How Market Motivation Directs Product Innovation
There are many collaborative parts to a cohesive strategy and a business develops in stages, but it’s imperative the products a business offers and the strategy of how to take them to market, are developed with synergy, not in isolation or as consecutive stages. The onus of success first and foremost is formed at the beginning of the marketing and sales process – when the product is created, because that’s when the key influences on successful sales are decided.
A great example of this in action is with a business I work with in China that has built a connection to customers in over five million affluent households. The business developed a platform that is totally integrated to serve the needs of the many millions of Chinese home owners in China and their Property Management Companies (PMC’s) who were using cumbersome manual systems.
Throughout development of the ERP and supporting platform, market needs and forces were a priority. The end result is a platform devised to simultaneously provide the connected customer with the convenience of a local community platform, targeted marcomms through the data and targeting advertising capability and an ecommerce facility that only serves products and services tailored to their needs. Their customer loyalty and satisfaction is the result of knowing what both the PMC’s and customers would enjoy and then tailoring the benefits of the platform to suit.
For disruptive new businesses or those adapting to change, commercial success will be based on getting the same formula right – providing something people want, at a price they’re willing to pay, putting it where they want it, generating awareness and a desire for it, completing lots of sales transactions AND SATISFYING customers.
The Fifth ‘P’ Is the Most Important
Many of the ‘four P’ decisions outline above impact on the logistics of product development, but it’s the ‘fifth P’, Psychology that is most pervasive in the result of the formula. Human behaviour is the hardest factor to control.
First and foremost I recommend you see your customers as real people, living in their real world because that’s what you’re trying to infiltrate to positive effect. In observing your target consumer in this manner, a myriad of influences affecting the human condition can be identified that are often impossible to see from statistical research and data alone.
As you create your product for a complex and informed customer in a fast moving market environment, it’s knowing the salient nuances of their lives that can allow you to build in competitive advantage, marketing success and customer satisfaction long before launch of your creation.
If you’re not sure how to do this, contact Wanted to assist you in this endeavour before you devise a product and then buy into a media and advertising strategy.