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*So Erik Simanis, PhD Partner The Intrapreneur Lab www.eriksimanis.com
Market Creation: Driving Adoption of New Products, Profitably
Brian Kurtz Partner The Intrapreneur Lab
© 2015, Erik Simanis 5
=
Needs ≠ Market
MARKET CREATION
Embed New Product Use Rou:ne into
Consumers’ Lifestyles
7
SCRIPT PROPS
MOVES CAST
Concepts and feelings that a
consumer links to a product.
Physical ar=facts in a consumer’s life that touch/interact with a
product.
Behaviors and rou=nes consumers prac=ce in conjunc=on with a
product.
People and social iden==es that
consumers interact with when using a
product.
Product Performance
8
Product Performances
• Value experienced by a consumer based on the par=cular product performance • The more product performances a consumer knows, the more value they get from that product
One Product, Many Performances
10
SCRIPT PROPS
MOVES CAST
Concepts and emo=ons that a
consumer links to a product.
Physical ar=facts in a consumer’s life that touch/interact with a
product.
Rou=nes and rou=nes consumers prac=ce in conjunc=on with a
product.
People and social iden==es that
consumers interact with when using a
product.
Product Performance
11
The Market Creation Challenge
Product rou:nes are complex and highly personalized.
Lacking benchmarks, consumers learn new product rou:nes through repeated experimenta:on.
Consumers can’t evaluate a product un:l a product rou:ne is embedded into their life.
© 2015, Erik Simanis 14
Consumer data and feedback about product specs and pricing are liNle more than random guesses.
Focus ini=al research on the
consumer lifestyle changes that accompany
adop=on of a new product rou=ne.
The Consumer Research Dilemma
Value Fog
© 2015, Erik Simanis 15
Rela=onships Rela=onships
Time
Interpersonal
Rela=onships
Space
Consumer Lifestyle Canvas
Budget
Iden=ty
Rou=nes
16
Three-‐Stone Open Fire “Stove”
Bio-‐Fuel Cook Stove
What are potential changes…
Rela%onships,Rela%onships,
Time,
Interpersonal,
Rela%onships,Space,
Budget,
Iden%ty,
Rou%nes,
© 2015, Erik Simanis 19
You can’t “EDUCATE” nor “MESSAGE” your way into a new market without breaking the bank.
Consumer learning strategies have to
be built into the offering and
business model.
The Marketing Challenge
© 2015, Erik Simanis 20
Learning Strategies
There’s No Place Like Home
Wash Rinse Repeat
Monkey See, Monkey Do
Two Heads Are BeSer Than One
© 2015, Erik Simanis 22
The Market Creation Mix
PRODUCT
PLACE
PRICE • Product Bundle • Mul=-‐func=onality • Props
• Loyalty Awards • Brand Badges &
Community Rituals • Product Placement
• Subscrip=on Pricing • Layered Pricing • Group Customer
• Skeumorphs • Local Codes • Local Characters
Value Open
PROMOTION
VALUE OPEN