Not limited to BtoB services, when a new product or service is released, it goes from being unknown and having no customers to using it, to gaining recognition and acquiring new customers. The target companies to acquire in this phase are reference customers and teacher customers.
Also, as recognition gradually increases and the number of customers increases, the type of companies that will be acquired will change. In this way, implementing appropriate marketing measures for each corporate layer acquired during the growth stage of the service will lead to more efficient marketing and maximization of profits.
This time, we will introduce the target company groups at the growth stage of the service and marketing measures appropriate for each company group.
What is a reference customer/teacher customer?
A reference customer is a company that is a typical user of a product or service. If a company with influence or name value in a specific industry or beyond the industry introduces a product or service and creates one success story, it can be rolled out horizontally to increase the number of new companies introducing it. You can.
In addition, a teacher customer is a customer who introduces a newly released product or service earlier than any other company, and who provides feedback on requests and deficiencies of the product or service, thereby leading the industry like a reference customer. Applies to companies.
Immediately after a new product or service is released, it is not well-known and has no implementation history, so it is important to improve it so that it becomes more appealing and competitive, meeting the needs of target companies while gaining recognition from more companies. must be done.
If you can acquire reference customers and teacher customers early on, you will be able to acquire new customers and improve your products and services. You can then move on to the phase of introducing and expanding your products and services to more companies.
The number of companies that a product or service should (can) attract differs depending on its life cycle. Reference customers and teacher customers are companies that should be acquired during the introduction phase of the product lifecycle.
Conducting appropriate marketing activities for each corporate layer that can be acquired during the product life cycle will lead to more efficient marketing and, ultimately, to maximizing business profits.
Product life cycle and innovator theory
The product life cycle and innovator theory are related to the types of companies that can be acquired at each growth stage of a product or service.
①Product life cycle
The product life cycle refers to the process by which a product or service appears on the market, increases sales, and eventually declines from the market, and this series of processes can be divided into multiple stages.
There are four stages in the product life cycle: introduction, growth, maturity, and decline.
Introduction period
It’s a time when new products and services have just been released. As new products and services are not well known, focus on raising awareness.
growth period
This is a period when the overall market grows and sales of products and services skyrocket. As new companies enter the market, promotions that differentiate them from other companies’ products and services are necessary.
maturity period
A period when the number of competitors increases and the market matures. It is important to maintain and maximize the sales of your products and services in a limited market because there will be a limit to your needs and you will not be able to expect the market to expand.
period of decline
This is a period when the market size and sales decline as demand disappears. Strategies are required for how to maintain existing customers, and in some cases, withdrawal is also considered.
Explaining the basic meaning of product life cycle (PLC) | MarketTRUNK
②Innovator theory
The innovator theory is a theory that analyzes how new products and services (innovations) spread in the market by classifying consumers into five groups.
innovator
It is said that people who value “newness” make up 2.5% of all consumers.
Early adopters
They are sensitive to trends, actively collect information, pay attention to the benefits of products and services, and decide whether there are new benefits before purchasing. It has a large influence on the subsequent early majority and late majority, and is said to account for 13.5% of the total market.
Early majority (early followers)
They are said to be relatively cautious when purchasing new products and services, accounting for 34% of the total. Since it tends to be strongly influenced by early adopters, it serves as a bridge to penetrate the entire market.
Late majority (late followers)
They are said to be skeptical about new products and services, accounting for 34% of the total. Carefully monitor the trends around you and make sure that more than half of the people accept your purchase.
In the innovator theory, it is said that the diffusion from innovators to early adopters is the turning point in whether or not it spreads to the next early majority and late majority. Furthermore, the “chasm theory” has emerged, which emphasizes the importance of marketing strategies not only for early adopters but also for the early majority.
What is innovator theory? Marketing utilization techniques to popularize the market | MarketTRUNK
Corporate layer in each product life cycle
We will introduce the corporate demographic that can be acquired through the product lifecycle, along with specific marketing measures for corporate demographics.
①Introduction period × Innovator, reference customer, teacher customer
During the introduction period, we will focus on raising the profile of our products and services. Therefore, we actively promote our products to innovators who seek “newness” to gain recognition. To this end, we will brand our products and services while actively increasing recognition through web measures such as Google ads and offline measures such as exhibitions.
Increase awareness and acquire customers with Google Ads and offline ads | MarketTRUNK
Learn the true meaning of branding! Get it right and get started!
In addition, the reference customers and teacher customers mentioned above are also included as target companies to acquire during this introduction stage.
② Growth period × early adopter, early majority
During the growth period, companies shift from innovators to fashion-conscious early adopters. Early adopters who are sensitive to trends make purchasing decisions based on the benefits of products and services, so it is effective to promote high performance and new features.
As the growing season progresses, there is a gradual transition from early adopters to early majority. The early majority are relatively cautious when it comes to purchasing new products and services, so it’s a good idea to create a sense of trust and security by showing them the company’s track record, case studies, and customer satisfaction.
Additionally, this is also the time when new companies are starting to enter the market, so it is important to carry out promotions that differentiate the market from its competitors by highlighting their differences and strengths.
How can you determine your company’s core competencies that make it stand out from competitors? | MarketTRUNK
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③Maturity stage × late majority
In the mature stage when the market has expanded, the corporate group has moved to a late majority, and promotions will simply increase the number of new contract companies. However, as the market matures, limits to market needs arise, and it becomes increasingly important to maintain and maximize sales from existing customers.
In addition, during this period, there are many competitors and it is easy to fall into price competition, so we take measures to strengthen relationships with customers and increase customer loyalty, and strengthen the branding of our products and services to further differentiate ourselves from our competitors. We will aim to
Key points of marketing strategy with customer loyalty in mind | MarketTRUNK
summary
- A reference customer refers to a company that is a typical user of a product or service. In addition, teacher customers are customers who introduce newly released products and services earlier than any other company, and who provide feedback on requests and gaps in products and services. Reference customers and teacher customers are companies that should be acquired during the introduction stage of the product life cycle.
- Product life cycle and innovator theory are related to the types of companies that can be acquired at each growth stage of products and services.
- As the market matures, there will be limits to market needs, so it will become important to gradually maintain and maximize sales from existing customers.