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Define Your Target Market

May 24, 2011

Promotion Services International can help your management team understand your company market position and your product strategy. We will help you develop your product with your management team as they recognize the steps of developing a new product strategy. With a understanding of who you are as a company, the second step demands that you understand where your current products are now.

For this exercise, I like to create a grid that identifies all of the products by each individual item. If you have many items across different product families you may only want to use those products that you feel are candidates in the comparison and that will help you define this new product launch strategy. Consider products that share the same marketing channels, the same consumer or same selling space. Will your new product launch affect current product sales? Do you want a consumer dollar swap as a new product launch result? Plot out your products, your competitors and your new product scheduled to be launched.

Take a look at your existing products and compare your new product against them does it fit in? If you sell white tennis shoes to men over 65 can you sell 4” high heel pumps to women under 25? If your new product doesn’t fit in you may need an additional set of resources to launch the new product. Using this comparison you should be able to identify gaps in the market place and in your product portfolio.

Define your new product target market and potential markets based on where the gaps may be located. Eliminate any markets that seem a far reach so that you can focus on the sure ones. Promotion Services International will help you with all of this. Contact us for a FREE CONSULTATION.

After you have identify some gaps in the current market and you have convinced yourself that your new product will have a shot you, you will need to answer what I call the Go Questions. The set of GO Questions are the basic fundamental questions you will need to have answered as you begin the product launch.

Now you have gather enough data to understand where you are as a company and where you products currently sit in your existing market. You have also plotted your new product against your competitors and your current product portfolio to identify gaps in the market. You should have also thoroughly answered the GO Questions with well though out answers. All of this information will be used to help you formulate your product launch plan. You should follow these basic steps to launch the product.

1 – Create your goals. Make them realistic and attainable for the first two years. When developing these goals ask yourself these questions:

a) How do these new products fit into your existing product portfolio?

b) How do these new products fit into your company?

c) What will our consumers think about these new products?

d) How will our channels react about our new products?

When creating your goal statement you should be very specific with exact deadlines and numbers to meet. A realistic achievable goal will help you set the pace for the launch.

2 – Identifying your target areas. Where will your new products be focused? Who will be your customers? How will you get the product to them? What do you need to do to reach them?

3- Allocate your resources and prioritize your spending. Create a budget that captures all of the potential areas of resources needed to compete your goal. Remember that resources also include people, places and things not just dollars.

4- Develop a plan for implementation that includes all of the information you have gathered so far. This is where you have to be as specific as possible to capture the details of the plan. You may want to use a project worksheet to help you keep track of all deliverables and assign specific team members task with clear objectives and deadlines.

Launching a new product is a wonderful experience that the entire company can be involved in. A successful product launch can help to re-position your company in the market place and take market share away from your competitors. A poor product launch could drain the company of valuable resources and allow the competitors to bite into your current market share due to a lack of focus and market rejection.

Your products tells a story and that story will help your product sell. Success of any product relies on proper planning, goal creation and the development of a unique selling proposition. Many products fail due to lack of planning from the manufacturer and limited buy-in from the market. Estimates have product failures at between 75% to 90% due to lack of planning, weak sales execution and poor product development. ekn links can help you with your product launch.

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