It’s widely accepted in the product development space that new products have a failure rate of 25-80%. In nearly any scenario you can point to three key things that dictate a product’s success or failure; Positioning, Modeling and Marketing.
How well did you position your product for your market? What type of sales model did you use to make the sales process most efficient? What is your product marketing strategy to successfully launch your product?
The Importance of Product Positioning
Effective product positioning is key to success in the product market. Consider your target customers and what they are looking for in a product. Do your research to determine what your competitors are offering and how you can differentiate yourself.
Effective product positioning is key to success in the product market. There are a few factors to consider when positioning a product:
1. Target Customers
First, you need to identify your target customers. What are they looking for? What are their needs? What do they want? Once you know what your target customers want, you can start to develop a product that meets their needs.
Once you know what your target customers are looking for, you need to figure out how you can distinguish yourself from your competitors. Are you offering a unique product feature? Do you have a better price? Are you a better quality product? Once you figure out how to differentiate yourself, you can start to build a fanbase around your product.
Identifying a Sales Model
A sales model that is effective for your product can help you reach your target market. Consider what you need to do to sell your product and how you can generate sales.
There are a number of different sales models that can be effective for different products.
Subscription Sales Models
A product that is marketed to a mass market might use a subscription sales model. This means that customers are automatically billed every month, and they have the option to cancel their subscription at any time. This type of sales model is good for products that are not frequently used, as customers can easily cancel their subscription if they decide they do not want to continue using the product.
The one-time sale
This means that customers must purchase the product once, and they cannot resell or loan it to others. This type of sales model is good for products that are used frequently, as customers do not have to worry about remembering to renew their subscription.
The cross-sell model
This means that the customer is offered other products that are related to the product they are purchasing. For example, if the customer is buying a product to repair a computer, the salesperson might offer to sell them a computer case and a keyboard as well. This type of sales model is good for products that have multiple uses, as customers are more likely to buy additional products when they are offered
This means customers will complete all of their transactions online. This can be used if using a subscription or one-time sale. It removes the need for human interaction and can help you scale your sales quickly.
Developing a Product Marketing Plan
Product marketing is essential to the success of your product. Make sure you have a marketing plan that includes target market research, branding, and marketing expenses.
Target market research is essential to developing a marketing plan that is effective. You need to know who your target market is, what their needs and wants are, and what you need to do to appeal to them.
Branding is also important, as it can help you differentiate your product from others. You need to find a name that represents your product well and one that is easily remembered. You also need to create a logo and other marketing materials that reflect your brand.
Marketing expenses include things like advertising, PR, and marketing materials. You need to decide what is most appropriate for your product and your target market. Many business struggle to identify marketing budgets according to their campaign. There are formulas to help you figure this out that we’ll share in a future email. To get this information, sign up for our email newsletter.
Remember, there are plenty of products better and worse than what you are selling. However, what is always true about how successful those products are comes down to positioning, modeling and marketing.