Productization and marketing

When starting a business, it is wise to start from scratch – as in anything you do for the first time. For an entrepreneur this means designing the product you are going to sell. It simply means ”This is what my customers will buy from me”. A clear product not only makes it easier for the customer to buy, it also makes your sales effort more efficient. ”We will tailor a solution just for you at the right price” is not a product. Neither is ”We serve our customer in all needs relating to our field of business”. Designing a product includes you deciding on:

  1. The name of the product
  2. Content of the product
  3. A fixed price for the product

The better you can define these things, the more you will meet customers that are ready to buy. And the other way around: The more vague your product is, the better salesperson you will need to untangle the knot in your customer’s head and make it possible to buy from you.

Designing a product is the most important and one of the most difficult things to do. However, do not overthink it and make it more complicated. A product that is ‘too clever’ is hard to understand. Additionally, since you decide on your own product, you can always alter it later if needed.

”We all have great ideas, that will never work”

To make it less complicated you should remember that most “great” ideas fail when they first meet the real world. It will take perseverance to try different ideas, looking for one that works. It takes true entrepreneurship to believe in and try different applications of your idea, even when nothing seems to succeed.

You might not even need a good idea. Curiosity, experience and an ability to see what’s happening will take you far. Sell what you would buy with your own money. Create a product that will sell itself for a second time and one that every customer will sell to the next.

Marketing

When you start your business, nobody knows who you are. In a nutshell, marketing is all the planned and unplanned activities that introduce you and your product to new people. Not only paid advertising. All your encounters with people are marketing as well. It will either make it more or less likely that they will do business with you or recommend you further to others. A good customer experience is one of the most effective (and cost effective) marketing actions

The old saying: ”Half of marketing goes to waste. If only I knew which half” should not be considered in the beginning when starting a business. You should rather think ”All things except marketing are a waste and all the time spent on other things should have been spent on marketing.”

Even if not all your marketing activities give you measurable results or direct sales, it should however also bring you immeasurable benefit. Although 92% of all paid advertising would not give you any measurable results, it is important to know which 8% of that paid advertisement multiplied the return on investment (ROI). The rest is just bonus. Prepare to learn at least enough about measuring your marketing to invest in it repeatedly. Your product and target audience defines your marketing channels. Always be visible wherever your customers are looking for a solution for a problem you can solve. Any marketing is irrelevant if it does not evoke feeling or grab attention. Be bold and creative!