Market timing refers to the entry point at which you
introduce your product to the market.
In order to enter the market at the right time you
have to consider the entry point (Early or Late),
time of year, location,
consumer readiness, competitors
There are two main points at which you can introduce a
product into the market,
The early entry point means that you will be the
first to introduce a new product to the market.
There are many examples of this such as IBM
introducing the PC,
Apple introducing the iPhone, Ford introducing the
automobile, Facebook introducing Social Networking.
Being the first to enter the market brings trumendous
company and product becomes branded as such and you’re
looked at as a leader in the industry and as a result you
gain the majority of market share even as others try to
enter the segment.
The down side of entering the market first is that
you have to blaze new trails and identify and negotiate all
the pitfalls without the benefit of learning from someone
who might have gone ahead of you.
Entering the market late means introducing your
products after there are already other entrants into the
being early is good, being late is not always a bad thing.
Entering later means that you can learn from others
who’ve entered already.
Entering the market later with a better product can
be an advantage.
Once you’ve decided which entry point to use you then have
to consider the time of year,
location, consumer readiness, competitors
Time of Year:
The type of product that you’re selling will
determine at what time of the year is the best time to
introduce it to the market.
There are seasonal and event cycles that you should
products sell only in certain months of the year while
others will sell at any time of the year. You
have to introduce your products at the right time of the
year in order for it to reach the customer at the right
that sell at a certain time of the year such as clothing for
the seasons (winter, spring, summer or fall) have to be
introduced before those season arrive so that they can be on
the shelves at the right time.
Items sold only at Christmas time (such as toys,
christmas trees, etc.) have to be introduced at some time
before the holiday season starts.
Similarly you don’t introduce new tax or accounting
software at the time of the year when accountants and tax
preparers are the busiest.
Find out what the right time of year is for your
The location where you will introduce your product is
also key to how you will introduce the product.
Locations could include markets that are local,
regional, national and international.
The culture and languate in those locations could
also have an impact on how you introduce your product.
There are three types of strategy developed by
management consultant Christoph Lymbersky that is used to
roll out products in international markets.
The first one is the Wave strategy.
With this trategy new products are rolled out all at
once into countries that have similar cultures and
The second one is the Sprinkler strategy.
With this strategy the product is launched into all
suitable countries at the same time.
The third strategy is called the Waterfall.
With this strategy the product is launched in one
country at a time and new markets are entered only after
sales are established in the previous market.
Consumer Readiness: Are your
customers ready for your new product?
This is one of the key questions to answer before
launching your next product.
Customer readiness refers to the ability and willingness of
customers to buy your product.
This is driven by their income level to support the
purchase. If the
economy is slowing down and consumers are losing their jobs
or seeing less pay raises they will have less disposable
income and will not have the ability to make purchases.
If the reverse is true they will be in a position to
Consumers will always spend money on essential items (such
as food, medicine, shelter and transportation) first before
making purchases on non-essential items (such as
entertainment, vacation, clothing, etc.).
If the product you’re introducing falls into the
essential item category it will sell, even in a slow
best time to launch a non-essential product into the market
is when the economy is growing and consumers have more
disposable income to play with.
Competitors: What are your
Knowing what your competitors are doing is another key
consideration when launching a new product.
If your competitors are about to launch a new product
you could chose to hasten or dealy your introduction.
You could also chose to capitalize on your
competitor’s launch and get more publicity for your product
launch. This is
especially true if your competitor is a well known brand.
You can chose to beat
your competitors to the market and capitalize on the pint up
demands of consumers waiting for such a product.
Launching a couple of days ahead of your competitor
with a lower price point could give your trumendous
Lifecycle: What is the lifecycle of
your previously launched product.
Consider the lifecycle of the products you already have on
Schedule a replacement for your products when they’ve
reached the end of their lifecycle.
Give your customers something to look forward to so
that they won’t start looking elsewhere for a replacement.