Overcoming the Odds: A GM\'s Product Commercialization Insurance ...

Tag : cement additive

2. Use a Beta Unit to Secure Customer Commitment. Traditionally beta units are used for testing both internally andby potential customers. Beta units also gauge potential interest inyour new product and provide valuable feedback on the financialaspects of the purchase process.

Although it may be impossible to sell a beta unit, customercommitment can take many forms including:

• Paying a fee for using the unit (leasing)
• Paying for the installation and removal of the unit
• Paying for collecting data
• Paying for shipping
• Agreeing to purchase a production unit when available
• Agreeing to be used in advertising and promotion as a testsite
• Agreeing to provide a written analysis of the unit

Loaning out a beta test unit gives you feedback on use of theproduct. Making the customer spend money or sign a commitment,gives you the ability to cross check your purchase process map.

In our cement fiber example, selling some beta fibers revealed thearchitect may be responsible for selecting the type of cementadditive, but the building owner has the final say in the decisionprocess because he controls the budget. This knowledge gave thecommercialization team the ability to address another purchaseprocess need and eliminate a possible roadblock before the productlaunch.

3. Conduct an Autopsy of the Third Sale. The autopsy validates the effectiveness of your sales andmarketing program. For every item on the purchase process map, youshould have a corresponding sales or marketing activity. Theautopsy verifies whether each of these sales and marketing toolsactually delivers.

In our example, the fiber additive manufacturer used the autopsy totest the effectiveness of case studies and sales presentationstargeting the architect, ads to educate building owners, specsheets for engineers and on-site guides for crews. Weak links inthe marketing program were singled out and corrected.

Failing to address key customer needs can impede the adoptionprocess. If you have an enthusiastic sales force, the buyer lovesthe product, sales calls are going smoothly and suddenly ordersslow down or don’t come in at all, you’re in trouble.The sales force and the distributors won’t waste their timetrying to analyze why the product isn't selling. They'll simplyturn their attention to selling other products. When the saleseffort stalls, you lose momentum, and it's much harder and morecostly to get your new product back on track. To save money andimprove performance, use the autopsy to identify any roadblocksthat could jeopardize your entry strategy.

Overcoming the Odds

The stakes are high: your reputation and your new product's successare both on the line. Don't risk losing your product leadershipposition because you overlooked something in the launch plan andexecution. By addressing and eliminating barriers early on, you canovercome the odds and turn your new product into a new revenuestream.

Michael Barr is a principal at QDI Strategies, Inc. ( qdistrategies.com ), a marketing consulting firm dedicated to helping clientsincrease their market share. Contact him at mbarr@qdistrategies.com .