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Market research is also invaluable in pricing your product or service. Ron Flounders, of Hertfordshire Business Link, which offers free advice to start-up businesses, says that all too often people work out their pricing ‘back-to-front’. They ask themselves how much they need to earn, what their costs are, and then price the product accordingly — regardless of what the market will pay. In fact, what you need to do is market research to establish what price the market will pay, then work out your costs and from that see whether it is worth going into business at all.’ ..more

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11. Test the product thoroughly prior to launch

Your new product won’t get off the ground unless you test it before the launch. Customers hate being guinea pigs and will start looking elsewhere for supplies, as well as returning faulty goods for recompense.

12. Plan the termination of a product’s lifespan

If a new product is intended to replace an existing one, it is essential to time the introduction of the new product so as to allow stocks of the existing product to be sold first. Be careful not to ‘land’ stocks of old models on a valued customer’s lap, as he will resent being overstocked and be unable to take up stocks of the new model. Try to find a market that will willingly accept the old models so that all your valued customers can be involved to the full in the new product launch. ..more

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Managers enjoy being involved in success and so will be full of enthusiasm as sales of a new product start to take off. Expansion and sales development from an increased range of products or a wider geographical area will not find enthusiasm or hard work wanting.

But how do we foresee the end of a product’s lifespan? Be prepared for it with a policy for new products and product improvements.

1. Prepare a product improvement plan

If your present products are selling well you cannot be blamed for feeling satisfied. However, your competitors are watching you with envy and will not have been idle. They are probably working at this very moment on a product with a few advantageous features, so don’t ever think that your current product design is the ultimate. There will be changes in style, custom, fashion, new technology etc. Ensure that your programme of product improvement keeps you ahead. ..more

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Now that we have examined some of the negatives of expansion from a very small business to a medium-sized small business, let’s give equal time to the potential benefits.

One of the most important components of gross profit is the degree to which you’re able to set your selling price. Your ability to set that price is largely a function of your control of the marketplace. At one extreme, you may have a patented product for which there is no substitute, and for which there is totally elastic demand (people will buy it at any cost). If that item costs you a dollar, you may be able to sell it for ten dollars, one hundred dollars, even one thousand dollars. At the other end of the spectrum, you may be selling wheat in Nebraska. In that case, it’s unlikely that you’ll be able to command one-tenth of one cent over the market price on the day you sell. ..more

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In the age of customer scarcity and the Internet, the boldness and ambition of the new market leaders are unprecedented. Like their market presence, their aspirations are larger than life. They stretch their resources to the maximum and set unprecedented goals for businesses still in their infancy. They are determined to rule their markets and have no qualms about making the serious and risky commitments necessary to do so. Such spirit stands in marked contrast to the traditional manager’s tendency to spread risk and exposure, to take small, well-tested steps forward, and to avoid putting all the eggs in one basket.

Not long ago I spoke to the leaders of a company in the cutthroat communications field that, in terms of its competencies and operating model, looked very promising. But one vital element was missing: The leaders‘ aspirations were woefully inadequate for the battles that lay ahead. ..more

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Current works in progress include Nokia “hot spots,” which are set up in hotels and airports to allow travelers to make wireless connections to the Internet and video telephones. The company emphasizes the product’s color and design and plans to introduce new models every year, employing the same strategy car manufacturers do with new styles each year. All of these approaches target searchers.

Looking forward, Nokia is betting that their search customers (or trendsetters, as this company calls them) will focus on the handset’s visuals as they tap into the device’s data capabilities that will link them to the Internet, word processing programs, a network diary, information services, e-commerce activities, and even allow them to view moving images. In the not too distant future, the handsets will enable traveling Nokia users to get news and information from home by downloading; say, a local newscast to the nearest television set. ..more

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Companies that have attained the status of market leaders are not content to rest on their laurels or on their existing products, nor should they be. They accept the unending responsibility of exploring uncharted terrain to imagine and design new products with original features and unique benefits. Market leaders are always thinking about the future, working to anticipate not-yet-recognized needs.

They also know that customers—especially searchers—are not necessarily looking for what they are selling. Often people want something that doesn’t yet exist, or they have a problem to which there is not yet a solution. Historically, market leaders made sure that their pipelines were filled with a steady stream of new technology, distinctive designs, and original gadgets. Today, a full pipeline is not enough. To satisfy searchers, market leaders must try to answer questions that have not yet been asked. ..more

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The second type of manager is keen to learn from market leaders. Astute observers, they have a penchant for analysis and methodology. You can visualize them taking copious notes, jotting down ideas, making checklists, and trying to decipher winning formulas. These managers reside equally among market-leading companies and their lagging competitors. Both design insightful strategies and plans for action. Yet the laggards have more trouble getting others within their organizations to adopt their plans. That even seasoned managers aren’t immune to this problem is evidenced in the number of well-considered plans and sound proposals that die prematurely because they are stonewalled by other departments, ignored by coworkers, or overshadowed by more prosaic routines. This situation is all too familiar to consultants whose well-crafted recommendations end up collecting dust because their clients were not adequately prepared for the changes the new plans entailed. Additionally, rookie MBAs face a rude awakening the first time their knowledge and bright ideas are not instantly acclaimed.

Whereas earlier the manager’s trouble was mobilizing employees, in this instance the obstacle is her or his inability to rally colleagues and bosses around the proposed solutions. If and when they overcome their resistance, excessive amounts of precious energy and time will have been lost. That they may shine methodically is irrelevant in this context because their direction and priorities aren’t aligned with those of the other people who have a stake in the outcome. Market leadership doesn’t bypass these managers because their plans lack specificity or rigor, but rather because they are not sharing the perspective held by the rest of the organization regarding exactly what needs to be done to win in the marketplace. ..more

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The pursuit of marketplace victory is an emotionally chargedtopic. As the competition intensifies, so do the excitement and apprehension in those participating and watching. Top performers and winning teams evoke feelings of ecstasy and admiration in some, but agony and envy in others. Likewise, when the results of the battle over customers are tallied, some managers are electrified, while others are filled with dread.

Invariably, the managers most conflicted are those who had been within striking distance of winning, only to watch victory slip from their hands. They pursued strategies very similar to those employed by the leaders, but not with the same results. In fact, most of what this articles addresses would apply to them—if only they could notch up their performances.

“What’s missing?” they ask in frustration. “We do everything our toughest competitors do, if not more. It isn’t possible to work harder than we do, and still, we aren’t breaking through.” Adding insult to injury, Wall Street and the business press ignore their not insignificant accomplishments, charmed instead by flashier performers and upstarts despite the fact that these companies are yet to see a profit. As the “almost winning” managers will attest, there’s an elusive quality surrounding market leadership that deserves further comment in this final article.
DODO Marketing Blog

To understand more clearly that fine but critical line between near victory and victory, I discussed the issue with numerous executives who had experienced both sides of it. As diverse as their viewpoints are, they concur that establishing a market presence, boldness, capitalizing on customers’ shifting priorities, and a healthy dose of fearlessness determine the battle for customers. But, they add emphatically, ultimately what gives them the edge—especially when they’re in a close contest on an even playing field—is their motivation and method. Permeating the core of each employee as well as the general environment of the organization with the shared ambition and unflagging determination to win in the marketplace is how they describe motivation. Method requires identifying which approach or process works best for the organization, then building momentum by systematically and relentlessly improving upon it—practice, practice, and practice.

Certainly, I do not disagree: Their directives echo those laid out in The Discipline of Market Leaders as well as in numerous other articles and articles on the topic. Though not revolutionary, they are easily overlooked in the heat of the race. For the purpose of illustration, let’s consider how three different managers respond to the successes .of others. Their reactions offer clues and reminders of what is missing from their quests for success.

First, think about managers who love to hear memorable stories about the exploits of top performers. They are motivated by the market leaders’ bold and imaginative activities, especially when the winners start out against the odds. At the same time, hearing about the leaders induces anxiety and makes them acutely aware of the dangers inherent in falling behind. The resulting ambivalence of inspiration and fear creates a sense of urgency. They feel impatient to initiate some sort of action even

though its details have not yet been refined and their troops are not yet prepared.

In market-leading companies populated with like-minded folks, these calls to action find a receptive audience and serve to invigorate the business. Even when directions are sketchy— possibly because they are not set in stone, thus leaving room for exploration—these organizations find a way to convert that sketchiness to their advantage. Many have been in this position before; and if not, they’re confident, and usually justifiably so, that they will find a way to make the plan work.

Similar calls to action may resonate less well in companies that are lagging in their fields. There, the employees can be leery of undertaking the manager’s biddings because, at least in part, the word “challenge” connotes more work. Unconvinced that the extra effort will matter, they don’t share the boss’s resolve, exuberance, and optimism. Cajoled or coerced into action, they cooperate, butfail to exert themselves. Only staring disaster in the face mobilizes them to scramble, but by then it is usually too late.

What is missing is a common sense of urgency (felt in time to matter) and a reliable road map. Lacking in these companies are clear goals and a well-practiced, organized method of tackling issues. Managers can’t articulate an inspiring course to their employees if they don’t have one, and many companies (that is, people) are not good at making it up as they go along.

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`Second-generation’ mobile phones introduced early in 2001 offer faster connection speeds and are starting to carry advertising. High response rates are currently enjoyed by advertisers (perhaps owing to the novelty factor!), and the most successful campaigns have been run by companies such as the Sun newspaper, which has used the mobile channel to advertise competitions being run in the paper itself. In other words, the Sun is using online advertising to drive its traditional core business — which is offline newspaper sales. Mobile advertising still represents a very small percentage of company promotional spend in comparison with more traditional media such as radio and television, but the figure is increasing. Business services via mobile channels are currently few and far between, but early experiments are under way with order placing, stock-checking availability and order tracking to facilitate supply chain integration. ..more

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