"..our company's success rate runs between 50 and 60 percent. About half of our new products succeed. That's as high as we want the success rate to be. If we try to make it any higher, we'll be tempted to err on the side of caution, playing it safe by focussing on innovations with little game-changing potential." AG Latley, CEO of Proctor & Gamble
General Electric judge their managers on the proportion of revenues that come from products or services introduced in the last two year.
Shouldn't we be applying that sort of thinking to marketing?
McKinsey suggest that marketers should invest 75/80% of their budgets
in proven messages and media (and "regain the testing and validation
discipline that many of them once had"). They go on to say "The
remaining 20 to 25 percent of spending should finance well-structured