Selling Blue Elephants is also another great read. In this book, Howard Moskowitz describes how to create great products before customers even want them. Moskowitz was the brain behind Prego, the spaghetti sauce that developed multiple types of sauces. Prior to Prego's arrival on the shelves, Ragu was the only sauce in town. Moskowitz was hired to by the Prego people to find out how to carve out a niche in the market. He found one using the techniques described in his book.
Malcolm Gladwell actually has a short talk on Moskowitz that describes the Prego story. View it here:

