Do you have a product you want to market nationwide? Do you want to know how to conduct an effective product marketing? Have you thought about partnering with distributors and retailers to sell your products faster and profitable?
Then welcome to my business guide. I have written this article to show you how small and medium scale businesses (SME’s) can compete with big manufacturers. And you don’t need to have a large marketing budget.
If you are already in business, you know that what kills companies is not capital but sales. You only need money to generate more sales. And if you don’t have both, you don’t even have a business in the first place.
However, your business can only be as good as your capital or your sales. If you can have just one of it, you can generate the other. And I know every business can attract sales easily if you know how. But capital is another thing. It’s not every business that can get loans from the bank in Nigeria.
I know you understand that getting capital for the business in Nigeria is one of those nearly impossible dreams. The requirements may include one of liver or lungs. I’m just kidding. But that’s to show you the gravity of the problem with funding for SME’s.
Although, you may read different articles that can tell you about how to get loans. But getting it is not as easy as they claim. It’s a rigorous process and sometimes nearly impossible.
Even though you can’t control finance you get from the banks, I’m sure you can manage your sales. But what you need is proven product marketing strategy that would help you get more sales.
Benefits Of An Effective Product Marketing
Let’s look at the benefits you can get from product marketing. That would help you see the potential and for you to strategies even better. I know that every business person is intelligent.
You need to see upfront what product marketing can bring to your business before you consider investing into it. It’s also how smart entrepreneurs have grown their business from a shop to a manufacturing enterprise.
You can do the same no matter how little your capital or product marketing budget.
Generate Funding With Product Marketing
The first massive benefit from product marketing For SME’s is attracting funds to your business. Although, this may not work for everyone. But I will explain how it works so you can see if your company can tap into it.
However, it’s not a guaranteed result of product marketing. But it’s possible and has been proven to work most of the time. And if it worked before it will work again.
In product marketing, you can get distributors to pay massive amounts up front for product supplies. This works for importers and manufacturers. The strategy is to appoint distributors for your product in major cities.
The distributors buy your products in no small measure and sell to your retailers in that city. If you noticed I used the word ‘your’ retailers. In product marketing, you seek to control who markets your product. That way you can guarantee your distributors and retailers exclusive benefits.
It’s these benefits that would make them invest heavily in your products.
Generate Sales And Profit Faster
Well, you should know this one already. It’s a result of having many distributors and enjoying product presence nationwide. The result is more sales. And even faster.
Once you are making more sales and faster, it just guarantees your profitability. It’s just a simple business logic. And you already know that truth.
The more distributors and retailers you signed up to sell your product gives you more sales. You do the product marketing as a strategy. Some businesses just wait for people to discover their product and contact them for distributorship.
But you can go after the distributors yourself. Win them over to do business with you. Instead of waiting for years to sign up enough distributors, you can do it in just a few weeks or months.
Create A Larger Market Penetration
And the broader reach is also another benefit. You will also be gaining a broader market to sell your products. I know that most businesses are in Lagos. So the temptation to feel that Lagos is large enough, especially when you don’t have enough capital to expand your business.
But Lagos is about 21 million in 2016 or unofficial figures like 35 million. But just a fraction of the entire country population of 198 million market size.
Also, considering that if you want to get funds as well, you might not get it from Lagos distributors. There is enough competition in Lagos to discourage distributors from putting down their money with you. But that’s readily possible outside of Lagos.
Save Cost From Other Advertising Channels
Sometimes, SME’s make the wrong mistake of thinking that the problem with their low sales is lack of advertising. It’s not entirely correct. Considered Product availability first even before advertising.
Most SME’s have wasted money advertising a product that is not available. They depend on online purchases. Maybe you don’t know this, the cost of shipping products to consumers is too high. You can’t build your business on an online order delivery strategy alone.
You need a strong distribution partnership that is cost-effective and sustainable. Even when you advertise, you just push the sales through your existing distribution network. That’s how useful product marketing work.
How Product Marketing Works
There are probably two essential strategies being employed for this kind of product marketing in Nigeria. One of them is the popular mobile direct marketing. This process is pretty simple. You hire a marketing company or agent. They go from place to place promoting your products directly to the consumers.
This strategy is useful in generating direct sales. The only challenge is that you have to keep doing it if you want to keep up the sales.
Also, it’s not that cost-effective, primarily if you engaged the use of vehicles and side attractions like dancer and musicians. And it’s equally not sustainable. You have seen big companies like MTN, Airtel, Globacom, etcetera, use this strategy before.
However, the second one is distribution marketing strategy. Let me explain this one in more details.
Product Distribution Marketing
In product distribution marketing you build a network to sell your product nationwide. It’s like an exclusive dealership for selected distributors to represent, manage and sell your product.
This exclusive arrangement includes a fixed order quantity or amount. For example, you can set a minimum order amount for different classes of distributors. Maybe based on the size of the cities.
That way you guarantee a certain level of sales from your distribution network. But in exchange, you develop a market for your product in that city and give them exclusivity to sell your product.
It’s a better option than mobile direct marketing. But you have to invest initially to build the market for your product. Especially where little or nothing is known about your product.
Product Distribution Marketing
One of the challenges of starting product marketing is the high-cost proposal that you get from marketers. But product marketing shouldn’t be challenging. Although, it’s capital-intensive. That’s why a lot of SME’s don’t take advantage of it.
But if this would help you build your business, I think you should find a way to fund it. Unless you have the money to support, I recommend you start with one city at a time. That way you can afford to invest gradually and use proceeds from your sales to fund it.
If you are serious about increasing your sales and shooting up your revenue. You should start product marketing now.
Here is what to do. You will need to hire a product marketing agency. I will explain how this kind of hiring will work best for you. An agency like this understands the processes and rigours of building a secure distribution network for any consumer product.
Let them pitch their idea to you on how they intend to do the work and the kind of results they can attain for you. While you should use the information in this article to negotiate with them what you would prefer.
Recommendations On Product Marketing
Although this guide is to show you how to start product marketing, you may need to hire marketers. You will need a lot of foot soldiers to penetrate the markets and shanties to converse for distributors and retailers. It’s not that simple.
You will also need to use the best hands and train them on what you intend to carry out with your product marketing. Or you can hire experienced marketers who have the structure to conduct such marketing on your behalf.
It will save you time, cost, workers, and above all help you get the right distributors for your business. Also, their experience will help you make important decisions for your product.
You may also find a Marketer that might want to get paid from sales it generates for you. That way you only spend very little while you pay a percentage of your revenue to them.
This strategy is useful if you want to cover the entire nation but don’t have the funds. For example, an effective nationwide product marketing could cost between N30 million to N100 million. And it would depend on the nature of product marketing. But you can get this work done for you while you pay from your sales proceeds.
Now, you don’t have any reason not to embark on this product marketing For SME’s. Your business needs it, and I have made it all possible for you. Even if you can’t afford the enormous cost, you now know what to do.
So, here are the actions Points to take. It also puts into consideration someone who wants to import or manufacture new products.
Follow the outlined steps:
Step one: Identify your product marketing needs. If you don’t know the requirements, you can get a free assessment from a professional marketer. Fill out the form below, and someone will get back to you.
Step two: Open negotiations with a certified marketing agency. Big marketing brands may charge high for their services. You can get an experienced upcoming agency. It will be cheaper and more comfortable to work with. These forthcoming agencies usually offshoots of the big agencies. They are people who worked in big agencies but resigned to start their own. And hire one if your negotiations are conclusive.
Step three: Start planning your marketing materials. The agency can help you produce promotional materials for this kind of job. Get them involved and outsource the finished products to them. They will use their advertising experience to package better publicity materials for you.
Step Four: Strategize and plan your product marketing with your marketing agency. It’s usually better to get your marketing agency to send you their plan after examining your request and scope of work.
Step Five: Decide on the cost of the marketing and payment structure based on the scope of work presented by your marketing agency. And sign a contractual agreement on the agreed scope of work.
Step Six: Make the first payment or full payment if you want them to work without stopping. It’s usually better to plan the work stage by stage. It helps both the agency and who. The agent is not exhausted. And you can have time to use the work done and check the impact on your business.
Here is where I congratulate you on making the best decision for your business. The result you get should let you know how Effective Product marketing works. If you took the advice of starting with one city at a time, you made the best decision. Instead of worrying about lack of funds, you have managed what you have to meet significant results one at a time.
However, you must focus on product quality to sustain your efforts. You have to improve product quality, or your competitors can steal the market away. Give more to the market and don’t give room for other competing products to win.
Also, find out more ways to improve the profitability for your distributors. Most companies only work to gain the market and quickly increase prices. Don’t be that way. An increase in sales should help in driving down the cost of your manufacturing your products.
Give those benefits to your distributors and customers. Always look for a way to drive down your price and still keep up quality.
Follow These Instructions
- For assessment of your product marketing needs fill the form below.
- If you also want recommendations for a competent marketing agency, fill out the form as well.
- Drop us a comment through the comment box. Please, not through the form because I want to captured online for others to read what you said about this article as well.