There is one essential technique for effective entrepreneurship, and it is getting traction in the market. Every other skill follows from this one.
Product market fit is a metaphor. It means: whenever you build something new, you need to find a group of people who will pay for it and who you can build a business around.
It is an important concept for marketers to iterate in the early stages of startup building. Founders should constantly be in touch with their customers, understand how to market a product, and ensure they are not indulging in any extra tasks.
- Find the right target customer according to their needs, wants, and demands.
- Determine what features you need to add to your product so that it solves a problem.
- Figure out your value proposition, i.e., what differentiates your product from the other existing competitors in the market.
- Build your MVP upon four fundamental pillars: functionality, reliability, usability, and delightfulness.
- Create a prototype of your (MVP) and test it against your competitors.
Understanding the Basics of a Product Marketing Plan
So, do you start your product marketing? Let’s find out.
Step 1: Know Who Your Customers Are.
Product marketing is the art of bringing your product to consumers. If you know your audience, you can start to break down who they are and how they interact with their world.
Think about these people as a person, not as a demographic. Do they have a calendar? Do they use reminders? How do they communicate with the world around them?
Step 2: Conduct Through Market Research.
It is a good idea to make a complete spectrum analysis of your competitors in the market. But, do not lose track of what you are up against.
Thorough market research offers insights into various spectrums like product life cycles, distribution channels, pricing models, opportunities for new products, or product improvements.
Step 3: Figure Out Your Product’s Positioning.
What is your product’s positioning in the market? What is the story you’re trying to tell about your product?
The story you tell has to be specific and detailed enough that people will not find it confusing or misinterpret it. You also will need to keep it fresh by updating it as your product evolves.
Step 4: Set Goals for Your Product.
No matter what you’re working on, there are a few broad categories of goals you should set for your product. Your goals will depend on the type of product: Is it a new product? An old one? Does it compete with others in the same space?
Common goals include revenue, customer engagement, market share, brand recognition, and gaining customers from the competition.
Step 5: Set the Price for Your Product.
Whatever you’re selling, you should price it in a way that’s consistent with why it is worth paying for. For example, you can go for competitive vs. value-based pricing.
Competitive pricing is how you decide between two products that do the same thing, but one costs more than the other. For example, if yours is an OTT platform, you’d compare your product to Amazon Prime and Netflix.
Value-based pricing works best when your competitors are so close that nobody can ever tell who’s better. If you can figure out customers’ preferences and show that you offer them something they value at a price that’s low enough to be worth the sacrifice, then the customer will remain loyal to your brand without much fear of switching.
Step 6: Launch Your Product.
At this point, the product is ready to sell. In practice, the CEO usually makes the call to launch it.