Product Marketing: Definition, Main Pillar, and Full Strategy
Many articles out there explain that product marketing is a complicated activity. Even though in reality, the key to success from producing marketing is very simple, namely by combining product development, Customer Relationship Management (CRM), and also sales.
Want to know more about understanding, various pillars that must be applied, the benchmark of success, and also a challenge that you are likely to face when doing product marketing? Read on the article Product Marketing until it’s finished, well!
Understanding Product Marketing.
Sourced from the Drift page, Product Marketing is a product marketing process to consumers so that they want to buy products. The product itself can be in the form of goods or services provided by the company.
Well, when we discuss product development, which will be the main focus is to develop the product as well as possible. Sales focus more on selling a product, and CRM is more focused on communicating existing products so that sustainability can be maintained.
Every member of the Marketing Team has the responsibility of ensuring that the product that is marketed is following the target market, so it is not only bought but can also be used properly by consumers.
4 Main Pillar Product Marketing
There are at least four major pillars in product marketing that must be done by the marketing team so that the marketing of products carried out can be maximized and the results are also following what is expected. The four main pillars of Product Marketing are as follows:
1. Market research
The first pillar to do in producing marketing is market research, and this is the basic foundation of Product Marketing.
Why? Because without deep market research, you will have trouble towards the right market segment, reaching for them, etc. The most important variable that exists in market research is the subject of the product, intended for whom, and is used by who the product is.
2. Specifically determining market criteria specifically
If you have finished doing market research, the other important stage in product marketing is specifically determining consumer criteria.
In this case, you must find out who your market will be aimed for and how you provide the products they need and they want.
3. Specifies the Persona Product
Then, you must make product characteristics based on the consumer characteristics that you have found at the previous stage.
This stage is also known as the stage of forming a Persona product that focuses more on consumers. The following are some of the things you should pay attention to:
- The main message you want to convey
- How to deliver various messages
- Channels that you have to use, such as social media, etc.
- Plunge directly into the market.
So, forming this persona product will help you in shaping characteristics based on consumers that you already have.
4. Product and Market Fit Analysis
In this stage, Product Marketers must plunge directly into the field and conduct analysis related to conformity in the previous three steps. If it is appropriate, there will be continuity between products and markets that are indeed specifically intended from the start.
Types of Product Marketing Strategies
As we already know, marketing is now divided into two main forms, namely online and offline. Previously, every marketer or businessman had to market the product offline because no technology was captured to do marketing online.
This offline marketing is certainly has a shortage, such as only being able to reach several people, the costs that tend to be more expensive, and need greater time and energy.
Along with the development of technology, marketing can now be done online, and even many large companies have used it.
Marketing activities carried out online are claimed to be more effective and profitable. Why? Because it can reach all people in the world, and the costs that must be released are relatively more affordable. Then, what kind of product marketing is? The following are some types of product marketing.
1. Paid ads
Already many large companies use paid advertisements as one of their marketing strategies. By using this ad, the product will be displayed by the service provider.
Whereas the price itself must indeed be adjusted to the provisions agreed upon by the advertising service provider and the company who wants to advertise.
Some types of paid ads that are currently very well known are Pay-Per-Click (PPC), Pay-Per-Impression (PPI), and Banners. This paid ad is the right way for companies whose products want to be known to be broader by the community.
2. Transactional marketing
Reach sales targets are one of the problems that occur in every company. To resolve this problem, you can try to market transactionally by giving price discounts, vouchers or attractive promos, etc. By using this method, you can increase the appeal of the audience to make a transaction.
3. Marketing social media as a product marketing strategy
Until now, there are almost 3 billion active social media users. This figure certainly exceeds a country’s population. This number is also very extraordinary and can be an excellent opportunity to do marketing
For this reason, marketing marketing marketing by social media can be a powerful way and the costs that must be incurred tend to be less. Each business scale company can use social media as one of the marketing strategies.
4. Interactive Product Marketing
Well, for this interactive product marketing a company will involve the participation of consumers during the marketing process. By applying this method, then consumers will find out more quickly to find the latest information from a product or service. So, consumer demand related to a product will also increase.
5. Content Marketing Product Marketing
This content marketing technique can be done by small companies or large-scale companies. Content made must be interesting and consistent, and must remain relevant. So, consumers will be very interested in making purchases.
6. SEO Product Marketing
The content applied by SEO it will be able to occupy the first position in the search engine. So, it’s easier to hook the audience.
Benchmark the success of product marketing
There are three indicators of success in carrying out product marketing, namely Customer Satisfaction, Retention Curve, and Growth / Revenue Rate. The following is an explanation of the three.
1. Customer satisfaction.
In determining customer satisfaction, there is a tool called the Net Promoter Score (NPS). NPS can display the level of customer satisfaction on the product you are using, so it can be used as a benchmark for the product success rate itself.
2. Retention curve
The retention curve is that the data inside can determine whether within a certain period of consumers still use products from your brand or not.
This assessment is used so that products that have been available in the market, are not for newly released products. The following is how to calculate it:
The number of each consumer who continues to use the product: Number of consumers x 100%
3. Growth / Revenue Rate
The last success benchmark on Product Marketing is the growth/revenue rate. Some components that must be taken into account in it are the number of consumers and the number of products used.
All components will be gathered in the GMV (Gross Metrics Value) or ARPU (Average Revenue per Unit). Later, this calculation will determine the performance of a product.
As a businessman or marketer, you must be able to encourage consumers to make a purchase. In addition, you also have the responsibility to ensure the products you offer are not only purchased but also continue to be used by consumers.
So, you have to make sure the Customer Lifetime Value (CLV) remains large, so you can still benefit. This is the most difficult challenge in running Product Marketing. So, it can be said that obtaining new consumers is easier than maintaining old consumers.
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