Geektime published a survey listing the main reasons startups fail.
Quickly glancing at the survey shows that “bad marketing” is responsible for only 15% of cases, while looking at the other reasons in-depth (% of respondents who listed a specific reason) reveals a much more worrying picture:
“We built a product and searched for a problem” (42%) – This is very common among Israeli startups, which have advanced technological skills but a lack of vision when it comes to identifying target customers and what problem the product solves or what clear advantage the product offers.
“We ignored user feedback” (14%) – Client feedback is crucial for improving the product. The product’s definition and content are an inseparable part of the international marketing mix.
“We have a product, now we need to find a business model” (17%) – A marketing plan defines, among other things, the business model to be used to bring value to the client. This is a marketing problem.
“We had issues with pricing” (18%) – Pricing is part of the marketing plan. When you understand the market, your clients’ needs and competitors – you can properly price your products.
“Our competitors did a better job than us” (19%) – Had they checked who their competitors are beforehand, they could have aimed their product at certain clients or functionalities not covered by competitors. This is part of market research and establishing a unique selling proposition.
If we add up all of these reasons we can see that failing to properly market the product is the main reason startups fail.
An international marketing plan can save your business and save you money.