Planning Theory 05: Why "Market-in Only" Is Not Enough—How to Think About Planning Where Value Circulates

Thinking for "delivering concepts to the market"

──Perspectives on Product-out, Market-in, and Early Adopters

In the first part, we organized the four expression layers of

spec/merit/benefit/value from the perspective of "which value layer to speak from" when defining a concept.

In this second part, as a continuation, we will delve into
the thought structure for delivering that value to the market
as a point of focus.

■Product-out and Market-in are not opposing concepts

In the context of product planning and marketing, it has long been said that

• product-out is bad

• you should think in terms of market-in

as a common refrain.

Certainly, it is important to think starting from what customers want, rather than commercializing "what we can do" or "what we happened to make" first.

However, when considering practical work, I feel that
these two are not simple opposing concepts .

■From a corporate perspective, it is "Market-in → Product-out"

First, let's organize this from the company's perspective.

• consumer voices

• reviews

• behavioral data

• market changes

Receiving such information and understanding "what consumers are looking for." This is market-in.

Then, using the company's strengths, technology, and resources,

translating it into the form of a product or service.

This translation process is product-out.

The product-out mentioned here is not
an imposition of corporate convenience.
It is a product-out as an output, starting from market-in.

■ From the consumer's perspective: "Product-In → Market-Out"

On the other hand, from the consumer's standpoint, the reverse flow is occurring.

• Receiving product information sent from companies (product-in)

• Actually using, experiencing, and interpreting it in one's own way

• Deciding whether to incorporate it into one's life

And those evaluations and impressions go out into the world in the form of

• SNS

• reviews

• word-of-mouth

This is market-out.

The result of this market-out becomes market-in information for the company once again.

■ A spiral that keeps rotating between companies and consumers

In other words, in reality,

• market-in → product-out → product-in → market-out
  

  
  
  

This cycle keeps rotating between companies and consumers.

Product-out and market-in are not things to choose between, but rather

parts of a reciprocating motion—viewing them this way is more fitting for modern direct business.

■ So, to "whom" should that value be delivered?

Here, another important question arises.

That is,

This is the point.

To organize this perspective,
I will use the Diffusion of Innovations theory.

■ Using the Diffusion of Innovations theory as an "axis for planning design"

In the Diffusion of Innovations theory,
attitudes toward accepting new products or services are classified
in order of early adoption.

• Innovators (approx. 2.5%)

• Early Adopters (approx. 13.5%)

• Early Majority (approx. 34%)

• Late Majority (approx. 34%)

• Laggards (approx. 16%)

Among these,
I believe the Early Adopter segment is the most important when considering a planning concept.
I think.

■ Why are Early Adopters important?

In particular, in direct businesses premised on EC/mail order,

• you cannot touch the actual product

• you must judge based only on words, images, and information

This is the purchasing structure.

In other words,
unless it is a segment that can take a certain amount of risk regarding new products or services, they will not make a purchase.
That is what it means.

Early Adopters are,

• highly capable of gathering information

• Make judgments in your own way

• Share the results of your trials

They possess these characteristics.

Whether a concept is accepted by this segment determines
whether it will subsequently cross the chasm and gain widespread adoption.

■ Realistic Benchmarks for Concept Design

Based on what we have covered so far,
in concept design for direct business,

• At which layer do you discuss value?

• For early adopters, does that value
  "provide a reason to take a risk and try it?"

You must constantly think by moving back and forth between these two points.

■ Summary of the Second Part

• Product-out and market-in are not in conflict

• Value circulates between companies and consumers

• The precision of a concept is determined by "who you deliver it to first"

• In direct business,
  designing from the early adopter's perspective is extremely important

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▼ This article is part of the following series.

Thoroughly Logical Direct Marketing
─ The Big Picture of Design Philosophy Spanning Advertising, CRM, and Business P&L

Click here for the overall structure and how to read
▶ https://note.com/kawabe_atsushi/n/n879156f50c33
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