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?
- 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?
- 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).