New Product Marketing Strategy Template Step 3: “All about distribution channel/pricing strategy”

New Product Marketing Strategy Template Step 3: “How the product will get to the customer? How much will the product cost?”.

How to use marketing strategy template for a new product development?

Answer the questions from our new product marketing strategy template  below .

Write down answers to these questions about your distribution channels:

3.1. How will users or customers initially buy your product?

  • Write down one or more options – directly from a company sales department, from a representative or distributor, from a partner company, in a retail store, mail order, e-commerce?
  • Pick a distribution channel which is most suitable for your product
  • Make a distribution channel diagram
  • How much will the channel cost? Write down direct expenses and channel discounts.
  • Are there indirect channel costs (support, channel promotional cost etc.)?
  • What else is needed for customers to use/buy the product? How do they acquire those pieces?
  • What is the net revenue after channel costs?

3.2. Products-substitutes?

  • If there are products somewhat like ours – How much do customers spend for them?
  • If customers need a product like ours – How much do they pay to do the same thing today?

3.3. What is the economic basis for your pricing?

  • Look into prices for comparable products that already exist (In an existing market)
  • The sum of the parts required to assemble the equivalent functionality?
  • A return on investment analysis of saved time, money, expense (In a new market)
  • Do you want to change the existing rules of pricing? Offer new pricing models?
3.4. How many you can sell?

  • How many copies/number of products can you sell at once?Per household or per company?
  • If the product was free, how many per household or per company?
  • How many can you sell if the cost is $1? $1 million?

3.5. Pick a preliminary price

  • What is the price at which half of the customers say yes?

3.6. Pick preliminary sales process options – Would it be easier to sell your product if …

  • Sold in modules that individually cost less?
  • Configured as a complete solution?
  • Sold with other products?

What you should have after completing step 3 “All about distribution channel/pricing strategy” of this marketing strategy template:

  • Distribution channel diagram and options,
  • Preliminary pricing and sales models .

With all these documents you are ready to go to Step 4 of marketing strategy template for a new product development (coming soon).

Marketing Strategy Template For New Product Development. Step 2 “All about Customer”.

New Product Marketing Strategy Template Step 2: “Who are your customers?”.

How to use marketing strategy template for a new product development?

Answer the questions from our new product marketing strategy template  below .

Write down answers to these questions about your customers:

2.1. Define the different types of “customers”.

  • Write down who will be the actual day-to-day user of the product?
  • Write down who are the Influencers and Recommenders?
  • Who is the “Economic Buyer?” (i.e. whose budget paid for it)?  Do you think the Economic Buyer has an existing budget for this product or do they need to get one approved?
  • Who are the “Decision Makers?” Who else needs to approve the purchase?
2.2. For all type of customers (users, influensers and decision makers) write down where do you think you will find them?
  • In what position?
  • In what company type?
  • In what industry segment?
  • What departments?

2.3. What problem does the customer have?

  • What do you think the biggest pain is in how they work?
  • Is it the same on all levels of the company?
  • If they could wave a magic wand and change anything what would it be?
  • Since your product doesn’t exist, what do people do today to solve their problem? Don’t do it ? Do it badly? Don’t recognize the need?
1.4. Where on the “problem recognition scale” is each type of customer (users, recommenders, economic buyers, decision makers)?

  • Latent Need (you recognize that the buyer needs your product but they don’t.. .yet)
  • Active Need – the Buyer is in pain (they recognizes a need but doesn’t know how to solve it)
  • Has a vision of a solution (the buyer has a vision of how to solve their problem)
  • What is the organizational impact of this pain? Individual? Departmental? Corporate?

1.4. Define the magnitude of customer need – Is this a Mission Critical Product?

  • Is this a “must have” product?
  • Is this a “nice to have” product?
  • Is this product so important that the customers have built it themselves?

1.5. How does the potential user of the product spend their day now?

  • What similar products do they use? How much time do they spend using them?
  • How would the world change for these users after they had your product?
  • How would it change their day? Their lives?

1.6. How would customers justify the Return On Investment (ROI) for your product?

  • What will be measured?
  • Revenues? Costs-reduction or containment? Displaced costs? Avoided costs?
  • What is the smallest/least complicated problem that can be solved for which the customer will pay for?
  • What is the smallest feature set they will pay for in the first release?

What you should have after completing step 2 “All About Customer” of this marketing strategy template:

  • Customer Types and Description,
  • Customer Problem Description.

With all these documents you are ready to go to Step 3 of marketing strategy template for a new product development .

Marketing Strategy Template For New Product Development. Step 1 “All about a product”.

New Product Marketing Strategy Template Step 1: “What problem are you solving with your product?”.

How to use marketing strategy template for a new product development?

Answer the questions from our new product marketing strategy template  below .

Write down answers to these questions about your product and product attributes:

1.1. Main goal of the product.

1.2. Main scheme of the product (text description or picture).

1.3. Product Attributes and Features

  • Write down all technical attributes (i.e. size, dimensions, weight and all applicable characterstics of your new product).
  • Write down a feature list. Will these features be well understood or do they require explanation? If yes – write down these features explanation.
1.4. Benefit List: What do the features let a customer do?
Underneath each of the features above, give a three line summary of its benefits
  • Something new?
  • Better?
  • More?
  • Faster?
  • Cheaper? Etc.

Will these benefits be accepted as such or do they need explanation? If yes – write down these benefits explanation.

What is the initial delivery schedule? When will all of these features and benefits be available? Write down the manufacturing and delivery time.

1.5. What Intellectual Property (IP)  will be unique?

  • What can you patent?
  • What is a trade secret you need to protect?
  • What will you have to license?
  • Have you checked to see if you infringe on others IP?
1.6. What is the Total Cost of Ownership of your Product?
  • Training?
  • Deployment?
  • Additional technical infrastructure (more servers…)?
  • Additional personnel infrastructure..?
1.7. Dependency Analysis: Are you dependent on something to happen before your product can sell
in volume?
1. Workflow/lifestyle changes on the part of the customer?
2. Other products required?
3. Economic conditions?
4. Behavior changes?
5. Supply change modifications?
6. Laws to change?
7. Other infrastructure/products/change in behavior
8. If so, what?
9. When will it happen?
10. What happens to your company if it doesn’t?
11. What metrics should be use to measure the change?

What you should have after completing step 1 “All about product”:

  • Product Specifications List,
  • Written Features and Benefits List,
  • Dependency Analysis Results.

With all these documents you are ready to go to Step 2 of marketing strategy template for a new product development (coming soon).

Book with excellent marketing strategy templates: The Four Steps to the Epiphany

Marketing Strategy Template for anyone bringing a product to market, writing a business plan, marketing plan or sales plan in a book!

By: Steven Gary Blank

Publisher: Cafepress.com, USA

Templatesforlife Rating: 4.5 from 5 stars in  Marketing Strategy Template category.

Focus of this book:

  • The Path to Marketing Strategy Disaster: The Product Development Model

  • The Path to Marketing Strategy Epiphany: The Customer Development Model

  • Customer discovery, validation and creation

  • Company Building

Marketing Strategy Template section editors findings : It’s a step-by-step guide to lead a new business project with good examples of what and what not to do. The book is split into six chapters – two introductory chapters then one for each of the four steps in the Customer Development process. Each chapter is long and packed with information. Each chapter concludes with a one page summary that serves as a quick reference guide. The appendix contains a checklist for each step in the Customer Development process as well as a useful bibliography with Blank’s comments.

Main Points for Marketing Strategy Template:

Marketing Strategies fall into one of four basic categories (market types):
• Bringing a new product into an existing market.
• Bringing a new product into a new market.
• Bringing a new product into an existing market and trying to resegment that market as a low-cost entrant.
• Bringing a new product into an existing market and trying to resegment that market as a niche entrant.

Market Type choices affect the way the company will deploy its sales, marketing and financial resources.
Customer Development and Discovery focuses on understanding customer problems and needs.  It is about finding out if there are customers for your idea and if and what they would be willing to pay for it. This must be done by leaving the office and talking to real potential customers and of course this removes the guess work in initial product specification – as the spec. is the founders vision and the minimum working set required to win first customers . Customer Discovery removes pricing risk because prospects tell you what they would be prepared to pay and it removes the hiring and market failure risk of alternate approaches, including the popular “build it and they will come” start-up strategy.
Customer Validation  focuses on developing a sales model that can be replicated. It creates a repeatable sales and marketing road-map based on the lessons learned in selling (not giving it away) to the first early customers. These first two steps validate the assumptions in your business model, that a market exists for your product, who your customers will be, the target buyers, establishes pricing, sales process and channels strategy.
Customer Creation focuses on creating and driving end user demand.

Company Building on transitioning the organization from one designed for learning and discovery to a well-oiled machine engineered for execution.

Marketing Strategy Template section editors conclusions: The Four Steps to the Epiphany is a “must read” for new entrepreneurs, product managers, marketing managers, sales managers and business managers.

Click here to check this book on Amazon!

Marketing Strategy Template

Marketing Strategy Template Basics

1.Distinguishing Marketing Strategies and Tactics

Real stumbling block to effective marketing is not knowing the difference between these terms. Let’s review what they mean:

A strategy is a broad plan derived from environmental analysis that is designed to achieve a company’s objectives.

A tactic is one of many actions used to execute the strategy. The distinction is important. If we have an existing product and we want to sell it  that is a tactic. If we want to know if buyers of our kinds of products (e.g., business planning software) are regular internet users and, if so, how they use internet, we are on the road to developing a strategy. We could give value to our community by having reviews of new tools, tips on using tools and links to sites that sell software we don’t make.

At its heart, a marketing strategy template  answers the question: Why should our customers buy our product (or service) and not our competitors’? The strategy will later form the heart of your marketing plan for that offering.

 2.Setting Marketing Strategy Goals

Strategy happens on several different levels within an organization. In big companies, people create strategy at:

  • the corporate level
  • the strategic business unit level
  • the product level

In many smaller companies, strategy creation may take place on all three levels simultaneously. In fact, a product manager developing a market strategy at a small firm might not only ask, “How should we market this product?” but also “Should we be offering this product at all?”

In creating a marketing strategy for a product, your main goals are:

1. to answer the question: “What’s our product’s competitive advantage?” Or, from the customer’s perspective, “What need would this product or service fulfill more effectively than any other similar offering?”

2. to shape your marketing strategy to ensure that the product does fulfill the customer’s expectations, needs, and desire.

To achieve these goals, you should have the following information:

  • your target market’s size and typical behavior (its demographic characteristics)
  • the primary benefit of the proposed product in the consumers’ minds

In addition, you will need to estimate the sales, market share, and profits that the product could generate in its first few years on the market plus establish the planned price, distribution strategy (how you’ll get the product to customers), and marketing budget for the first year, project the product’s long-run sales and profits.

Marketing Strategy Template Matrix

A firm’s context, or position in its market, has significant implications for strategy, and the marketing strategy matrix is a prescriptive template that links marketing strategy to market context. The matrix can be used to identify these implications and make sure the strategy reflects them.

You can use this tool for generating strategy or for reviewing strategies proposed by staff or operational managers. The prescriptions of the matrix are based on a compilation of many studies of marketing strategy, and while not 100 percent valid in every situation, they can be expected to be valid in most circumstances. Deviations from the prescriptions of the matrix should be justified by an explanation of how the situation differs from the norm.

Marketing Strategy Template Matrix Example

Marketing Strategy Template

Here are the instructions to follow in order to create the marketing strategy temlate matrix.

Identify the context by delineating possible strategic situations.We have chosen to illustrate five strategic situations on our  marketing strategy template.

1. Market development. Early entry or technical leadership makes a company a pioneer in its market.

2. Market domination. The leader in an established market. Holds an advantageous and influential position.

3. Differentiated advantage. A firm (not necessarily the leader) has a sustainable advantage such as low cost or patent protection.

4. Market selectivity. Characterized by segmented buyer wants and many small firms addressing these wants. Local service businesses such as restaurants are good examples (segmented based on price, menu, and location).

5. No advantage. The other situations all imply a strategic advantage or at least the potential to create one. Sometimes there is no immediate or obvious basis for creating an advantage.

List generic strategy options in the marketing strategy template matrix.

1. New product development

2. Segmentation and targeted marketing

3. Product positioning through research and marketing

4. Sales and marketing productivity improvement

5. Acquisition or merger

6. Harvest or divest

Use the marketing strategy template matrix to:

  •  Identify feasible strategic options given a specific market context
  • Evaluate marketing plans and proposals to see if their underlying strategies are realistic given the marketing situation

As a recap, here are the procedures to follow when using the marketing strategy template matrix.

  • Select one of the five generic strategic situations that best describes the marketing context for your business and product.
  • Use the matrix to identify applicable strategy options or to see whether a strategy is appropriate for the given situation.

Fill in the marketing strategy template matrix with your own data and thoughts at the intersections of each strategic situation and strategy option.