Effective Marketing Approach to Launch a New Product or Service

In the fast changing technologies, businesses are consistently working to keep themselves ahead in the market. Launching a new product or the services in the market will be fruitful if its introduction serves the requirement of your customers effectively. The basic objective of any product or the services is to fulfill the requirement of the need that may or may not be untouched by other brands. Now there are several factors that you need to keep in mind while launching a new product in the market.

While launching a product successfully in the market and to sustain the tough competition, a business should follow the below mentioned tips.

Do the Research – Inhouse first

When you are launching a new product then doing a market research is very important. You will get a clear understanding about needs and the requirement of your customers in a proper manner. If you launch a new product or services without making the proper research then ship is more likely to sink. You need to know the demand of the product that you are going to offer to your customers, both in terms of purpose that it serves and estimated revenues as well. This may be analysed by setting up a specific group of target audience as per their demography and age group.

You also need to make your stakeholders aware of your products or the services, be it your in house employees, management or Sales affiliates.  Get the opinions and the ideas, first within your own people to understand whether you possess the potential to not only harness the potential market but also handle the market competition effectively or not.

In this market, research you need to understand the customers need, your competitors, and the time span of the product or services in the market.

Stick to Basics – 5 points of Michael Porter analysis

In the porter 5 forces model it has been clearly stated that how to judge the business environment accurately. Most of the organizations are very vigilant about their rival’s activities. This model demonstrates various factors that impact the business environment.

There are basically 5 market forces that you need to consider before launching a new product in the market

• Competitive rivalry:- You need to understand that how many competitors do you have are they stronger than you or weaker than you. Identify the points where the competitive rivalry is minimum and no one else is doing anything about what you do.
• Power of the supplier:- You need to determine the fact that how many suppliers you have to keep in-order keep your products available on time.
• Power of the buyer:-You must set your product price after understanding the power of the buyer. How soon they can switch and what will be the best price for them to stick to your product and services.
• Threat of substitution:- Are your service or products easily substitutable or you can enjoy the monopoly in the market. On the basis of this factor you need to set your marketing strategies.
• Threat of New entry:- Is your product can be copied easily then you may have to face the threat of new entrant in the market. Just you need to device the strategy in the right direction.

Customer segmentation

The customer segmentation is very important for the division of the potential customers in the discrete market group. Be ready to forego certain people to focus your marketing budgets on the select set of more likely customers. These segmented customers may be identified basis any of the following

• Segmentation on the basis of priority.
• Segmentation on the basis of need.
• Segmentation on the basis of value.
  

However, the most practical way to identify the suitable segment is understand the purpose from customer point of view or simply follow the competitors operating in similar segment.

Run a pilot survey – Listen and Learn

Before you launch a product or the service in the market you need to set the proper distribution channel. Better to say that you need to balance the demand and the supply position of your product so that you can meet the consumers need on time with full capacity. Shortage of products in the warehouse or in the market may give the advantage to your competitors to gain momentum over your services in a small span of time. This is the reason why you need to proactively make your distribution channel stronger to meet the requirement of your customers on time.

Be Compliant

In Financial Industry, it becomes important to be complaint while introducing a new product. How so ever attractive a product may be, if it is not compliant, it may not see the light of the day. Neither you can market nor you may offer to you existing customers.

Obeying regulations not only help in safeguarding from various risks but also gives you the freedom to market the same on various channels. It may initially sound difficult but eventually it is the only thing scalable.

Knowing the time, when the product won’t sell

You must know the fact when the demand of your product will fall. The fall in the demand may be for two reasons first the quality of your product or the market trends have changed. You need to keep a constant track of this factor. And you need to keep on upgrading your service or product quality as per the need of the market time to time.

Product life cycle

After you launch a new product in the market you must consider the product life cycle carefully. You must not allow your product to reach the decline stage of the product lifecycle before that you need to identify the problem in the product and update it as per the market requirement and trend.

In the above diagram the four stages of the product life cycle has been illustrated just before launching a new product make your effort to avoid the last stage.