New Product Marketing: Increase your odds of new product success...30 hours of lectures in 60 minutes!

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
KU Leuven Master Class: New Product Marketing
11/11 Course Summary
Increase your odds of new
product success
30 hours of lectures in 60 minutes

About this course
It is a sad fact that most new businesses, products and service fail. Some
estimate the failure rate is as high as 90%. This course is about why products
fail and what you can do to increase your odds of success.
This lecture is a part of series of 12 lectures. In my classes I use a lot of
videos. If you’d like to see the presentations with videos, go to:
http://www.fast-bridge.net/resources/new-product-marketing/
I hope in the pages that follow you will find new ideas and inspiration… If
you’d like to download the whole class go to:
http://www.slideshare.net/bryancassady2/2009-course-new-product-
management-by-bryan-cassady
If you have ideas on ways to improve this course or would like help with your
new products, I’d love to here from you…
Bryan Cassady
bryan@fast-bridge.com
+32-475-860-757

When I was growing up, my parents told me,
“Finish your dinner. People in China and India
are starving.” I tell my daughters, “Finish your
homework. People in India and China are
starving for your job.”

“Let’s make a dent in the universe.”
Steve Jobs
Apple Computer

Let’s make sure we follow the books…
A typical Marketing MBA

An interesting book…
Counterintuitive Marketing
Studying brands in 48 categories

Airlines Gas Stations Mid-priced American Cars
Athletic Shoes Haircare Products Mid-priced Foreign Cars
Auto Insurance Headache Remedies Motor Oils
Banks Health & Fitness Clubs Newspapers
Beers Home Entertainment Equip. Office Supply Stores
Bookstores Hotels Personal Computers
Bottled water Household Cleansers Pet Supply Stores
Catalog clothing Internet Search Engines Pet Supply Stores
Cigarettes Internet Service Providers Political Parties
Colas Jewelry Potato Chips
Cold Cereals Laundry Detergents Rental Cars
Cookies Liquor Soaps
Cosmetics Long-Distance Telephone Spaghetti Sauces
Credit Cards Luxury American Cars Toothpastes
Department Stores Luxury Foreign Cars TV Networks
Fast Food Restaurants Major Household Appliances Weight Loss Programs

 Decreasing in 39
 Stable in 5
 Improving in only 4

The study also showed that in two-thirds
of all product categories, a low price is
becoming more important than brand
driven product features, attributes,
and benefits.

The study led us to conclude that far more
brands are being transformed into
commodities than commodities are being
transformed into brands.

14%
Above
Average
2%
Well below
average
68%
Average Marketing
Program
The Zone of
Exceptional Marketing
The Zone of
Conventional Marketing
14%
Below Average
2%
Well above
average
The
Marketing
Performance
Bell Curve
Source: Counter-Intuitive marketing (2002)

In a connected world, little incremental steps
are the slow death of a brand

“Learn not to be careful.”
—Photographer Diane Arbus to her students
(Careful = “The sidelines,” per Harriet Rubin in The Princessa)

Google, 9/11, the Internet
Banking: : 1982/Default Latin America = Total
historical earnings; 1992/S & L; 2002/dot.com
Wall Street: “In the last 50 years, the most extreme days in
the financial markets represent half of the returns. Ten days in
50 years. Meanwhile, we are mired in chitchat.”
The 3 of biggest inventions of the 20th century were accidents:
The Laser, the computer, The internet
The Black Swan: The Impact of the
Highly Improbable, Nassim Nicholas Taleb

“This book is about luck disguised and perceived as non-luck (that is,
skills) and more generally randomness disguised and perceived as
non-randomness. It manifests itself in the shape of the lucky fool,
defined as a person who benefited from a disproportionate share of
luck but attributed his success to some other, generally precise
reason.”
“We underestimate the share of randomness in just about everything,
a point that might not merit a book—except when it is the specialist
who is the fool of all fools.”
“Mild success can be explainable by skills and labor. Wild success is
attributable to variance.”
Source: Fooled by Randomness: The Hidden Role of Chance
in Life and the Markets —Nassim Nicholas Taleb

 Scientific Research
 Biotech
 Movies
 Publishing
 Venture Capital
 Military
 Catastrophe insurance
 Homeland security
 Banking, lending

10
Class Summary
Thoughts to leave with

1
Meaningful
differentiation
Is there something that makes you
special Normal = nothing !

218
142
100
McMaster University
Hamilton, Ontario, Canada

2Your advertising needs to
be as good as your
best salesman
Clarity in communication

Every day
You are bombarded
by up to
4,000 ads

Let a customer say NO because
what you offer
doesn’t apply to them.
But NEVER let a customer say NO because
they don’t understand
what you’re offering.

3 Chefs - 3 Years - World Cooking Competition Medalists

18%
29%
42%

3Are you offering, value, innovation
or service
(you need to choose ! )
Everything Sells

1 + 1 + 1 + 1 = Beauty
1 + 1 + 1 + 0 = Failure

Dramatic differences
Everything Selling

5Good advertising = nice
Good word of mouth = Great !
Be connected

You

6Develop gut feelings
Talk to non-experts
Don’t be fooled by the
experts !

2 out of 10 real differences, the rest statistically significant
Yes
Yes
Source: New products what separates winners from losers Cooper & Kleinschmidt

Personal opinion:
All the success criteria identified in the winners/losers article are
relevant. But what makes a product a success is
An exceptionally high score on 1 criteria or more likely…
A good score on a range of criteria

7If you enjoy what you do… you’re likely
to do it well
If you believe you’ll do it even better
Have fun

8Good marketing is about business
and people.
Understanding business is easy…
understanding people takes lifetime
Expand your horizons

What…

9Never think you own your
customer… you earn them every
day
Share of customer

Product Marketing
Bryan Cassady 07/08

Product Marketing
Bryan Cassady 07/08
"Our buyers"

Not Aware
Sole Buyer

11 Representative FMCG Brands
69% to
the competition
the brand
31% to
Not Aware
Sole Buyer

Dramatic differences
Everything Selling
What… How…
Be Real
Be connected
Don’t be fooled
Have fun
Learn
Measures
Share of customer
Ongoing dialogue: what do they say

Thomas L. Friedman
New York Times Columnist
Author “The World is Flat”
When I was growing up, my parents told
me, "Finish your dinner. People in China
and India are starving."
Today I tell my daughters, "Finish your
homework. People in India and China are
starving for your job."

New Product Marketing: Increase your odds of new product success...30 hours of lectures in 60 minutes!

New Product Marketing: Increase your odds of new product success...30 hours of lectures in 60 minutes!

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New Product Marketing: Increase your odds of new product success...30 hours of lectures in 60 minutes!