Published by MBA Skool Team, Published on August 02, 2018
A lot of people feel that if a product is good, it will serve the customers well. A high quality offering which is decently priced is good enough to lure customers. This is the philosophy behind several technology and software startups where they user their creativity and skills to offer a more polished product or service. But in hindsight, it is not the only recipe for success. Thus it is critical for business people to have a thorough understanding about sales and marketing.
A good product is definitely needed. But the first thing is to find out whether there is a need for that particular product or service. Are you solving any customer pain point? Are you offering something unique which is not currently present in the market? If there is competition, are you offering a different value proposition?
Understanding Customer Needs-
These are some basic and fundamental thoughts in sales and marketing which are not discussed in a software and tech company. For any product to exist, it is critical to identify a customer need and build a product to give the customer a solution rather than the other way round. A lot of tech companies especially startups first create a service or product and then look to identify its customers. In most cases this would not yield a very positive result. Hence every startup or tech organisation must ensure they identify a definite target audience and a customer need around which they can create an effective product offering.
Product Pricing Strategies-
Another point is that a good product doesnt always mean the best solution. The best performance of a product is judged if a customer is willing to pay for the services and products. A lot many times people create products which are either too expensive to solve a pain point or too cheap which the customer perceives as worthless. Hence from a sales and marketing perspective, having the correct pricing strategy becomes pivotal for any software based company. A variety of products and services depending upon the solution required is something that a customer would prefer. This way a customer would feel justified and satisfied in paying from his pocket.
Creating Product Awareness-
Even when all the above market research and pricing is done, it is extremely difficult to sell a new product. The biggest reason being that the world does not know that such a product or service even exists. This is where marketing plays a pivotal role in ensuring a software business can start acquiring customers. The objective is not only make customers aware that a new product is available, but to get the attention of the customers and persuade them to purchase it. Tech startups need marketing advice to ensure good product communication and visibility to the exact desires target audience. This would lead to better conversions and lesser costs as well. Thus a good product launch is backed by streamlined marketing communication.
Brand and Value Creation
A product is only as good as the customer sees it to be. The best software or tech solution might not do well with a customer but a simple & basic solution might become a top of the mind product. Thus marketing the value proposition in the correct way is extremely essential for any software business. This not only helps create awareness but also leads to creation of a brand perception and highlights the value proposition. An ineffective marketing campaign can kill even an excellent product. On the other hand, a decent product backed by a strong and effective communication can do wonders for a technology product.
Ultimately every individual is looking to fulfill their needs based on the products and services available. But they pay only after understanding and analysing, and believe that they get a good value for money. Thus it is critical for a good tech startup with a useful product to have a strong sense of sales and marketing.
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