All publications of Ivan mushivoji . Nairobi , Kenya
MARKETING STRATEGIES FOR NEW PRODUCTS
Principles of marketing
Product knowledge- for effective marketing of a product until it penetrates the target market, it's important for the marketer to have a vast background knowledge about the product. Aspects to be consider include:
Product quality- The product quality should be of high value than the other competitors.
-This will help to ward of competition in the target market and enable
your product to be preferred by customers to the other competitors.
- Product quality assessment starts from the grassroots level of production, this starts from the quality of materials used in the production of the product which should also be of high quality. Means of production is also important, the machinery used in production should be maintained properly and adhere to proper hygienic conditions. Personale tasked in the production process should be professionals who pocess adequate knowledge about the whole process of production until the product is ready to be introduced to the market.
Packaging and the packaging material- Packaging of the material should be done will a lot of care to prevent damage to the product or entry of foreign substances that can damage the product quality. The packaging material should be to the recommended hygiene value to maintain the quality of the product. The packaging material should also be designed in a certain manner that it is unique from the competitors and it should attract customers to it to ensure says movement of the product. A proper name of the product should be considered that should also be unique to attract the customers. The packaging material should also consist of the following information:
Name of the product
Date of production
Expiring date of the product
Name of the company
Location and contact details just in case a customer should need more information
Quantity in kgs, or other forms of calibrations.
Ingredients obtained from the use of the product
Approval from the Kenya National Bereau of standards.( must have the kbs diamond mark of quality)
The from the ministry of health.
Storage- After packaging care should be taken to ensure that the product is stored in conditions that favour the product. A cool and dry place is recommended for most products but this also varies depending on the types of products and their usage in the target market. Some products require cold storage while others require normal room temperatures. All products should be accorded their recommended storage conditions.
Mode of delivery/ transportation to the target market- A proper mode of transportation of the product to the target market ensures that the product reaches the target market when it is in a good condition preferred by the consumers. Transportation machines should fitted with conditions recommended for storage of the product to keep it fresh and in conditions that are favourable to consumers.
2. The pricing mechanism- This is an important aspect in trying to introduce your product in a target market. A proper survey should be carried out on the target market before introducing your product to the target market. Aspects to consider during this survey include: major competitors pricing mechanisms, the incentives they offer to customers, quality of supply, demand of the product in the market to gather the competitors weaknesses and strength so as to know how you will attack them in the market. After all this is done, you embark on the type of pricing mechanism to use. There are different types of pricing mechanism as listed below.
Destroyer pricing mechanism- This type of pricing mechanism is used to destroy competition from the competitors. This involves setting price below that of the major competitors. This is meant for the consumers to choose your product to the competitors.
The price could be set slightly above, below or same as the competitors.
Cost-plus pricing mechanism-A cost-plus pricing strategy focuses solely on the cost of producing your product or service.To apply the cost-plus method, add a fixed percentage to your product production cost.Cost-plus pricing is typically used by retailers who sell physical products. Cost-plus pricing is typically used by retailers who sell physical products. This strategy isn’t the best fit for service-based companies as their products typically offer far greater value than the cost to create them.
Dynamic pricing mechanism-It’s a flexible pricing strategy where prices fluctuate based on market and customer demand.This allows you to shift prices to match when and what the customer is willing to pay at the exact moment they’re ready to make a purchase.
High-low pricing mechanism- This mechanism apply when is when a company initially sells a product at a high price but lowers that price when the product drops in relevance.High-low pricing is commonly used by retail firms who sell seasonal or constantly-changing items, such as clothing, decor, and furniture.What makes a high/low pricing strategy appealing to sellers? Consumers enjoy anticipating sales and discounts, hence why Black Friday and other universal discount days are so popular.
Skimming pricing mechanism- A skimming pricing strategy is when companies charge the highest possible price for a new product and then lower the price over time as the product becomes less and less popular.Skimming is different than high-low pricing in that prices are lowered gradually over time.A skimming pricing strategy helps recover sunk costs and sell products well beyond their novelty, but the strategy can also annoy consumers who bought at full price and attract competitors who recognize the “fake” pricing margin as prices are lowered.
Penetration pricing mechanism- Penetration pricing strategy is when companies enter the market with an extremely low price, effectively drawing attention (and revenue) away from higher-priced competitors. Penetration pricing isn’t sustainable in the long run, however, and is typically applied for a short time.This pricing method works best for brand new businesses looking for customers or for businesses who are breaking into an existing, competitive market.