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2007/12/7 “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole!"Innovation is at the core of the relationships we want to create between our brands and their consumers. We believe Innovation to not only be fundamental to success and business growth but also essential to the way brands are communicating with their consumers. I'm often being asked about the innovation processes we're trying to set up with our clients to make sure their campaigns will perform accordingly. While it may sound intuitive, the first logical step - to define the innovation strategy - is often bypassed by a lot of organizations. Remember my post on the low percentage of marketers setting up marketing objectives prior to the set up of their marketing strategy? So it goes with innovation. One of my readings (well rather listenings) this week provides a good explanation on the reason why 50 to 90 % of the innovation initiatives end up as flops. Brands think they know their customers' needs without considering the fact there's a crucial difference between what consumers say they need and what they really need - that is between what they need and what they really want. Brands focus on products when consumers' concern is on desired outcome. Harvard marketing prof Theodore Levitt illustrated this difference with this straight forward analogy: “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole!" Focusing too much on demographics segmentation and qualitative research methods, marketers are improving their products in ways that become mainly irrelevant to their consumers needs- focusing on the drill, not the hole.
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