Market transformation has been defined as a process whereby innovations are introduced into the marketplace and over time penetrate a large portion of the eligible market. Once a new product or other type of innovation is introduced, its penetration begins to rise through a sequence of buyer types starting with innovators and early adopters. Penetration then "takes off" as awareness of the technology and its advantages grows. The adoption process continues until market penetration levels off at "full market potential." Market transformation involves ongoing and lasting change such that the market does not regress to lower levels of utilization at some later time.
While each and every product has its own set of market dynamics, there are generally six strategies that accelerate market transformation:
- Identify and select a market segment that has the greatest need to buy the new product as soon as possible. It helps to describe why the target customer's need is so immediate.
- Determine what makes the product "complete" in the eyes of your initial target customer. Sometimes this means reducing a product's intended use so that it fits a single purpose or application.
- Recruit the partners and allies needed to truly deliver a complete product. Doing it by yourself is rarely if ever possible.
- Set up a customer-oriented channel of distribution so that customers are comfortable making the purchase.
- Price the product based on its value to the customer without significantly exceeding the price of alternative solutions. Make sure the product is rewarding for the channel to sell.
- Position and promote the product as the market leader in comparison to competitive offerings. Use communications techniques that are familiar to the type of customer you are serving.