Product Marketing

How to market an innovative product

written by Tim Berry of Palo Alto Software http://www.paloalto.com

7 Comments

First, start with the benefit of innovation. Innovation works in business only when it creates a benefit. That benefit could be a cost savings or efficiency that benefits the producer or distributor, or a cost savings or anything else that benefits the customer. So your first step is to understand and demonstrate the benefit.

Some people talk of it as a pain point. In this context, the innovation has to solve some problem. Who has the problem it solves? How many people or organizations have it? How much is it worth to them?

Second, after you demonstrate the benefit (or the pain point), then you can start counting the target market that results: as above, how many target customers, why and how do they benefit, where are they, etc.

The third step is to figure out what message to send them and how to send it. That is about target marketing, segmentation, etc. This too is a classic process, the process of developing a marketing strategy.

The same basic process applies to a new innovation as well as to most other business plans: what message, what media, etc.

The fourth step is the estimate of how many of those target market points will adapt this technology and how fast. Put it into numbers.

Look for the classic research on adaptation of new technologies through defined groups, which we refer to in our book On Target: The Book on on Marketing Plans (available with Marketing Plan Pro at http://www.mplans.com). This is where they investigate the pattern of early adapters, opinion leaders, etc.

Make your estimate based on adaptation, quantify it into units and prices, and you have solved the problem. I don’t mean to imply that it is easy, because it is not. But it is a well-known path, the same one followed by many businesses that have introduced innovative products.

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Tim Berry

about the author

Tim Berry

Founder and President of Palo Alto Software and a renowned planning expert. He is listed in the index of "Fire in the Valley", by Swaine and Freiberger, the history of the personal computer industry. Tim contributes regularly to the bplans blog, the Huffingtonpost.com as well as his own blog, Planning, Startups, Stories. His full biography is available at www.timberry.com. Follow Tim onGoogle +

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7 Comments

Kwabena Osei Boateng August 12, 2011 at 8:47 am

very innovative and educative well like to learn more

zeida May 17, 2012 at 5:21 am

This article is very useful for me

ko May 19, 2012 at 7:59 am

knowledgeable

R. Lance Gardner June 16, 2012 at 7:12 pm

The sugggeztions offered were most simple and helpful, it takes some the guest work out of starting the journey. Thank you! R. Lance Gardner

SANATH December 3, 2012 at 10:31 pm

GOOD IDEARIN THTHIS SITE.TKS

Invocation Muhomba January 29, 2013 at 8:45 am

it si informative and encouraging

Songsak Klamklang January 30, 2013 at 9:24 pm

Very nice

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