Product Marketing in a gist ✨
The blog is divided into major 6+1(Bonus) Sections namely
- Target audience
- Value Propositions
- Messaging
- Go-to-market Team and strategy
- Demand Generation
- Marketing Mix
- Pricing
Staring up with Target audience →
Section 1: Finding Your Target Audience
Understanding your target audience is the foundational step in any successful marketing strategy. Before diving into the intricacies of your product, take the time to identify who your potential customers are. Consider demographics, interests, and pain points that your product aims to address. Conduct market research, analyze customer data, and build detailed buyer personas to guide your marketing efforts.
Highlight key questions in this section, such as:
- Who is most likely to benefit from your product?
- What are the common challenges your target audience faces?
- How does your product uniquely solve their problems?
By honing in on your audience, you’ll be better equipped to tailor your messaging, design, and promotional efforts to resonate with the people who matter most.
Tip: Go Beyond Demographics
Dig deeper into psychographics and behavior patterns. Understanding your audience’s motivations, values, and preferred communication channels can elevate your marketing strategy to a more personal level.
The first part of a good marketing plan is selecting the right target audience ?
Nope this belief has ended up being cascading strategies and a waste of time as we aimlessly try to market our product without any objectives set.
A good GTM always has an objective set and that’s the whole point of strategy right !
Having a quantified goal will help dictate strategy 💵
Example:
+ Grow purchase intent by 3% in segment A.
+ Grow net promoter score by 30% in segment B.
+Generate $1m in pipeline Monthly Recurring revenue
The whole point of GTM is to bind with business goals and drive business through different channels.
2nd most thing that comes in Demand and Supply.
Scenario 1: No demand ~ You create value proposition and hyper relevant content for your target customers. But if you don’t have enough customers then? Pivoting to a larger Target Audience is the solution.
Scenario2:No demand yet..~ In this scenario we create a category creation and do product awareness but it’s a risky thing to do but done correctly has its own perks and benefits as it’s a unique space and has a big potential market with no competitors (Unique solutions).
Scenario3: A lot of demand and lot more supply ~ In this scenario leaders often take choices to supply products that is been over supplied and get doomed initially to counter this smartly is to improve deficiencies using product reviews.
Lastly is to do “comps” comparing similar products how they have done in the market historically to estimate demand, this technique is usually practiced by publishers (Games, books etc).
+. Understanding psychology for Marketing and getting attention.
+. Storytelling to retain attention.
+.Sales to convert attention.
The market includes more than just customers.
Market includes not just customers but is a entire eco-system ♻️ of buyers & sellers.
For example Airbnb 🏠 can’t only focus just on buyers but also subsequently focuses to the segment of people renting their home.
A given Target Market actually consists of 5Cs.
+ Customers
+ Company
+ Collaborators (Such as partners, influencers) the main question arises here is, are you relying on any of these Collaborators to help you get your product into the hands of your target customers?
+ Context (Changing environment & regulations)
+ Competitors
In between all of these it’s important to track customer satisfaction for that this world got Net promoter Score(NPS) and CSAT two amazing cx metrics
CSAT( Customer Satisfaction) can be calculated through surveys and focuses on short term changes done in business features whereas NPS calculates long term changes and hence can be used to define loyalty of customers.
NPS is calculated using a scoring system from 0 to 10 where the scale is divided according to segment customers namely:
Detractors~0 to 6
Passives~7 to 8
Promoters~9 to 10
NPS = %Promoters — %Detractors
ignoring passives.
Benefits of calculating NPS is we can monitor our product, services, segment our customers identify customers at risk of churn and take steps to win them back.
Though CSAT and NPS serves different functionality it’s difficult to say which one is best to calculate your customer experience.
Now lets deep dive into we can actually do the segmenting of our target audience.
1. Time and money can be the parameters to do cluster analysis.
2. 80% of revenue can come from that 20% of the small group of clients.
3. It’s important to find your Ideal Customer profile (ICP).
4. Segmenting without historic data wouldn’t do any good, having some data in this perpetual market does.
5. The concept of TAM/SAM/SOM
Tam = Total Accessible Market
Sam = Serviceable Attainable Market
Som = Serviceable obtianable Market
let’s just understand these terms in one example. Assume that you have made a Saas software that just supports English language then the SAM will be English Speaking audience.
TAM- global markets and SAM- local markets, Superset and subset respectively.
SOM- A potential market who can expect to purchase your product.
Good thumb rule is always assume SOM=2x revenue.
You will see deminishing returns after you hit 50% of target audience.
so to counter it there’s a quote by Geoffrey A moore. “You should tweak your go to market strategy, re-launch in a new market and do it all over again with all the lessons you’ve learned.”
Basically a brand pivots when they see diminishing results when to and how to pivot is also a key 🗝️.
Product Lifestyle.
To analyse the product life-cycle it goes from Early-Midstage-Mature-Decling phase overall.
Identifying Competitors plays a important role. key factor in selecting a market is to understand the compitition.
+ Finding your in market competitors
+ Finding and understanding your audience compitive alternatives.
Compitive Advantage comes down to two things lastly.
1.Economies of scale: Social media followers, No of employees, revenue, Vc funding etc.
2.Assess customer captivity: Things like subscription models, cancellation penalties, packages, personalisation options. All these options makes difficult for customers to leave and from your perspective making you loss the share of market.
Lastly is competitive alternatives.
Competitive alternatives means where would your audience would go if your product didn’t exist.
Doing competitive alternatives will surely help you in defining your product well.
In customer life-cycle competitor alternatives comes first.
You don’t define competitors or market, your customers do !
Section 2. Value Proposition
Value proposition is all about the dollar or rupee that customer get back when they buy your product.
Example Product is of $100 customer saves $500 the value created is $400
Value is something that you actually calculate.
Calculating product Value
1st = Identify the cost of doing nothing then calculate cost+ benefits.
Finally look at your product what’s the cost of your product.
- what sort of returns can your customers expect to get ?
- Value comes directly from cost saving
- If you don’t know your competitors just focus on creating values from your product.
value proposition is the fundamental component of your marketing strategy.
Its an internal tool that will help focus your marketing on the value you bring to solve specific pains for your specific audience.
Good value proposition should be made up of 3 different components
- Competitive Advantage + Positioning+ USP(Unique selling Proposition)
4 common competitive advantage
a) Economies of scale
b) More Product at a lower cost
c) Enforced competitive Advantages (Companies with Government issued licenses)
d)Technology Advantages
Having a bit of knowledge about USP and defensible USP is good to know.
Section 3 Messaging
Messaging is how you tell the world about your product
- Messaging framework = for what to say
Copywriting = how to say it
6 steps to create messaging framework:-
1- Find the features your audience care about
2- Find the advantage of your selected features
3–Link your advantage to your value
4-Group the benefits you offer by theme
5-Map value to personas and build usecases
6-Build the framework
Example a 4k TV advantage is 4k benefit = it makes feel transported of whatever you are watching on the screen.
Always bind your feature advantage with user personas and create usecases.
Section 4: Go-to-market Team and strategy
Go-to-market are the made up of everyone who touches the customer throughout the customer lifecycle
1] Sales
2] Marketing
3] Customer Success/Support
GTM Product marketing outline
a) Identify the audience
b) Identify the market
c) Define the value proposition
d) Create the messaging
e) Outline the channel mix
Key difference between Product market fit and and GTM is product market fit is an iterative process and GTM is all about scaling.
you can find number of difference between pmf and gtm on the internet !
Key point is that Sales is all about closing business
Identify Your Target Audience
— [ ] Conduct thorough market research.
— [ ] Create detailed buyer personas.
— [ ] Analyze demographics, interests, and pain points.
Outline the Value You Bring to Them
— [ ] Craft a clear and compelling value proposition.
— [ ] Highlight unique benefits and solutions.
— [ ] Showcase what sets your product apart from competitors.
Figure Out How to Tell Them a Story
— [ ] Develop a narrative that resonates with your audience.
— [ ] Utilize storytelling in marketing materials.
— [ ] Ensure your brand story aligns with your value proposition.
Build Your Go-to-Market Team
— [ ] Identify key roles for marketing, sales, and support.
— [ ] Recruit skilled professionals for each role.
— [ ] Foster collaboration and communication among team members.
Define the Demand and Brand Marketing Channels
— [ ] Identify channels that best reach your target audience.
— [ ] Develop a strategy for each channel (social media, email, etc.).
— [ ] Allocate resources based on channel effectiveness.
Calculate Your Marketing Mix
— [ ] Determine the appropriate balance of marketing elements (product, price, place, promotion).
— [ ] Set marketing budget allocations for each element.
— [ ] Adjust the mix based on market trends and feedback.
Settle on a Product Price
— [ ] Conduct pricing analysis and competitor research.
— [ ] Consider the perceived value of your product.
— [ ] Factor in production costs and desired profit margins.
Retention: Retention measures the ability of a business to keep its existing customers over a specified period. High retention indicates customer satisfaction and loyalty. To calculate retention, subtract the number of new customers from the total number at the end of a period and divide by the initial number.
Churn Rate: Churn rate is the percentage of customers who stop using a product or service over a given period. It’s the inverse of retention. A high churn rate may signal dissatisfaction or a lack of perceived value. To calculate churn rate, divide the number of customers lost during a period by the total number at the beginning.
Retention and churn rate are inversely proportional.
LTV= Life Time customer Value
Measure of how valuable a customer is to your company.
ARPU= Average revenue per user
ARPPU= Average revenue per paying user
Customer Success teams have to constantly look onto this metrics like a hawk in case to run business smoothly.
MRR = Multi- Recurring Revenue.
Churn = Previous Month MRR — Current Month Mrr/ Previous Month MRR
Section 5: Demand Generation
First breaking the myths Demand generation is not Lead generation there is a vast difference.
Demand Generation is all about getting the right people to put up their hands and say — I would like to talk to the sales person for this product.
There different type of categories of products on how we can create demand genertaion on like there are freemium app that will allow you to use it for free for single person but if want ot collabrate will the teams it will charge some amount , second type are of Subscription based apps and furthermore.
Demand Gen can take place through a simple cycle of Awareness-> Consideration-> Conversion Key assests are product pricing , Free trials , Ecommerce publishing.
There is some terms called as Mql (Marketing qualified Leads), Sql (Sales Qualified Leads) you can learn more on the internet for these terms.
Offers = White Papers
White papers are always on the bottom of the funnels of Product marketing mix. Example of white paper are “Request a demo” “Get a consultation”.
Section 6: Marketing Mix
The Marketing Mix, often referred to as the 4Ps, is a strategic framework that businesses use to optimize their marketing efforts. Developed by Jerome McCarthy, the model consists of four essential elements: Product, Price, Place, and Promotion.
1. Product:
— Refers to the actual offering or service provided by a business.
— Includes product design, features, quality, and branding.
— Focuses on meeting customer needs and differentiating from competitors.
2. Price:
— Involves setting a price that reflects the product’s value and is competitive in the market.
— Considerations include pricing strategies, discounts, and payment options.
— Balancing perceived value with market conditions is crucial.
3. Place:
— Relates to the distribution and accessibility of the product.
— Involves decisions about where and how customers can purchase the product.
— Includes considerations about channels, logistics, and inventory management.
4. Promotion:
— Encompasses all communication and marketing efforts to promote the product.
— Involves advertising, public relations, social media, and other promotional activities.
— Aims to create awareness, generate interest, and drive sales.
Leveraging the Marketing Mix:
1. Understanding Customer Needs:
— Analyze market research to understand what customers want and need.
— Tailor the product features and design to meet those needs.
2. Competitive Positioning:
— Evaluate competitors’ offerings and pricing strategies.
— Position your product in a way that highlights its unique value.
3. Distribution Strategy:
— Choose distribution channels that align with your target audience’s preferences.
— Ensure your product is available where and when your customers want it.
4. Effective Communication:
— Develop a comprehensive promotional strategy that utilizes various channels.
— Craft compelling messages that highlight the benefits and uniqueness of your product.
5. Pricing for Value:
— Set prices that reflect the value your product provides to customers.
— Consider dynamic pricing strategies based on market conditions and customer segments.
By carefully managing and optimizing each element of the Marketing Mix, businesses can create a cohesive and effective marketing strategy that meets customer needs, outpaces competitors, and drives long-term success. Regular assessment and adaptation are crucial to staying relevant in a dynamic market.
Section 7 (Bonus): Pricing
Pricing is a strategic element of the marketing mix that plays a pivotal role in determining a product’s success in the market. It involves setting a monetary value on a product or service, taking into account various factors to achieve a balance between customer satisfaction and profitability.
Key Considerations in Pricing:
1. Costs:
— Production Costs: The expenses incurred in manufacturing or acquiring the product.
— Operating Costs: Overhead costs, including marketing, distribution, and administrative expenses.
2. Market Demand:
— Evaluate how much customers are willing to pay for the product.
— Consider the elasticity of demand — how price changes may impact the quantity demanded.
3. Competitive Landscape:
— Analyze the pricing strategies of competitors.
— Determine whether your product will be positioned as a premium, value, or economy offering.
4. Perceived Value:
— Consider the perceived value of your product in the eyes of the customer.
— The value proposition should align with the pricing strategy.
5. Profit Objectives:
— Set profit margins that align with business goals.
— Consider short-term and long-term profitability.
6. Psychological Pricing:
— Utilize pricing tactics that consider the psychological impact on consumer perception.
— Examples include pricing something at $9.99 instead of $10 for a perception of a lower cost.
7. Dynamic Pricing:
— Adjust prices based on market conditions, demand fluctuations, or specific customer segments.
— Common in e-commerce and service industries.
Leveraging Pricing for Success:
1. Value-Based Pricing:
— Align pricing with the perceived value of the product to the customer.
— Focus on communicating the unique benefits and advantages of your offering.
2. Discounts and Promotions:
— Use strategic discounts and promotions to stimulate sales.
— Ensure that discounts do not erode overall profitability.
3. Transparent Communication:
— Clearly communicate the rationale behind your pricing.
— Transparency builds trust with customers and helps them understand the value they receive.
4. Regular Review:
— Periodically review and adjust pricing strategies based on market changes, competition, and customer feedback.
— Stay agile to adapt to evolving market conditions.
Pricing is a dynamic aspect of marketing that requires a careful balance between the value delivered to customers and the financial objectives of the business. Strategic pricing contributes significantly to a product’s positioning, market competitiveness, and overall profitability.
That’s for the article if you came till here you are champion and thanks for reading I am sure you would have definitely learned something new.
Happy Learning.
Asishkumar Gouda
