The ADOPTION of a NEW PRODUIT in the SME context based on the « Analyse de faisabilité

technico-commerciale »1

By Ronald Bannon M.B.A., Adm.A., F.C.M.C.

Quebec City , Octobre 3rd 2014

1

Asselin Bannon Conseils en management stratégique Division de la Société de gestion et de formation GEXIMMD Inc.

The introduction of a new product or a new manufacturing process reveals a lot of difficulties

when the idea, emerging from a matured but not previously validated consideration, arises in

the pre-market stage and is directly offered for sale to prospective customers. Participation by

marketing consultants in such a project helps to provide solutions or tracks of reflection already

undertaken as an objective methodology of development.

1. Product development

The product is developed to the rhythm of funds and time available by the inventor and the

features identified from the perception of needs. In many cases, the product is unique in its

characteristics. If possible, it is always better to protect the drawings by an industrial patent

design but also the product itself by a patent application for the originality and the progress

generated by the innovation of the product.

2. The market and the segmentation

The market is either existing or non-existent if the product is too much ahead of existing

consumption habits or production methods in the case of a process. Segmentation will

determine if the market is opened enough according to the number of segments in presence.

You must be careful to assess that the product starts into a commercial phase in a growing or

declining market. The marketing considerations and financial investments will be different.

Before the next stage, a diagnosis will be required to assess the risks involved.

3. The needs and the technical validation (through a survey and tryouts)

During the study, it is important to identify the needs to which the product will respond. At his

step, it is time to compare the perception of the inventor versus the needs identified. This

approach is carried out by means of a survey and/or meetings with end users, intermediaries

and experts of the industry. This step is essential to validate the segmentation in 2. It can also

ensure that the product will be conformed to actual business practices and that it will match

existing standards following tryouts. These tests will be carried out under real conditions to

which the survey participants will agree to lend themselves to this exercise, at low costs. This

phase will allow a substantial reduction in the risks associated to the final use of the product.

The inventor will have a more complete perception on what should agree or not to the

prospective customers on the basis of the needs identified and validated with tryouts.

The ADOPTION of a NEW PRODUIT in the SME context based on the « Analyse de faisabilité

technico-commerciale »1

By Ronald Bannon M.B.A., Adm.A., F.C.M.C.

Quebec City , Octobre 3rd 2014

2

Asselin Bannon Conseils en management stratégique Division de la Société de gestion et de formation GEXIMMD Inc.

4. Targeted customer and market positioning

Once the phase completed of testing and reworking to the product is made, if applicable, the

target audience will gradually appear in different segments of the market according to the

benefits transferred to prospective buyers by the product and the needs to which it will

respond. Footprint generated by the new product thus validated will confirm the competitive

positioning of the product which will match the client profile through diagnosis, segmentation

and technical validation steps.

5. Marketing strategy and adoption by targeted customer

The marketing strategy will spin around the experience and testimonials from companies that

have agreed to participate in the validation process. Promotion will be broadcast on the web

site of the company through a commercial brochure based on the tests and the behaviour of the

product in real circumstances. News releases and involvement in local and international trade

fairs will come support all to build a strong image of the product. Tryouts of short duration (2 to

4 weeks) may also be used for marketing support as long as the product is ready and available.

The identification of early buyers will be a determining factor to accelerate the

commercialization and to facilitate its adoption. The use of social media may be necessary to

create a viral effect in order to quickly reach the targeted customer ready to purchase the

product of the inventor.

Asselin Bannon Strategic Management Consultants is a firm specialized in marketing of

innovative products and processes from the creativity of researchers, entrepreneurs and

inventors. In a context of market globalization, we have accompanied over a period of 18 years a

fair number of companies here and elsewhere in numerous commercial feasibility studies and

have allowed the breakthrough of several of them on domestic and international markets

previously not accessible to them.

1The method called « Analyse de faisabilité technico-commerciale » has been developed by Paul Millier

Ph.D. from University EM Lyon in France – Available under the title « L’étude des marchés qui n’existent

pas encore», Éditions d’Organisation, 2nd draw, Paris, 2004