The 4Ps of Product Introduction
Congratulations, you’re introducing a hot new product or service that will give lookers a reason to buy from you. But having a new product isn’t enough. How you introduce it is just as important. Ask yourself these questions to help you select the right marketing mix to introduce your new product.
The marketing mix is a set of factors you use to get your target market to buy from you. Some people call it the “4 Ps”—Product, Place, Promotion, Price. It’s used in every stage of a product’s life but here are some important considerations when introducing a new product:
- What will your new product or service do for your customers? (Product) Your product’s new feature might attract attention, but unless it helps solve a problem, it’s not likely to get people to try the product. So lead with the benefit when introducing it. For example, offering late appointments on Thursday evenings is a cool feature, but the benefit is that your customers no longer have to take time off work to get your services.
- Will you offer it through others or direct to consumers? (Place) Using intermediaries like retailers helps to get your product out there in multiple locations. That makes it easy for customers to purchase your product. For example, your famous salsa will have greater visibility if it’s offered in several grocery stores. Another option is to do both. Offer the salsa directly to customers in your restaurant and in local retail locations.
- How will you get your customers’ attention? (Promotion) Think about how your target customers learn about new products. Often, it’s from each other. That’s why some businesses use social media platforms like Facebook to introduce a new product. It creates interaction with friends they know and trust, and they’re talking about your new product.
- What will you charge? (Price) One approach is to offer introductory pricing where profit margins are reduced. The idea is to attract attention with an accessible, low price then raise your price once the demand has been established. Your cost structure and the competitive environment should be considered when deciding how low you can go.
When introducing a new product, it’s important to consider all four Ps. The idea is to combine them to boost sales. For example, you might use a social media campaign (Promotion) to announce the product is available now in three stores (Place) and provide a coupon for a discount off a customer’s first purchase (Price). How your new product gets introduced is as important as the product itself.