Who are the customers and what will it take to make them acquire and use a new product? Targeting a commercial market is putting special demands on a project.
Nothing is easier than having blind faith in the new product and its superior qualities, and to under estimatie the effort it takes to meet real customer needs and to penetrate the market
There can be different recipes, but establishing an extrovert focus is key in making the project true market oriented. Activities may include close cooperation with customers to understand needs and preferences , willingnes and ability to adjust to customer response both before and after launch and dedicated marketing and sales effort.
| Activities |
|---|
| Asses depency of market response |
| Assess market needs |
| Define how to make market aware of new product or service |
| Obtain early market response to new product or service |
| Allocate sufficient budget to marketing and sales effort |
| Align marketing and development activities |
| Make clear statement on how new product is better than existing ones |
| Avoid building unrealistic expectations to the new product |
| Define launch strategy to get early feedback |
| Can market needs change during a long project |
| Risks |
| Product or solution not better than competing products or solutions |
| Problem: The project is initiated with high product ambitions but turns out to create a product that does not differentiate from the competitors. Consequence: There is a significant risk that the market will not respond positively to the new product. |
| Market effort is underestimated |
| Problem: The project underestimates the amount of work it will take to assess market needs and to create market awareness regarding the new product. Consequence: It may be challenging to realize the business case when the product or a version of it is not known or aligned with market needs. |
| Market unaware of the new product or solution |
| Problem: The market is not adequately informed about the upcoming product and its features. Consequence: The product or solution will be difficult to sell. More effort will have to be put into promoting the product before benefits can be realized (if not too late). |
| Project not responsive to market needs |
| Problem: Due to time and resource constraints or lack of market focus, the project may not be building a new solution or a product that meets market needs. Consequence: When launched, the product or solution will fail to meet market expectations. At worst, the solution is not commercially viable. |
| Uncertain market response to new product |
| Problem: Despite multiple options for getting market input during project execution, it is still uncertain how the market will respond until the new solution or service is released. Consequence: The product or solution might not satisfy the needs of the market. If the market does not respond positively, the business case may be threatened. |
OBV Consulting ApS
Skovvej 5 DK-4180 Sorø
info@obvconsulting.dk
Ole Barkou Vilstrup
+45 61 62 73 12
obv@obvconsulting.dk
Good project knowledge base sets the scene for project management and provides an intro to its main disciplines. Get inspiration for project execution through action templates, risk lists, key figures and find inspirational guides on how to deal with typical challenges in projects. Read more