Company business knowledge 8.00
Macro environmental knowledge 7.61

+/- 20% 20-30%
+/- 20% +/- 40%

Important !
What you know don’t know might be less important
than what don’t know you don’t know

Important: remember we tend to over-estimate our capabilities I
wouldn’t invest in this business

Group
Group
Prediction
Score
Group Size Worse Percentile
Number
Correct
Group
Number
Indiv. Avg
9 1 5 4 20% 7 4.4
1 1 9 8 11% 5 3.0
4 2 9 7 22% 5 3.2
10 3 7 4 43% 4 2.8
5 4 8 4 50% 4 3.0
2 4 5 1 80% 4 3.0
7 6 7 1 86% 4 4.4
8 3 8 5 38% 3 1.6
6 5 8 3 63% 3 2.9
3 7 8 1 88% 2 2.6
50%

Statement of Purpose
An introductory sentence that concisely and succinctly
states the reason for the recommendation. Provides a
context for the memo as a whole
Background
Factual analysis That connects the purpose of the
memo to the strategic objectives of the company or
the brand. Also provides facts in relation to the
problem recommendation Is supposed to address.
Rationale
The reasons for the recommendation, and the logic
by which the recommendation was reached.
Recommandation
The specific proposal on how to solve the problem or
exploit the opportunity detailed in the background
section.
Discussion
Details of the recommendation, anticipated questions
or areas of concern, risk assessment, identification of
other alternatives, details of the recommendation.
Next Steps
Who will be following through on the
recommendation, what target dates they would be
working towards, what actions they would be taking
to execute the recommendation
Supporting Exhibits
Other supplementary information as appropriate.

(not looking for an answer but how to find the answer)
Is there a market for high priced (very effective)
loan leads in Belgium

Note; if you want to make this east, think about how an advertisement is put together. Hook, Product (in your case your
Reco) Benefit, Reason Why, Next steps.

Facts

Next assignment due
before the next class not Monday

Due Date Assignment
Presentation
Group
Grading
Group
10/10/2007 What is the product (consumer + partner) 1 5
10/10/2007 What is the product (consumer + 2 6
10/17/2007 What are the right research Qs 3 7
10/31/2007 Pricing for value and profits 4 8
11/7/2007 Predicting business results/scenario planning 5 9
11/14/2007 15 minutes to fame; presenting your bus. Case 6 10
11/21/2007 A realistic into market timing 7 1
11/28/2007 What if, planning for the first 3 months 8 2
12/5/2007 Business Metrics – scorecard for success 9 3
12/12/2007 Launch advertising 10 4
Deliver your next assignment to group 10 and me
List of groups and group member sent by email to all class
participants

Assignment due November 5 (this is Monday November 5)

Keys to evaluating advertising
And some fun to end the class
7

Where is John
The beef West Drugs
[ ] Win [ ] Win [ ] Win
[ ] lose [ ] lose [ ] lose
What is your gut reaction?
Is a clear strategy communicated?
What’s the Big Selling Idea?
Is Drama used and is it good?
Product Registration and Recall
Is it convincing and distinctive
Does it motivate action?
Winner/Loser
Budget Allocation

New Product Marketing: What really happens at work.... Getting out of the thick of thin things!

New Product Marketing: What really happens at work.... Getting out of the thick of thin things!

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