- Structure the problem
- Show strong instincts
- Drive, not Ride
McKinsey’s Consumer Decision Journey – Can be used to answer “how to market a new product?”.
Marketing Mix (4 Ps) – Can be used to discuss the different elements of a marketing plan for new or existing products.
SWOT Analysis – Can be used to analyze companies and products.
The Five Cs – Can be used for situational analysis; provides an overview of the environment for a product or decision. Can guide discussions on whether a company should launch a product and what the company’s strategy should be.
Porter’s 5 Forces – a framework for industry analysis; can be used to discuss whether or not a company should enter a specific market.
- Threat of New Entrants
- Rivalry among existing competitors
- Threat of Substitutes
- Buyer Power
- Seller Power
AARRR – Startup Metrics for Pirates
SWOT, The Five Cs, Porter’s 5 Forces
Answer the strategy questions at the following levels:
- Product level and Market/Industry level
- Short-term and Long term
- Tactical and Strategic
- Micro and Macro
SWOT, Consumer Decision Journey, Marketing Mix – 4 Ps
- Understand the Company
- Understand the Competition
- Understand the Customers
- Understand the Environment
- Market the Product
Launching a Product Questions
- The Product
- What is the vision of the product?
- What are the strengths, weaknesses, and risks?
- What is the target market?
- Who are the competing products?
- How to position against competitors?
- What are the things to worry about?
- Launch Goals
- Determine the goals of the launch.
- Do you want as many users as possible?
- Do you want to maximize revenue or profit?
- Do you want to validate product-market fit?
- Determine the goals of the launch.
- Launch Design
- What is a good test bed market?
- Do you want to control growth through invitations?
- Launch a limited version to launch sooner or make a big splash with a complete product to capture more users?
- Launch Implementation
- What are pre-launch tasks?
- What are launch tasks?
- What are post-launch tasks?
- Cover the following aspects, possibly for each phase of launch:
- Target Market
- User Types / Components
- MVP or Full Product
a “computer” (Part) is one kind of item that an “unhappy employee” (Self-Concept) might “carry” (Action) out of the “company offices” (another Part) to “sell for cash” (Goal) as part of a “stealing” Event.
Pricing and Profitability Questions
- Cost-Plus Pricing
- Value Pricing
- Competitive Pricing
- Experimental Pricing
- Free, Ad supported
- A La Carte
- Free Trial
- Razor Blade Model
- Click Through Rate (CTR)
- Cost Per Click (CPC)
- Conversion Rate
- Pay Per Click (PPC)
- Pay Per Impression (PPI)
- Pay Per Action (PPA)
- Cost Per Thousand Impressions (CPM)
CPM = CPC * CTR * 1000
Max for an Ad = Expected Profit Per Click = Conversion Rate * Profit Per Conversion
Problem Solving Questions
- Falling profit results from a decline in revenue or an increase in costs.
- Falling revenue results from a decrease in sales volume or a decrease in price. This could mean a shift in purchasing behavior across tiers of the product.
- Falling sales volume results from a decline in new customers coming in or lower retention from existing customers.
- Declining new customers results from a decline in traffic or in conversion rate. Either of these could come from repeat visitors versus new visitors on a website.
- Increase in costs can be caused by an increase in fixed costs or an increase in marginal costs. These, in turn, can be caused by suppliers increasing their prices, a distributor changing their profit structure, a spike in the number of returns, or a variety of other aspects.
- Decline in traffic can be the result of a decline in the number of new visitors, a decline in the number of returning visitors, or a decline in the engagement for either of those types of users.
- Decline in new visitors can be the result of a decline in search traffic, a decline in referral traffic, or a decline in direct traffic.
Some ideas to get you started:
- Has this happened in all regions?
- How many product lines do we have? Has this happened in all our products?
- Have competitors had similar issues, to the best of our knowledge?
- Have other related products experienced the same effect?
- Have we seen any seasonality?
- Have we made any changes to our product line?
- Have new competitors entered the market?
- If we separate our customers by new versus returning, what differences do we see?
- How is customer retention?
- What have customers been saying? Have we been getting more complaints recently?
- Do we notice any changes in referral traffic?