Fantastic guest blog to share this week from Katelyn Stokes, Marketing Manager at AMP Agency. Katelyn gives some great insight on new product marketing strategy. Interested in guest blogging? E-mail taylor [at] mitx [dot] org.
Katelyn Stokes is an integrated marketing manager at AMP Agency and an adjunct professor at her alma mater, Boston University. She began her career in the bright lights of New York City at a large ad agency in the account services department. When returning to Boston, she joined AMP Agency as a Marketing Manager. In this role, she is responsible for developing the agency brand and helping grow the business through strategic storytelling.
Every year, some 50,000 new products are introduced. But shoppers are often driven by habit, repeatedly buying the same items for most of their household needs. It’s no wonder that, according to Booz & Co., some 66 percent of new products fail within two years of their introduction. So what’s a marketer to do to help consumers cut through the new product clutter?
Spend the time evaluating all facets of the go-to-market (GTM) strategy. While considered an entrenched and tedious part of the product launch process, the GTM strategy remains incredibly important and requires some TLC. After all, it’s the document that lays the foundation for your business to succeed.
There are key questions to answer about your product to determine the best strategic approach that will resonate with the customer. But, more importantly, there is a right and wrong way to frame those questions to obtain the best possible results. Given AMP Agency’s experience leading product launches for a variety of clients, we are providing key considerations to develop an impactful approach to bringing a new product to market:
Value Proposition: Take an “Outside In” versus an “Inside Out” Approach
Always consider the customer benefit when developing the value proposition. Oftentimes, companies make the mistake of taking an insular or “inside out” approach as opposed to an unbiased “outside in” approach. When considering the value proposition, assess the attributes that make your product superior (inside out) but assign more clout to answering the perceived benefit and value to the customer (outside in).
Audience Identification: Define People and Not Targets
By honing in on people’s interests, behaviors and attitudes, you can create messaging that resonates with them and develop an impactful media strategy that reaches the people most likely to consider, try or buy your product. While the tried and true attributes that define a target audience (age, gender, income, geography, etc.) remain immensely important, a persona which includes granular information, around who the person is as an individual and what they value, provides an invaluable level of insight.
Objectives: Leave the Kitchen Sink Behind
Relying on one marketing effort to achieve every objective– awareness, buzz, trial, sales and loyalty – without exhausting the budget is usually an unrealistic approach. Unless you have a robust budget to adequately fund each of these objectives, it will prove more effective to focus your efforts. By focusing on one or two realistic goals such as generating awareness or growing sales, you will be able to allocate dollars and resources appropriately to achieve the objective(s).
Budgeting: Outsmart instead of Outspend
Spending more dollars does not always equate to results. An efficient media plan
focuses on reaching the most relevant people– those likely to consider, try or buy your product. This approach focuses on limiting waste and maximizing impact. One way to
spend smarter is to ensure that media spend syncs up with distribution.
Analytics: Predictive over Reactive
True business value comes from leveraging the right data to understand what happened, why it happened and what could happen. The third question focused on predicting the future state is more complex to answer but provides the most business value. To answer this third predictive question, you should continually collect data to get smarter about your consumer. By consistently collecting data, you can build models to answer key questions that will help you optimize future marketing spend.
Channel Strategy: Think About People First
Product development and go-to-market strategies typically follow a linear process – develop the product and then determine the promotional and marketing strategies. Historically, this process worked well given marketers employed a “push” communication strategy – pushing the message out to people. While “push” tactics are still a viable approach, layering on a level of “pull” tactics enables a more impactful channel strategy and overall customer experience.
Counterbalancing tried and true strategies to bring a product to market with a new
and fresh perspective allows you to take advantage of the changing media landscape and the redefined relationship between a brand and customers.
To learn more, download AMP Agency’s whitepaper on the New Rules for Bringing Your Product to Market.