In Short…

  • How to manage product launches.
  • Importance of managing price competitions.
  • How to manage distributors.
  • How to integrate pricing and distribution strategies.

Managing Product Launch

Objectives of Product Launch:

  1. Get into the market
  2. Capture market from competitors
  3. Get into customers’ minds
  4. Convince customers that the product is beneficial to them
  5. Sell the value proposition

These all require high expenses. Hence the product launch needs to be successful.

Objectives post a successful product launch:

  1. Product launch is supposed to create a price/share premium.
  2. Marketing expenses will have to decrease in the long run
  3. Lower distribution/sales cost
  4. Lower cost of defending the brand
  5. Accelerating the market with marketing and sales (instead of waiting for word-of-mouth)

Customer Acquisition and Retention

Customer retention is important in the long run since it is cost-effective and the customers need to be protected from the competitors.

Sales Funnel for Acquiring Customers

Awareness – Interest – Consideration – Purchase Intent – Purchase

Customer Management Cycle for Retaining Customer

Awareness – Consideration (Top of Mind) – Convenience/Accessibility – Interaction with customers – Purchase Intent – Purchase – Post Purchase (since users reevaluate their considerations) – Manage Customer Experience – Retain

Retention strategies are simpler compared to customer acquisition

How Credit One became a competitor to Visa/MasterCard :

Credit One target audience was young people who didn’t have a credit history. They charged higher interest rates due to the high-risk market of young creditors. They checked up on customers who were defaulting and asked how Credit One could help.

  • Awareness – Direct Marketing, Mailer Advertising, Promotional offers
  • Consideration (Top of Mind) – Branding, Educational seminars, online information, College/School Alumni Network
  • Convenience/Accessibility – Multiple Channels – call centers, online, channel partners
  • Interaction with customers – Relationship managers, no-risk trial offers
  • Purchase Intent
  • Purchase
  • Post Purchase – Review and support, 24×7 helpdesk
  • Customer Insight experiment – Using data to optimize the marketing mix
  • Manage Customer Experience – Building loyalty rewards
  • Retain

Balancing Brand and Customer Management Strategies

Sample Product Launch Plan

Park the brand in a tax haven, then when the company uses the brand in a country with high taxes, the company has to pay a licensing fee to the brand parked in the tax haven (Switzerland, Singapore, Ireland)

Brand Value as Company Value (out of 100%)

Marketing Dashboard

Latitude of Price Acceptance

Note: These are notes from the ISB Executive Education – Product Management program for my personal consumption.

In case you are looking for a Product Management course, I would highly recommend joining this cohort-based course.

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Categories: Product Management