Know-How Exchange : Strategy

Taking you at your word that -

"This therapy product is a true innovation in that it has no competition", I would hire an agent to get on CNN or similar high visibility cable programming.

Then use social media optimization programs to further spread the word to your targeted audiences.

hope this helps,

Steve

We've done a few of these, and we're working on another one. There is no template. Every market and every industry is different. We've worked in medical equipment, electronic imaging, non-destructive testing, travel and consumer products ... all with totally new products.

They all require Blue Ocean Strategy thinking and good solid homework/research. There is no formula, though it helps to have done it before. Each one was a little easier than the previous one.

I'd be glad to see if I can be of more help. First we'd need an NDA, of course. Feel free to contact me offline if you want to pursue. Use contact info in my profile.

Andrea,

Your biggest concern is your company's relatively naive stance that you have "no competition." In most cases, alternate technology solutions exist. regardless of how "inferior" these alternatives are, they are your competition. Your customers spend their money currently and their needs are met as best as your customers can understand they can be met. If truly there is no alternative substitution, then you competition is "inaction." So your customers decide that they do nothing versus buy your competition. If your product is "expensive" as you say, then you need to make sure the value proposition is high. If the customers presently "do nothing" as your competition, you have an extreme uphill battle. You may have to take a niche strategy and build a customer base and then use economies of scale to reduce costs. Your ultimate goal should be to make your product very inexpensive so the decision to use it versus do nothing is a "no brainer." This strategy has a couple advantages: First, you can capture the mainstream part of the market. Second, you block your customers from entering because you are the lowest cost producer. If you don't drive for this strategy, then give it up and try to find a "big player" to buy you and take on that strategy.

Bottom line here is don't get full of yourself with your technology. People who don't by your product "because the price is too high" are not stupid, they just don't agree with you on the value. Educate them on your technology and they will just be smarter but still not agree on value. You definitely have competition - whether it's another company with different technology (no matter how inferior) or the "do nothing" option.

I hope this helps.

Wayde

I fully agree with Wayde in that your product does have competition: it is whatever your potential customers are currently using. My experience taught me this process works:

1. Identify who needs to be convinced first in your system (third party, hospital administrators, doctors, nurses, patients,....). For instance, when we started to market a new way of permanent eye correction (a competitor to LASIK), we identified that we first needed to convince doctors to buy the rather expensive equipment. Once they bought in, they would market it to their patients and lobby third parties

2. Interview a representative sample of this prime target group on how important key attributes are (e.g. effectiveness of eye correction, safety of the procedure, absence of long-term side effects,...), and how happy they are with the current solution on these attributes. It is important to just listen to their experience, instead of tyring to introduce your new technology at this point!

3. Points of parity/ points of difference: Examine the attributes that are important to customers and for which they are happy with the current solution. These are your points of parity: you will typically need to show your new technology is at least as good as the old solution on these points (e.g. effectiveness of the eye correction). Next examien the attributes that are important to customers and for which NOT happy with the current solution. Does your product solves these issues? If so, you have the points of difference to help convince customers to switch. If not, can your adjust the product towards potential points of difference?

4. Repeat above steps for the customer group who next needs to be convinced, etc.

This exercise is key to come up with an effective communications, sales, education and advertising strategy. As Wayde told us, I have seen too many marketers fall in love with technology, which they then communicate to the few respondents they interview. These respondents then give very favorable responses to how they would react (intention to buy, willingness to pay), which in no way reflects the market reaction to your new technology!

Good luck