Launching your product is always a tricky thing to do. It usually takes a great deal of time, effort, and resources to formulate a product idea that might not be successful. Therefore, it is no secret that most product launches in the modern market environment are bound to fail.
According to some sources, the failure rate of a new product launch can reach up to 80%. If you are planning to launch a new product, chances are that you might fail, but that should deter you from shooting your shot.
Now you must be wondering how you can improve the success rate of your product launch? Well, you are on the right track. You must identify the common mistakes that entrepreneurs make when launching their products.
This article will discuss the top 4 reasons why most product launches are unsuccessful and how you can avoid these mistakes to improve your chances of success.
Targeting the Wrong Audience
A lot of up-and-coming entrepreneurs pour their heart and soul into creating and marketing their new products. They do their market research, work on perfecting their sales pitch, and all-in-all have a top-notch product. But the launch still fails.
What went wrong?
One of the biggest mistakes most entrepreneurs make is choosing the wrong audience to promote their products or services. Well, how do you find the right audience for your product?
The first step is to go back to the drawing board and ask yourself a few questions:
- What demographic are you targeting with your promotions?
- Are you marketing your product content through the right platforms?
- Have you created buyer personas that are specific to your target audience?
In addition to answering these questions, there are several other ways to figure out the right audience for your products and services. For example, you can judge what kind of audience is interested in your product by analyzing your interactions during customer development sessions. Similarly, you can use online services like Google Analytics to look for viewer engagement patterns and understand demographic details. Lastly, use your brand’s social media presence to figure out what kind of following you have gathered over time.
Determining and setting the best price for your product or service is perhaps one of the most difficult decisions. Finding the right balance between a price that is too high or too low can confuse even experienced entrepreneurs.
Product pricing is a vital aspect of your marketing strategy as it is directly concerned with revenue generation. A common misconception among newbie entrepreneurs is that underpricing their products can help them make more sales. However, this approach can be detrimental to your business from a financial standpoint, leading to monetary losses that might be irrecoverable.
So how can new startups determine the price of their products? Well, our recommendation to beginners is that they should collaborate with online consulting services. For example, the pros at https://www.christurtonecommerce.com/ can help them chalk out the perfect marketing plan for your new product. Such consulting services assist startups in building their brand on e-commerce websites like Amazon and eBay.
Weak Marketing Strategy
In any business, the importance of marketing is unparalleled. It is how you introduce your products and services to the world. You could have the best product in the market, but if you do not put it out in the open, there would be no one to buy it.
The importance of a solid marketing strategy is a heavily discussed topic in the corporate world. However, so many entrepreneurs still fail to utilize it to their advantage. Why is that?
In the present millennial culture, startups have become a side hustle for people from different professional backgrounds. Due to minimal knowledge about sales and marketing, some entrepreneurs overlook this step, limiting their exposure and profitability.
Right Place At the Wrong Time
Timing is crucial in the entrepreneurial world. Staying on top of your competition is essential when it comes to product launches. The trick is to choose the right time to put your product out there. Entering a market too early or too late can make or break the product. It may be that you are going too fast and entering the market too prematurely before your target audience is sure about what to do with it. Do not get too carried away with perfecting your products or services that your competitors end up launching the same products before you.
Similarly, you do not want to launch your product with a saturated market, as the fierce competition can make it difficult for you to be at wavelengths with other big-name brands in the competition.
Investing tons of time and resources into creating your product only to find that it did not produce the results you expected can be heartbreaking and a huge setback for you.
However, that should not discourage you from taking the plunge. Knowing the common reasons for the product launch failure and joining hands with a digital marketing agency can make for a successful launch and set you on the path to business success.