Eight Reasons Why New Products Fail
The most optimistic success rate I have run across for new product ideas is about 3%. In other words, 97% of product ideas never successfully enter the market. There are lots of reasons for this low level of performance, but there is a consistency around a few common mistakes that routinely present themselves with inventors and new product marketers. These are not the only reasons, but if you can avoid these mistakes, you can greatly improve your chances for success.
The Product: The single biggest shortcoming in new product introductions is not fully understanding the product, its usage and the target market. A dead give away to this problem is when I ask inventors to define the target market and they tell me, “Everybody.” If your target market is everybody, you are doomed to failure. It is like shooting a gun at a bull’s eye. You will most likely never hit the bull’s eye if you are aiming at the whole target.
The Opportunity: One of the most difficult questions to answer in preparing a new product for market is defining the opportunity. Sadly, there is not enough information available about most product categories and if you have something that is entirely new, there are no reference points, but this is critical information for the decision-makers you will be dealing with. You must have some verifiable estimate for the potential of this product.
Reviewing Your Networking Schedule
I think most of us are pretty sold on the idea of extending our networks. Knowing more people gives you a greater opportunity to be of service. Like many other marketing activities, networking requires an investment – of your money, your time and your commitment. So before paying again for another year’s membership, take a moment to analyse whether this investment has given you the return you expected.
Firstly, did you commit fully to the network over the last year. Did you go to meetings regularly, make an effort to meet new people, and then keep in touch with them afterwards? Did you join a committee or become involved in the management of the group?
If you haven’t made the grade by participating fully in a network, then you shouldn’t expect a big return. Your decision on whether to stay with this particular network should revolve around whether you plan to put in 100% effort for the next 12 months.
Centres of Influence
A Centre of Influence is a fancy way of identifying people that have a hugely positive impact on your business. They often refer people and business to you, and are actively glowing about what you provide and how you provide it. Every business needs a couple of these gems, and once you have them, you should bend over backwards to make sure they continue to think positively about you.
But how do you find and connect with these people? Here’s an Action Plan that will help make things move faster.
1. Let them know they are special
Tell them they are a top client, and let them know about any special treatment or offers that entitles them to.
2. Keep them updated about your business
If you want them to continue to refer ideal business to you then you need to let them know what a perfect client or opportunity looks like. If you take on a new direction, or change your products and services, why not take them out for coffee and update them on what’s happening.
Using Internet Opportunities to Expand Your Business
Managing your business effectively in this emerging high-speed business world depends on how fast you gather, manage and utilise relevant information in your core business area. Even if you have not started your business, relevant information at your fingertips is what you would require to move your business. Do you want to raise capital for your business? What if I show you a way to go about it?