September 8th, 2008 @ 1:52 pm
(10min 48) Conventional thinking might tell you that it’s always best to be first to market with a product.
On today’s BTalk Australia Phil Dobbie talks to Guy Cranswick, an advisor for IBRS, who says that being second is often best. He also suggests that marketers pay attention to the shape of the adoption cycle before they spend big on launch campaigns.
What do you think? Add your comments in the Talkback section at the bottom of this post.
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mensoelrey
Makes sense to me. Most people are early to late adopters, which implies that they are not even really interested until they see something repeatdedly. Best to copy someone else, listen to the complaints against their product, and do it better.
jwberg
The premise is way too simple. If the new features can be copied, then being second can cost less and you can ride the wave of product acceptance. if the new features need to be adjusted for market preferences in order to really take off, and the first one in is making the adjustments, being 2nd may keep you just trying to follow the leader and never getting the margins that the leader can command.
phildobbie
I raised the point about first to market can command higher margins. Guys point was really about being aware of the speed of take-up. However much you spend you won't speed-up the adoption cycle. So he says there are advantages to launching when the adoption cycle starts to show growth. His other main point is that, if you're first, you should consider how your market. If you go for a big splash campaign you won't improve take up, so spend less and go for below the line activity that will seed the market with your product.
dannielo
It's better to be first than it is to be better.
-Jack Trout
Phil Dobbie
Phil Dobbie has a wealth of radio and business experience. He started his career in commercial radio in the UK and, since coming to Australia in 1991, has held senior marketing and management roles with Telstra, OzEmail, the British Tourist Authority and other telecommunications, media, travel and advertising businesses. In BTalk Australia he provides a lively and insightful view on business issues, adding his blend of irony and humour to the discussions. more »
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