Marketing Strategy
It is time to implement the marketing strategy devised in your business plan (see step 3). You need to set clear marketing and financial objectives to achieve over a given timescale with a carefully condsidered strategy. Market research will help define target markets and how you plan to position, present, price and place your product in order to sell most effectively. Progress must be assessed and you must be as adaptable to change as the marketplace is.
Click here to go through to the Chartered Institute of Marketing website.
Awareness
Launching a new product into the marketplace successfully is notoriously tricky. The more awareness there is of a product amongst the public, the media, retailers etc, then the more chance of success once it's distributed.
Dependent on your budget there are several means of promotion available, for example, advertising, sponsership, exhibitions, public relations, numerous means of internet promotion (including setting up your own website), contests, events, and cross promotions with other businesses,
It is important to be clear about your message. Why would someone want to buy your product? Understanding customer trends is therefore vital. In the developed world the simple functionality or look of an item may not be enough to sell it. Appealing to customers higher emotional needs has become an important part of successful marketing, for example, the mobile telecom industry appeal to peoples desire for personal freedom, the designer clothes industry appeal to peoples desire for esteem and acceptance amongst peers.
Press releases are an excellent way to introduce journalists to your new product and to get it reviewed, click here for advice on how to write one.
Distribution
Your product can be sold on a small scale direct to customers via your own website or by ebay. However, to maximise sales you are likely to need to use retailers, wholesalers and distributors
Unfortunately for lone inventors retailers hesitate to buy direct from new, small vendors and feel safer purchasing from established wholesalers. Even if you offer a very deep discount, retailers won't be eager to buy from you direct. They won't see any value in processing the paperwork associated with establishing and doing business with a small account.
A wholsaler is basically someone who buys from a manufacturer and sells to a retailer. As they often stock more than one product they have no incentive to push your product over competitors to retailers. Several wholesalers might stock identical merchandise, putting a lot of pressure on profit margins. Wholesalers are unlikely to offer ancillary services to you, such as advertising or sales solicitation and service unless someone, typically you, pay for these services in addition to the basic wholesaling charges.
Distributors typically exclusively handle relationships between a manufacturer and a retailer within a specific territory. Distributors can act in a similar way to wholesalers but will often offer more promotional services. Distributors can also sell to wholesalers. A good distributor can be an excellent way for a small firm to instantly establish credibility and a presence within either their industry's domestic or foreign marketplaces.
