Is it a good idea to position a new product in a brand new category.
| Answer: Your main concern can be best explained by refering to what is known as primary and secondary demand.Primary demand for a product is the total demand for all brands in a product category. For example, the category may be specialty coffees or personal digital assistants or customer relationship management software. Primary demand would sum up all the brands competing in each of these categories. Continuing our examples, this would include Starbucks and Peets (for specialty coffee), Palm Pilots and Handspring (PDAs), and Siebel and Oracle (CRM). Secondary demand is the demand for a given brand in a category. If you’re, say, Handspring, your secondary demand is the demand for the Handspring PDA. Creating secondary demand is what we talk about when we say "brand competition" – competition for one brand over another. Now, having said this, launching a product in a brand new category is equivalent to facing primary demand. Now, you will need to do a bunch of education to the market, far more than your competitors will need to do. To see this more in depth, read our tutorial called Is competition a good thing? |
More resources related to Marketing Analysis
-
Despite being little known in the North America and Europe, Chance Discovery has groundbreaking implications for Western marketing analytics. It endeavors to solve a longstanding paradox of standard quantitative marketing analysis: how to find new opportunities in our data that have yet to be realized. In other words, Chance Discovery moves our analysis of marketing data from standard description or modeling into a formal approach for seeking inspiration from within these data.
-
MarketingProfs' Daily Fix blogger Paul Barsch discusses Final Marketing Lessons from the Collapse of Lehman Brothers
-
Marketers always have to adapt to changing consumer demands, consumer tastes, shifting customer priorities, economic downturns, economic upturns, savvy consumers and buyers just looking for something new. But before marketing can affect a change with either a new product offering, or reinvigorate a new brand, there's one constant that remains. In marketing it's the "Four Ps."
-
Do your online marketing efforts consider the cultural context of your target market? Learn why cultural understanding is critical to online marketing—and how to implement cultural qualification in your strategies.
-
The Web analytics space is hot, customers are engaged, consultants busy, vendors optimistic. There's no question this is a healthy "industry." But intense competition among the top vendors has somewhat killed product innovation. Unfortunately, that's happening at a time when the next generation of the Internet—what some call Web 2.0—needs a totally different kind of Web analytics.
-
Programmatic ad buying has led to the rise of "quantitative analysts." Here's what they do and why you need one.
-
Two schools of thought dominate the social media analysis landscape. Unfortunately, organizations that subscribe to either often end up with misleading data.
-
Even the most experienced marketers make mistakes. But many mistakes can be avoided if you're smart about data and you implement a solid analytics strategy.
-
From rules such as think big but start small and with the basics, to take an action-based approach, pick your battles, and beware of small sample sizes... in this article you'll get sound advice about data-driven marketing.
-
Catch up on select AI news and developments from the past week or so. Stay in the know.
-
Catch up on select AI news and developments from the past week or so. Stay in the know here.
-
Don't Be Fooled by Data: How to Make Data Analysis in Mobile Marketing Plain and Simple
Sponsored ArticleAnalyzing mobile marketing campaign data is a complex process. One wrong number leads to misinterpretation of the entire campaign. How can you avoid pitfalls and analyze data correctly? Here are some guidelines.
-
Data analytics love for their data points to be fixed and objective, but in the modern marketing world, that's not always the case. It's vital that your marketing mix model also incorporate what this article refers to as "squishy" data.
-
You can't carry on launching marketing campaigns, creating content, and paying your team just because you think marketing efforts are affecting your sales in some positive way. You need data that tells you what's working and what isn't. Marketing analytics tools to the rescue.
-
The typical pre-post measurement is not accurate enough to support major marketing decisions; moreover, if it is not managed correctly and improved, Marketing can take a significant hit on credibility.
-
The Trouble with Segmentation
ArticleSegmentation is supposed to be the cornerstone of CRM. The problem is...it doesn't go far enough.
-
Suppose you learned that most of your brand's buyers are switchers: that only 15% of your customers are highly loyal to your brand and account for maybe half of sales. The harsh reality is that that's a typical pattern for many grocery brands. So how do you build a marketing plan to support the other half of your sales—the half that comes from buyers who are not really loyal to your brand?
-
Today's marketing environment is noisy and crowded. We have so many new techniques to promote our products and services that the chaos and clutter are getting worse. How do you get heard above all the noise?
-
Over the last 50 years, marketers have been working overtime to legitimize our craft; we have even gone so far as to refer to marketing as a science. Without question we have made great strides. But at the same time, we have lost some of the magic. And a little magic can make a good marketing plan quantifiably better, and in many cases great!
-
Catch up on select AI news and developments from the past week or so. Stay in the know.
