What comes first, the product or the marketing strategy?

It’s an interesting question to consider because the answer is almost always the same:  the product.  Unfortunately, that answer often does not lead to success.

The typical entrepreneur thinks about developing an innovative product.  Often, this comes from a need they discover in their own life.  They have a problem and decide to develop their own product to solve that problem.

A business idea is born.   They start thinking of how to produce and distribute this product.  They develop a prototype, do a little testing, and perhaps use Kickstarter to get some capital.

Then, after they have the product developed, they start thinking about how to market it to targeted consumer audiences.

90% of startups fail.  A recent report found that the #1 reason startups fail is because they discovered there is no market need for their product.

So, we submit to you an idea.  Don’t develop a product then a marketing strategy for it.

Instead, develop the marketing strategy first, then – if your idea merits the work – plan to produce and ship the product.

 

You Need a Need

Right now, the idea of starting your own business, coming up with that million dollar idea, is just a thought.  It’s a daydream that gets you through the doldrums of the work week.

But here’s what we’re driving at.  Instead of trying to come up with a product, start looking for a need.

In other words, analyze a marketing space and start looking for problems in search of a solution.  The key is that you identify the problem first, then start thinking about how you can develop the product.

A great example of this is Camelbak hydration packs.

They saw a need – hikers and bikers needed an easy, fast way to drink water without having to stop and grab a water bottle.  So they created a pack with hydration system and mouthpiece that could be accessed on the go.

Today, you’ll rarely see a serious mountain biker who doesn’t use this type of hydration system.

 

The Space is Empty

Consumer needs are not always overt.  Sometimes people don’t know what they need until you show them.

In the early 90’s in Colorado, there wasn’t an outcry for a new type of beer.  People were not expressing an active need to replace their Coors with locally brewed craft beer.

But at the same time, nobody was selling small batch craft beers locally.  It was an open market with no competition.

So companies like New Belgium, Left Hand Brewing, Oskar Blues, and Odell Brewing starting selling craft beers locally, offering an alternative beer drinking experience.

The market was there.  People drank beer.  But this was a new offering that wasn’t an attempt to compete with Coors or Budweiser.  It was a different kind of beer that created a niche where the big competition was largely irrelevant.

Today, the craft beer industry in Colorado does hundreds of millions of dollars in sales annually.  Many beers, such as New Belgium’s Fat Tire or Oskar Blues’ Dale’s Pale Ale are popular nationally.

Craft breweries discovered an open market.  They never would have stood a chance if they had to out-advertise Coors – so they didn’t.  Instead of swimming in shark infested waters, they moved to the blue ocean where they could develop their marketing where there was a need, and no product filling it.

 

Discover Your Market

These examples illustrate our point.  If you want to avoid the number one reason startups fail – lack of market need – then start out with a strategy to circumvent it.

As you consider startup concepts, don’t look just look for product ideas.  Look for open markets where you can jump in with a discernible market need with no existing competition.

This may be a consumer need you discover, like Camelbak, or it may be an a new niche/concept that separates you from competition in an existing market, like craft beer brewing.

 

Easier Said Than Done

And now, a final consideration.

As you take on this approach, you’ll realize something.  Trying to discover a market need you can exploit is far more difficult than coming up with new product ideas.

At Marketing 360®, we could get a group together and brainstorm a dozen viable product ideas a day.  With a little imagination, coming up with a new widget isn’t that hard.

In fact, if it was that easy we’d all just develop our cool products, make our millions, and retire to the Caribbean.

Of course, it isn’t that easy.  You can’t just have a cool idea.  It has to be something people will actually spend money on.

It is far harder to discover a viable market need because it’s far rarer.  It is also harder to take on this mindset and train yourself to recognize a market need when you see it.

It’s easier to sit in your basement and tinker with your latest idea.

But market need is where it starts.  When you build your strategy around a market need with a viable target audience, your marketing campaigns fall into place.  Creating persuasive collateral is more natural.  Once you gain some traction, your product is more likely to market itself through its own popular presence in the marketplace.

An amazing opportunity to seize on a market need may present itself to you tomorrow.  Or it may be years before that eureka moment happens.

However, if you keep your eyes open and your imagination working, the chances are you’ll come across an idea you can work with.  We are a society of consumers who are never satisfied.

We’re hoping for that next great thing that will make our lives better.  We can’t wait to spend our money on it.  We want to need it.

Keep your eyes wide open.  When you find a new need you can market to ahead of the competition, that’s your best chance at starting a business that will be successful.