Archive for July, 2010
Marketing a New Product
Introducing a new product in the market is a challenge for every entrepreneur. Generating interest from customers who have been used to an old product that works a little similar with your new product is one of hurdles that you will be faced in this new venture. Employing an effective marketing strategy can define the success of your introduction of a product in the market.
When marketing a new product, especially if it is under a new brand, you can include several perks with it upon its emergence in the market. If it is a new product in a restaurant, serving it in large portions can be effective in attracting customers. If it is a new brand of clothing, you can acquire a famous personality to endorse your product. If it is any new merchandise, you can add freebies upon purchase by a limited number of customers.
Once the marketing of your new product becomes a success, it will be a profitable source of income as its existence matures. Continuously investing on the marketing of this product can yield greater profits as it becomes more well-known in the market. Most new products die down on their onset because of ineffective marketing techniques that they use. Since a new product is something that most people are able to live without before, you should be able to introduce that things can be easier and better with your new product whatever it may be.
Coping with the Product Lifecycle
Every product undergoes the same lifecycle as any other product has gone through. This lifecycle is a series of processes which involves introduction, growth, maturity, decline, and death. Every process entails a specific strategy that can be applied to ensure that the business copes up well with change in the product lifecycle.
Introducing a product may be difficult but if you are confident enough that it will perform well then you all you have to think about is how to inject it to the market. Upon the growth of a product, increasing sales can be expected. Increase in production should be done to handle the increasing demand. At the end of the growth process, the product matures and the demand of it begins to stabilize. Then, even if you do not want it to happen, better products come out in the market and your product will eventually decline. To cope up with this, you can begin doing some researches to be able to create another new product. Lastly, the lifecycle ends as the product dies and becomes extinct in the market.
Though every product undergoes this cycle, they differ on the span of time that they spend in the entire duration of the lifecycle. What business should aim is to stay long during the growth phase since this is the one that generates the most profit. The decline should be the one that least amount of time should be spent since the product has nowhere to go but downwards.