How do companies create mind boggling demand?

15 Jan

Demand makes the economy go around,people camp outside of stores into the wee hours before a product is launched and companies dizzy on their heels trying to make as much money asap once they launch a product. But creating demand in the market is tricky, after all what makes people buy?

How do companies create that dizzy burst of feeling and euphoria in people that are all too happy to queue outside shop for mega selling hits like Harry Potter, Iphone and designer fashion shows?

I came across this book by Slywotzky, partner of Oliver Wyman, an international management consulting firm and nominated as the next ” Peter Drucker” and his book pretty much sums up the mystery of demand and demand creating points by giving real life case studies of companies and their struggles and success stories on creating demand in the market.

From Zipcar revolutionizing the word car sharing to Netflix to the story of Tetrapak revolutionizing the food industry. Yes , I know my current fixation is being obsessed with stories of how ideas revolutionize the food industry anyways the interesting points he made in his book

Making it magnetic

Creating a very good product does not automatically make the product magnetic in the eyes of the customer. Creating and capturing emotional space in the eyes and heart of the customer should be the ongoing aim of companies. That’s why companies try to sell us an experience, real life situations gone for the better after using X,Y and Z

Fix the hassle map

In the era of the one click stop shop, customers look forward to greater simplicity and more choices and by figuring how companies can fix hassles (time wasters) that consume most of our lives provides the path of explosive demand. In the era of Iphone, Ipad,Mac that enhances consumers experience of seamlessly connecting to their music, photos, files, apps with lesser restrictions and sync just with one click enabling better user experience. Its no wonder once you have a taste of what Apple has to offer, most users turn into Apple products evangelists.

Find the triggers

How do we convert product fence sitters , individuals that heard about the product but they don’t buy it? Companies continually struggle to search for the factors that convert product fence sitters into buyers. And demand , yes , demand is unfortunately sometimes ruled by inertia, skepticism and triggers for eg ( brilliant advertising , promotion, marketing) can be a tipping point/ trigger to give a little enhancing factor to the magneticism of a product.

Build a steep trajectory

How fast can we get better? In the era of the copy cat Louis Vuitton and ipod, ipad , mac’s wannabes by making every opportunity to improve that unlocks even more demand and narrows the competition gap. Kaizen, the continuous improvement philosophy I feel is what this chapter is gearing towards,how incremental improvements makes companies stronger and how companies can’t afford to not implement Kaizen as every little improvement= better products= happier customers

Deaverage

Similar philosophy of creating creating great products and understanding what certain clusters of consumers want, need, have problems with instead of creating the PERFECT product for everyone outlined by Malcolm Gladwell and Howard Maskowitz, market researcher extraordinare and my new personal hero that democratized the food industry and changed the ways how companies think about what makes consumers happy.

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