Of late I have being working in the digital marketing mostly in retail sector with mid segment clients. Recently I came across a startup brand that had a product, for which they had done intense product ‘research’ before launching it. They had gone to the roots of the product’s origin. When I had an opening meeting with them, I was very impressed with the kind of knowledge they had about their own product and the traditional values it carries.
They were running this business for a couple of years but something was missing to achieve the desire results. Now the only option left was to spend on promotions and wait for the results. But working with multiple advertising agencies they were not able to crack the codes. The owners, the manager, the staff all were working hard together but then what was the issue for the demand being low for their product? Many startups fail at this point. Are they not working hard? Yes, they are. Is the product not good? Yes, it is. Then what went wrong.
The answer is RESEARCH.
This particular client had spent a lot of time on the product’s research and the pricing. But as they say ‘A job half done is as good as none’. In the quest of starting a business we usually forget to ask ourselves three basic questions.
1. Is my ‘product’ good enough for the market / consumers?
2. Is the ‘place’ right for my product?
3. Will the product sell at the desire ‘price’ at this place?
Here I am referring to the first 4Ps of marketing mix:
These 4ps are interlinked with each other. I have a product but the place is wrong. I have a product at the right place but the pricing is high for the consumers. My product and pricing is competitive but the place doesn’t have the target consumers.
When the first 3Ps are in line only then one should start promoting a business, keeping in mind the target audience for the product with the desire price. Understanding your target audience and directing your promotions to them is as important as having a product in first place.
If you can’t change the product, then change the place of business where there is a demand for your product. If the price is high try to reduce your overheads to fit in the competition. If you can’t change your place, then try to improvise the product or change the entire product which has a demand within the consumers surrounding that place. But spending on promotions without a research on the first 3Ps won’t help you to crack the codes.