I recently started re-reading Meaningful Marketing a great business book by author, Doug Hall (okay, I admit he is my boss, but hey, it's a great book and it is also, known as Jump Start Your Marketing Brain)! The book consists of 100 data-proven truths and 402 practical ideas -- it really is mind blowing. Here I want to focus on one just one point.
Being the first to market nearly doubles your sales versus being the fourth to market. According to the book, research shows the impact of order to market as giving an extreme advantage to being first versus being a follower. Brands that are second only generate 71 percent of the sales of the pioneer and those that are third only generate 58 percent.Last year I sat in a room with a client during an innovation session where they were working to develop new ideas and someone in my group actually said what is wrong with just copying our competitors we do just fine being a follower. To me the statement was terrifying and honestly I thought I'm glad they aren't one of my colleagues.
When you are third or even just second you often find yourself in the game of low prices. Our offering is lower cost then their offering. With "real news" as the book states sales and marketing efforts are multiplied. A study found that advertising for new products was five times more effective. Ask anyone in marketing with a really game changing first to market idea it is always easier. Often it isn't the message it is the product.
Doug gives 5 Practical Ideas for addressing your Meaningful Difference:
- Define Yourself from the Point of View of First
- Define First Versus a Limited Category
- Define First as a Combination
- Repeatedly Articulate What Makes you the First
- Meaningful Difference Impacts Development Success