This book explains how marketing strategies for new product development are developed. It is focused on providing practical approaches to develop successful strategies for launching new products in the marketplace. This book utilizes real world examples, defines marketing strategy and presents a comprehensive review of how it can be implemented into any organization.
This article gives business owners and marketers a step-by-step process to use in the development of a marketing strategy for a new product. Because each business is different, there is no guarantee that this process will work out for you. However, give it a try and see what happens. It will help you to get started on your own process for creating a marketing strategy for your product.
Define the market
It’s hard to craft a successful go-to-market strategy if you don’t first define your target audience. When introducing a new product, start by researching your ideal customer base. Marketing segmentation is critical because few products are appropriate for all groups of people. Along with age and demographic factors, you should consider buyer personas, where clients are located, what jobs they hold, and what spending power they have.
Next, determine whether or not those customers are already part of your customer base or whether you have yet to reach them. If you need to discover new customers, you’ll also need to determine which lead generation strategies you’re going to use. Don’t forget to consider what your competitors are offering. If your product already exists at a lower price point, you may need to readjust your strategy.
Determine your value proposition
Your value proposition — also known as your unique selling proposition — is what you promise to deliver your customers. To find your value proposition, begin by assessing the top benefits of your product or service. Once you’ve identified the various advantages of your product, determine the possible solutions that those advantages offer your target customers.
The goal in defining your value proposition is to think like the customer. Ask yourself what problems or challenges in your life need solving. Once you do this, you can figure out how customers will use your products to meet their needs, and you can align your marketing efforts accordingly.
Once you’ve identified your specific value proposition, start setting your pricing strategy. Your pricing strategy depends on your prospective customer base and your goals for market penetration. Options that you can use when crafting your pricing strategy include:
Define your product strategy
Another critical aspect of your go-to-market strategy involves identifying which products to sell and determining how you will position your brand. In most cases, you’ll want to create a unique product strategy for every one of your target markets. This step may include setting promotions or specifying bundling plans. Additionally, marketers should look for opportunities to differentiate their products from those of competitors.
Small business owners should recognize that after a launch, their strategies may need to shift based on customer reactions. Although the timeline of a go-to-market plan is static, decision-makers will want to be in tune with customer reactions so they can make small adjustments to the go-to-market strategy as needed. Monitoring social media is an excellent way to help gauge customer reactions to a new product or service.
Discuss your channels
It doesn’t matter how great your product is if you don’t have a strategy for reaching your ideal marketplace. To do so, you’ll need to select the right marketing channels. Marketing channels are the places where you promote and sell your products. Once you determine your target market, you can identify the areas where this group tends to shop. Examples of popular places to shop include:
Your marketing channels will vary based on your target market. Whatever channel you select, it’s important to put sufficient time into developing your brand and making sure it’s consistent. The goal is for customers to have consistent experiences no matter where and when they purchase your goods.
If you’re part of a larger company, you’re going to want to make sure to coordinate your GTM across all channels of your business. Doing so ensures that your message is consistent. The larger your company, the more coordination and planning you’ll need to craft your go-to-market strategy.
Consider external marketing
If you’re looking to get the word out about your new product or service, you may want to consider crafting an external marketing plan. External marketing can increase the likelihood of customers hearing about your product.
You may need print or online ads to begin garnering attention for your new product. Besides market research, external marketing will likely make up a considerable amount of your go-to-market strategy.
As we mentioned previously, you’ll want to make sure that your message is consistent across your external marketing content. One of the best ways to do so is to identify your brand. Who are you? What language would you use to describe your company and your new product? How will you make sure your new product is consistent with your current brand?
Support your customers
One of the most significant mistakes that business owners make when releasing a new product or service is not being there for customers after the fact. Before the product launch, you should prepare your support team for an influx in demand.
Whether it’s an increase in troubleshooting requests or an uptick in web traffic, you can expect higher volumes in the weeks following the launch of a new product or service.
If you don’t support customers, you run the risk of alienating them. Customer retention is critical for building a customer base. Once you have customers in your sales funnel, you should make efforts to keep them there. Providing them with adequate support is an excellent way to keep customers happy.
Why Is Marketing Important In The New Product Development Process?
Your product development strategy is incomplete without a marketing strategy focused on potential consumers. You cannot make any significant return on investment if you don’t generate the right leads.
Here are some reasons why you need marketing in your new product development process.
- Helps to understand your audience through buyer personas and user stories
- Provides information about target market and competitors
- Encourages flexibility in idea generation and implementation
- Puts the entire company on the same page
- Improves lead generation and conversions
- Distinguishes your product with a unique value proposition
How To Create A Marketing Strategy For New Product Development
We’ve discussed why new product development marketing strategies are important and the product development stages. Now it’s time to get down to the nitty-gritty of creating a marketing strategy for new product development. A successful marketing strategy must ensure the product is user-oriented and allows for multiple changes in response to market trends.
Before diving into the creation steps, let’s understand the difference between a marketing strategy and a go-to-market strategy.
Planning a marketing strategy for a new product is important. The success of the product depends on how you promote it, where you sell it, and what price you select.