Timing in Marketing – Ideas on Timing a Product Launch
July 16, 2018
In a recent post, we described the #1 reason that startups fail. The data we cite comes to the conclusion that the biggest problem is that businesses discover there is no market need for their product.
This is no doubt correct. Ultimately, when people don’t feel a need for what you’re offering, you won’t be successful.
However, it’s also true that few businesses develop a model or execute a strategy for a product idea that’s patently undesirable. In fact, the usual impetus for starting a business is those involved think they have an offer that will appeal to a certain audience.
So what goes wrong? Why do so many products that seem like they’d sell not find a buying audience?
Looming further down the list is another reason startups fail. In reality, this reason strongly connects to lack of market need.
It’s not the product. It’s the timing.
The Right Idea at the Right Time
In a short Ted Talk, entrepreneur and venture capitalist Bill Gross looks back on decades of experience with startup ventures and relates what he thinks is the single biggest reason startups succeed.
He notes how at first – like all of us – he worshipped the product idea. That “ah-ha” moment when you think you have a new solution to a common problem. For most entrepreneurs, this is the crucial moment that starts their business journey.
Further thought led him to believe that maybe it was the team and their planning that was most important. His quote of boxer Mike Tyson exemplifies the point.
“Everybody has a plan until they get punched in the face.”
Things seldom go as planned. The best teams are built to expect the unexpected. A lot of business execution has to do with how the team responds to getting “punched in the face” by the customer.
Then he considers the business model. Does the business have a clear path to generating revenue? Do they have a marketing strategy with the funding and long-term planning that will allow them to get a foothold in the marketplace?
Last he looked at timing. Was the product too early, requiring education so consumers would understand the benefits? Or was it entering a competitive market too late, with little chance to gain market share?
All of these are important aspects to business success. But in his exhaustive analysis, Bill Gross finally sees what the most important factor of all is in getting a startup to succeed. The result surprised him.
The biggest factor was timing.
Looking at companies he worked with as well as major startup successes and failures outside his work, he came to the conclusion that timing accounted for 42% of the differences between success and failure.
What most assume is the biggest factor, the differentiation and competitive advantage inherent in the business idea, came in third.
He illustrates this with a few examples.
Many astute investors passed on Airbnb, thinking that nobody would be willing to rent out a room in their home to a stranger.
It turned out people were more willing to make that connection than expected, but the catalyst for Airbnb’s success was the 2008 recession. In a snap, people needed extra income desperately, and the Airbnb model fit the moment.
He also speaks of his failures attributed to timing. His online entertainment company was one of the first to introduce the idea of streaming entertainment. Great idea, but in 1998 they were ahead of the technology. There wasn’t enough broadband penetration and other issues slowed download times.
A few years later, YouTube was positioned with the same offer – at a time when the technology was ready for it.
Be Honest About Timing
In the context of this discussion, timing comes down to two things.
First is whether or not the broader infrastructure will support your idea. We often hear about startups with a great idea, team, funding, and model that failed because they were “ahead of their time”. Most products don’t exist in a vacuum. Will your idea function in the consumer landscape of the moment?
The second and more common issue is whether or not the consumer public is ready for your offer. It is far more difficult to market a product when your target audience is not yet aware that they need you.
They may have the problem you can solve, but they won’t buy your product until they realize they have that need. And this isn’t just a rational understanding. You have to penetrate their lifestyle and make an emotional connection that motivates them to buy.
Bill Gross makes a vitally important point. You must be honest when you asses the timing of your product roll-out.
If you’ve taken serious steps to get your business started, that means you love your idea. But that love can blind you when you try to determine how your consumer targets will respond.
Be brutally honest with yourself when you asses timing. Don’t be in denial about results that indicate your timing is off just because you want to push forward with your idea.
Conclusions
Remember that the #1 reason startups report failure is that there is no market need for their product. We tend to assume it’s because the idea wasn’t as strong as originally thought.
In fact what’s probably more common is that the timing wasn’t right. The product was either ahead of its time or entering an already saturated market.
If an idea is mistimed, it won’t be able to cross the “chasm” that takes it from innovative buyers and early adopters to majority adoption.
If it’s too late, your only audience may be a small target of laggards.
And of course here’s the key. When you have a strong idea and realize that the timing looks right, jump in with everything you’ve got.
Seize the moment. The best opportunity for startup success is when the time is right.
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