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Product marketing is an integral part of any business, whether big or small. However, sometimes, it does get neglected due to a lot of factors. Most of the time, businesses are busy with promotional campaigns such as advertisements. No doubt these promotional activities are important, but product marketing can help your business to gain market value.

Nowadays there are so many similar products and services in the market which increases the risk of your product or business getting lost in the mix. And we know that you obviously do not want that for your business. So, let us help you understand product marketing and some additional strategies that come with it in this blog.

What is Product Marketing?

Before going into customer segmentation and further on, let us discuss what product management is and why you should know as much as you can about it.

In very simple words, product marketing is the process of bringing a product to the market, promoting it and lastly, selling it. It is a strategic process wherein you need a deep understanding of a specific product’s audience. Products need to be accordingly positioned in the market and appealed to the audience.

Here are some points to note:-

• Understanding the demand of each product specifically than as a whole.
• Study, analyse and target buyer persona.
• Learning about competitors, analysing their strategies, strengths and weaknesses.

How A New Customer Segment can be Included in Product Marketing

Launching a new product can be tricky, not just for the audience but also for the marketers. You may have to face a lot of challenges while trying to develop and promote a new product or service. So how would you go about it? It will require a lot of strategic analysis.

Let us see how you can use PESTEL analysis to determine the various factors that can affect the launch of your new product.

So, what is the full form of PESTEL?

PESTEL Analysis refers to the analysis of Political, Economic, Social, Technological, Environmental and Legal factors that can affect the market infrastructure. Before launching any product in the market, it is very important for you to research how your new product will be perceived by the target audience, in accordance with the PESTEL factors. Following are some points to keep in mind while conducting this analysis.

Political- Considering government rules and regulations and legal issues while segmenting a new product is crucial. Along with this, you also have to consider tax concessions and law enforcement issues.

Economic- The factors to consider here will be based upon your market research and an analysis of how the product is performing in the market.

Social- To understand whether your product will do well in the market, you have to consider consumer behaviour, which is a part of social analysis. Along with that, factors such as age group, gender, lifestyle, current trends and so on.

Technological- Here, you may consider how new technologies may or may not affect your new product. For example, if you find that customers are opting for online mode to purchase this particular product, you need to be more focused on your online store and vice versa.

Environmental- Now, this factor may or may not impact your business depending on what your new product is. If it is something that can get affected by natural causes such as climate change, scarcity of water, pollution, etc, then you need to consider this factor as well.

Legal- Even though these factors may collide with the political factors, legal factors are actually of due importance for businesses. So, keep yourself well-informed about legislation changes, consumer rights laws, advertising laws, labour laws and so on.

The next approach that you should consider is SWOT Analysis.

SWOT Analysis focuses on the research of your competitors. So, it is essentially the study of the Strengths, Weaknesses, Opportunities and Threats that are characterised by how your competitors perform in the market with similar products.

The most important part of your research will be competitor analysis. Here, you need to figure out who your major competitors are. Accordingly, delve into their tactics, promotions, products and sales. Once you figure out their patterns, weaknesses and strategies, implement more effective ones for yourself. However, this is not a one time process. You need to keep in mind that your competitors are also watching you closely. It is a continuous process, to keep a close eye on how the market is being affected by your competitors and working accordingly.

SWOT Analysis also implies the analysis of your own business. So, instead of only focussing on the weaknesses of your competitors, make sure to acknowledge and rectify the weaknesses of your business or product as well.

The last approach we would like to address is understanding your Buyer Persona.

Technically, buyer or customer persona is also a part of research. But essentially, it is so much more than that. But first you need to know what it is. A buyer persona is basically a design of your target audience, based on the analysis of our current customers and the ones you want to attract. When you use your created buyer personas in product marketing, you can easily culminate your social media posts according to the target you set. Moreover, you can generate organic leads if your customer analysis stands valid and get your ads in front of the right people.

Importance of Customer Segmentation

We talked about product management and about how you should include a customer segment into your marketing strategy. But let us now find out what importance it holds.

With a separate customer segment, customer management becomes a lot easier. You can divide your customer into various different groups in accordance with their needs. Based on that, you can weigh the demand of products and/or services. You will often find that each group has a similar set of needs. So accordingly, you can market your products and focus on the ones with higher demand. It will not only lead to customer satisfaction and loyalty, but it will also help you cut down costs in marketing and meaningless advertising.

With the help of a customer segment, you can also cut down on the budgeting of products. Conducting a proper analysis will help you understand which of your products are performing well and which ones are not. This way, you can cut down your expenditure on such products and focus more on the customers interests..

Conclusion

A business, any business, is about their customers. Doesn’t matter if you have the best quality, top-notch, high-end products, but if you don’t know how to market them, or whether these products are even looked for by your target audience, there is a huge chance that you won’t see much improvement in your business.

So, it is safe to say that a customer segment is not just important, but necessary for your product marketing. Generate promising leads with a customer segment and it will definitely increase your likelihood of product success.