Focus on . . . Product Development & Improvement
When new businesses and even some established companies are not bringing in sales as expected, a common response is to seek marketing help, but a limited type--Promotions, or Marketing Communications. The thinking is, "If I can just get someone to write persuasively about my product or service, it will sell." Unfortunately, focusing on the area of promotions--whether copywriting, website revision, advertising, public relations, or an actual sales-driven campaign--is not always the answer, or at least not the sole answer. When seeking to increase sales, I recommend being open to pursuing an alternate solution based on an expert review of your business. One such solution may be product development.
Mid- to large-sized companies, especially high-tech, software, and SaaS companies, devote resources to Product Marketing to ensure opportunities for enhancement are rapidly identified and acted upon. In contrast, product development and improvement is an area of marketing that far too many start-up and small businesses ignore, cannot keep up with, or assume is already set. I see too many sole proprietors and entrepreneurs take for granted that their products are fool-proof, user-friendly, viable, and market-ready. It's understandable; as the saying goes: "No one likes being told their baby is ugly."
However, to create or increase sales, owners must look holistically at the business, including the product, as challenging and unwelcome a task as it may be. A marketing professional's thorough consideration and unbiased perspective can be helpful for those who realize the value of a strong offering and can manage to temporarily loosen their attachment to the current product. If you are ready to consider product development further, ask yourself these important questions:
- Does my product/service meet an existing need--whether
unknown or unfulfilled--for a large and specific enough market?
It sounds so basic, but not all great ideas solve a real problem
for consumers or businesses--and ignoring this is a sure-fire way
to fail. If the need can't be proven out and the solution explained
in a convincing way, then it's back to the drawing board or an investment
in market research. Consider that you're better off having your
ideas scrutinized before they reach the market than after, as painful
as it may be. Lack of sales, loss of investment dollars, surplus
product, and/or bankruptcy can be prevented with rigorous, pre-launch
testing and the associated up-front expenses, but you have to be
open to it and ready for it. Customers and prospects will be more
critical and less forgiving.
- Does my product meet that need in a better way than existing
products in my category? To answer, of course, you'll have
to know a lot about what's out there already and how your target
market feels about your competitors. This means market research.
This data will inform the promotions, if not the product features.
To compete, you must at least provide an appealing alternative.
No matter how compelling the message, if the product is no different
than others, you'll be competing on price and availability--two areas
newcomers may find difficult and costly. If your product is not
comparable to or better at meeting a specific need than others,
there will be no competition at all.
- Has my product been tested adequately to provide me with customer feedback that leads to product improvement? The implication here is that testing must be wide-range to be adequate and feedback must be collected systematically and analyzed to identify areas for improvement. Feedback allows you to identify barriers to purchase, use, or word of mouth--all of which can affect sales. Even the best promotion will not help a product/service that does not stand up to its claims. To know what your claims should be, look to validated data from a substantial number of actual users about what's good. Use the feedback about what's not good to improve the product.
This is just a subset of considerations and a limited list to ponder. It's my hope these questions allow you to think deeper about your marketing needs and plan better for your success. As always, if you have any questions, please contact me.
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