What is it that you are actually
selling? A marketing strategist will be particularly interested in
knowing what "needs" it addresses? Engineers like to think in terms of
what problem does it solve? They would think in terms of its functional
specifications while marketing people would think more in terms of its
features and benefits. Manufacturing people will be thinking about how
to make it and along with the accounting group they will be wondering
what it costs to make (or buy). In any event, the product is the
"currency" which ultimately gets exchanged for cash. In other words,
your customers want your product and you want their cash and all you do
in business is to trade those two items.
Product Development
Product development - involves the
translation of product concepts to actual products in the marketplace
that meet consumers' needs and wants. New products are the lifeblood of a business. New products help you to stay one step
ahead of your competitors. Without a constant stream of new products
your business will eventually stagnate. Every business, by definition,
should be permanently active in developing new products and services
and in seeking out new product development opportunities.
New product ideas are gleaned from
many sources. Your customers, competitors, overseas markets, trade
magazines, market research programs, and the World Wide Web, are
excellent places to start and should be constantly monitored. Before investing in a new product you
cannot be too diligent about researching the market to ensure the
product concept is what people want or need. The concept may start with your ideas
and theories but these must be tested against your potential customers
reactions. It is not what you want but what your customers and
potential customers want.
Every year companies around the world
spend billions launching new products. The odds are stacked against
them: Upwards of 70 per cent of new products fail in the first 18
months. Many more do not meet initial expectations and slowly fade
away. You cannot take the risk out of new
product development but with astute planning and quality market
research you can reduce the risk considerably.
The Unique Selling Proposition
The great copywriter Rosser
Reeves from the famous Ted Bates agency coined the term unique
selling proposition or USP as far back as the
1940's. He defined a Unique Selling
Proposition as one, which has unique benefits, which the competition
cannot or does not offer. It is a proposition so strong that it pulls
new customers to your product. It gives customers or prospects
a compelling reason to do business with you instead of your competitors. It also focuses your team on
delivering the promise. Getting in first is critical to
the establishment of a USP. The one that establishes itself first is
the hardest to dislodge.
A USP can be real as in a
product feature or attribute or perceived as in a lifestyle associationUSP gives a product or service a
raison d'кtre
– a reason for being or the purpose of its existence.It is essential that you clearly
define your products' USP's and to test their
validity and appeal through market research.
Product positioning
Positioning
differentiates your product or service from its competitors Positioning is one of the most
critical aspects of a brand strategy and the least understood.
It is the 'X factor' in marketing. It is the
centrepiece in any sound marketing strategy. It flows through to all elements of the
marketing mix: pricing, packaging, product, name, distribution,
advertising and promotion. Product positioning is about creating a niche in the consumers mind. It
is how you want your product to be perceived. It's what
differentiates your product from competitors. There are thousands of products in the marketplace – all
competing for 'this share of mind'. It is the select few that establish a positioning identity - that stand
out in the crowd.
Positioning can be based on
projected users, usage occasions, lifestyles, price points or quality
attributes. It can be intrinsic or extrinsic. Distinctive product positioning can
make the difference Positioning is at the core of a sound marketing
strategy. It is the key to market planning. It embraces all elements of
the marketing mix from pricing, packaging, product, branding,
distribution, advertising and promotion. It provides the brand with a
frame of reference.
A product's positioning is the way it is perceived by its
target market compared with its competitors. Positioning is not the same as a product proposition although the two
are complementary. According to the General Foods manual 'the positioning
statement is the reason for the brand's existence and once established
should rarely be changed'. The General Foods formula for determining a positioning statement is:
To: (target market) brand X is the brand of (product segment) that (point of difference).
Positioning is the difference between a successful brand and an
'also ran'. It is what differentiates your product or service from its competitors.
