First to Market Theory

age-old question

Business scientists from around the world again and again the same question and came to the conclusion that his first preference is in the market place. Preferable to what? It is said that every product has a life cycle? And the milk? If this is true, and many universities are classified products and services in order to make a point and simply lump them all together. And 'correct? Yes or No would be a theoretical point of both sides and enough data to speakis desired in the history of the business to prove the conclusion to you. But basically I would say that the goods and services differ significantly from each other, are in many ways. For example, the reason for the purchase, the review of the product or service to the buyer, delivery and so on. Now it can be argued that there are some products entering the service sector and the product is not the consumer, without the service end of the equation are evaluated. maintenance contracts, almost aform of insurance are one type. For let us say a copy machine or something of that nature.

Let us take a mobile service-based business model for this discussion. The reason being I am in the service business and have been for 27 years. http://www.washguy.com and http://www.carwashguys.com.

Is it important to be first in the market? Yes or No? We have been successful competitors at both in various regional markets. If I had to chose, many times depending on the market I would say, I 'D rather be second or third in a market to assess the competition, interview clients, redesign and service are using my combination of technical, price targets, their use as a basis for my diversity and, of course, to capture their customers. It is much cheaper and cheaper to enter a market and skip the high cost of deploying a new service, making the demand and need in which there is neither the first or only user of such services, or education and all thinkingMarket segment and try to convince them because we have something they needed and could not live without.

So for these reasons I think many enterprise customers prefer to pay other by offering consumers what they really want at a price they are willing or services, so that the customer is forced to combat felt. Try, for example, sprint marketing, "let me write the current long-distance charges and see how much money can be saved?" Or even better:Entrepreneurial legend of Europe Richard Branson. He was not really first at anything, just giving the consumer another choice and addressing their true desires. Does it work? Yes 50 brand names later, Virgin is a force to be addressed or relinquish the market share. This does not mean it works every time, but he can market to the consumers who have already chosen a certain service and simply offer them better.
I talked with the marketing executives of Dominos Pizza at an International Franchising Association Conference and they discussed this phenomena with our team. Think of going into a country that never had pizza before and trying to convince them that they should all buy dough with melted cheese on top covered with other food items. They simply look at it and say I would rather have a Fajita Pita or worse what is this and why should I eat it? The first company in has to get everyone to try it and spend bu-co advertising dollars.

The second company in only has to offer the pizza once the countries citizens have decided, Hey this Pizza Thing with the cheese and stuff on it, is not all that bad after all. Much easier sell. See the point? And it has been played out over and over again and guess what, the aggressive agile company can easily move quicker and with better profits once the service or in this case the Pizza is accepted by the masses. Now does Pizza have a trend cycle? It is food, and last time I checked people were eating more not Judging by the few, paid for the sponsorship, the head of the girl gave the president of Jenny Craig. Oh yah, Monica, what is his name?

I watched this development in the markets and found more than ample opportunity to come out after the money and take it easy, what we want, as market share and be the first in competition with the messages we leave them to fight. Chances are that an exit strategy and whether it is the feeling of jumping into decline curve, what I feel is a matureMarket and take their profits or losses in some cases. But they do not realize their potential, or perhaps not matter and is ready for a different market or simply to give a product more to ride the curve. Even if a company is already on the market a tough opponent, no matter how we try to ServiceMaster. We have nothing to lose as an entry in one of their markets and everything to win. However, they have nothing to lose just to gain market share. Ifdecide to fight and refuse to relinquish market share they must turn on the direct sales, advertising, and marketing efforts, thus expanding the market for us. So if they had a 15% market penetration and we were to take 2%, that leave them with thirteen percent.

To keep quarterly numbers they need to increase the total market available to both of us to 17%. Also keep in mind that 2% of the two percent will be for us at no charge. That is truly free simply for seeking their unsatisfied customers and switching them. Now they must differentiate us from them thus spend more in advertising, which in doing so advertise that we exist and their customers actually do have a choice, it is a no win situation for them? Hardly an attribute for being first to market in my opinion? Hardly an advantage at the point of an entrant, a strong second to market competitor. If a second to market competitor slips in a price war because we have a nearly zero advertising budget using theirs to generate our expansion, then we can charge less. Let us say they charge $1000 for a given service and 15% is in sales and advertising. That means we can automatically charge 15% less than they do for the same profits. Faster ROI too. Also we did not have to pay the original marketing to get the ball rolling either. Very good deal. Why market when they already have simply ask their customers for the order and charge the less price. If they cannot handle it they can exit the market or spend more The money to keep before us, until their energy working against them. Similar to the art of Judo. Diplomacy is the art of making someone else Get Your Way.

For competition? It is not really an attack. It 'absolutely necessary that I remain, as the franchisor therefore more efficient to use maximum leverage of resources available for members who have invested in companies to help them return to feed their own families. So we found is that taking a lot cheapercompetitions customers through superior service and lower or more fair pricing or bundling (what the customer many times feels is more important) than to ferret out new customers through blanket marketing of junk mail or telemarketing. So then why not simple forget the high dollar marketing unless of course you happen to be first in the market anyway.

This is also a strategy preferred by scholars as the best possible scenario. Take the lead and hold onto for as long as possible. We have been successful at this approach too. It requires a different approach. Since generally we are in the lead I cannot discuss our strategies for this scenario on the Internet, but trust me, we play to win, whether we are in the lead or are ready to overtake the leaders. It is important for those who can offer products or services in an open market to understand that the "First to Market Strategy" may not be the best strategy all the time.