INTRODUCTION OF NEW

PRODUCT AND SERVICES

 APPROXIMATELY 80% OF NEW PRODUCTS FAIL. THAT’S A WORRYING
STATISTIC FOR ANYONE IN THE PROCESS OF DESIGNING AND DEVELOPING
ONE. NEEDLESS TO SAY, THERE ARE MANY FACTORS THAT CONTRIBUTE TO A
PRODUCT’S SUCCESS OR FAILURE: THE FINANCIAL SECURITY OF THE COMPANY
BACKING THE PRODUCT, HOW WELL IT’S MARKETED, AND WHETHER IT’S
SOMETHING CONSUMERS ACTUALLY WANT. THE ELEMENT THAT’S OFTEN GIVEN
LESS ATTENTION THAN IT DESERVES, HOWEVER, IS A PRODUCT’S INITIAL
INTRODUCTION TO THE MARKET. GETTING THE PRODUCT LAUNCH RIGHT IS
ESSENTIAL. GET IT WRONG, AND THE ODDS OF YOUR PRODUCT BECOMING
PART OF THE 20% THAT SUCCEED FALL SIGNIFICANTLY.
 1. DETERMINE YOUR USP

• SUCCESSFUL PRODUCTS ALMOST ALWAYS HAVE ONE THING IN COMMON:

THEY HAVE AN ATTRACTIVE UNIQUE SELLING PROPOSITION. THERE’S
SOMETHING ABOUT IT THAT MAKES IT STAND OUT FROM THE COMPETITION
AND COMPELS CONSUMERS TO CHOOSE IT OVER SOMETHING SIMILAR.

• FIGURING OUT WHAT MAKES A PRODUCT SPECIAL AHEAD OF ITS LAUNCH IS

ESSENTIAL. YOU NEED TO KNOW WHY SOMEONE WOULD WANT TO BUY
YOUR PRODUCT INSTEAD OF A COMPETITOR’S.
 2. DEFINE YOUR TARGET AUDIENCE

• BEFORE LAUNCHING A PRODUCT, YOU NOT ONLY NEED TO KNOW WHY

SOMEONE WOULD BUY IT, BUT WHO WOULD BUY IT, AS WELL.

• MAKE A POINT OF DESCRIBING YOUR TARGET CUSTOMER (OR CUSTOMERS) IN

AS MUCH DETAIL AS POSSIBLE.
 3. GET YOUR WHOLE TEAM’S BUY-IN
• THE PEOPLE BEHIND A PRODUCT PLAY A CRUCIAL PART IN ITS LAUNCH. IT’S
ESSENTIAL THAT EVERYONE INVOLVED IN THE PRODUCT BELIEVES IN IT, AND
THAT YOU CREATE A PRODUCT-DRIVEN CULTURE.
• COACH YOUR TEAM. PROVIDE MOTIVATIONAL TRAINING SESSIONS THAT
TEACH YOUR TEAM EVERYTHING THERE IS TO KNOW ABOUT THE PRODUCT.
THESE SESSIONS SHOULD BE EXECUTED IN A MANNER THAT GETS THE TEAM
FIRED UP NOT ONLY ABOUT THE PRODUCT, BUT ALSO ABOUT THE PART
THEY’VE PLAYED IN DEVELOPING IT OR WILL BE PLAYING IN PROMOTING IT.
 4. TIME YOUR LAUNCH RIGHT
• TIMING CAN MAKE THE DIFFERENCE BETWEEN SUCCESS AND FAILURE WHEN IT
COMES TO INTRODUCING A NEW PRODUCT.
IS THE PRODUCT SEASONAL?
WHAT’S YOUR PROMOTIONAL BUDGET LIKE?
• BEFORE LAUNCHING, CREATE A CONTINGENCY PLAN THAT WILL ALLOW YOU
TO MEET DEMAND SHOULD YOU FIND YOURSELF IN THE COULD-BE-A-
DISASTER-BUT-DOESN’T-HAVE-TO-BE SCENARIO OF INTEREST IN YOUR
PRODUCT FAR EXCEEDING EXPECTATIONS.
 5. DIVERSIFY YOUR MARKETING STRATEGY

• THE SECOND YOUR PRODUCT HITS THE MARKET, YOU NEED TO BE GETTING IN
FRONT OF AS MUCH OF YOUR TARGET AUDIENCE AS YOU CAN. THIS MEANS
DEVISING A STRATEGY THAT ENSURES YOUR PRODUCT IS SEEN IN AS MANY
(RELEVANT) PLACES AS POSSIBLE.
PROMOTION STRATEGIES
• PROMOTION IS AN ATTEMPT BY MARKETERS TO INFORM, PERSUADE, OR
REMIND CONSUMERS AND B2B USERS TO INFLUENCE THEIR OPINION OR ELICIT
A RESPONSE. MOST FIRMS USE SOME FORM OF PROMOTION. BECAUSE
COMPANY GOALS VARY WIDELY, SO DO PROMOTIONAL STRATEGIES.
• PROMOTIONAL GOALS INCLUDE CREATING AWARENESS, GETTING PEOPLE TO
TRY PRODUCTS, PROVIDING INFORMATION, RETAINING LOYAL CUSTOMERS,
INCREASING THE USE OF PRODUCTS, AND IDENTIFYING POTENTIAL
CUSTOMERS, AS WELL AS TEACHING POTENTIAL SERVICE CLIENTS WHAT IS
NEEDED TO “CO-CREATE” THE SERVICES PROVIDED.
 1. CREATING AWARENESS

• ALL TOO OFTEN, FIRMS GO OUT OF BUSINESS BECAUSE PEOPLE DON’T KNOW
THEY EXIST OR WHAT THEY DO. SMALL RESTAURANTS OFTEN HAVE THIS
PROBLEM. SIMPLY PUTTING UP A SIGN AND OPENING THE DOOR IS RARELY
ENOUGH. PROMOTION THROUGH ADS ON SOCIAL MEDIA PLATFORMS AND
LOCAL RADIO OR TELEVISION, COUPONS IN LOCAL PAPERS, FLYERS, AND SO
FORTH CAN CREATE AWARENESS OF A NEW BUSINESS OR PRODUCT.
 2. GETTING CONSUMERS TO TRY PRODUCTS

• PROMOTION IS ALMOST ALWAYS USED TO GET PEOPLE TO TRY A NEW

PRODUCT OR TO GET NONUSERS TO TRY AN EXISTING PRODUCT. SOMETIMES
FREE SAMPLES ARE GIVEN AWAY.
 3. PROVIDING INFORMATION

• INFORMATIVE PROMOTION IS MORE COMMON IN THE EARLY STAGES OF THE

PRODUCT LIFE CYCLE. AN INFORMATIVE PROMOTION MAY EXPLAIN WHAT
INGREDIENTS (FOR EXAMPLE, FIBER) WILL DO FOR A CONSUMER’S HEALTH,
DESCRIBE WHY THE PRODUCT IS BETTER (FOR EXAMPLE, HIGH-DEFINITION
TELEVISION VERSUS REGULAR TELEVISION), INFORM THE CUSTOMER OF A NEW
LOW PRICE, OR EXPLAIN WHERE THE ITEM MAY BE PURCHASED.
 4. KEEPING LOYAL CUSTOMERS

• PROMOTION IS ALSO USED TO KEEP PEOPLE FROM SWITCHING BRANDS.

SLOGANS SUCH AS CAMPBELL’S SOUPS ARE “M’M! M’M! GOOD!” AND “INTEL
INSIDE” REMIND CONSUMERS ABOUT THE BRAND. MARKETERS ALSO REMIND
USERS THAT THE BRAND IS BETTER THAN THE COMPETITION.
• FOR YEARS, PEPSI HAS CLAIMED IT HAS THE TASTE THAT CONSUMERS PREFER.
SOUTHWEST AIRLINES BRAGS THAT CUSTOMERS’ BAGS FLY FREE. SUCH
ADVERTISING REMINDS CUSTOMERS ABOUT THE QUALITY OF THE PRODUCT
OR SERVICE.
 5. INCREASING THE AMOUNT AND FREQUENCY OF
USE

• PROMOTION IS OFTEN USED TO GET PEOPLE TO USE MORE OF A PRODUCT

AND TO USE IT MORE OFTEN
 6. TEACHING THE CUSTOMER

• FOR SERVICE PRODUCTS, IT IS OFTEN IMPERATIVE TO ACTUALLY TEACH THE

POTENTIAL CLIENT THE REASONS FOR CERTAIN PARTS OF A SERVICE. IN
SERVICES, THE SERVICE PROVIDERS WORK WITH CUSTOMERS TO PERFORM THE
SERVICE. THIS IS CALLED “CO-CREATION.”
 THE PROMOTIONAL MIX

• THE COMBINATION OF TRADITIONAL ADVERTISING, PERSONAL SELLING, SALES

PROMOTION, PUBLIC RELATIONS, SOCIAL MEDIA, AND E-COMMERCE USED TO
PROMOTE A PRODUCT IS CALLED THE PROMOTIONAL MIX. EACH FIRM CREATES
A UNIQUE PROMOTIONAL MIX FOR EACH PRODUCT. BUT THE GOAL IS ALWAYS
TO DELIVER THE FIRM’S MESSAGE EFFICIENTLY AND EFFECTIVELY TO THE
TARGET AUDIENCE.
 ELEMENTS OF PROMOTIONAL MIX:

1. TRADITIONAL ADVERTISING: ANY PAID FORM OF NON-PERSONAL

PROMOTION BY AN IDENTIFIED SPONSOR THAT IS DELIVERED THROUGH
TRADITIONAL MEDIA CHANNELS.
2. PERSONAL SELLING: A FACE-TO-FACE PRESENTATION TO A PROSPECTIVE
BUYER.
3. SALES PROMOTION: MARKETING THAT STIMULATE CONSUMER BUYING,
INCLUDING COUPONS AND SAMPLES, DISPLAYS, SHOWS AND EXHIBITIONS,
DEMONSTRATIONS, AND OTHER TYPES OF SELLING EFFORTS.
4. PUBLIC RELATIONS: THE LINKING OF ORGANIZATIONAL GOALS WITH KEY
ASPECTS OF THE PUBLIC INTEREST AND THE DEVELOPMENT OF PROGRAMS
DESIGNED TO EARN PUBLIC UNDERSTANDING AND ACCEPTANCE. PUBLIC
RELATIONS CAN INCLUDE LOBBYING, PUBLICITY, SPECIAL EVENTS, INTERNAL
PUBLICATIONS, AND MEDIA SUCH AS A COMPANY’S INTERNAL TELEVISION
CHANNEL.
5. SOCIAL MEDIA: THE USE OF SOCIAL MEDIA PLATFORMS SUCH AS FACEBOOK,
TWITTER, PINTEREST, INSTAGRAM, AND VARIOUS BLOGS TO GENERATE “BUZZ”
ABOUT A PRODUCT OR COMPANY. EVEN PROMOTIONAL STRATEGIES SUCH AS
PAYING CELEBRITIES TO WEAR A SPECIFIC LINE OF CLOTHING AND POSTING
THESE IMAGES ON TWITTER OR INSTAGRAM REQUIRES DIFFERENT TYPES OF
PLANNING AND EXPERTISE THAN TRADITIONAL ADVERTISING.
6. E-COMMERCE: THE USE OF A COMPANY’S WEBSITE TO GENERATE SALES
THROUGH ONLINE ORDERING, INFORMATION, INTERACTIVE COMPONENTS
SUCH AS GAMES, AND OTHER ELEMENTS OF THE WEBSITE. WEBSITE
DEVELOPMENT IS MANDATORY IS TODAY’S BUSINESS WORLD. UNDERSTANDING
HOW TO DEVELOP AND UTILIZE A WEBSITE TO GENERATE SALES IS IMPERATIVE
FOR ANY MARKETER.
PRICING STRATEGIES
• PRICE IS THE QUANTITY OF PAYMENT OR COMPENSATION GIVEN BY ONE
PARTY TO ANOTHER IN RETURN FOR ONE UNIT OF GOODS OR SERVICES. A
PRICE IS INFLUENCED BY BOTH PRODUCTION COSTS AND DEMAND FOR THE
PRODUCT.
• A PRICING STRATEGY IS A MODEL OR METHOD USED TO ESTABLISH THE BEST
PRICE FOR A PRODUCT OR SERVICE. PRICING STRATEGIES HELP YOU CHOOSE
PRICES THAT MAXIMIZE PROFITS AND SHAREHOLDER VALUE WHILE
CONSIDERING CONSUMER AND MARKET DEMAND.
 PRICE ELASTICITY OF DEMAND
• PRICE ELASTICITY OF DEMAND IS USED TO DETERMINE HOW A CHANGE IN
PRICE AFFECTS CONSUMER DEMAND. IF CONSUMERS STILL PURCHASE A
PRODUCT DESPITE A PRICE INCREASE (SUCH AS CIGARETTES AND FUEL) THAT
PRODUCT IS CONSIDERED INELASTIC. ON THE OTHER HAND, ELASTIC
PRODUCTS SUFFER FROM PRICING FLUCTUATIONS (SUCH AS CABLE TV AND
MOVIE TICKETS).
% Change in Quantity = Price Elasticity of Demand.
% Change in Price
 TYPES OF PRICING STRATEGIES

• COMPETITION-BASED PRICING • SKIMMING PRICING

• COST-PLUS PRICING
• DYNAMIC PRICING
• FREEMIUM PRICING
• HIGH-LOW PRICING
• HOURLY PRICING
• PENETRATION PRICING
• PREMIUM PRICING
• PROJECT-BASED PRICING
• VALUE-BASED PRICING
1. COMPETITION-BASED PRICING STRATEGY
COMPETITION-BASED PRICING IS ALSO KNOWN AS COMPETITIVE PRICING OR
COMPETITOR-BASED PRICING. THIS PRICING STRATEGY FOCUSES ON THE
EXISTING MARKET RATE (OR GOING RATE) FOR A COMPANY’S PRODUCT OR
SERVICE; IT DOESN’T TAKE INTO ACCOUNT THE COST OF THEIR PRODUCT OR
CONSUMER DEMAND.
2. COST-PLUS PRICING STRATEGY
A COST-PLUS PRICING STRATEGY FOCUSES SOLELY ON THE COST OF
PRODUCING YOUR PRODUCT OR SERVICE, OR YOUR COGS. IT’S ALSO KNOWN
AS MARKUP PRICING SINCE BUSINESSES WHO USE THIS STRATEGY “MARK UP”
THEIR PRODUCTS BASED ON HOW MUCH THEY’D LIKE TO PROFIT.
3. DYNAMIC PRICING STRATEGY
DYNAMIC PRICING IS ALSO KNOWN AS SURGE PRICING, DEMAND PRICING, OR
TIME-BASED PRICING. IT’S A FLEXIBLE PRICING STRATEGY WHERE PRICES
FLUCTUATE BASED ON MARKET AND CUSTOMER DEMAND.
4. FREEMIUM PRICING STRATEGY
A COMBINATION OF THE WORDS “FREE” AND “PREMIUM,” FREEMIUM PRICING
IS WHEN COMPANIES OFFER A BASIC VERSION OF THEIR PRODUCT HOPING
THAT USERS WILL EVENTUALLY PAY TO UPGRADE OR ACCESS MORE FEATURES.
UNLIKE COST-PLUS, FREEMIUM IS A PRICING STRATEGY COMMONLY USED BY
SAAS AND OTHER SOFTWARE COMPANIES.
5. HIGH-LOW PRICING STRATEGY
A HIGH-LOW PRICING STRATEGY IS WHEN A COMPANY INITIALLY SELLS A
PRODUCT AT A HIGH PRICE BUT LOWERS THAT PRICE WHEN THE PRODUCT
DROPS IN NOVELTY OR RELEVANCE. DISCOUNTS, CLEARANCE SECTIONS, AND
YEAR-END SALES ARE EXAMPLES OF HIGH-LOW PRICING IN ACTION.
6. HOURLY PRICING STRATEGY
HOURLY PRICING, ALSO KNOWN AS RATE-BASED PRICING, IS COMMONLY USED
BY CONSULTANTS, FREELANCERS, CONTRACTORS, AND OTHER INDIVIDUALS OR
LABORERS WHO PROVIDE BUSINESS SERVICES. HOURLY PRICING IS ESSENTIALLY
TRADING TIME FOR MONEY. SOME CLIENTS ARE HESITANT TO HONOR THIS
PRICING STRATEGY AS IT CAN REWARD LABOR INSTEAD OF EFFICIENCY.
7. SKIMMING PRICING STRATEGY
A SKIMMING PRICING STRATEGY IS WHEN COMPANIES CHARGE THE HIGHEST
POSSIBLE PRICE FOR A NEW PRODUCT AND THEN LOWER THE PRICE OVER TIME
AS THE PRODUCT BECOMES LESS AND LESS POPULAR. SKIMMING IS DIFFERENT
THAN HIGH-LOW PRICING IN THAT PRICES ARE LOWERED GRADUALLY OVER
TIME.
8. PENETRATION PRICING STRATEGY
CONTRASTED WITH SKIMMING PRICING, A PENETRATION PRICING STRATEGY IS
WHEN COMPANIES ENTER THE MARKET WITH AN EXTREMELY LOW PRICE,
EFFECTIVELY DRAWING ATTENTION AWAY FROM HIGHER-PRICED COMPETITORS.
PENETRATION PRICING ISN’T SUSTAINABLE IN THE LONG RUN, HOWEVER, AND
IS TYPICALLY APPLIED FOR A SHORT TIME.
9. PREMIUM PRICING STRATEGY
ALSO KNOWN AS PREMIUM PRICING AND LUXURY PRICING, A PRESTIGE
PRICING STRATEGY IS WHEN COMPANIES PRICE THEIR PRODUCTS HIGH TO
PRESENT THE IMAGE THAT THEIR PRODUCTS ARE HIGH-VALUE, LUXURY, OR
PREMIUM. PRESTIGE PRICING FOCUSES ON THE PERCEIVED VALUE OF A
PRODUCT RATHER THAN THE ACTUAL VALUE OR PRODUCTION COST.
10. PROJECT-BASED PRICING STRATEGY
A PROJECT-BASED PRICING STRATEGY IS THE OPPOSITE OF HOURLY PRICING —
THIS APPROACH CHARGES A FLAT FEE PER PROJECT INSTEAD OF A DIRECT
EXCHANGE OF MONEY FOR TIME. IT IS ALSO USED BY CONSULTANTS,
FREELANCERS, CONTRACTORS, AND OTHER INDIVIDUALS OR LABORERS WHO
PROVIDE BUSINESS SERVICES.
11. VALUE-BASED PRICING STRATEGY
A VALUE-BASED PRICING STRATEGY IS WHEN COMPANIES PRICE THEIR
PRODUCTS OR SERVICES BASED ON WHAT THE CUSTOMER IS WILLING TO PAY.
EVEN IF THEY CAN CHARGE MORE FOR A PRODUCT, THEY DECIDE TO SET THEIR
PRICES BASED ON CUSTOMER INTEREST AND DATA.
THANK YOU FOR LISTENING!