Do you ever wonder why some companies succeed while others just fade away? We have found through our own businesses, and through our clients, that four factors play a predominnant role in determining long term success. These factors are: product placement, target market, management team and marketing strategy.
The market must be large enough and the buyers need to be looking for a solution to their problem. If the market segment is too small for you to do well with just a 5% market share, then a likely “dog fight” will occur to get your product moving. You should also know if the target market is expanding or contracting and if your competitors have a strategic advantage over you.
The positioning (placement) of your product/service in the target market is critical too. Why would someone buy your product versus others? What makes your product better, cheaper or sexier than those already in the market? If this is an emerging market, what specific problem are you solving? If your team is in love with the product, it may not be on point with what buyers need. Making it obvious that you are the superior answer to the customer’s question is imperative and not always easy to do. By focusing on why the customer would buy your product and placing it with the competitive pricing, features and functions will set you up strategically.
Your team and its skills are the most important factor in the success of the two factors just mentioned. You need skilled teams in marketing, sales, product development, finance and operations to consistently perform at the top of your game. (Some areas may be filled in the short term with interim executives if you can’t afford the best in all areas.) A continuous process of holding all team members accountable will drive results and identify weak links in your team. Accountability is an active process in all high flying companies. Early stage companies must find these skills quickly to survive rapidly changing markets.
The fourth factor is your go-to-market strategy (GTM strategy) for new product/services. Knowing how to make the market aware and effectively launching your product, is based on identifying unserved needs in your market. Having a well-thought-out strategy for product development, delivery/distribution channels, and sales messaging must be done before launch. Identifying impediments in these ares in advance is necessary for a successful launch to occur. High flying companies develop detailed plans for execution and workarounds where needed. The success is found in the details of your plan.
We can help you with the analysis and planning for your launch. We offer two hours of free advisory if you just give us a call. Why not try us out?