Americans are obsessed with winning and coming in first. Being number one is often all that seems to matter. College campuses also at times reflect this same mindset as students "lobby" for an "A" in the belief that anything less indicates failure. Few people ever remember who came in second and many professors cannot remember their average students. And, for many companies the thought of entering a new market or introducing a new product after a competitor goes against management philosophy. After all, we are taught in business school that it's important to be first and to pre-empt the competition.

But there are many success stories about individuals who succeeded without having been the "A" student. We've often read about the entrepreneur who failed often before attaining success. In the business world there many companies too that have become very powerful organizations by using what management experts refer to as a "fast follower" approach to marketing strategy. Fast followers exist in every industry. They approach the competitive marketplace with a strategy that sees them react to the leading company's new product or service introduction and enter the market as soon as demand is strong. They quickly adjust their offering to reflect the feedback gleamed from the marketplace about the first-to-market company's product.

Granted there can be disadvantageous to being second but often the advantageous can out weigh any shortcomings. A fast follower strategy gives you the chance to be more innovative and responsive to customer needs and can be more financially sound for the company. Clearly, you must understand the risks and advantages and disadvantages of this approach to marketing. The following short list outlines some of the trade-offs to this strategy. I'm sure you can come up with others too.

Fast Follower Advantages
1) Provides time to modify and adjust to prefect the product or service offering.
2) Consumers are educated by first to market firm.
3) Provides opportunity to learn from first to market firm's mistakes.
4) Reduces the financial risk and chance for failure.
5) Provides the time to differentiate product or service from leader.

Fast Follower Disadvantages
First to market product or service usually gets the visibility and press coverage.
Brand association may be attached to first to market company.
Market demand and initial consumer reaction may be misleading.
First to market ideas often can attract venture capital money more easily.
Sales process can take longer since product already exists in market.

Need for Correct Corporate Culture
To be a fast follower type firm means more than adopting this strategy; it also means creating the right corporate culture. From top management on down there must be a continued sense of urgency, an environment that encourages innovation, and the ability to move quickly when an opportunity arises. Fast follower companies often feel like the underdog in every battle and this can create excitement and an immense pride in overcoming what can look like an insurmountable objective.
From a human resource perspective this has many ramifications. While candidates for employment are screened for their skills and cognitive abilities, the interviewer is also looking for people who possess "the right stuff." Personality, sense of adventure, risk orientation, persistence, and stick-to-itiveness are characteristics that will mesh with the corporate culture of a fast follower type firm. While first to market companies are proud to be number one, the fast follower organization prides itself in being innovative.

Implications for Fast Follower Marketers
Remember that timing is everything in marketing. You must be careful to take intelligent risks by assessing the leading company's product entry and then developing something that truly can be differentiated from the leader. Yet, if you wait too long the opportunity can be lost and the market solidified behind the first to market firm.
Carrying the marketing concept through to building a long term relationship with customers also requires that you understand the needs of the marketplace. Therefore, take the time to conduct market research to assess the reactions of customers to the initial product or service. Be quick and nimble to make changes that will position your firm more closely to their needs.
Be careful not to appear as a "me, too" product. The record shows that unless a significant difference can be established copycat entrants are doomed for failure. Lower costs that may translate into lower prices may be the wrong approach. Product features and customer benefits derived from the fast follower's offering will be the key to success.
Do not fall into the branding trap. Brand awareness and the brand's strength have little in common. Famous brands can fall into disrepair (K-Mart) while some of the strongest brands are relatively unknown (Callaway golf clubs). More than a memorable name, the fast follower's brand must establish differentiating promises that link it to its customers. So it's less important how many people know your firm's brand name but more valuable how many you've provided solutions. In the long run, repeat business will occur among those whom you have connected with, and by building trust and a long term relationship.
A final thought. Fast follower companies possess a culture of customer-value orientation that cannot be delegated. Marketing skills and sensibilities are among the characteristics of top management who lead the market-driven strategic management. It's crucial that these characteristics pervade the entire organization.