Creating Budget-Friendly Demand in a New Market
As markets expand with new competition, the power of advertising is negatively impacted. Marketing dollars depreciate as competition chases the market leader, seeking to sway consumers to utilize their rival product or service. Eventually, advertising costs are not only boosting the brand making the spend, but are actually adding value and growing business for the market leaders. As this trend escalates across markets, the real question lies in how we recreate an upsurge in return on investment (ROI) and place value back in media buys and marketing efforts. The answer is Market Invention. The hurdle is demand generation.
Think about a product or service that lies outside of any defined competitive marketplace—like the Squatty Potty, Uber, Amazon, etc. Think about owning that product or service and figuring out how to take it to market. You would begin your plan of attack with questions like “What is the lifespan of the product or service? Where would it best compete? What price point would be most effective to win over consumers?”
But what you should really be asking is “What makes this product/service unique? What problem does this product/service solve that no one else does?” Then, you figure out how to label the old market and educate and establish consumers on this new market where you will enter and remain the market leader.
“Being second is to be the first of the ones who lose.” – Ayrton Senna
Where does ROI come into play, you ask? The truth is that creating a market does not have to encompass a large budget. The key to successful Market Invention and entry for a brand/product/service relies heavily on demand generation and an understanding of ROI in relation to different media buys. For example, email marketing continues to consistently produce the largest ROI when it comes to gaining exposure, increasing brand awareness, and closing the deal with consumers on product and service sales. As a demand generation strategy, it lives out the long-term relationship building model and allows for maintained engagement throughout the market and product/service education timelines. Social media buys can also yield similar returns but have been found to be less consistent when involved in Market Invention strategies too early in the process. This may be because when using social avenues, users are more likely to want immediately results. If you include social advertising in the initial market education phase, you might just be spending dollars to leave consumers disinterested should the product/service not be ready for launch and purchase. Timing suddenly becomes key to digital strategy when planning.
When planning a budget-friendly digital strategy plan, assess how to get the most bang for your buck by using the below model:
Remember, the most important thing to figure out in the process is how to capture interested consumers. Demand generation often gets confused with lead generation. Lead generation is the faster acquisition of prospects/sales, whereas demand generation is a lengthy process which involves nurturing the market over time. Market Invention utilizes demand generation to educate and create the market, while lead generation is used to capture prospects for retargeting and generate sales later in the funnel. Lead generation keeps the market alive and growing: demand generation is where we start to see success happen within Market Invention.
The Process Behind Disruption
Disruption might be the biggest business bandwagon of all time. But ask most people what their idea of disruption is, and they’ll stare at you with a blank look or start rattling off a set of disjointed ideas.
Public Relations and Market Invention
“We need public relations!” We hear this command frequently from big and small organizations across the country. However, we promptly question what exactly they’re seeking. Every organization needs a smart PR strategy, but most don’t know exactly how.
Video and Market Invention
You’ve probably heard of Market Invention, the strategic process of creating new markets through a shift in audience, category, channel, or branding. It’s the discipline behind disruption, and it rests on good communication. That’s where video comes in.
Web Design and Market Invention
Web designers are the architects that create the visual elements of the site, the stuff the user sees. Web developers create the functionality that works in the background. When working together, the two disciplines deliver a seamless, clean experience that ignites a buyer’s interest.
Design and Market Invention
Understanding how to use—or not use—design archetypes is at the core of a well-planned Market Invention strategy. Market Invention can use a shift in brand imaging or messaging to pivot into a new market and target unreached customers.
Social Media and Market Invention
Most businesses are still struggling with how social media strategy has changed the marketing landscape. Honestly, so are most marketing firms. If you look at the average company’s social media presence, they aren’t employing this new technology nearly as well as they could be.
Market Research and Market Invention
Most market research aims to find opportunities to grab a bigger slice of the proverbial pie. It’s a mindset – a competitive tactic – that’s been around for well over a century. Lots of companies and marketing firms use this strategy, some with pretty good results. So why do we take a different approach?