Concentrate June BlogThe Curiosity rover, the design basis for the Mars 2020 rover

NASA are determined. In the 2030s they plan to send a person on a one-way trip to Mars. But before they go down in history for this amazing feat, they need to figure out how.

Before they send humans, they’re sending rovers, shuttles and are now in the process of even getting drones to the red planet to scout out its surroundings.  They test their technology in deserts and other environments on earth similar to mars so they can increase their confidence in the devices’ success. They have knowledge from previous missions of the type of terrain, atmosphere and weather conditions to expect when attempting to fly the ‘Mars-copter’ drone.

Knowledge is power when ‘exporting’ any product.

In the annual Market Measures study of sales and marketing by hi-tech exporters, the highest growth firms are very clearly those who put the most emphasis on understanding their market (or in NASA’s case, planet).

The majority don’t have this focus. Hundreds of software, electronics and engineering companies in New Zealand are generating ideas and new products, but not enough knowledge about the market or person who will buy them.

Local companies have invested in building a product only to discover that the problem it aimed to solve wasn’t really an issue outside of New Zealand, or that the product requires enormous change on the part of the buyers for them to be able to use it effectively.

Matt Haig in his book ‘Brand Failures: The Truth about the 100 Biggest Branding Mistakes of All Time’, describe the technology companies in his list that failed became “blinded by the technology itself, and almost forgot the target market completely.”

Why do so many of us dive into launching a new venture without more than a cursory glance at the people expected to part with their cash for it? It’s a natural human tendency to assume that we know what others will like – we encounter a problem in our daily or business lives and find a solution to it, and quickly assume the way we solve that problem will attract others.

Business is about risk, so there are no guarantees, but gathering data from your market as early as possible is a much safer strategy for taking a new product to market.

Having some knowledge is better than none, and the right sort of data about potential customers can give you immense marketing power.

Those tough decisions (How do I price this? Is that advertisement going to work? Should I use that reseller?) become easier the more you know about your target markets. Firms armed with some insights about their market are more likely to ‘land’ on the right spot in their export markets, while those going in blind have to hack around in the undergrowth before happening on the most profitable segment to target.

To get this data, do you have to turn to the market research ‘vampires’, as famous adman Kevin Roberts calls them, so adept are they at sucking the life out of good ideas? The fundamental problem with market research is that data has become so easy to gather in large volumes that insights i.e. information that really helps you make decisions, are harder to extract.

Three keys to getting the right answers

  1. The What

Getting the right market data comes from starting with the end in mind. You need a very clear understanding of what decisions you actually want to make with the intelligence gathered.

With a clear understanding of the decisions you want to make, you can work out what sort of information will be needed to support those decisions.

For example, you may want to decide what promotional strategy to use in launching a product into a new market, so the information you need is how your customers typically gather information, what kind of channels they prefer, what style of communication suits them. The value of your research hangs on knowing the right questions to ask.

  1. The How

Gathering data from customers doesn’t necessitate formal, expensive market research.

With the right frame of reference the Internet can be a powerful research tool, with a poor research structure you can drown. You can find anything from the profit and loss statements for a UK competitor, the number of commuter buses plying the streets of Melbourne (down to their size, make, year of manufacture, cc rating, capacity and typical routes), to the number of commercial bakeries in the US state of Wisconsin (there’s 62).

Research can be as simple as ringing up a dozen customers or prospective customers. Telephone or online surveys, listening to your call centre, mystery shopper reviews, even talking to people at the local supermarket – they’re all valid options.

  1. The Who

The last step is working out exactly who you should be researching. You need to understand all the different audiences in your value chain – who uses your product, who buys it, who supports it, who is the reseller or channel partner, who is the end customer. Each group will have a unique perspective on your products and they need to be seen in context.

 

Following these steps will give you the platform to building a marketing capability that’s out of this world. Even if your technology company doesn’t have quite as big a budget as NASA’s, following in their footsteps of thorough data collection and research of foreign ‘markets’  before ‘exporting’ to them, is a lesson anyone in the hi-tech space can accomplish.

To learn more about how to successfully export your Kiwi tech product, download our new eBook, Building a World Class Marketing Capability.

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