Marketing: What is it good for?
A product is a total package consisting of functionality, customer benefit, customer experience and cost. Marketing is the totality of actions to develop a product, bring it to market, position it in the market, acquire customers and satisfy customers.
Four cornerstones define a product: functionality, customer value, customer experience and cost. They also largely determine the potential customer base. The decisive factor for the customer is not only the functionality at the time of purchase, but also the functionality over the planned useful life. Customer value is objectively determined by the totality of the performance characteristics of the core product and the associated contribution to solving the customer's problem. The performance characteristics include not only functionality but also implementation. Functionality alone is no guarantee for a customer-oriented and competitive customer experience. This relates to the customer's subjective experience from product consultation - through purchase and commissioning - to the end of product use. In addition to user-friendliness and integrability, this also requires customer service that is efficient for the customer. This helps the customer with product-specific problems and ensures that the customer can use the product as planned during its service life.
The customer's expectations
In simpler terms, the customer has an expectation about the product that extends to the experience during its useful life. If the product does not meet this expectation from the outset or during use, then there will be problems with the customer. If, on the other hand, the product does not meet market needs, then demand is held in check. This is bad for the supplier, but does not cause problems for the customer. Such products are known as "slow sellers". If, on the other hand, a customer buys a product and is disappointed by it, then the customer and the supplier have a problem. The customer is frustrated with the product or the customer service, and the provider has an unhappy customer. Inconveniently, dissatisfied customers have more impact on the reputation of the product and the vendor than satisfied ones.
Dissatisfied customers tend to be more communicative than satisfied customers. In the public perception, they therefore have a disproportionately greater weight - much to the chagrin of the providers. The more often a product is sold, the more accentuated this becomes. If one percent of customers are dissatisfied, this equates to ten customers for every thousand products sold. With a million products sold, however, this one percent corresponds to 10,000 dissatisfied customers. If we assume that around three percent of dissatisfied customers proactively express their displeasure in public, then with ten dissatisfied customers this is at most one. But if there are 10,000 dissatisfied customers, this figure rises to 300. If these customers express their displeasure publicly, many more dissatisfied customers will dare to do the same. The three percent quickly become ten percent and more. The web (including social media platforms) makes this much easier and can lead to a dynamic that a provider can no longer control. With mass products, it is not exactly difficult to tarnish the reputation of the product and the provider. The importance of good customer service therefore cannot be overstated. It is an essential part of the customer experience and therefore of the product. Customer service cannot prevent problems, but it can ensure that customers' concerns are addressed and that at least this is a positive experience for the customer.
Business, Market and Product Requirements
Integrated marketing is embedded in product development from the beginning through product marketing and product management. It ensures that product development is customer and market focused. Product Marketing and Product Management take the lead in developing important basic documents. The Business Requirement Document (BRD) specifies which problem should be solved by the product for which customer group and what form this solution should take. The Market Requirement Document (MRD) shows the requirements that the product must fulfill and the market in which the product must exist. It usually contains a list of the required functionality, a market and competitor analysis, the definition of functional and non-functional requirements, the prioritization of functionality and requirements and finally a description of use cases. The market analysis shows the current market, including competitors and existing market dynamics. The potential customer base determines the potential of the overall market, while the targeted customer base defines the market requirements to be met. The Market Requirements Dcument (MRD) forms the basis for the Product Requirements Document (PRD), which identifies the requirements from a product perspective. This document goes into greater detail with regard to performance characteristics and functional requirements and regularly includes user interface and interaction processes. The PRD is the basis for the Functional Specifications Document (FSD), which defines the complete details of the functional product requirements with a focus on implementation. It can be used directly by developers as a basis for development and also forms the basis for estimating the development effort. This consists of the financial and time expenditure for product development. This then results in the costs to be allocated and the earliest possible market availability.
Business, Market and Product Requirements define the foundation for the product and its market opportunities. They should ensure that the product meets the market requirements. Market analysis provides the necessary market understanding. Since neither the markets nor the customer requirements are static, both the market analysis and the Business, Market and Product Requirement Documents must be continuously updated. The timely implementation of the insights gained from this analysis determines the competitiveness of the product. If the product does not meet or no longer meets the market requirements, the chances of success are minimized. The product will inevitably disappear from the market sooner or later. A structured and well-founded approach and agility are not mutually exclusive.
Market powers
You can have a good product for which there is a growing demand, but still not realize its market potential. This is because there are also market powers that have a direct influence on the markets. These can be established competitors who do everything they can to retain their customer base. But they are also political and national interests exercised by powerful organizations. There are many forces at play in the market and most of them are not so obvious. Unwanted competitors can easily be forced out of the market by government action. This has two effects: On the one hand, the state protects its own companies, and on the other hand, it supports its own political goals. In the field of technology, especially IT, there are dependencies in the supply chain. And this is sometimes exploited mercilessly. One proven method is to make it impossible for up-and-coming foreign competitors to procure or use important components.
Marketing, what for?
A product is a complete package consisting of functionality, customer benefit, customer experience and cost. Marketing is the totality of actions to develop a product, bring it to market, position it in the market, acquire customers and satisfy customers.
Four cornerstones define a product: functionality, customer value, customer experience and cost. They also largely determine the potential customer base. The decisive factor for the customer is not only the functionality at the time of purchase, but also the functionality over the planned useful life. Customer value is objectively determined by the totality of the performance characteristics of the core product and the associated contribution to solving the customer's problem. The performance characteristics include not only functionality but also implementation. Functionality alone is no guarantee for a customer-oriented and competitive customer experience. This relates to the customer's subjective experience from product consultation - through purchase and commissioning - to the end of product use. In addition to user-friendliness and integrability, this also requires customer service that is efficient for the customer. This helps the customer with product-specific problems and ensures that the customer can use the product as planned during its service life.
The customer's expectations
In simpler terms, the customer has an expectation about the product that extends to the experience during its useful life. If the product does not meet this expectation from the outset or during use, then there will be problems with the customer. If, on the other hand, the product does not meet market needs, then demand is held in check. This is bad for the supplier, but does not cause problems for the customer. Such products are known as "slow sellers". If, on the other hand, a customer buys a product and is disappointed by it, then the customer and the supplier have a problem. The customer is frustrated with the product or the customer service, and the provider has an unhappy customer. Inconveniently, dissatisfied customers have more impact on the reputation of the product and the vendor than satisfied ones.
Dissatisfied customers tend to be more communicative than satisfied customers. In the public perception, they therefore have a disproportionately greater weight - much to the chagrin of the providers. The more often a product is sold, the more accentuated this becomes. If one percent of customers are dissatisfied, this equates to ten customers for every thousand products sold. With a million products sold, however, this one percent corresponds to 10,000 dissatisfied customers. If we assume that around three percent of dissatisfied customers proactively express their displeasure in public, then with ten dissatisfied customers this is at most one. But if there are 10,000 dissatisfied customers, this figure rises to 300. If these customers express their displeasure publicly, many more dissatisfied customers will dare to do the same. The three percent quickly become ten percent and more. The web (including social media platforms) makes this much easier and can lead to a dynamic that a provider can no longer control. With mass products, it is not exactly difficult to tarnish the reputation of the product and the provider. The importance of good customer service therefore cannot be overstated. It is an essential part of the customer experience and therefore of the product. Customer service cannot prevent problems, but it can ensure that customers' concerns are addressed and that at least this is a positive experience for the customer.
Business, Market and Product Requirements
Integrated marketing is embedded in product development from the beginning through product marketing and product management. It ensures that product development is customer and market focused. Product Marketing and Product Management take the lead in developing important basic documents. The Business Requirement Document (BRD) specifies which problem should be solved by the product for which customer group and what form this solution should take. The Market Requirement Document (MRD) shows the requirements that the product must fulfill and the market in which the product must exist. It usually contains a list of the required functionality, a market and competitor analysis, the definition of functional and non-functional requirements, the prioritization of functionality and requirements and finally a description of use cases. The market analysis shows the current market, including competitors and existing market dynamics. The potential customer base determines the potential of the overall market, while the targeted customer base defines the market requirements to be met. The Market Requirements Dcument (MRD) forms the basis for the Product Requirements Document (PRD), which identifies the requirements from a product perspective. This document goes into greater detail with regard to performance characteristics and functional requirements and regularly includes user interface and interaction processes. The PRD is the basis for the Functional Specifications Document (FSD), which defines the complete details of the functional product requirements with a focus on implementation. It can be used directly by developers as a basis for development and also forms the basis for estimating the development effort. This consists of the financial and time expenditure for product development. This then results in the costs to be allocated and the earliest possible market availability.
Business, Market and Product Requirements define the foundation for the product and its market opportunities. They should ensure that the product meets the market requirements. Market analysis provides the necessary market understanding. Since neither the markets nor the customer requirements are static, both the market analysis and the Business, Market and Product Requirement Documents must be continuously updated. The timely implementation of the insights gained from this analysis determines the competitiveness of the product. If the product does not meet or no longer meets the market requirements, the chances of success are minimized. The product will inevitably disappear from the market sooner or later. A structured and well-founded approach and agility are not mutually exclusive.
Market powers
You can have a good product for which there is a growing demand, but still not realize its market potential. This is because there are also market powers that have a direct influence on the markets. These can be established competitors who do everything they can to retain their customer base. But they are also political and national interests exercised by powerful organizations. There are many forces at play in the market and most of them are not so obvious. Unwanted competitors can easily be forced out of the market by government action. This has two effects: On the one hand, the state protects its own companies, and on the other hand, it supports its own political goals. In the field of technology, especially IT, there are dependencies in the supply chain. And this is sometimes exploited mercilessly. One proven method is to make it impossible for up-and-coming foreign competitors to procure or use important components.