Product Launch — 2

In this lesson we will cover:

How Marketing and Product Managers Work Together

New Terms

PMM: Product Marketing Manager or just Marketing

Things to Remember About Working with PMMs

It is important to get Marketing involved early in the process. This allows you to take key insights into consideration throughout the entire product development cycle.

Go-to-Market Strategy

New Terms

Go-to-Market Strategy: A detailed plan of actionable items, which describes how you will achieve your product goals, acquire users and deliver value through your product to your target user. This includes:

Value Proposition: Benefits that your product delivers to address your target user’s needs. Another way to think about it: your product’s value proposition answers the question why your target user would buy/use your product.

Product Positioning: Where your product fits in the market for your target audience(s) given the product’s value proposition. This can also highlight how your product is different compared to other products. You can have multiple product positioning statements

Marketing Message: A concise statement of the value your product delivers to users based on your product positioning. The marketing message should be easy for users to understand and convey what our product does.

Things to Remember About Working with PMMs on a Go-to-Market Strategy

From Value Proposition to Marketing Message

As part of the go-to-market strategy you’ll want to work closely with Marketing. You’ll want to start with your product’s value proposition to help you create the product positioning statements. Once you have the product positioning you can create the messaging.

Value Proposition

As a reminder the value proposition for the product is created well before launch because it drives how the product that is designed and built.

Product Positioning

Product positioning should be:

Combine these three parts into one sentence:

For {Target Audience}, {Product Name} delivers {Product Benefit} better than other products because {Evidence of Superiority}

Example

“For World Wide Web users who enjoy books, Amazon.com is a retail bookseller that provides instant access to over 1.1 million books. Unlike traditional book retailers, Amazon.com provides a combination of extraordinary convenience, low prices, and comprehensive selection.”

This example is from a time when Amazon was just focused on selling books. As the company has grown, Amazon’s value proposition and product positioning has evolved.

Marketing Message

Once you have determined your product positioning you can write your marketing message. The marketing message should communicate your product positioning in a concise statement that is easy for users to remember. Some tips to keep in mind:

Examples

“AirPods deliver effortless, all-day audio on the go. And AirPods Pro bring Active Noise Cancellation to an in-ear headphone — with a customizable fit. Find the right AirPods for you.”Apple AirPods

“Venmo is a digital wallet that lets you make and share payments with friends. You can easily split the bill, cab fare, or much more. Download the iOS or Android app or sign up on Venmo.com today.”Venmo

“Make Your Day. Real People. Real Videos. Text yourself a link to download TikTok”TikTok

You might want to position your products value differently for different audiences.You can have multiple product positioning statements for a value prop.

Go-to-Market Example

Example: Successful PM/PMM Go-to-Market Partnership

Our goal was to convert free users to a paid model. Here is how we did it:

My Marketing Message Solution

New Term

Two-sided Marketplace App — An app that connects one type of user with another type of user. These products usually will have two sides: one for each type of user. For example, Uber connects drivers and riders with a separate platform for each type of user.

Solution Recap

Our app is a two-sided marketplace app because we have a separate platform for the party organizers and the vendors who want to sell them services. We need two separate marketing messages.

Party Organizer side

Our marketing message for party organizers: “All-in-one party organization solution”.

Vendor side

Our marketing message for vendors: “Instant Party Sales”.

Additional Reading

Learn more about how PMs and PMMs work together here:

Understanding Your Competition’s Market Share

Things to Remember About Researching the Competition

Market Share Research Game Plan

There are a lot of ways to calculate your competitor’s share. Here is one simple method:

Total Addressable Market Review

As you think about your competition and the opportunities for positioning your product, you’ll want to have a good grasp on the Total Addressable Market for your product. To help you review this critical skill we brought back Alex King, the Instructor from the Product Strategy course to review TAM.

Things to Remember About TAM

How to Calculate TAM

TAM = Average revenue per user X total number of potential users in the market

There are several approaches to calculating TAM:

New Terms:

Going down the rabbit hole: A reference to the long and chaotic journey of Alice in the book Alice in Wonderland by Lewis Carroll. In this context it means spending too much time following research threads that are increasingly distant from the topic you are trying to understand.

Things to Remember About Competitive Research

Sources used in our TAM calculation:

It is always important to cite any data you use!

If you search a bit more about Lululemon, you can run into this very interesting data:

Market Share Estimate Example

Bottoms Up

Additional Reading

Read more about TAM here:

Understanding Your Competitors and Market

My Solution

What we can learn from a deeper look at the data:

Additional Reading

You can learn more about researching the competition here:

Acquisition Channel Strategy

New Terms

Acquisition channel: How your customers find your product
Organic channel: Acquisition channel where users find your product on their own
Influencer: A person or organization who has expert-level knowledge or a wide social reach in your target market
SEO (Search Engine Optimization): Increasing the search engine rankings of a website by optimizing its content and structure
Viral channel: Acquisition channel where users find us based on recommendations from others

Things to Remember About Acquisition Channels

Channel Strategy

Converting Free to Paid Users: Our Channel Strategy

Acquisition Channel Exercise

We are now ready to figure out how we can reach the users for our Party App. Let’s create our acquisition channel strategy.

In the real world you might be working with your Marketing partner on the channel strategy, but for this exercise you need to be both the PM and the PMM.

My Solution

I think we could reach party organizers through:

We can reach vendors through

Your solution may be quite different from mine. What was your Acquisition Channel Strategy?

Additional Reading

Read more about acquisition channels:

My Solution

I think we could reach party organizers through:

We can reach vendors through

Your solution may be quite different from mine. What was your Acquisition Channel Strategy?

Additional Reading

Read more about acquisition channels:

Pricing Strategy

Factors to Consider When Setting Pricing

Things to Remember About Pricing

New Terms

Ad-Supported: The product is free, but it generates revenue from advertisers.
Cost-based pricing: The cost to produce the product is the base price and a mark-up is added.
Dynamic pricing : Price changes reflect changes in supply or demand, e.g. surge pricing.
Freemium: The basic product is free but you can purchase additional features or content, e.g. Dropbox.
Price discrimination: Different users are charged a different price for the same product, e.g. US airline tickets.
Value-based pricing: Price is based on the value the user gets from the product.

As a PM, it is not your job to be a pricing expert. But you do need to understand the basic principles of pricing strategy and how your product fits in.

Pricing Strategy Solution

My Solution

Vendors:

Party Organizers:

Your solution might be different than mine. How will you make money with the Party App?

Additional Reading

Read more about pricing strategy:

Read more about setting financial goals:

Recap

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