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The reinventors’ logic was: 1. What’s most important to the customer? 2. Where can we make a profit? 3. How can we gain market share in that space?

The message here is clear: You need to create segments in order to design highly attractive products for each segment. And you must base your segmentation on customers' needs, value, and WTP. This way, segmentation becomes a driver of product design and development, not an afterthought.

Much like Apple with its iPad, the category was Bhargava’s strategy. He envisioned the category and how to build it, evangelized the problem, then created the product and company to attack it.

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companies that experience success have robust new item development programs.

This essential marriage of marketing and innovation was superbly articulated by management’s prolific guru a tutti guru, Peter Drucker. “Marketing and innovation produce results,” he observed. “All the rest are costs.”

As organizations succeed and grow, they become more formalized, more bureaucratic, more careful, more remote from customers, and slower to act. Diseconomies of scale begin to work, overshadowing the cost advantages of size. Overhead grows, decision-making slows. Direct feedback from customers is reduced, filtered, and often ignored. The demon of af

A company that best frames a problem is the company that often comes to define and take the category. Put another way: winning companies today market the problem, not just the solution.