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Launch ReadyBy Kim T. Gordon Bringing a new product to market is a major challenge for many entrepreneurs. Whether you're marketing software or an exercise video, your choice of tactics will be shaped by the size of your marketing budget and who you're trying to reach. In this column, I’ll show you ways to successfully launch a product -- nationally, city-by-city, or in your own hometown -- at three different budget levels. Level 1 -- $100,000 to $150,000 Retail shelf space is hard to acquire and new products that do go directly to retail often languish on store shelves. Cable TV is emerging as the best and sometimes most affordable way to market a new product prior to its arrival at retail. Sixty-second direct response spots typically feature products with visual appeal, sold at an "impulse" price of $19.95. You can run a national cable TV campaign for as little as $5000/month, excluding production, according to the Virginia-based buying firm, Thompson Everett Inc. (www.thompsoneverett.com). And when cable television is used in combination with other media, you can create a well-rounded campaign, build sales and enough subsequent consumer demand to successfully place your product in stores. Suppose you owned a health club and decided to market your own exercise video. You could run cable television spots nationally, in select cities, or locally where word-of-mouth from your members would fuel buzz. For an effective marketing mix, a media relations campaign targeting key editors and direct response print ads would complement the television spots. Often, consumer magazines, including Self, for example, offer a reduced "mail-order" rate, and many city publications, such as D magazine in Dallas, have lower rates for "retail" advertisers. Level 2 – $50,000 to $100,000 Magazine advertising is also useful when launching a business product. For example, imagine your company has created new inventory control software. You could advertise it in business and trade publications, which often have special classified sections or offer lower-cost regional editions. And you could rent direct mail lists of businesses that fit your target audience profile, then mail up to three times to each list. With a technology product like this one, e-mail marketing could provide a low-cost supplement to your mail campaign. You can expect to pay $100 -- $350 per thousand for an e-mail list (search at www.edithroman.com) and you'd escape the printing and postage costs of direct mail. E-mail marketing could also be used to affordably launch a new computer game to consumers, for example. Outdoor billboards, magazine ads and place-based media that target young males -- from posters in nightclubs (www.ajindoor.com) to your message on stadium snack packs (www.cenewmedia.com) – would round out the campaign. Some products just need to be experienced by potential buyers first-hand. Take the case of the inventor, for instance, whose new educational children's puzzle went unnoticed on toy store shelves, but sold out at craft fairs where kids could actually play with it. Consumer craft shows (www.craftfair.com) and expos, as well as trade shows for B2B marketers (www.tsnn.com) can help you present your product in a stimulating way. Level 3 -- $10,000 to $50,000 With a limited budget, success often comes from developing a wholesale marketing program targeting select catalogers or retail stores. Suppose you manufactured western furniture and had begun crafting chandeliers from antlers. You could introduce your new line at home furnishings trade shows, then develop a list of catalogers and retailers to call. A PR program that included releases and product photos, followed by phone calls to editors at decorating publications would complete your media mix while adding little to your costs. Public relations can also lay the groundwork for taking a local product to a national audience. Let's say you market gourmet brownies. A compelling story in a major magazine about your old family recipe could help you sell to stores nationwide. Smart PR and solid creative thinking are an investment of time, not money. And they can make things happen for you. Get In-depth Coaching on this Topic>> Kim T. Gordon's columns and articles are read by nearly 3 million small and home-based business owners each month. She is the author of two books, including Bringing Home the Business: The 30 Truths Every Home Business Owner Must Know. Copyrighted material. May not be reproduced in whole or part without expressed permission from the author. |
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