Five P's: Product

Finding the product that best suits your target customer base is never a simple process. There is an ever-evolving set of customer needs and competitive pressures that lead to sudden repositioning of your product. Sometimes, we can even find ourselves pivoting to an entirely new customer base due to how the market evolves and iterates upon itself. With these changes come a need to adjust marketing priorities and redefinition of your value proposition. This will be the first in our five-part mini-series on the Five P’s of Marketing where we dive into each of these core tenants and think about what it means for small business owners.

Let’s start with the basics of what is it you are really selling. What is that “product” you are offering to your customer that can address a challenge in their life. While what you sell may be obvious and is a primary focus of your business, these thoughts can be guided to improve your suite of products in a way that will better serve your customers over the long haul.

Function

When designing your product one of the first things that must be considered is how will this product function. That means clearly defining what job is your product fulfilling for your customer and then building a solution to the problems associated with that job. Now, this is something that may seem straightforward but often there are key aspects of this function that are overlooked that merit more attention. For example, we may say a watch has the function of telling the time, the date, etc. but what else should the watch do?

We would propose looking at other “jobs” your product can complete that may not need to drive by additional features but can be driven by marketing. The most common example of this is the use of a product to communicate status or personality of the users to others. An example can be seen in looking at Patagonia jackets that tell others that the wearer values the environment or a Rolex watch that communicates high value and prestige of the user. With an expanded vision of what function is, and how you can expand the utility of your product beyond its specifications, you will be able to better position your product in the marketplace.

Appearance

The appearance of your product goes beyond simply how the product looks. Often, products are judged on how they are packaged, what the “unboxing” experience is, and hoe the product is displayed. Much of this seems obvious to firms that make a physical product but those who sell services may fail to realize these principles extend to them as well. When a customer receives your service, it reflects your business so little things make a huge difference.

Think of how you would feel if a plumber comes to your house in a rusty pickup truck with no logo and no formal paperwork. Now, imagine that same plumber comes up in a well-maintained pickup truck that was properly branded, and they had not only a professional looking invoice but a pleasant and convenient way to pay your bill. One of these plumbers will get more repeat customers than the other.

Quality

Everyone wants a high-quality product and we all know customers value quality. As business owners, we want to know that others see the hard work we put into our business to obtain that quality. Apart from simply taking pride in your work and delivering the best possible product on time, every time, there are a few other measures of quality to consider. One of these is in how we communicate our product guarantee, or warranty, to our customers. Studies have shown that longer warranties communicate a higher trust and value in the product being purchased. This is the same with services as a “money back guarantee” shows that you believe in your business and the quality you can deliver. Your goal should always be to show customers that they have much more to gain by working with your firm than they have to lose. A strong quality guarantee solidifies the customer trust needed to build and grow your business.

Goods and services sold by your business are the cornerstone of your brand reputation.

Actively building and iterating on your product strengthens your competitive position and can allow you to thrive in even the most hostile of markets. This product knowledge paired with a deep level of customer intimacy is what you need to unlock within your business to reach the next level.