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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).

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