Monthly Archives: October 2016

How to Craft an Effective Product Marketing Strategy

34Product marketing strategy refers to a marketing developing plan which introduces a new technical product. It can be a very exciting and challenging aspect of product launching and marketing for a product.

However, it can also be painless, but at the same time very confusing only when we lose sight of our objectives. If you are interested in understanding how to create a product marketing strategy, well this article will help you with this endeavour.

Here are the essentials you must include within your product marketing strategy:

  • Mission statement: this includes the manufacturing objectives, Corporate Mission Statement, marketing objectives and product development objectives.
  • Customers: you must consider how many customers you have? What they are buying? What practical and emotional problems and issues are they trying to solve? What size of your market? What is the customer’s price point? What it takes to be successful in an order? How long would it take to be successful with a product? How does a customer use competitive products? What is the present happiness with competitors?
  • Market Segmentation: you must include set customers (needs distribution, industry, and geography). In addition you must narrow and select the targets, label the segments, and consider the differences and similarities.
  • Competitors: seek to understand what your competitors are doing at the present time? Where and how often do they advertise? What would be the nature of the sale presentation? What are their pricing? Distribution methods? The position they take? The reaction of the competitors towards threats? How do lesser competitors differ from the successful? Marketing share quota? Comparison to your company with threats, strengths, and weaknesses.
  • Product position: it is necessary for you to differentiate your service and product. Remember the opportunity is out there, it is up to you to find it though. You must also describe your products and seek your customer’s interests.
  • Understand your customer’s psychological needs.
  • Market testing: that is you should display your promotional concepts and product to customers.
  • Making strategic decisions: wherein you decide on new and improved revenue, profits and growth, new product development, pricing, distribution, service and sales force, customer’s psychological factors (not benefits and features), and on product promotion for all new products.
  • Write an action plan: which must include a pert chart on product development, a calendar of planned media, and a budget.
  • Implement your plan: you can hold daily meetings to review sales progress and leads. It is imperative that you provide a lead tracking system and revisit your plan and update when necessary.

How to Build an Effective Service Or Product Marketing Strategy

32Developing an effective strategy to continuously improve your product or service needs to be number one on your business action plan. Why? Because without an effective, and evolving, product marketing strategy (or service delivery strategy), your business will struggle to succeed.

Strategy development can be intense and complex; and the cost of time, resources and money for the development of every element of your marketing strategy for brands can be high.

Most small business owners invest in up-front development of products or services strategies and, once they are launched, they do little to develop that strategy and do little to build it into their overall marketing and business strategy. In fact, the new product or service is often launched, and then expected to ‘take off’ on its own. When the launch fails or sales don’t hit targets, the blame for failure is often pointed to the sales or operations group, or the economy. I’ve even heard the customer being blamed for failing to buy the goods or services being offered.

Product Marketing Strategy: 5 Best Strategies (note: service delivery strategy is used interchangeably)

  1. What many small businesses fail to do is to ensure that their product strategies are continuously enhanced and adapted for market conditions; as well as being adapted as the goods or services move through their product life cycle. A newly launched service (or good) needs marketing strategies that capitalize on the introduction, growth, maturity and declining stages of its life cycle. A positioning strategy that takes into account the product life cycle stage is effective and much more likely to succeed. In the introduction stage of a new product launch, you need to consider pricing, promotion, and distribution strategies. Are you entering a market with similar goods or services, or a new market entirely? For example, pricing strategies for goods with lots of competition might include a market penetration price strategy or a promotional price strategy. Whereas, a pricing strategy for entry into a highly technical field with few competitors could more successfully use a price skimming or market skimming strategy.
  2. As much as pricing strategies need to be closely aligned to product and to product life cycle, consideration must also be given to differentiation strategies. Are features and benefits easily copied or imitated or bettered by competitors? If the answer is yes, you must be able to find another point of differentiation (for example, an outstanding and unmatched warranty program or same day/no charge shipping). Often the goods you launch are unique and differentiated at the beginning of their life cycle, but competitors catch up quickly and can often pass you in the race to win the buyers heart, mind and dollars. Differentiation strategies must be built to keep evolving and to make it difficult for competitors to copy you.
  3. Is the promotional program you developed for your launch, appropriate for the ongoing evolution of the goods or services? For example, do you need more personal selling now? Or will direct marketing mail campaigns help you to establish brand recognition and build demand?
  4. Do you need to re-look the distribution strategy for your goods or services? Is the distribution channel working effectively? Do you need additional merchants or retailers or affiliates? Review and analyze your sales history. Ensure that you have a clear understanding of where your product or service is selling, who is doing the selling, how it is being sold, what the sales lead time is, and all other distribution data. Find where the sales are growing and where they are not. Fix the problems. Test new distribution techniques. Monitor and measure your efforts and try to build a program that will help you not only with one product or service, but with many.
  5. Consider diversification of your goods or services as a strategy for brand growth. Through diversification you can support and build your existing business while spreading the costs over other goods and services; some might be related, but other goods could be unrelated to the existing product line. The best diversification strategy ensures that you focus on brands that have limited competition, add minimal incremental cost to your operation, and that your customers want!

Your product marketing strategy must be continuously improving, and must have an effective brand management focus to move forward; ahead of your competition and ahead of your market. Building, growing and protecting your goods or services sales must be at the center of your strategy. Your purpose in building a strong brand marketing strategy is to grow your sales and to grow your share of the market. Focusing on your marketing mix strategy and strategic planning, and then acting on your plans, will move your business forward.

Once your product is past the introductory stage, you will need to adapt your product marketing strategy and consider other product life-cycle stages and strategies.