The 4P Marketing Strategy: How To Choose The Right Products

If you are a B2B company and want to grow your business by adding new products to your existing product portfolio, this article and my other related articles will help you. They describe how a 4P marketing strategy can help you produce a successful “product launch” plan for your chosen market.

A marketing strategy based on the 4Ps of marketing looks at four key areas of marketing and sales that should be considered when developing your product launch plan:

1. Product. How to choose the right product to sell?

2. Place. Where to find the customers who will buy it?

3. Promotion. How to “package” and promote your product?

4. Price. How to choose an acceptable and profitable sale price?

I do not claim to cover all 4Ps in this article. I’m going to focus on the first one by providing some tips and guidance on “How to choose the right product to sell.”

Choosing the right product

If you already have a successful B2B business or want to grow one quickly, it is important to be able to assess whether your new product will fit into your current product portfolio and whether it will meet the requirements of your market.

Looking at your product in the context of the 4 Ps of marketing is a great way to go. I have used the 4P marketing strategy approach for many years when launching new products. It is easy to understand and when used correctly it is very effective.

To be sure that you are bringing the right product to market, you need to be able to answer the following questions:

– Will the product be sold in your market?

– Can it be sold profitably?

– What skills and experience do you need to sell it?

Will the product be sold in your market?

If you are considering acquiring a new product from another company, do a little research first to establish whether the product has a good sales record and whether your existing customers are likely to purchase it.

If the product is not being sold successfully elsewhere or is only being sold by companies with a very different company profile than yours, you should make a realistic assessment of the additional marketing and sales costs that are likely to be incurred prior to your new product. it can become profitable. You should also do “consultative research” with your existing customers to find out if they would buy your new product. If they don’t, you need to understand why. (You may find it necessary to speak with other contacts within the same company or consider reaching out to companies in different market sectors if customers in your main market sectors indicate that they are unlikely to buy your new product.)

Can it be sold profitably?

Make a list of all the things you will need to do to market and sell your product. Use this list to create a spreadsheet of your projected marketing, sales, and administrative costs and compare them to your forecast sales for the new product. Use some simple calculations to calculate how long it will take before your product is profitable.

Sometimes it makes sense to sell a product even if it doesn’t make a profit! If your new product is highly complementary to the existing products in your product portfolio and can be used to drive sales of these products, it might still be worth selling. Eventually, it can become profitable on its own, or pave the way for another similar product that will be profitable (for example, one that you develop yourself).

Take into account all the factors identified in your previous research, and don’t forget to include some estimated costs for the effort and time that you and / or your co-workers will need to put in to launch and sell your new product.

What skills and experience do you need to have to sell it?

If your product is a very different type of product than what you are currently selling, you will need to get additional help (staff or purchased resources) with your marketing and sales. Alternatively, you could acquire the knowledge and skills necessary to market and sell the product by purchasing consulting and training services.

Whichever option you choose, until you have acquired a good level of knowledge and skills, you will not do a good job of helping your customers understand what the product will do for them. You also won’t be able to support them well once they have decided to buy it.

The Value of 4P Marketing Strategy Evaluation

The reason the first step of the 4P marketing approach is so important is that it will help you reject a product that might not be very profitable and provide you with information that you can use to select an alternative product that meets your needs. the same gap in your product portfolio much better.

There may be other questions you need to get answers to in addition to the ones we’ve considered above, but if you can provide complete and satisfying answers to my top three questions, you can move on and start working on the other Ps of your 4P marketing strategy.

I hope I have made it very clear that a thorough investigation is very necessary at this stage. It’s very easy to decide to skip this research if you’ve been “overwhelmed” by an exciting new product that you want to start selling as soon as possible. But keep in mind that each new product you choose will distract you from other important sales and marketing tasks.

If your new product starts to sell well soon after it is launched in your market, all your effort will seem worthwhile. Soon you will be able to invest in additional resources and help maximize the sales of your new product. However, if your new product turns out to be unprofitable or provides only a small profit, you will have wasted a lot of time and money that could have been spent marketing and selling your existing products.

In short, a 4P marketing strategy will help you develop a solid and detailed plan for your new product launch and also help you feel confident that you have the right product to ensure this plan is successful.

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