Monday, September 14, 2009

Challenges in B2B product launch...

You think launching a new product or innovation in B2B space is easier? ready with a detailed industry gap analysis, found an opportunity & come up with a solution to fix the gap? It also sounds easier compare to B2C products, because there are less number of people to pitch your product, take to market, go live!

YET - B2B products are as harder to launch & be successful, I have tried to list a few... based on a recent research that we have done in B2B space:
  • Current Process - are you changing the existing process, that business are using currently? for them to adopt your product - if yes, think again... might have an uphill task in convincing the potential customers
  • Savings - is your pitch mainly on cost savings to the business? be sure that you have done a complete research & understand is the cost line item you are replacing is on the top 10 of the cost line items for the business
  • Payment Cycle - assume you will be a paid product for the businesses, you should be aware of the payment cycle of the businesses in the industry - helps to know what is the money needed for WIP & be ready for such a cash flow
  • Literacy of People - are the target users in business literate with the tools or technologies you are using or proposing? if no - then you might waste & break your head with people not willing to learn or use the tool
  • Industry - last, but an important one... is the industry you are targeting shown a sign of adoption or willingness to look at new products, open for change, backed with legal (formal or informal) compliance to ethical practices
I still think B2B market has better chances of succeeding on innovation, profitability & target revenue realization... rather than living in virtual money or valuations of B2C market (at least for the tech companies)


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Saturday, September 05, 2009

Target Users for Social Media Marketing

Internet Users are the target for social media marketing; snapshot of 2009 online user metrics in India is as given in section below. Social Media Marketing is about finding the genre specific vertical or website that can provide the target users to position the product / service.

India Online User Metrics
  • 47 million people online, regular users reaching 38.5 million
  • 4 million users access internet on mobile phone
  • 4 out or 5 online users are 19 - 35yrs
  • 91% of regular online users - search or buy online
  • 20% have bought online in past 1 year
are they mass or class users for your product?
Social Media users are your quality / class users that you want to reach & communication the message, it’s not yet a mass media in India – because of the much smaller user base on internet compare to TV, Radio etc., It can help you reach students in Bangalore, who are passionate about movies – a focused smaller set of people that have a higher chances of receiving the message & considering to purchase or recommend to other users.

how is the conversion ratio of aware consumers to purchase?

Traditional Media has a smaller conversion ratio in consumer consideration to purchase funnel, because the nature of advertising is mass, we need more impressions to reach the target awareness stage of the product & achieve the required recall rate. Social Media can provide a higher conversion ratio, if the right social media channel is chosen for communicating your product / service message. Also, it’s a shorter cycle of money spends – as the performance metrics of the campaign can be viewed on a daily / hourly basis & corrective actions can be taken quicker than traditional media.

Right selection of online channels to promote your product / service can yield good return on investment, social media marketing is an emerging trend / topic in advertising industry - that has gained a significant share of advertising in US Market... but in early stage of use (only limiting to technology related products / services) in India.


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