How do companies develop a legitimate product marketing strategy? By developing a product and pricing strategy.
Product, Pricing and Services Sales Plan– What can you do to improve the performance and marketability of you product? You will need to intellectually understand the characteristics of your product and incorporate these into your plan to develop and enhance each of these individual attributes.
Consider your pricing platform to maximize returns while improving profit and placement performance to each customer segment. The benefits of implementing a product and pricing differentiation strategy are enormous and considerable thought should be devoted to this aspect of the plan. Evaluate, enhance and improve your distribution strategy by developing a plan that focus will on each and every customer and product segment.
Price Indexing– Does your company need a price revision/overhaul? Can you capitalize on more business by developing a volume and/or preferential/channel price index? Most companies have a set pricing structure, a monolithic price structure that was developed in the past; consequently, it is working today, so it must be good.
Join the new millennium; technology has enhanced our lives greatly, so take advantage of the information age by structuring price indexes based on your customer or placement channel. This will help to drive sales in all channels, you may have a loss of profit margin in some customers, but you will also have a gain in others. Most companies’ recognize and experience that multi-channel price indexes typically yield higher overall margins.
Develop a price index that is segmented into multiple channels. Analyze your customer base, your competitors pricing philosophy, and the customer channels. Think outside the box and develop something that is unique to your industry that will further your companies cutting edge leadership position within the industry.
Proprietary Product Platforms– Are you getting the maximum return from proprietary, branded, and exclusive product or service categories? I have been involved with companies that had a commodity driven mentality, everything was priced within the same formula. Unbeknownst to the company were many pricing options that existed for products that were unavailable from similar competing organizations. The company had no appreciation for the proprietary products they produced and even less regard for the additional profits that could have been generated had they investigated the maximum price the product and market would support.
Your proprietary product lines need to be at the forefront of your sales and marketing plan. These categories typically drive high margins, and have distinctive qualities not found in the market place by competitors. Incorporate a plan to manage these product categories with the highest regard to incremental profitability.
Product and/or Pricing Differentiation– How can you implement a differentiation strategy with customers on products or services by fine-tuning the product, the marketing plan and the distribution platform? Examine the strength and acuity of your products and services offered in the market: capitalize on the inherent differences offered by your company on this proprietary benefit. Any differentiation that can be identified by your company is a resource, an asset if you will, due to the fact that it will drive enhanced profitability and additional customer loyalty which will certainly insulate you from minor competitive pressure.
Marketing Leverage– Can you leverage your product marketing program to improve the sales performance of a product or service? Absolutely! You need to think in terms of a sales executive, not a marketing executive. What can you incorporate into the sales plan to improve the marketing of the product and the company?
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