How To Take A High Tech Product To Market:
- Five through nine
5. Does the product match the sales and distribution channels?
It frequently does not. The product may be good in every respect,
but there may be no good way to get it to the customer. The investment
in building the necessary delivery system will often exceed the
cost of developing the device. On top of that, it may take years
to put it in place and build and adequate sales and distribution
network. That is precisely what the manufactures of many of the
IBM-compatible personal computer discovered when they went to
sell their products. Surprisingly enough this problem tends to
be ignored rather than confronted. The time it takes to build
the channel frequently exceeds the time to develop the device.
Either the channels should already be there or the company should
have realistic plans to build them.
6. Will the promotion program work?
The first concern is whether the positioning for a product has
ever been defined. If the product has indeed been rationally positioned,
the next question is whether or not that position is adequately
reflected in the company's promotions. A product's positioning
should be the cornerstone of every piece of sales literature,
advertising, and promotion. Much of the effectiveness of any promotion
depends on the creativity of the people involved.
7. Is the product different?
I am always tempted to tell marketing people that I would rather
be different than better, knowing full well that if a product
is truly different in some ways important to some customers, they
will automatically perceive the product as better. Products succeed
and become profitable when they are dramatically different in
significant ways. Marketing departments should create differences
and be capable of articulating their importance.
8. Does a marketing plan exist?
A marketing plan should exist. Sometimes it lives only in the
head of a strong leader and is transmitted through his or her
words and activities. An unwritten plan is indicative of no plan
at all. Even then, it is not enough to have a written plan. It
must be a living plan as well. The company must know it exists
and must be following it. The plan should be continually reviewed.
If the plan is written and never looked again, it is not a plan
at all.
9. Is pricing fair?
It is reasonably easy to determine if profit margins are adequate
to sustain a company. This is an analytic job for the finance
department. It is much more difficult to figure out whether the
customer is being charged a fair price. So much of the customer's
perception and utility is derived from it after the purchase.
Marketing should be able to explain to management why the price
is fair to both the customer and the company.
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