"Learn from the Winners" by Ken Bernhardt Taylor E. Little Jr. Professor of Marketing and Special Assistant to the Dean Robinson College of Business, Georgia State University Atlanta Business Chronicle - April 3, 2009 Last month Atlanta Business Chronicle and the Robinson College of Business presented the Marketing Awards for Excellence, honoring the outstanding marketing innovations developed in Georgia during 2008. There is a lot to be learned from the MAX Award winners, especially in today's economy where innovation is the only way to escape extreme price pressure exerted by customers. So, how did the winners do it? Understand consumer problems and develop technology-based solutions: Too many companies focus their innovation on making their product better, faster, smaller, prettier, or cheaper instead of striving to identify problems customers have that they can help solve. This behavior results in Walkman products that are smaller instead of an iPod. As an example of how to do it correctly, MAX Award winner CibaVision found that fashion conscious consumers, especially young females, would love to be able to see how they look in colored contact lenses but were reluctant to go to an eye doctor to try on various colored lenses. They solved this problem and another one, how to get their friends' opinions of their new look, by developing new technology enabling these consumers to upload their picture to a website, "try on" different colored lenses, and share the picture with their friends to get their reaction. Another MAX Award winner, Southwire Company demonstrated that this strategy is equally relevant for business to business marketers. Southwire, a major producer of wire and cable, knew that their utility customers incurred substantial repair costs when their cable was cut during construction projects. Through innovative technology, they found a way to make their cable self-sealing when nicked or cut, saving customers repair costs for damaged cables. Create a whole new category: MAX Award winner Idbids wanted to teach kids to appreciate the environment and how small actions can make a difference. They developed eco-friendly toys together with educational content that taught kids about the environment, creating a whole new category in the toy industry, and were rewarded handsomely. They worked with the leading industry association to increase awareness of the new category of products, environmentally-friendly toys. Deliver on the promise: Unlike some "green marketers," Idbids didn't just promote that they were environmentally friendly, they delivered, using environmentally-responsible organic materials and recycled or recyclable packaging. Southwire used product demonstration kits at over 200 trade shows and marketing events to prove their claims. They also created a customer testimonial DVD letting their customers do the talking, increasing the credibility of the promise. Use new media: Marketers today need to go beyond the use of traditional media to promote their innovation. Demonstrating that large budgets are not necessary for success, Idbids used social networking, blogging, and word of mouth to get visibility for their Eco-friendly Starter Kit. CibaVision used an innovative contest promotion on MySpace.com and received over 100,000 entries, a new record for the site. They also hosted an original webisode series and showcased the brand using interactive tools with the characters. Make it risk-free for consumers to try the innovation: CibaVision offered free trial certificates on its website. Southwire offered a no-risk warranty to stand behind their product. Expand into new market segments: Southwire has expanded marketing of the product into the agriculture irrigation market, a promising new segment for them. Don't forget to market to intermediaries: Idbids made a big splash at the International Toy Fair in New York City. This attracted the attention of the media and retailers, two key intermediaries in the industry. The company marketed the toys as a new category of "Eco-friendly" toys, winning the support of these intermediaries. CibaVision worked closely with their Eye Care Practitioner partners in the product launch. These intermediaries can make or break a product's success and marketing to them often doesn't get as much attention as it deserves. Develop strategic partnerships: CibaVision worked with the Ford Modeling Agency, sponsoring a Ford Model Search including a contest to win a contract with the agency. Seek recognition for your innovation: Idbids got a lot of mileage out of being named among the "Top Toys of 2008" by Time Magazine. They worked with the National Parenting Center to obtain their Seal of Approval Award. They also were nominated for a Toy of the Year Award, given by the Toy Industry Association, in the category of Educational Toys. Awards add credibility and accelerate the spread of knowledge about the innovation. It would be easy to fall into commodity status in these 3 competitive industries. Southwire, Idbids, and CibaVision have differentiated themselves from the competition, not only through innovation with the product itself, but also through good sound marketing practices. The results are impressive. Learn more about the 2009 MAX Awards winners and finalists>>