Market drivers change as markets mature

Like the product life cycle, complete markets or market sectors can also progress through different stages over time. At each stage there are different market drivers, so it is important to understand how these market drivers work. 

During the introductory phase the target audience is small and characterised by innovators and early adopters. Application of new technologies can often be the driver for new markets. There are plenty of examples of markets served by products that previously did not exist – mobile telephony, the Internet, the whole Apple portfolio – where early adopters drive the market forward. In growth markets, the drivers are a constant flow of new users accepting and using the product, as well as an increase in usage rate amongst existing users. 

The next wave of customers, influenced by the early adopters, join the market and in doing so increase the current target audience as well. But while the Internet is still growing the market for mobile telephony has passed the initial growth phase as handset saturation is approached. Mature markets develop when there is no increase in the total population of users and existing users cannot readily use or consume more of the product. More manufacturers will also have entered the market. In mature markets there will typically be many suppliers, little real product differentiation and pressures on price due to high supply and no growth. 

Many industrial markets  are arguably in this state most of the time, leading to excessive discounting to move the product and with suppliers experiencing falling margins. Declining markets are usually characterised by a shrinking total population and sometimes a decline in usage as well. This may be caused by a shift to use different solutions or simply the reason for the product need is no longer valid. 

At each stage of the market cycle – introduction, growth, maturity and decline – the marketing approach will need to address the target audiences which themselves will change and not be a constant. The proposition to early adopters and opinion formers in helping grow a new market will be quite different to marketing to an audience well familiar with the market, comfortable with the same again, resistant to change but not yet ready to move their allegiance to a new and evolving sector.

Talking about product life cycles

Products sales can be demonstrated to evolve through various stages during the life of the product. By plotting a chart with respect to time, sales exhibit a typically slow start, then a period of rapid growth, before slowing, peaking, and declining again. 

The practical problems however in plotting the future of any new product may be far more difficult to achieve than the theory might suggest. For some the timeline may extend over years, for others it may be a matter of months. By the time you have collated sufficient data to detect the onset of maturity, it may already be too late to decide what to do next. There are some household brands that have been around in basically the same form for a century, while a more fashion related product, may be obsolete in weeks. The life cycle curve is generally seen as exhibiting four phases - introductory, growth, maturity and decline. But with so many other factors affecting sales it is often difficult to state with any real certainty when growth changes to maturity and when is the right time to delete the product completely. This produces forecasting challenges throughout all phases. 

Many products have failed due to poor availability at the onset of the growth phase and allowed better-prepared competitors to take up the demand. But over estimating the growth can equally put a lot of stock on the shelves that cannot be moved without radical action such as deep price cuts. Various manufacturing and logistics techniques aim to match product availability to demand, but for a longer lead-time supply routes - if the goods are shipped by the container load from China for example - then commitment to stock may need to be taken well in advance. Marketing actions can help of course make some impact on the product life cycle curve. Product updates and enhancements may give the product a new lease of life, but generally they only delay the onset of maturity – they don’t prevent it. There is a need to start planning the successor product while sales are still buoyant. 

At the peak of a product’s success it is easy to assume that success will be projected forward indefinitely, then find that a competitive move or new technology are set to change the market situation. 

Are marketing campaigns based on research?

It makes sense not to commit investment to new development or promotion without first understanding the market, what benefits the users are seeking and response to different brands. But few companies actually do this. Some assume they know all about their market. Others may think market research is too expensive, so don’t bother. But to conduct a basic awareness and perceptions study need not be prohibitive and can save expensive misplaced investments in producing an ‘off track’ product, or communicating the wrong message. First define your target market. Where is your product being sold? Then define who will buy, or influence that sale. Produce a list of your target audience and take a random selection to ask for their views. Ask what names ‘come to mind’ unprompted, if your brand is not mentioned then prompt with other brand names to see if they have any recall at all. Further questions can establish perceptions they hold of different manufacturers, issues relating to the type of products currently available and key specification criteria that lead to a purchase decision and the most trusted sources of product information. It is surprising how often a simple telephone survey can produce results that show the awareness and perceptions held about a brand are ‘at odds’ with the company held assumptions . 

Keep the interview short, get straight to the point and also record the anecdotal comments – these are often just as informative. A survey may bring up some really fundamental issues. One example found in testing the market’s response to a new product was that nobody would order it because they had massive delivery problems so the market didn’t trust them. Another company that perceived their image as traditional and were looking to launch a campaign to promote a new style, discovered their long absence in communication with customers had led many to think they had gone out of business. But more typically surveys do confirm much of the company’s own views and can help fine tune the campaign, so marketing spend can be committed selectively where it will realize the greatest benefit. 

A quick recap on PR

Press & Public Relations activities, or PR for short, can play a key role in developing and enhancing the reputation of a business. 

Almost every enterprise that markets products and services to other businesses and end users can reach potential decision makers and influencers through the press, journals and web sites.  Carefully placed editorial material complements other marketing activities by providing a variety of positive stories and statements about the business, in a way that has the authority of apparently independent editorial comment.  In the long term, regular editorial will help raise awareness of the business, create a positive attitude towards the company and its products and generate enquiries. 

Advertising reaches a mass audience effectively, but works best when conveying a simple proposition designed to gain attention quickly and with maximum impact. PR can expand this message by use of news items, third party endorsement, or by longer articles that reinforce the message through explanation and applications of products and services. News can embrace product launches, important contract wins, personnel appointments, new technology developments, events and company results. Unlike a short-term advertising campaign, PR offers a long-term marketing tool that is the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organisation and its public. 

When things go wrong, as they sometimes do, the public will be more tolerant of a 'well thought of’ business that communicates with them and is seen to put the problem right. The PR plan can seek to follow a theme that builds a particular view of the business, but is also flexible to react to tactical developments or unexpected events which can be handled quickly and positively at any time, and far more effectively and rapidly than with other promotional activities. 

In today’s quick consumption, time poor working environment, industry and company web sites and social media offer an alternative news delivery channel to traditional print. News headlines can be e-mailed to interested readers offering the opportunity to click a link to read more of stories that attract their attention or just tweeted. 

News is also one of the main reasons for return visits to a web site and a news publishing and archive system such as Technical Marketing Ltd’s Virtual News Office™ can be integrated with the web site. 

Advertising - what is it all about?

Aerial advertising

The term advertising is often confused with the whole marketing process itself. 

Our use of the word is confined to ‘paid for’ media space. In business-to-business communication this is mainly the trade press and portal web sites, but advertising media also embraces radio, cinema, television, bus sides and bill boards. 

Advertising has been described as the persuasive force that utilises mass communications to make changes in customer attitudes, behaviour and actions towards products and services in a direction favourable to the advertiser. 

Advertising is cost effective in reaching large groups of customers and potential customers with a shared defined profile, hence the proliferation of special interest and industry specific magazines that can deliver an audience relevant to the needs of the advertiser. Media selection must therefore seek to match your target audience and readership profiles. 

Advertising’s key aims are to progress the target audience through a series of stages by first turning possible unawareness of the product, into awareness, a comprehension of the proposition, a conviction that the product is both relevant and of benefit and finally a ‘call to action’ to convert the prospect into a potential customer. 

As individuals we are subjected to hundreds of advertising messages each day, so to arrest attention the advertisement has to stand out from the others. This may be by use of compelling images, headlines or a combination of both, that stops the browser just long enough to take in the proposition. The fly fishing analogy has been used to explain the process of first being seen and attracting attention, then swiftly driving the point home. Once ‘hooked’ a few telling words must explain the benefits of the proposition succinctly, then offer a ‘call to action’ where the prospect can find more detail. Today typically a web site, but the ‘call to action’ could be incentivised by the promise of a useful or attractive offer to enhance response rates. 

Advertising is a key marketing tool, to raise awareness, build brand recognition and communicate a simple or top-level message, but needs repetition to ensure that message is seen and acted upon. Other communication means such as PR and direct marketing will be called into play for a fully integrated campaign. 

How creative can mobile advertising be?

As the viewing platform preference  moves from desk top to mobile device, the concern of the new media owners is nobody clicks on the advertisements.

So who is expressing this concern? Well, according to the Technology section of the Daily Telegraph, "alongside Facebook and Intel now even Google, which runs the Android operating system driving the very growth of mobile phones said the difficulties of making money off advertising from smaller screens is a huge challenge." Despite this week's announcement of a £23 billion merger of Publicis and Omnicom to overtake WPP capitalised at £14.8 billion to create the world's biggest advertising agency, Google at £192 billion and Facebook at £54.7 billion still dominate.

Research meanwhile casts doubt on the effectiveness of search engine marketing advertising anyway and talks about it being "an ineffective marketing channel."  And it gets worse with experiments indicating a negative ROI  on much Internet advertising.

So why don't people click on the advertisements? Perhaps the simple answer is the lack of creativity - most are text only or text with an image - any old image for some - they are just not attracting attention. Advertising creatives working in traditional media know that you have to grab attention in an instant. Whether it is on a Google search result where most people know which are paid for and which are organic results, or the weird ads served on Facebook the thing is they all look much the same. They don't stand out from the crowd; they blend in. On mobile devices they just get smaller and less significant.

In traditional print media more familiar to b-2-b marketers, some advertisement positions are better than others in the book and space size an important factor, but to succeed all must have some compelling image or headline that grabs attention long enough for the reader to notice. It is the old fishing analogy - the brightly coloured fly is designed to attract attention, but then comes the hook. Having gained attention the advertisement should be crafted to rapidly progress the reader through the 5 stages from unawareness, awareness, comprehension and conviction to action. The 'call to action' is the response that 'hooks' the prospect. Its not what you get on Facebook and Google and the smaller the screen, the less impact, so is it much of a surprise prospects are manly not clicking on the advertisements?

Memories and tributes from Andy's friends

Andy Collier: photo by John Offord, etnow.com

Here are extracts from some of the emails  I have received following the early death of Andy Collier on 12th July.






RICHARD PILBROW
"I have to say that I was shattered. Andy was such a truly exceptional person. Seemingly always optimistic and positive and really a beacon for everybody around him. I was so pleased that he was able to make my birthday party last month in London.

And I suppose that reminds me what a terrible event it was. Andy was so young and full of life. He was always such a pleasure to meet and talk with. His encyclopedic knowledge and dedication toward lighting will be long missed. What a shock."

Richard Pilbrow
Founder & Chairman Emeritus
Theatre Projects Consultants



RICHARD BRETT 


We are all truly sorry and deeply saddened by Andy’s death last week.  Totally unexpected and shocking that it could happen to such a nice guy.  As you know Andy worked for us in Theatreplan and also for me with the Theatre Engineering and Architecture Conferences and he will also be sorely missed as a person – always helpful, cheering and prepared to go the whole way.


Richard Brett BSc CEng FIET FABTT
Partner, for and on behalf of
Theatreplan LLP

ROGER FOX

I cannot tell you  how sad I am to hear of Andy’s death.  A huge shock for all his friends and colleagues.

Kind regards

Roger

MARK JONATHAN

 It's devastating news and I'm very sad indeed. What a wonderful man he was. 

In sadness,
Marko

 FRANCIS REID

I just can’t get my head around the idea of a world without Andy. I was exchanging e-mails with him throughout his last week ... right up until the fatal Friday when he sent me an e-mail just before he got on the tube. The world desperately needs more Andys.

Sadly - Francis


MIKE WOOD

t's been hard to know what to say about Andy. The loss is just devastating. As many others have already said, Andy was always the jolliest, friendliest, most enthusiastic person you could hope to meet. Always a pleasure to be with him. I've known him since the Strand days in the 1970's and it's hard to think that I won't be greeted by his beaming smile at PLASA this year.

Mike 
Mike Wood Consulting LLC


STEVE NORMAN

On Friday at 9:30AM my time, which is 2:30PM your time, I’m going to go somewhere quiet and remember Andy. But I’ve been doing that constantly since his sudden death. I have been talking to several friends here in the states after the news, and we have all been remembering the great times we had working with Andy (and you) here – in NYC, LA, Vegas, Florida and beyond.  Everyone has so many special memories, and we will all miss Andy.

Best,
Steve

PETER WILLIS

I've still memories - but sadly no photos I don't think - of the very spartan office that was the early days of Teatro; of a "day" trip to the Leaning Tower of Pisa from Lake Garda, and of Bens' very first skiing lessons with Andy and Margaret somewhere near Innsbruck (?) one Christmas.  And of lighting Barnes and Richmond Operatic Society (BROS) productions at Richmond Theatre and York House in Twickenham, or just popping in to Grosvenor Gardens for coffee and a chat.

And of course during the heady days of Strand's initial takeover/decimation by Marvin Altman in the late 1980's when the R&D and Specials department were closed, Andy was always there as a friend and sounding board for ideas on how to survive. Andy was always there as a friend and mentor, and always made you feel welcome. Nothing was ever too much trouble for him.

Peter


RICHARD FARTHING

I saw Andy just a couple of months ago, he walked over here from Barnes, we had a couple of pints at my local, then a good curry around the corner. I had been thinking of contacting Andy this week for another local drink. How sad, he is deeply missed.

best regards
Richard


RUSSELL DUNSIRE

It was good to speak with you though the circumstances are not. In hearing the devastating news on Saturday ... my thoughts were naturally of you as well as Andy’s family  given that you and he had such a long and close working relationship.

Kind Regards

Russell

Russell Dunsire
Managing Director
LSI Projects Ltd

ALAN LUXFORD

I have fond memories of Andy when he first started in 1974 as he was in specials and I gave him a lot of work. We also did a European sales tour together where we lost the brakes of the van going down a mountain in Switzerland. We survived just.

Best Alan

ANNE VALENTINO

Good to hear from you - although I am sorry it is with such sad news.  I just saw Andy last month at ABTT.... such a shock.   And I had already heard about this via Facebook.   

a


RICHARD BUNTING

Some of the happiest times I’ve had in my career was with you, Andy, Ed, etc in the all too short marketing heyday at Strand. He was one of the true gentlemen of our business, who knew everyone, and was liked by all those who met him. I, like so many who have responded, are stunned by what has happened, and will miss him an awful lot.


Best Regards,

Richard Bunting


ANNE MINORS

At sometime in the mid - late 1980's, when we were both learning the ropes at TPC, David Taylor introduced me to Andy as 'a really good, helpful and imaginative lighting representative as well as a really nice person.' In the intervening 25 years I have been continually reminded of that definition whatever the role that Andy undertook to support the theatre industry. With David and now Andy's untimely death, it feels as though a generation is disappearing too young, but not before making a lifetime's contribution to the theatre world.


With sympathy
Anne Minors

CLIVE CARTEY

May I say how deeply I appreciated you taking the time amidst your own grief to talk to me this morning. I sincerely offer you my help and support with Technical Marketing Ltd in this very difficult time.

Kind regards

Clive

SILVIO CIBIEN
What  sad news! At 13.01 on Friday Andy sent us the picture of his beautiful day out at Goodwood ... at least a nice last day ...

With my best regards
Silvio Cibien
 ANIMA Lighting Ltd

GARETH FRY

So sorry to hear about this. My consolations to you and his family. 

Kind regards,

Gareth Fry
Sound Designer 

KEN BENNETT-HUNTER

My deepest sympathy to you and to his family.

With very best wishes,

Ken

MARK HARRISON

A terrible shock. I'm still struggling to come to terms with it all.

Best

Mark.

Huge Design

JOHN HASTIE

That is very sad news indeed – someone I’ve known for as long as I’ve been in the industry.

John

JOHN OFFORD

 I'm working on getting together a double page spread possibly entitled "Remembering Andy Collier" for the August issue of the magazine, using as many pictures as I can find from the ET archive - most of them with a smile on his face. What do you think? 

In  much sadness - it will take some time to sink in properly. 

All best 
John 

KARI SEWELL

We're terribly sorry to hear this tragic news. Andy has been a pleasure to work with and will be sorely missed. 

Our sincere condolences. 

Kari Sewell
Managing Director
Realnet Ltd

KEN SEWELL

It's dreadful news.  He was a lovely fellow. 

All the best 
Ken 

JULIE HARPER

 I was very sorry to hear the sad news about Andy. and feel very much for his family and for you his friend. It must be very difficult. Andy was such a great person and the shock must be very hard - it just doesn't seem possible, or right.

.

With my best regards,

Julie.

Julie Harper 
PR & Marketing Consultant

ANDREW DIXON - STLD

Very many thanks in sadness to have lost such a great person and friend.

Andy Collier's funeral - please let us know if you are attending

We have been overwhelmed by the response from so many people to the news of Andy's recent untimely death and expect a large attendance at Friday's Humanist Funeral in Barnes.

To help the family have some idea of numbers we would ask you to respond using this link to  Eventbrite. 

Your co-operation is appreciated.

Andy Collier .. funeral arrangements announced

Wathen Hall

Arrangements for a Humanist funeral ceremony celebrating the life of Andy Collier have just been announced. The event will take place at 2.30 pm on Friday 26th July in the Wathen Hall at St Paul's School in Barnes, SW London.



Since Andy's passing last Friday aftrernoon (12th July) we have been overwhelmed by the tributes and appreciation received from so many friends throughout the theatrical and lighting communities. All the major industry web sites carry his obituary. Links are provided below.

 

Final details are still being planned but are expected to include contributions from family members and work colleagues and will feature music that Andy particuarly enjoyed. Guests are asked to dress "smart but cheerful", as we remember the happiness that Andy brought into the life of everyone he knew. Andy's family have requested that in lieu of flowers, donations to one of the following three charities that were dear to him would be greatly appreciated: 



• Light Relief (a charity formed to practical support and/or financial help for lighting designers in times of extreme hardship.

• The Friends of Richmond Park, a charity dedicated to the conservation and protection of the park.

• Alzheimer's Society (by cheque with a covering letter specifying 'Singing for the Brain, East Hertfordshire'). 

Donations by cheque should be sent to T.H.Sanders & Sons, 447 Upper Richmond Road West, East Sheen, London SW14 7PR.



Venue: Wathen Hall. 


Date & Time: 2.30pm, Friday 26th July


Information updates; 

www.technicalmarketing.eu.

Technical Marketing Diary.
or follow on Twitter @technicalmarket 



Obituaries are hosted on various sites, including:- 


Association of Lighting Directors.


Association of British Theatre Technicians


etnow.com.


LSI Online


L & S America Online



As information about arrangements become available they will appear on the Technical Marketing web site, the blog and Twitter.



Andy Collier .. an update

Andy (left) & Margaret Collier with David & Carolyn Brooks; Grenoble 2005.

On Sunday I  posted the sad news that Andy had died of a heart attack on  Friday afternoon.  He was at Leicester Square station on the London Underground on his way to a meeting of  the Association of Lighting Directors. It was typical of Andy that on a fine sunny evening, instead of packing up for the weekend he was involved with something he really loved and contributing freely of his time to produce the Association's magazine - Focus - described by ALD President (the highly respected lighting designer Richard Pilbrow) as "the best lighting design magazine in the world!" The comments by other officers of the Association testify to the high regard in which Andy was held, by everyone his life touched.

Roger Fox moved swiftly to publish as an Obituary Andy's profile on the Association of British Theatre Technicians' web site. Based on Andy's (as ever self-effacing) autobiographical sketch, as originally published in the Profiles series by Entertainment Technology Press in 2000 it 'tongue in cheek' records Andy's career and great love of everything theatrical.

I  have yesterday and today been contacting Andy's clients and friends. With Andy, clients tended to be friends as well - he was just that sort of person. All were saddened by Andy's death and many have offered help and support to our business. For this I  am deeply grateful. 

As information about arrangements become available they will appear on the Technical Marketing web site, the blog and Twitter.

David

ANDY COLLIER

Andy Collier

It is with deep regret that I have to announce the death of my business partner, friend and fellow director, Andy Collier on Friday 12th July.

Andy was well known in the theatrical lighting and entertainment technology community and I am sure his many friends will join me in sending our deepest sympathies to his wife Margaret and son Ben.    

David  Brooks


Further information will be posted in due course.

Avoid the shopping list approach to marketing

Just because there are many marketing techniques you don't have to use them all.

There are plenty of marketing communications methods involving both online and offline techniques, but because they exist it doesn't mean you have to use them all. It is what we term the 'shopping list' approach to marketing. Draw up a comprehensive list - advertising, mailing, exhibitions, PR, product literature, web site, emailing, social media etc etc - then buy the individual services at the lowest price, ticking each off the list in turn until the shopping, or in this case the marketing is done. That's it. Or is it?

Two big issues - stretching the budget and going for the lowest price supplier is one and using irrelevant communications channels is another. Would you feel comfortable flying in a plane where all the components were supplied by the lowest priced vendor? Would you feel comfortable if your doctor prescribed every drug stocked in the pharmacy in the hope that one of them would cure your illness? Of course not. You go to the doctor because of his medical knowledge, his ability to diagnose your complaint and then select the most effective treatment. So why should marketing be different?

Surely it makes more sense to talk to a specialist, to analyse your market, your positioning, reputation and awareness, then recommend the most effective marketing communications programme relevant to your company's identified needs. What's more to ensure the marketing strategy is informed by business goals, is designed to deliver the results you want and is implemented as an integrated programme of relevant marketing campaigns.

So, time to tear up the shopping list, get informed advice and maximise the marketing investment.