Wednesday, February 11, 2009

Success - customer focused or market focused

 

http://www.tgdaily.com/html_tmp/content-view-41413-113.html

In general, announcements like this showcase the difference between a technology driven company and one that is marketing driven.  A technology company wants the credit for the accomplishment as soon as possible while the marketing driven company wants to drive the highest sales wave that can be achieved. That's why Apple, which is marketing driven, waits (the first iPhone being the exception) until something is ready before they announce it; they want buyers in stores buying and not waiting for a future event.

 

Tech companies have started to be more customer focused (at least want to).

Companies like Apple seem to innovate by anticipating the convergence of technology and consumer habit and figure out what can be marketed.They don't seem to be asking the users what will they spend money on next year nor ask them how should the button look like. They seem to think that it is their job to lead the consumers for greater satisfaction by identifying technology, trends, business and political policies etc. If they are there to listen and do what the consumer wants, they will be a evolutionary company not a revolutionary one.

They take a huge gamble, but also huge reward by being innovative.

But, most tech companies tend to play it safe and depend on their customers to tell them what they want the company to develop. Having spent considerable time in software line, I know that it is harder than it looks to 'listen to customers'. Play it safe, provide incremental benefit, don't disrupt existing process, maximize existing investment and the list goes on and on. Basically, keep your creativity and knowledge of future trends at office when talking to customers.

The rift between the above two approaches is more so when you compare consumer products vs. enterprise products.

Customer focused - you educate them of the trends, but stick to what they can grasp and don't bet on overselling future feature.

Market focused - anticipate and gamble, better be really good at articulating why some one needs your new gadget.

And, don't try to be both unless you made millions in Los Vegas :-)

No comments: