Product Marketing for New Products | Summary and Q&A

TL;DR

Learn the key elements of product marketing for new products, including storytelling, pricing strategies, customer segmentation, and setting buying criteria.

Key Insights

• 😤 Effective product marketing requires capturing the founder's story and conveying it to the sales team in a compelling way.
• 🤔 Pricing has a significant impact on company valuation and should be carefully thought out.
• 🗯️ Understanding customer segmentation helps tailor marketing efforts and reach the right audience.
• 😫 Setting buying criteria involves framing the product's solution and highlighting its unique features and benefits.
• 💪 Sales materials should align with competitive analysis to ensure a strong positioning in the market.

Transcript

hi my name is Sharon and I'm a partner here at Andreessen Horowitz by way of background I've been a product manager in the past but I've also done a lot of product marketing and that's really the area that I love the most you might have the greatest product on earth but if your potential customers don't know they need it they won't know they have t... Read More

Questions & Answers

Q: What is the role of storytelling in product marketing?

Storytelling helps capture the founder's story and makes it compelling for sales reps to convey to potential customers. It is important to maintain this storytelling even as the company grows.

Q: How should pricing be approached for new products?

Pricing is a critical aspect of product marketing and should be carefully considered. It is important to understand the value of the product and guide customers in understanding its worth. Discounting and modular pricing can be used to optimize sales.

Q: Why is customer segmentation important in product marketing?

Customer segmentation helps understand the motivations and needs of different buyer personas. It allows for targeted marketing efforts and ensures that the right audience is being reached.

Q: How can buying criteria be set for potential customers?

Buying criteria can be established by framing the product's solution and highlighting its unique features and benefits. It is important to align the criteria with the target audience and industry.

Summary

In this video, Sharon, a partner at Andreessen Horowitz, discusses the importance of product marketing for new products. She covers three key areas: capturing the founder's story and conveying it to others, understanding pricing and its impact on company valuation, and equipping the sales team with the necessary tools to sell the product effectively. She also emphasizes the importance of customer segmentation and setting buying criteria.

Questions & Answers

Q: How can you capture and convey the founder's story in a compelling way?

The founder's story is crucial in the early stages of a company, as it brings authenticity and passion to the product. However, as the company grows, it is necessary to capture and convey the founder's story in a way that can be effectively shared by the sales team. This can be done by creating a customer-facing deck or story that highlights the key aspects of the founder's story and resonates with potential customers.

Q: What are some considerations when pricing a new product?

Pricing is one of the most important factors to consider when launching a new product. It is crucial to assign value to the product and guide customers in understanding how much they should pay. It is also important to avoid giving away the product for free, as it can be difficult to raise prices later on. Additionally, pricing should be modular and scalable, with different pricing tiers for different user groups. Discounting can also be used strategically to optimize deal sizes and reduce friction in the sales process.

Q: What materials should be prepared for the sales team?

The product marketing team should prepare various materials to enable the sales team. This includes the customer-facing deck, a demo of the product, a pilot or proof of concept plan, a technical wrap-up document, and a proposal template. These materials should be consistent with the key messages and criteria set by product marketing. It is important for the sales team to use these materials and not create their own, as it ensures consistency and alignment with the overall product marketing strategy.

Q: How should customer segmentation be approached in product marketing?

Customer segmentation goes beyond just considering job titles. It is important to understand the motivations, problems, and needs of potential buyers in order to effectively market the product to them. This requires knowing who their allies and enemies are within the organization and understanding the business or technical problems that keep them up at night. By segmenting customers based on these factors, product marketing can ensure that the right audience is targeted and that the product's value proposition is tailored to their needs.

Q: How can setting the buying criteria help in selling the product?

Setting the buying criteria involves framing the product's value proposition and positioning it as the solution to a specific problem. This helps potential customers evaluate different solutions and consider the product as a viable option. By highlighting the unique features and capabilities of the product and showcasing success stories, product marketing can build a compelling case for why customers should choose the product. It is important to be conscious of the audience and tailor the messaging accordingly, using language and examples that resonate with their specific needs.

Takeaways

Effective product marketing for new products involves capturing and conveying the founder's story, understanding pricing and its impact on company valuation, equipping the sales team with the necessary tools, and setting buying criteria. Customer segmentation is also important in order to target the right audience and tailor the product's value proposition to their needs. Consistency and alignment across all marketing materials, including competitive analysis, are key to success.

Summary & Key Takeaways

• Product marketing is crucial for ensuring potential customers are aware of and interested in your product.

• The content covers three main areas: capturing the founder's story and conveying it to sales reps, understanding pricing and its impact on company valuation, and preparing the sales team to effectively sell the product.

• Customer segmentation and setting buying criteria are also discussed as important factors in product marketing.