Introducing New Products BY MICHAEL T. BRANDT
Why do so many new products fail? Usually for many reasons.
Companies often are so enamored of their new product ideas that
- they fail to do their research, or
- they ignore what the research tells them.
o Sometimes the product doesn’t solve customer problems, wants or needs,
o Sometimes the distribution channels are wrong,
o Sometimes the advertising doesn't communicate.
Successful product launches result from an integrated process that relies heavily on research and solving up-front issues.
Let's review several of the critical issues that affect product introductions.
A. Market research
Market research is the key. Without the necessary information, you're simply flying blind in a storm, headed for a crash landing. Market research does more than confirm your "gut feeling," it provides critical information and direction. It identifies;
They're all critical to the decision process.
Take the example of a company several years ago that introduced a new product to the electronics manufacturing market. The research identified the pricing, the distribution channels, product features, everything but the product decision maker. Despite the fact that the new product complemented an existing one, performed a complementary function in manufacturing, and was used in close physical proximity to the existing product, the decision makers were different. The sales force couldn't efficiently call on the new decision makers, and the product failed.
B. Timing
C. Capacity [more to manufacturing]
If the new product or service is successful, do you have the personnel and manufacturing capacity to cope with the success? Extended lead times for new products can be just as deadly as bad timing.
D. Testing
Test-market the new product.
E. Distribution
G. Promotion
Finally, you need the promotional program to support the introduction: advertising, trade shows, promotional literature, technical literature, samples, incentives, Web site, seminars, public relations. Time it all with production, inventory, shipments, and training. The new product will simply sit in the warehouse without the right support materials.
These are some of the myriad issues you face in launching a new product or service. Research, timing, and planning can all help increase the probability of success.
------------------------------------------
5 Tips on How to Successfully Introduce New Products
August 9, 2013
Here are 5 tips on how to successfully introduce new products:
1. Target the Ideal Customer:
If a product’s main function helps the contractor do a job more efficiently we make one path. If it is something that benefits the end-user, a different path is followed.
2. Educate the Sales Staff:
Arrange a manufacturer rep to meet with the team and explain the features and benefits of the new product.
3. Be specific about the time limit:
Identify the start date of the product introduction and be sure to measure the success and impact the product had on your sales effort.
4. Stay in the Loop:
Sometimes the first time a distributor hears about a new product is when a customer asks for it. Work closely with your chosen marketing partners for the best opportunity.
5. Know your market:
Not all products will be successful in all markets. By knowing your customers’ needs, you can select products that will most beneficial to them.
-------------------------------------
Marketing Tips for Launching a New Product
Follow these seven steps to successfully introduce and market your latest product or service.
BY KIM T. GORDON | February 21, 2005|
So you want to bring a new product or service to market. You've done your homework and decided exactly what you plan to offer; now all you need to generate is sales. Sounds simple enough, doesn't it? But every day, countless new product and service ideas are conceived--never to be born because they're not properly brought to market. In fact, a large percentage of the calls my company's coaches receive are from small-business owners who want exactly this sort of help. And we carefully guide them through these seven important steps that will help them successfully bring their new products and services to market.
1. Study your competition.
Let's review several of the critical issues that affect product introductions.
A. Market research
Market research is the key. Without the necessary information, you're simply flying blind in a storm, headed for a crash landing. Market research does more than confirm your "gut feeling," it provides critical information and direction. It identifies;
- market needs and wants,
- product features,
- pricing,
- decision makers,
- distribution channels,
- motivation to buy.
They're all critical to the decision process.
Take the example of a company several years ago that introduced a new product to the electronics manufacturing market. The research identified the pricing, the distribution channels, product features, everything but the product decision maker. Despite the fact that the new product complemented an existing one, performed a complementary function in manufacturing, and was used in close physical proximity to the existing product, the decision makers were different. The sales force couldn't efficiently call on the new decision makers, and the product failed.
B. Timing
- Are all elements of the process coordinated?
- Is production on the same time schedule as the promotion?
- Will the product be ready when you announce it?
C. Capacity [more to manufacturing]
If the new product or service is successful, do you have the personnel and manufacturing capacity to cope with the success? Extended lead times for new products can be just as deadly as bad timing.
D. Testing
Test-market the new product.
- Be sure it has the features the customer wants.
- Be sure the customer will pay the price being asked.
- Be sure the distributor and sales organization are comfortable selling it.
- You may need to test your advertising and promotion as well.
E. Distribution
- Who's going to sell the product?
- Can you use the same distribution channels you currently use?
- Can you use the same independent representatives or sales force?
- Is there sufficient sales potential in the new product to convince a distributor, retailer, or agent to take on the new line?
- There are significant up-front selling costs involved in introducing new products. Everyone in the channel wants some assurance that the investment of time and money will be recovered.
- Your sales organization, inside employees, and distribution channels will need to be trained about the new product.
- If the product is sufficiently complex, you may need to provide face-to-face training. Or perhaps some type of multimedia program will do the job.
- If the product is not that complex, literature may work.
G. Promotion
Finally, you need the promotional program to support the introduction: advertising, trade shows, promotional literature, technical literature, samples, incentives, Web site, seminars, public relations. Time it all with production, inventory, shipments, and training. The new product will simply sit in the warehouse without the right support materials.
These are some of the myriad issues you face in launching a new product or service. Research, timing, and planning can all help increase the probability of success.
------------------------------------------
5 Tips on How to Successfully Introduce New Products
August 9, 2013
Here are 5 tips on how to successfully introduce new products:
1. Target the Ideal Customer:
If a product’s main function helps the contractor do a job more efficiently we make one path. If it is something that benefits the end-user, a different path is followed.
2. Educate the Sales Staff:
Arrange a manufacturer rep to meet with the team and explain the features and benefits of the new product.
3. Be specific about the time limit:
Identify the start date of the product introduction and be sure to measure the success and impact the product had on your sales effort.
4. Stay in the Loop:
Sometimes the first time a distributor hears about a new product is when a customer asks for it. Work closely with your chosen marketing partners for the best opportunity.
5. Know your market:
Not all products will be successful in all markets. By knowing your customers’ needs, you can select products that will most beneficial to them.
-------------------------------------
Marketing Tips for Launching a New Product
Follow these seven steps to successfully introduce and market your latest product or service.
BY KIM T. GORDON | February 21, 2005|
So you want to bring a new product or service to market. You've done your homework and decided exactly what you plan to offer; now all you need to generate is sales. Sounds simple enough, doesn't it? But every day, countless new product and service ideas are conceived--never to be born because they're not properly brought to market. In fact, a large percentage of the calls my company's coaches receive are from small-business owners who want exactly this sort of help. And we carefully guide them through these seven important steps that will help them successfully bring their new products and services to market.
1. Study your competition.
Many business marketing classes teach participants how to perform a SWOT (strengths, weaknesses, opportunities and threats) analysis. You have to start by taking a serious look at your competitors. Make a list of the businesses that offer products or services similar to the one you plan to launch. Even if you think your new product or service is entirely unique and without existing competition, it's important to put yourself in your prospective customers' shoes and imagine what they might buy in lieu of what you plan to offer. Once you decide whom your competitors will be, review their marketing materials, including their ads, brochures and websites. Evaluate how your new product or service will stand up against what's already being offered, in what ways you'll excel, and which companies or their offerings pose the greatest threats to your success.
2. Target the ideal customer.
2. Target the ideal customer.
To successfully launch your new product or service with minimum financial outlay, it's essential to focus exclusively on the prospects you believe are most likely to purchase from you. These may be customers who are currently buying something similar and will appreciate the additional features your new product or service provides. Your best prospects have a perceived need for what you offer, can afford to buy it and have demonstrated a willingness to do so--probably by purchasing from your competition. Bear in mind, it's always easier to fill a need than to create one.
3. Create a unique value proposition.
3. Create a unique value proposition.
At this stage, you should have a clear understanding of what you must offer in order to stand apart from your competition and who will want to take advantage of your offer. But do you know why customers will want to buy from you vs. the vast field of competitors out there? What benefits and features will you provide that your prospective customers will value most? The bottom line is that your product or service "bundle" should be unique and meet the needs and desires of your best prospects.
4. Define your marketing strategy and tactics.
4. Define your marketing strategy and tactics.
Next, choose your sales and marketing channels. Will you market online, via catalog or through dealers, for example? Generally, multi-channel marketers achieve the greatest success because customers who can shop when and however they like tend to spend more and shop more often. Suppose your strategy is to market a low-cost workout device to people who can't afford gym memberships or high-priced home equipment. You might choose traditional direct marketing plus online sales as your primary channels, and employ tactics including direct-response TV spots and online ads and e-mail solicitations that link to your website.
5. Test your concept and marketing approach.
5. Test your concept and marketing approach.
With all the money it takes to bring a new product or service to market, it's foolhardy to rush headlong into the launch phase prior to testing. What should you test? It's best to examine your product or service bundle plus your marketing message and you're your marketing materials. Depending on what you plan to market and your budget, you can use formal focus groups (or simply host roundtable discussions with members of the target audience), employ online research or mall intercept studies, or distribute your product to a select group of users for testing. Only after testing is complete, should you proceed to the final creation of your marketing tools and materials.
6. Roll out your campaign.
6. Roll out your campaign.
Public relations often plays a vital role in the launch of a product or service. You can use media relations tactics to place articles and win interviews, get coverage by allowing key press to review your product, hold a launch event, or use grass roots marketing to build buzz. But no matter what publicity route you choose, first make sure your product or service is completely ready and available for purchase in order to maximize returns from the coverage you receive. And your other marketing efforts should follow closely on the heels of your press roll out. Monitor the results from all media, and in the first weeks and months, be prepared to adjust your campaign to take advantage of what's working best.
7. Know your product's life-cycle.
7. Know your product's life-cycle.
The campaign you use during the introduction and education phase of your product or service launch will need to be updated as your product or service matures. If you're monitoring your marketing results carefully, you'll begin to see diminishing returns that will indicate when it's time to revise the product or service itself, alter your media message, or even phase out this particular offering and lay the groundwork for the launch of your next great idea.
------------------------------------------------------------------------------------------------------------
6 Key Activities for Introducing New Products to the Market
Create a Planning and Product Launch Strategy
In virtually all cases, however, a successful new product launch will result from the planning and execution of an integrated planning, product development, and marketing process that is focused on identifying and solving for potential obstacles up front. While you will need to make dozens of decisions and coordinate a hundred or more activities around your new product introduction, let's review a number high level areas related to effectively launching a new product.
1.)
Market Research is Critical:
------------------------------------------------------------------------------------------------------------
6 Key Activities for Introducing New Products to the Market
Create a Planning and Product Launch Strategy
In virtually all cases, however, a successful new product launch will result from the planning and execution of an integrated planning, product development, and marketing process that is focused on identifying and solving for potential obstacles up front. While you will need to make dozens of decisions and coordinate a hundred or more activities around your new product introduction, let's review a number high level areas related to effectively launching a new product.
1.)
Market Research is Critical:
Many entrepreneurs and companies justifiably get excited about their ideas – after all that is how innovations happen… But without making even a small investment in market research you may end up wasting time and valuable capital. Market research around your product launch it provides critical information about consumer needs and the needs of potential distribution partners. It helps to define your feature set and pricing strategy and, potentially most critically, helps you to understand the competitive landscape.
2.)Developing a Product Launch Project Plan:
2.)
Developing a Product Launch Project Plan:
Capital – both human and financial are scarce resources. But you can spend less and earn more by developing a detailed project plan that outlines the timing coordination required for each aspect of your new product introduction. This includes: branding, packaging, prototyping, testing, manufacture, shipping, promotion and more. Many products need to be timed to critical points in the business cycle, and if you miss those milestones you will invite failure, lose credibility, and lose sales!
3.)Manufacturing Capacity and Product Sourcing:
3.)
Manufacturing Capacity and Product Sourcing:
Your strategy with regard to product sourcing could very well determine whether you can produce your product on your own or whether you will need to license it to another company. If you have limited resources, the former may require you to have a “go-slow” approach to distribution so that you do not have challenges with fulfilling orders. A licensed approach can get you to market faster and more broadly, but your income will be restricted to a small royalty and you will lose control of your new product line.
4.)Establishing Your Distribution Plan:
4.)
Establishing Your Distribution Plan:
Have you thought about who is going to sell the product? While large companies may already have existing distribution and sales departments, many entrepreneurs, inventors, or small companies do not have these resources. Additionally, they may be great at inventing product, but not good at selling them. Finally, they need to make sure they are able to put their products into the right sales channels – retail, web, direct-to-consumer, etc. at the right time and in the right amount. There are many companies that can assist you with your product sales plan.
5.)Marketing and Promotion Programs:
5.)
Marketing and Promotion Programs:
Finally, you need the product marketing program to support the introduction of your product. This includes things like advertising, trade shows, promotional literature, technical literature, samples, incentives, market development funds, web site development, seminars, and press releases/public relations. This needs to be coordinated with your production, shipments, marketing, and training programs. Without an effective marketing plan your new product will simply sit in your warehouse or you will be forced to take returns from distribution partners.
6.)Managing the Product Lifecycle:
6.)
Managing the Product Lifecycle:
Do you have one new product or a complete product line? Most distribution partners including major retailers and distributors will want more than one item, so you will need to consider creating line extensions. Plus, since your competitors are not standing still, you will need to consider what next season’s product line looks like. You will also need to think about how you will handle things like product returns and warranties.
No comments:
Post a Comment