Originally published at: https://blog.12min.com/monetizing-innovation-summary/
How Smart Companies Design the Product Around the Price
“Monetizing Innovation” is an easy-going and absorbable book that further examines the stigma of price-sensitivity and ways to handle it.
About Madhavan Ramanujam and Georg TackeMadhavan Ramanujam and Georg Tacke are experts in product segmentation and consultants that helped many companies in their efforts.
"Monetizing Innovation Summary"Experts estimated that approximately 75% of new products fail to exceed expectations, regarding sales. These goods or commodities including both tangible and intangible products mainly fail due to bad design that is not suitable to the customers’ wishes.
The “Nine-Rule Approach”The authors advise the companies and start-ups to implement the steps below if they intend to keep high-intensity in the struggle for better market positioning. Analyze everything, from top to bottom, and you’ll soon get the big picture and all other features that go with it.
- “Configuration- and Bundling”
- “Go Beyond the Price Point”
The pricing model must be compatible with the product or service you are offering, otherwise, your company will face a quick downfall.
- “Pick a Winning Price Strategy”
- “Build an Outside-In Business Case”
- “Communicate the Value”
- “Use Behavioral Pricing Tactics”
- “Avoid Knee-Jerk Repricing”
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“Monetizing Innovation” Quotes[bctt tweet="Nearly three out of four new products or services miss their revenue and profit goals. Many of those crash and burn entirely, and some take their companies with them." username="get12min"]
[bctt tweet=“A pricing strategy is your short- and long-term monetization plan. The best companies document their pricing strategies and make it a living and breathing document.” username=“get12min”]
[bctt tweet=“Products lose integrity when a company’s knee-jerk response to a lukewarm early market reaction is to reduce their product’s price in the first few months.” username=“get12min”]
[bctt tweet=“Your pricing strategy should be to land a customer by showcasing the lower up-front costs and then expanding on a higher variable amount.” username=“get12min”]
[bctt tweet=“Your business case must model the linkages among the four elements of price, value, volume and cost. When you do that, your monetary forecast will be far more precise.” username=“get12min”]