Our start up started to provide a robotic letter handwriting service (indistinguishable from human writing) and we are trying determine the right strategy and identify who the real competition is, how to price the product and who the customers are. Having speaken to lots of companies all express they interest and fascination about the service yet only few actual orders arrived.
So the questions are:
- do we price low and aim at volume or price high and work with much fewer companies?
- how to get people to cross the line between “fantastic idea” to “can I have it please?”
- who is the best target market for this service? Marketing agencies running direct mail campaigns? Printing Management companies?
When it comes to marketing it really does need to be personal. I think to recommend the correct strategy one would need to learn a bit more about your business, industry, audience / consumers.
With that being said - let me start by answering your questions:
1. Pricing is a loaded question without understand things like your profit margins, purchasing cycle etc. With that being said do not under value your product. There are no winners there. It is easier to price high and then reduce than the other way around. However, if you are looking at pushing volume - introducing a reduced "limited time" price to help get a foothold in your market could work.... but beware, those "discount" customers who do buy are typically lower value from a retention standpoint.
2. To help push conversions you need to think of your brand as a community. Target an audience and relate to them. Consumers look for that connection between them and a brand. Continue to build relationships with the right consumers and don't always make it seem like you are pushing only your narrative (ie. sales).
3. Honestly before you go out and hire thousands of dollars in marketing services, first take a look at what you can do in house. There is a lot you can manage on your own from an organic side that can really help build your brand equity and convert it into sales. To start I would invest into people and content. Leverage things like social (fb, insta, youtube), blogging and events to capture an audience. Place those captures into tools like mailchimp or autopilothq to help nurture them into sales. Rinse / repeat.
Now this is of course a real macro perspective of things. If you want to dive in a bit more feel free to schedule a call with me.
I think that Priyanka is on the right track. My advice is to first confirm that you are solving a problem worth solving for your target/core customer. That is, when you talk with them about your hypothesis, do enough of them say "Where have you been all my life? We have been searching for this solution for a while. We are so glad you are solving this problem for us."
Before you figure out if you are solving a problem worth solving, other than not running out of money, you should focus on nothing else. Please note that I did not say build a prototype or try to sell this a certain way. Stay focused on the problem (not the solution).
Here are some resources (books) you can look at to help you:
Will it Fly?
Nail it, then Scale it
Lean Customer Development
You Tube is also a great resource as there are tons of how to videos that can help you - Search for "Customer Development" or "Jobs to be Done" to get started.
I have plus 3 years experience in choosing the right marketing strategy. So I can give you the best possible answers.
Part of running a successful business is making it grow. Home-based businesses are no exception. In fact, it can be even more important if you are just starting out or lack a potential client base. The key to growing a business is marketing.
1) Determine Targeted Audience
No matter what marketing method you choose, you first need to decide to whom you plan to market. Mass marketing to a general audience simply is not cost-effective for most businesses so you must decide early on which segments of society are most likely to purchase your products or services. Begin by asking yourself some simply questions:
What needs does my product/service fulfill?
Will businesses or consumers be more likely to need what I offer?
Who are the clients I already have?
Who does my competition market to?
2) Set a Budget
Many inexperienced business owners make a major mistake when they begin their marketing efforts: they do not set a budget. Without a budget, these business owners can easily find all of their profits being funneled into marketing efforts.
Before you make a decision about what types of marketing methods to choose, you need to first establish how much you can spend in order to receive the desired results. Most businesses use the 10% rule. According to this rule, if you decided to implement a marketing program that would generate $5000 in monthly sales, then you should spend only $500 a month on marketing.
3) Evaluate Marketing Methods
There are a wide array of marketing methods available, but not all of them are appropriate for every business, audience, or product/service. Before deciding on a method, you need to carefully evaluate what will work best for your situation. Start by reading the article “Advantages and Disadvantages of Various Advertising Mediums.For example, if you run an online business, you may want to focus most of your marketing efforts on the Internet medium instead of mailing brochures to people who may not even own computers.
4) Finally, remember your budget. A television commercial may be more effective than an ad in the search engines but it may also use your entire marketing budget. To make the most of your budget, you want to start small and test your efforts before plunging into a major investment. After all, if the commercial flops, you won’t have anything left in your budget for alternative marketing.
Once you complete these preliminary efforts, you can begin to explore marketing methods more effectively which will allow you to pick the methods which should provide the best results for your particular business..
For further queries you can consult me.
It might sound a bit obvious but to start with you need customers so first and foremost find out where they are. Talk to prospective purchasers, find out what events they attend, what networking groups they are involved with, trade organisations and buddy groups. From this information build your 'ideal customer' profile and along the way you should have collected contact details of many more prospective customers as well! This will also help identify whether there is a market for the product and acceptable price points.
Next on your website create an incentive offer such as 'try the XX product FREE for thirty days' or provide a light version free that has limited functions with an ongoing upsell to the main product. then contact affiliate platforms and invite their publishers to promote the offer.
Contact me if you need further assistance in developing the strategy.
Hi there, I've worked in Marketing in Australia, Canada and the UK for over 10 years and the best starting point for any new product is really and in depth analysis and creation of a brand identity. For example, asking questions like - When building the product, who were you building it for? Why do they need it?
From there, creating the right strategy really comes down to the message and your audience. Once you have clarity around this you can start to decide which channels and forms of communication will resonate most with your target audience (and fit your budget!).
You are right in that the product does sound like a great idea, but are you clear on why people need it, and are you communicating this clearly?
For me, advising on marketing strategy has always been quite personalised to each brand/ product. I'd love to learn more about what motivated you to come up with such an interesting product and to help you answer some of the questions you listed. I worked in radio marketing for many years and have helped a lot of clients in the exact same boat as you. Passionate about their product but unsure how to get it out there.
Feel free to book a call if you'd like to chat more, and if not I wish you all the best with your business goals.