Reverse innovation is a process in which low-end products are
created for an emerging market but are marketed in a richer, mature
market, such as the United States. Social media has created the
structure for reverse innovation. Reverse innovation creates
differentiated products in fast moving markets. If you have a content of
any kind, be it a song, a book, a video, a product, and it is digital,
it can be placed on a social media platform. If this content is
attractive, desired, wanted, or needed, social media platforms can
quickly make content easily available to vast numbers of people. This
makes for a fast, quickly evolving market.
Reverse innovation allows an organization to adjust and keep up to the speed of this market. Social media has created platforms in which of the entire world reside in one place Social media is a content driven issue. The sheer size creates a fast-moving market. Because so many people are engaged with this product at once, the product evolves quickly. Social media is also virile---it multiplies quickly---like a virus. Reed's Law teaches that a network of just two quickly becomes 1,092. New media has created an explosion of products. Because of the sheer scale of the marketplace, branding, positioning, and differentiation are critical to marketing a product. People have to see your product as different, that it can perform acts that no other product can do. A product must be strongly differentiated to be selected in the marketplace.
To be successful in social media marketing, a marketer must know their craft. Many marketing experts feel that positioning and differentiation are the same. I feel that in a world of social media platforms and a market place exploding with new products, positioning and differentiation are two different things. Simply, you position---place---one product against another. Walking sneakers are not the same as basketball sneakers. Different products perform different things. An ultra sound at a hospital is different than a small, portable ultra sound that is used at an accident scene. Simply, consumers have to see that a product is different if is to be branded. This can be illustrated by observing how an industrial goods manufacturer, manufactured an x-ray machine for India, which evolved into a highly differentiated product for its domestic markets in the United States.
The C.E.O. of this company was appointed in 2001. He realized that the domestic and global markets his company served were mature. He realized that the only way that he could create continued high revenue streams would be opening emerging markets.
These markets had limitations in terms of income and infrastructure. He commissioned a rigorous analysis that told him that if his company adjusted products to the limitations of the emerging markets, the emerging markets could create 2 to 3 times the growth that could be expected in mature markets. The company had a large brand in health care machine products, such as x-ray machines.
How this company created strong revenue streams is a benchmark for other products. First, they listened to the people in these markets and observed how x-rays were done in these new markets. The brand engaged with its customers. There was a meeting of the minds between the engineers of the emerging markets and the home market. The engineers were able to find a compromise machine.
This happened in 2002, before social media became an important issue---but there is an analogy for us today. On a present day social media platform, the central idea is engagement. With today's platforms, the company could readily and quickly understood what the people needed. The engineers could more easily have worked together to create the compromise machine that was developed. The "comment" section on a social media platform is critical. It is here that people are telling their brands what kinds of products they need and want. The platforms create the means by which products can be quickly developed marketed. The company developed a successful product for the emerging markets of 2002, but with today's more mature social platforms, this market could have been developed a lot quicker.
In the emerging markets of China and India, the company realized that transportation to clinics and hospitals was a problem. Instead of the patients going to the machines, the machines had to go to the patients. The company developed a compact ultrasound x-ray machine which combined a regular laptop computer with sophisticated software, which was easily portable. This machine sold for less than 15% of the price for a high-end machine sold in the States. It created great profit for the company.
More importantly, the company discovered a new market for this machine in the States. It created a highly differentiated product. A portable ultrasound is critical at an accident scene. The portability created a highly differentiated product. The technology advances in software are now making this product a significant tool in medical hardware. Someday every general practitioner may carry both a stethoscope and a compact ultrasound device embedded in his or her PDA. A technology created for an emerging market has created a significant, differentiated product for the domestic market. Six years after their launch, portable ultrasounds are a $278 million global product line for this company. The market is growing at 50% to 60% a year.
Dean Hambleton
dnhambleton@gmail.com
Reverse innovation allows an organization to adjust and keep up to the speed of this market. Social media has created platforms in which of the entire world reside in one place Social media is a content driven issue. The sheer size creates a fast-moving market. Because so many people are engaged with this product at once, the product evolves quickly. Social media is also virile---it multiplies quickly---like a virus. Reed's Law teaches that a network of just two quickly becomes 1,092. New media has created an explosion of products. Because of the sheer scale of the marketplace, branding, positioning, and differentiation are critical to marketing a product. People have to see your product as different, that it can perform acts that no other product can do. A product must be strongly differentiated to be selected in the marketplace.
To be successful in social media marketing, a marketer must know their craft. Many marketing experts feel that positioning and differentiation are the same. I feel that in a world of social media platforms and a market place exploding with new products, positioning and differentiation are two different things. Simply, you position---place---one product against another. Walking sneakers are not the same as basketball sneakers. Different products perform different things. An ultra sound at a hospital is different than a small, portable ultra sound that is used at an accident scene. Simply, consumers have to see that a product is different if is to be branded. This can be illustrated by observing how an industrial goods manufacturer, manufactured an x-ray machine for India, which evolved into a highly differentiated product for its domestic markets in the United States.
The C.E.O. of this company was appointed in 2001. He realized that the domestic and global markets his company served were mature. He realized that the only way that he could create continued high revenue streams would be opening emerging markets.
These markets had limitations in terms of income and infrastructure. He commissioned a rigorous analysis that told him that if his company adjusted products to the limitations of the emerging markets, the emerging markets could create 2 to 3 times the growth that could be expected in mature markets. The company had a large brand in health care machine products, such as x-ray machines.
How this company created strong revenue streams is a benchmark for other products. First, they listened to the people in these markets and observed how x-rays were done in these new markets. The brand engaged with its customers. There was a meeting of the minds between the engineers of the emerging markets and the home market. The engineers were able to find a compromise machine.
This happened in 2002, before social media became an important issue---but there is an analogy for us today. On a present day social media platform, the central idea is engagement. With today's platforms, the company could readily and quickly understood what the people needed. The engineers could more easily have worked together to create the compromise machine that was developed. The "comment" section on a social media platform is critical. It is here that people are telling their brands what kinds of products they need and want. The platforms create the means by which products can be quickly developed marketed. The company developed a successful product for the emerging markets of 2002, but with today's more mature social platforms, this market could have been developed a lot quicker.
In the emerging markets of China and India, the company realized that transportation to clinics and hospitals was a problem. Instead of the patients going to the machines, the machines had to go to the patients. The company developed a compact ultrasound x-ray machine which combined a regular laptop computer with sophisticated software, which was easily portable. This machine sold for less than 15% of the price for a high-end machine sold in the States. It created great profit for the company.
More importantly, the company discovered a new market for this machine in the States. It created a highly differentiated product. A portable ultrasound is critical at an accident scene. The portability created a highly differentiated product. The technology advances in software are now making this product a significant tool in medical hardware. Someday every general practitioner may carry both a stethoscope and a compact ultrasound device embedded in his or her PDA. A technology created for an emerging market has created a significant, differentiated product for the domestic market. Six years after their launch, portable ultrasounds are a $278 million global product line for this company. The market is growing at 50% to 60% a year.
Dean Hambleton
dnhambleton@gmail.com
Reverse innovation creates an example of differentiated products.
Differentiated products are critical to branding. I hope that this
articles helps you in creating differentiated products in branding. If
you feel that I can help your company, please get in touch with me.
Dean Hambleton
dnhambleton@gmail.com
Article Source:
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Dean Hambleton
dnhambleton@gmail.com
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