Developing a new product or service responds to unfulfilled needs. It innovates, suggests something new, adapts and optimizes procedures so as to offer solutions that answer needs that you’ve identified. Product and service development also signifies showing audacity and taking risks. But it’s possible to limit the risks, or at the very least, to calculate them.
It’s deplorable that the introduction of products and services in all types of industries in B2B have a 60% to 90% failure rate. Of these failures, 75% are the result of market misconceptions or lack of market validation; hence the importance of commercial research.
I’ve had many exploratory meetings with companies looking to develop new products and services and that, in the process, are closed to the commercial research step that consists in validating, confirming or learning more about major elements of the market for the success of their project to occur. And I don’t mean only validating the product notoriety or name, but also the basic elements that are part of marketing in business to business.
Unique
To promote the value of commercial research, I explain to these companies that one of its major advantages is the increase in speed of product or service introduction to the market, or “time to market.”
Commercial research reduces the time to market and the time necessary to meet objectives. Everyone knows how crucial and expensive the product introduction phase can be. Catching up efforts can be even more expensive when it comes to marketing and sales investments, not to mention loss of revenue.
Among the research objectives, there’s clarifying the positioning of the new market offer and finding the response to the question, “what are the key elements on which I can stand out from the competition?”
Recently, an entrepreneur mentioned that the value of his products was safety, and that the positioning should also be along the lines of safety. After validation of the commercial research, we concluded that he was more or less correct. The market demands safe products in much the same way as buying disposable razors. The product is safe if used according to the instructions. But a distinctive marketing position with respect to the competition is not feasible. In his sector, safety is implicit. No one in his industry buys dangerous products on purpose.
Number 1
Commercial research for this company made it clear that it’s the leader in its market; the one that innovates and sets the standards. This leader owes its position to its continuous work over the last 25 years as well as its commercial background.
Nevertheless, being number 1 in a given industry doesn’t guarantee success in the introduction of products and services. Each offer should be in phase with the needs and expectations of the market. Only commercial research, followed by steps executed in the right order, can increase your chances of success.
Unique or number 1
Developing a product or service is often about changing the status quo of the market. Agitate the number 1 or try to become the number 1. Until then, the challenge is penetrating the market through a clear, unique and valuable proposition for the potential client. Commercial research establishes the foundations of a successful product or service introduction. Investing in research is the best way to increase your chances of success and to avoid any pitfalls.
