How do you know if your new business idea will be a winner or a loser?
The marketing consultants Al Reis and Jack Trout tell how product ideas don’t always test out well. The inclination is to do market research but that can be a big mistake. One example they mentioned was Univac which pioneered a big product idea called the computer only to lose its early lead to IBM. It seems Univac lost out because its own market research predicted that by the year 2000 there would be only 1,000 computers in use. So they didn’t invest in a product with such a limited potential market. IBM, on the other hand, didn’t spend money on research and didn’t know about this bad news about computers. As Reis and Trout say, “Instead they geared up for a market that proceeded to exceed every market researcher’s wildest dreams”. Continue reading “Tooth fairy, Easter Bunny, market research and other myths”