A complete guide on product marketing.
WHAT IS PRODUCT MARKETING?
In short, product marketing is the promotion of a product to increase sales of a product. In contrast, it can also be used to increase product awareness. But fully defining product marketing is anything but straightforward. In fact, the Product Marketing Alliance has 160 different definitions from managers in the field. Some confusion comes from the diverse responsibilities associated with product marketing and how teams around marketers are structured. Only 5.1% of product marketers say that other teams and stakeholders at their company understand what a product marketer does.
At its core, product marketing generally includes positioning, product launches, communication, and campaign building. There is also a degree of getting customer feedback and assisting with product development in a non-technical form.
An excellent way to define product marketing is to look at how those working in the role operate in conjunction with other teams.
PRODUCT MARKETING VS TRADITIONAL MARKETING VS PRODUCT MANAGEMENT
In a traditional marketing role, teams will focus on driving traffic to your website, finding new customers, optimizing conversion, and social media activity. A product marketer will work with those people to help position the company.
To summarize, the role of product marketing can be narrowed down into five core competencies.
The reason product marketers want to be product marketers is that the role is quite ambiguous. The functions can change daily, but everything those in the position does is critical for business success.
Work with us.
WHAT IS THE IMPORTANCE OF PRODUCT MARKETING?
Imagine you spend years developing a product, investing a significant amount of your budget. However, when you go to launch, nobody wants to buy it. That’s a lot of wasted time, money, and effort. The reason for failure is probably a lack of research into the market and the target audience.
Product marketing mitigates failure. The product marketer will work to learn and understand the product’s strategy, forming a connection with the target audience to understand the optimal way of engaging with them.
With product marketing, you will be able to answer all of the following questions.
For any product launch, the product marketing team will sit at the epicenter and become a central point for all other departments.
WHAT ARE THE BENEFITS OF PRODUCT MARKETING?
If you take a business in its early stages, product marketing can offer a significant amount of value. According to an AcuPoll study, over 95% of products launched by established companies each year will fail. The main reasons cited are poor launch timing, insufficient testing, a lack of market, poor processes, and messaging coordination. All of these are the responsibilities of the product marketer.
PRODUCT MARKETING STRATEGY
The first part of the strategy will detail all the research requirements that enable the business to define and understand the target market. You will need both market and competitor research to understand if your product idea is viable. Primary research could involve focus groups, surveys, and interviews, while secondary research typically looks at external sources and journals. The analysis of the data will give an overview of the viability of your product idea.
With competitors, you should list out your core rivals along with their product offerings, website traffic data, and social network activity. The information will help you understand where to position your product and where there might be gaps in the market. Neil Patel lists several tools to help you spy on the competition. A SWOT analysis will help you visualize the key opportunities.
MESSAGING & POSITIONING
Now that you know the market, competition, and target audience for your product, the next step is to define how you will position it. Product marketers will follow a similar strategy to the table below, answering the essential strategic questions.
When you understand how to position the product, it needs to be translated into a value statement or message for the audience. If you can articulate the problem that the product solves in one line, there is excellent scope for success. For example, with the positioning table above, you might say:
“Try before you buy from the comfort of your own home, any time of day.”
The focus should be on the benefit (solving the problem) rather than the core features, allowing the message to resonate with your audience.
Now that you know the market, competition, and target audience for
|FOR||Your target audience||People aged between 18 and 35 living in New York in management roles|
|WHO||Customer pain points||Want to purchase homeware products but stores are inaccessible|
|PROVIDES||The solution your product offers||AR application that enables a 3D rendered view of the product they can place in their home in real-time|
|UNLIKE||Alternative/competitor solutions||Competitors only offer standard images that don't provide an interactive experience|
|ONLY||What is unique about the product?||The only AR-based product app on the market|
your product, the next step is to define how you will position it. Product marketers will follow a similar strategy to the table below, answering the essential strategic questions.
CREATE YOUR AUDIENCE
Following market research, a product marketer can establish the average customer profile who is likely to purchase the product. A typical persona includes attributes such as age, gender, location, interests, occupation, salary band, and challenges. The whole business needs to be on-board with whom the target audience are, positioning the product as a problem-solving tool to help them.
PRICING & PROMOTION
A product marketer will need to make a judgment call on the perceived value of the product. For example, if you know the price of competitor products, the target audience, and the problem your product solves, there could be a case for positioning the product at a higher price. There could be some test and learn processes with a pricing model to understand what customers are willing to pay.
Pricing Strategy Matrix
For promoting the product, a launch plan with identify the timelines and activities required from different teams. This will include digital marketing, product development, creating collateral, training, and events. It is essential to add realistic milestones to the plan that all stakeholders can meet. An integral part of the plan is creating a sales guide. The product marketing manager needs to present the product features that make it unique to the market. It should include all the relevant information that would help a sales team close or deal, or for digital marketing to effectively organize campaigns. For example, what are the core focus points for search engine optimization (SEO) and pay-per-click (PPC) campaigns?
The sales guide will:
- Provide the positioning and product messaging to the teams that need to use it.
- Display the product features and demos using images and video where applicable.
- Offer an understanding of pricing and why you perceive the product to offer that value The product marketer will need to plan a promotional activity for each stage of the buying journey.
The product marketing strategy will plan multiple promotional activities to help build product awareness. While this is part of the overall marketing strategy, every promotion should center around your product messaging. Work out all the channels to reach customers from your initial research and utilize different types of content.
Lead acquisition is part of a traditional marketing role, but the product marketing strategy will define the plan. Product launch content might include demo decks to product screenshots, beta app testings, blogs, landing pages, and updates to the website.
THE PRODUCT MARKETING TEAM STRUCTURE
The State of Product Marketing 2020 survey shows that of product marketers surveyed, 62% sit within the marketing team. Around 17% are in a set product team, while 12% report directly to a CEO showing how important it is to some organizations.
For new businesses, it makes sense to have product marketing as part of the core marketing team. The focus will be on acquiring customers with the product marketing manager vital to the messaging and positioning of campaigns. They know how to sell the products and evangelize them amongst the marketing team to get the most out of the acquisition.
Small businesses may only have one person in control of product marketing, but larger organizations may be able to afford several different roles. As an example, the product marketing strategy’s responsibilities could be split into defined job positions such as a Content Marketing Manager, Pricing and Promotion Manager, Product Marketing Executive, and Head of Product Marketing. In a large-scale enterprise, there can be multiple product marketers who are responsible for different product strategies. There are a few ways in which you can organize the product marketing team within the business.
The product marketing team is split into pillars of market intelligence, messaging, product launch, and sales enablement with this type of model. It would be best if you were careful not to create gaps between the “what” and “why” of the product after splitting the structure.
It is common for product marketing teams to be paired with product managers and focus on specific features. However, although the communication lines are clear, the messaging can sometimes become a list of features rather than a genuine solution to the customer problem.
Product marketing teams can focus their efforts on specific business goals. For example, if the overall business strategy is to increase brand awareness, they will drive the top of the funnel engagement through messaging and positioning. If you launch a new product a few times per year, teams can quickly switch between projects and deliver that at pace.
To put product marketing not context, below are some of the best examples over the last few years.
USING CGI AND 3D RENDERING FOR PRODUCT MARKETING
One of the most significant challenges for marketers of hardware products is how to differentiate their items to customers. It is estimated that there are between 12-27 million e-commerce sites across the globe in 2020, with more being created every day. Budgets are often constrained to standard digital marketing techniques that your competitors are already doing. It can be tough for new businesses and startups to break into the market if all they can do is replicate the competition.
3D rendering helps to differentiate your products and demonstrate their value. Customers can visualize your offering in a way that traditional photography doesn’t allow. You can read our guide to 3D rendering to better understand how it works, but marketers use using the technology due to its numerous benefits.
- A 3D render does not require a prototype. You can render a model faster and cheaper than it would be to create a tangible, real-life sample for photography.
- Endless variations can be created with 3D rendering, using different materials, colors, and textures. Photographers require multiple prototypes to be made to do the same.
- You can render images with different lighting and visualization effects without having to change your equipment.
- The overall cost of 3D rendering is comparable to photography when you include cameras, lighting, setting up the shoot, people, and other equipment.
- You can release images of the product for feedback and review without having to build a prototype. There will be a saving in development cost and better customer satisfaction.
IKEA found that photography required too much effort logistically to be efficient, and 3D rendering eliminates the need for prototype furniture. Moreover, prototypes need to come from all over the world at a high cost to the company. Specific rooms, such as kitchens, vary depending on where customers are in the world. For example, a US kitchen looks different in design to one in Japan, making 3D rendering the perfect solution over prototypes. In terms of product marketing, IKEA can get photograph-like designs to the right people at speed.
AUGMENTED REALITY (AR) AND VIRTUAL REALITY (VR) IN PRODUCT MARKETING
With VR and AR, brands can promote their products using a fully immersive experience. It offers a unique way of presenting product messaging to customers, differentiating the business from the rest of the market.
Both technologies are still not mainstream, and there is a common perception that AR and VR are primarily for gaming. Businesses assume that it requires a heavy investment in technology to develop virtual experiences. However, with widespread access to smartphones, this is no longer the case, and the average consumer can enjoy AR and VR from the comfort of their own home. New technologies like these are even more critical as consumers favor digital channels post the Covid-19 pandemic.
One of the significant issues associated with Jewellery making is that massive investment is needed. The fashion and trends change within a short duration. Thus, the jewellery business needs to target the customers appropriately. The way you target the customers is of the utmost importance. Jewellery animation can target customers appropriately. Following are some of the significant issues faced by the Jewellery market.
AMC Theaters found through research that convenience is essential for customers when buying their products. By understanding the audience, they were able to launch an AR product to streamline the purchasing journey. The app allows users to scan a movie poster on their smartphone and receive all the relevant information like a trailer and cast list. After scanning, they can instantly purchase a ticket if interested all in one place. The product marketing strategy removes customer effort and provides information that the user needs to make a decision.
Product marketing helps your business form cohesion between what customers want and what you can offer. With an effective strategy, product marketers can align individuals and teams through excellent content that drives sales and revenue.
You can talk to XO3D about unique product marketing solutions today.
WHY CHOOSE XO3D FOR YOUR
PRODUCT MARKETING PROJECT?
SPECIALISTS IN CREATIVITY
At XO3D, the best creative minds tailor your project to bring your products to light in amazing fashion.
XO3D drives by technology and continually seeks solutions to improve our workflow. From the latest software and hardware, to different strategies to complete projects faster with constant improvements on quality.
We pride ourselves in communication and customer service. Throughout your project there will be constant updates of how we are getting on with your images. We are always at the end of a email or phone call.
THE BEST EXPERIENCES
With a diverse team of artists, designers and 3D modellers. We have the perfect experience for any creative project to bring your ideas to life.
Ensuring the smoothest process. We deliver quality work on time.
Through our experience in workflow optimisation, we can give you the discounts and give you more bang for you bucks.
Ready to begin?
FREQUENTLY ASKED QUESTIONS
The best way to market a product is to create an effective marketing strategy that combines traditional and digital marketing tactics. This could include using social media, email campaigns, search engine optimization, content marketing, influencer marketing, and paid advertising. Additionally, it is important to focus on creating engaging content that resonates with your target audience and provides value. Finally, it is essential to track the performance of your campaigns in order to optimize them for maximum success.
An effective marketing strategy should include a clear understanding of the target audience, a well-defined budget, and an actionable plan to reach the desired goals. It should also include tactics such as content marketing, social media campaigns, email campaigns, and other digital marketing efforts. Finally, it should be regularly monitored and adjusted to ensure maximum effectiveness.
Social media is a great way to promote your product. You can create engaging content that highlights the features and benefits of your product, post regularly on social media platforms such as Facebook, Twitter, Instagram, and YouTube, and use targeted ads to reach potential customers. Additionally, you can use influencer marketing to reach a larger audience and build relationships with customers. Finally, you can use analytics to track the success of your campaigns and adjust your strategy accordingly.