Many individuals who try to develop new product ideas never consider a key factor of their success – positioning.

When you start to develop new technology or products and you begin an investigation into the company you want to sell it to, it is imperative to understand the positioning of that company.

Let’s define that term, so that everyone understands this important part of the process. Positioning generally refers to the position a corporation is trying to occupy in the mind of the consumer. Now, this may sound simple but, in fact, it warrants a great deal of thought as you are developing your presentation or pitch.

Whenever I’m working on a new technology and talking with the executives of my targeted company, I need to understand how they are positioning their company for the future.

Remember, they are always aware that they are being held to a higher authority with certain goals. That authority may be the CEO or the board of directors but, at the end of the day, the new product better match up with the position they are trying to own as a long-term strategic positioning move for their company.

One way of doing this is to fully develop your product into a sample with packaging that communicates well – that makes an executive sit up and take notice. It’s that “wow” factor that shows them you know where they are headed in the marketplace. Accomplishing that prior to the negotiation phase makes it more likely the corporation will license your product or technology.

As an example, let’s look at our client’s Swiss Army Whistle Knife. The company that licensed it, Victorinox, already owned a position in the consumer’s mind of being the one to go to when in need of a high-quality survival knife. They’ve done this so successfully that, when the consumer says, “Oh, I need a camping knife,” or “I want a little knife for everything on my key ring,” the name Swiss Army pops into the consumer’s mind.

The value of that is HUGE in the world of sales and marketing. We developed the whistle knife, complete with packaging, to perfectly conform to their position in the marketplace, resulting in a license and successful product.

So what space is the manufacturer or corporation you are developing your technology for trying to occupy in the consumer’s mind?

If you don’t think about that, you could be targeting a company that might not have any interest in or need for your product.

And if you don’t target the right company, it’s like trying to sell ice to an Eskimo … Why would they ever buy it?