Apple did that with the iPod. It was not like anything anyone had ever before produced. It may be hard to believe from today’s vantage point, but the first year of sales was slow and disappointing. However, Apple maintained its Number One positioning strategy for the iPod and it generated huge revenue increases and well as a revolution in digital products.
Apple, Amazon, Whole Foods.
Which companies are second or third in these categories? There’s no one clear answer.
Do it early and often? As a normal, comfortable part of your marketing? Whether or not they’ve expressed a new need or desire?
Do you hear the opportunity in these comments? He was telling me about a significant barrier to fulfilling the company’s vision and values. If he allows these barriers to stand, the company’s revenue growth is constricted. I know that a company’s values and their need for performance accountability can reinforce each other when addressed. It doesn’t have to be one or the other.
In spite of this belief, I find at least one, and sometimes all, of these three counterproductive marketing practices in their companies. They hinder the company’s ability to generate new revenue from current buyers.
I said “you may think that not moving is the same as not losing ground. Not so. Many of the people literally passing you by are on their way to companies where they will pass you by in revenue and profit growth; in improvements and innovation; in client retention. Standing still will pretty quickly mean you are losing ground.”
Let’s look at the 5 top investments your company needs to make in order to increase high-profit revenue.
Quick review: Your buyers fall into segments: Testers, Regulars and Enthusiastic Fans. Each of the buyers gravitates to a particular price/value ratio which is represented by your Common, Uncommon or Exceptional offerings. These relationships are illustrated on the GO Curve.
Intellectual property (IP) has no boundaries. Yet too many companies handcuff their revenue growth with old choices, ironclad processes, strict policies, predetermined offerings, restricted views of their clients and their own baggage.
Buried in approach is the idea that costs will reflect the quality of the inputs. The higher the quality, the higher the price. Low quality offerings get priced lower.