Product Marketing

Product Marketing

When you’re launching a new product, everything hinges on your marketing efforts. If you don’t get the word out there in the right way, you’ll find yourself struggling to make sales. 

That’s where product marketing comes in – it’s the process of planning and executing your marketing strategy for a new product.

This article will cover all aspects of product marketing, from strategies to KPIs to alliances. We’ll also look at the difference between product management and product marketing. 

So whether you’re just starting or you need a refresher course, read on!

What Is Product Marketing?

Product marketing is the planning and execution of marketing activities for a new or existing product. 

It’s a strategic process that involves creating awareness and demand for a product, and it encompasses everything from market research to branding to lead generation.

What Does Product Marketing Do?

Product marketing helps with:

  • Creating awareness and demand for a product, including market research.
  • Managing the marketing plan that supports launching a new or existing product.
  • Developing your brand identity and positioning strategy.
  • Generating leads and driving sales.
  • Determining product price points.
  • Crafting effective messaging that resonates with your target market.

Product marketing is an essential part of any successful product launch, but it’s also a complicated process that can be difficult to negotiate without the proper guidance.

What is Product Marketing Strategy

Product marketing strategy is the process of developing and executing a plan to achieve the goals and objectives of the product. A well-defined strategy is critical in ensuring success.

Product marketing strategies can vary depending on your business, but there are some key things that all successful approaches have in common:

Grouping Your Target Audience

You can’t market a product to everyone, and you need to target a specific group of people most likely to purchase your product. This population is known as your target market.

How To Define Your Audience?

There are a few different ways to identify your target market, including:

  • Demographics (i.e., age, gender, income, education level)
  • Psychographics (i.e., interests, values, lifestyle)
  • Behavioral data (i.e., how people behave when they’re looking for a product like yours).

Once you’ve identified your target audience, it’s time to start planning how best to reach them. 

You’ll need a clear understanding of who they are and why they’re interested in your product before you can decide which marketing channels will be most effective at getting their attention.

Creating Awareness

No individual will buy your product if they don’t know it exists! You need to create awareness for your product to drive sales. Your product’s positioning and messaging are also crucial for creating awareness.

Positioning

The positioning of your product is how customers perceive it compared to other products on the market. For instance, if you sell blue jeans, then your position might be “the best value for money.”

Message

The message is what customers will hear about the product when they’re looking for information. It should be clear, concise, and on-brand.

Some tips for building your positioning and messaging:

  • Make a list of the critical benefits of your product.
  • Research rival brands and find ways to differentiate your product from theirs.
  • Create a slogan or tagline that encapsulates the essence of your product.

Creating Demand

You’ve created awareness for your product, but now you need people to want it! This stage is where your marketing strategy comes into play. 

You should create a compelling message that makes people feel like they need this product in their lives.

Setting Measurable Goals for Your Product

It’s important to have clear objectives when launching a new product. This approach will help you measure success and determine if your marketing efforts are working.

Some common goals include:

  • Increasing market share
  • Gaining new customers
  • Generating more revenue
  • Achieving higher customer satisfaction levels

Pricing Your Product

In relation to pricing, you need to find the right balance between making a profit and being competitive in the market. You also need to consider what people are willing to pay for your product.

Some Tips for Setting Prices:

  • Research what similar products are selling for.
  • Compare your production costs with how much you’re charging for the product.
  • Find a price point that’s profitable and attractive to your target market.

Have a Product Launch Plan Ready

However excellent your product might be, if you don’t have a plan for launching it, then it’s doomed to fail. Your launch plan should include all the details of how you will introduce your product to the market. 

This plan includes things like:

  • The date of the launch
  • Who will be involved in the launch
  • What channels you will utilize to promote the product

You need to make sure that people know about your launch so they can get excited and spread the word! If you don’t plan, then no one will hear about it until after it’s too late.

Product Marketing Plan

It’s essential to have a plan that outlines all of the steps you’ll take when marketing your product. 

This plan includes everything from setting goals to creating awareness for your brand new product! It also helps plan out any potential obstacles along the way and how they might affect your campaign.

Making a marketing plan for a new product can seem daunting, but it’s a necessary step if you want to be successful. By taking the time to create a plan, you’ll have a roadmap for reaching your target audience and achieving your desired results.

So What Are Some Things You Should Incorporate in a Product Marketing Plan?

Here Are a Few Key Points:

  • The objectives of your product launch
  • The target market for your product
  • How you’re going to promote it, both online and offline.
  • Your budget and any other costs involved with marketing efforts (e.g., advertising)

Why is this important? Well, without a clear idea of where you’re headed or how much it will cost, it’s simple to be overwhelmed by all the details and forget about your long-term goals.

What Are Some Common Mistakes People Make When Creating a Product Marketing Plan?

  • They don’t have measurable objectives for their campaign. Without clear goals, there’s no way of knowing if you’re on track or not!
  • They don’t research sufficiently on their target market, leading to ineffective marketing campaigns that don’t resonate with the people you’re trying to reach.
  • They rely too much on one strategy. If your entire campaign has its basis in a single tactic, such as online ads, and it doesn’t work, then you’re in trouble.

Successfully launching a product takes a lot of planning and effort, but if you have a well-constructed marketing plan, then you’ll be off to a good start. 

Put together a tailored plan for your product and make sure you follow through with it!

What are the Product Marketing Examples?

Successful stories of companies who have used product marketing to drive sales and awareness are everywhere. Here are a few instances of how it can work for your business:

  • Tesla has been a great example of product marketing. They created demand with their Model S electric car, priced at USD 100k when it launched in 2012. The company then built on this momentum by introducing new models like the Model X SUV (priced at USD 75k). Their product marketing strategy included a viral video campaign that generated interest in their products.
  • Apple is another excellent example of a company that does product marketing well. They have consistently released new and innovative products, which are then heavily promoted through advertising campaigns and social media channels. This strategy has resulted in billions of dollars in revenue for the company.
  • GoPro has taken its storytelling capabilities and used them as a way of marketing. Their product videos show people doing extraordinary things with GoPros, making it easy for consumers to see themselves using one too! The company also hosts events where customers can come and try out their products.
  • Netflix uses product marketing to get people hooked on their original shows. The company launched “House of Cards” in 2013, and it became an instant hit with viewers, which led them down a path where they would produce more content like this to keep subscribers happy (and paying).

What is Product Marketing Framework

The product marketing framework helps you to execute your marketing strategies with the help of different templates. 

The framework includes all the essential aspects of product marketing that will help you plan and execute your campaigns smoothly. There are different types of frameworks available, such as:

  • The classic AIDA model (awareness, interest, desire, and action) is great for creating awareness around a new product or service.
  • The 4Ps framework (product, price, place, and promotion) is a great way to think about the different aspects of your marketing mix.
  • The McKinsey 7S model (strategy, structure, systems, shared values, skills, style, and staff) can help you assess how well your company is set up for product marketing success.
  • The STP model (segmentation, targeting, and positioning) is a popular framework that can help with product marketing decisions. It allows you to:
  1. Segment your market so that you can focus on specific groups of customers who are most likely to buy your product.
  2. Target your advertising and promotional efforts towards these groups of customers so that they will see your message more often than others.
  3. Position the product in such a way as to appeal directly to these groups’ needs or wants, rather than just trying to sell anything at all costs!

A product marketing plan template can help you create a high-level overview of your product marketing activities. It will help you to:

  • Assess the current state of your product marketing efforts.
  • Identify areas where you need to focus your attention to improve results.
  • Develop goals and objectives for your product marketing campaigns

What are the Product Marketing KPIs?

A Product marketing KPI (Key Performance Indicators) measures performance for your new or existing products, services, or campaigns. It can range from sales figures to customer satisfaction scores. 

KPIs are important because they help you understand what’s working well and where there might be room for improvement in the future!

Some Common KPI’s Used by Companies Include

Revenue:

This metric is the most common KPI, and it’s pretty self-explanatory. It measures how much money your product is making. 

For example, if you’re selling a book on Amazon, the amount is determined by multiplying the total number of books sold with their price tag. If you sell 100 books for $15 each, your revenue would be $1500.

Revenue can be divided into two categories:

  • Gross revenue: This is the total amount of money your product has earned.
  • Net revenue: This is the amount of money you’ve made after subtracting things like returns, discounts, and allowances.

Market Share:

This measures how much of the market your product has captured. You can calculate Market 

Share by dividing your total sales volume by the competition and multiplying it by 100%.

For example, if you sell 100 widgets per day, but your competitor sells 200, they have a 50% market share while yours is only 25%.

Customer Acquisition Cost (CAC):

This metric measures how much money you’re spending to acquire new customers for your product or service. 

You can calculate CAO by dividing the total amount spent on marketing and sales efforts by the number of new customers acquired in that period.

For example, if you spend $1000 on marketing in a month and acquire 100 new customers, your CAC is $10000.

Customer Lifetime Value (CLV):

This metric measures how much money a customer is worth to you over the entire lifespan of their relationship with your company. 

You can calculate CLV by multiplying the average purchase value by the number of purchases a customer makes.

Suppose an average customer buys $100 worth of products and makes five purchases, then their CLV would be 500 dollars.

Sales Funnel:

This metric measures how many people are visiting your website, signing up for a trial account, creating an actual account with you (converting from a lead), and then paying money to buy something.

Cost per Conversion:

This metric is the average cost of acquiring one customer who will convert into a paying user or buyer. 

You can calculate this figure by dividing your total marketing budget by the number of customers acquired during that period.

Say you spend $20000 on marketing and get 200 paying customers in return; then your cost per conversion would be 100 dollars.

ROI (Return on Investment):

This score measures your marketing efforts’ success with the money you’ve invested. You can calculate it by dividing the profit generated from sales by the investment cost in marketing. 

For example, if you spend $20000 on marketing and make a profit of $100000 from sales after deducting all costs related to production, your ROI would be 500%.

NPS (Net Promoter Score):

This score measures customer loyalty and satisfaction. You can calculate it by asking your customers, “How likely are you to recommend us?” on a scale of 0-100%.

For example, if 30% of people said they are “somewhat likely” while 20% said they were “very likely,” then your NPS would be 50%.

Churn Rate:

This measures how many people cancel their subscription or don’t renew it after one year has passed. A high churn rate means you’re losing a lot of customers.

Suppose you have 100 customers and 20% cancel their subscription every year, then your churn rate would be 20%.

There are many other KPIs that you can use, but these are some of the most common ones. As your product matures, you may find that different KPIs are more important to track.

What is Product Marketing Alliance?

A product marketing alliance is an agreement between two or more companies to work together for mutual benefit. It’s an excellent technique to expand your reach and get access to new markets!

Types of Product Marketing Alliances

  • Joint ventures: Two or more companies team up to create a new company that will market and sell their products together.
  • Strategic partnerships: Two or more companies agree to work on specific projects, such as developing new products or services for their customers.
  • Distribution partnerships: Two or more companies decide to distribute each other’s goods through their channels.

Examples of Product Marketing Alliances

  • Google and Apple have a strategic partnership, which means they work together on projects like the iPhone operating system (iOS). This partnership is called an “operating system alliance.”
  • Coca-Cola has distribution partnerships with PepsiCo and Nestle, called “distribution alliances.”

What Does Low Involvement Product Marketing Strategy Mean?

Low involvement product marketing is a type of marketing where the customer doesn’t have to put in a lot of effort to learn about or use the product. 

It’s perfect for new and unknown products or those difficult to use.

There Are Two Types of Low Involvement Product Marketing:

  • Passive: This is when the customer doesn’t engage with the product. Instead, they see an advertisement and then decide if it’s something that interests them or not.
  • Active: This is when an interaction between the customer and company before the purchase occurs (e.g., a salesperson shows them how to use the product).

An example of a low involvement product marketing strategy is advertising. Advertisements can be in TV commercials, print ads, or online ads, and ads are a passive way for customers to learn about products.

What is B2B Product Marketing?

B²B product marketing is the process of creating and delivering value to business customers, and it’s different from B²C product marketing, which is for consumers.

The goal of B2B product marketing is to create a partnership between the company and the customer. This goal means that both parties need to be happy with the arrangement!

Common B2B product marketing strategies:

  • Content marketing: A company creates content that educates customers on their industry and solves its problems. Companies use blogs, social media posts, or videos to execute this strategy.
  • Email campaigns: A company sends out emails to potential buyers with offers for their products or services.
  • Trade shows: A company attends trade shows to exhibit their products and meet with potential buyers.
  • Webinars: A company hosts webinars to teach customers about their product and how to use it in their business.

What is Single Product Marketing Strategy?

A single product marketing strategy is when a company uses a single approach to market its product. You can do this with any product, but it’s prevalent with new products trying to establish themselves in the market.

here Are a Few Different Types of Single Product Marketing Strategies:

  • Push strategy: The company focuses on getting its product in front of as many people as possible. They use advertising, PR, and sales tactics to do this.
  • Pull strategy: The company waits for customers to come to them. They don’t do any advertising or PR, and they rely on word-of-mouth marketing to bring in new customers.
  • Hybrid strategy: This is a mix of push and pull strategies. The company uses a combination of advertising, PR, and sales tactics to get their product in front of potential buyers, and then they wait for customers to come to them.

What is Global Product Marketing?

Global product marketing is the process of creating a plan to market your company’s products or services around the world. There are several methods that companies can do this, such as:

  • Using social media platforms like Twitter and Facebook to reach international audiences.
  • Running ads in other countries on Google AdWords or Yahoo! search marketing.
  • Distributing products through international retailers or wholesalers.
  • Developing localized versions of your website or marketing materials.

Benefits of Global Product Marketing

There are many benefits of global product marketing, including:

  • Increased revenue: When a company expands its product to new markets, it often increases sales and revenue.
  • Improved brand awareness: A company’s branding can be improved when selling its products in other countries. This rationale is because people who wouldn’t have generally heard of their brand will now know it.
  • More customers: A company may get more customers when they start selling internationally because more people want what they have to offer!

Product Marketing vs. Product Management

The dissimilarity between product marketing and product management is often blurred, but they are quite distinct. 

Product managers have to develop and manage a product, while product marketers focus on how to sell that same product. 

For example:

A company may have multiple products in development at any time; each one will have a product manager responsible for its overall success.

However, those products will also need a dedicated product marketer to create and execute the marketing strategy.

Product management focuses on the product itself, while product marketing is concerned with how to sell that product. 

Both roles are essential for a successful launch, but it’s necessary to understand the distinction between them.

Product marketing vs. product management is a common question many people ask when starting their careers. Many companies have both positions, and it can be challenging to understand their differences!

The Main Difference Between Product Marketing Managers and Product Managers Are:

  • The product marketing manager is only responsible for creating and executing the marketing strategy whereas, the product manager is responsible for the product from the cradle to the grave.
  • The product marketer’s focus is narrower – usually on lead gen, demand gen, and market research. Contrastingly, the product manager has a more holistic view of the product as he needs to take care of development, positioning, launch, and post-launch activities.
  • The product marketing manager can only be held accountable for meeting marketing goals (ROI, leads generated, and so on.) In contrast, the product manager is responsible for the product’s performance.

Other minor differences, such as budget ownership or line management, depends on the organization. However, in most cases, these two positions complement each other and work together towards a common goal.

Conclusion

A good product marketing strategy is vital for any new product or service business. 

Knowing how essential a product marketing team is and the benefits of a product marketing strategy can help determine if you’re ready for one of your own! 

This post has provided an insight into the different ways that companies can use product marketing.

It is important not to overthink what should happen before deciding on a plan because many things will change along the way – make sure you always keep an eye on your goals and what you’re trying to achieve. 

Doing this, along with using the right tools, will help you on your way to becoming a successful product marketer!

Crafting great product requires great tools. Try Chisel today, it's free forever.