What Factors Determine the Success of any Product? | Marketing Strategies
Whenever a product is launched, it either attracts the eyes of customers or it vanishes as soon as it makes an entry in the market. There are different reasons determining the success of goods or services in the existing market. When a businessman plans to launch a complementary product of an already existing item, it has to make proper marketing strategies so as to make the product successful. Proper market strategies essentially include innovation, it is one of the important factors affecting the performance of the product. The product has to be re-innovated in such manner so as to make it more desirable for the targeted group of customers. Even for a very fresh product, a businessman has to keep in mind the competitors existing and their strategies. There are different factors affecting the success of any newly launched goods or services in the market.
Here are some important factors which classify whether the business will fail or will successfully catch the eyes of the customers :
1. Target customers: The product one is planning to launch has to first identify their targeted group of customers. Whether the product will focus on a niche market or mass market. Niche market: to target a particular geographic location or a particular group of customers i.e. rich, poor, or middle class. Example- The iPhone is the best example of a niche marketing strategy. Mass market: in which the firm or organization decides to ignore the segmentation of the customers and targets to attract the customers from every corner.
2. Minimizing production cost: The production cost of any product should be as minimal as possible. For eg- if one has decided to produce a pen, whether the structure of the pen should be metallic or it should be of plastic should be meticulously planned for proper profit evaluation. One should identify and differentiate among the available raw materials and should keep the production cost as low as possible.
3. Pricing strategy: This factor is very important for the retention of existing customers and attracting new customers. Pricing of the product should be done keeping in the mind the pricing strategy of the competitors, customer needs, and also the margin of profit of the product. Lesser the cost of production more will be the margin of profit of any product.
4. Advertisement and communication: Advertisement plays a very vital role in the determination of the success of any product. One should always have proper communication with the customers about the product and the product should be visible in the market. Customers should have proper knowledge about the features of the goods or services launched by one company, this can only be done by proper advertisement.
5. Packaging of the product: Though the packaging is not a very essential factor for the determination of the success of any product good packaging catches the eye of the customers and also has a psychological impact on them.
6. Discounts and special offers: This factor helps in gaining new customers. As every customer looks for the cheaper and better alternative to any product. Providing customers with discounts and offers also helps in retaining old customers. So if you are planning to launch a new product keep these points in your mind and work effectively and efficiently.
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