Initially, the writer.
Initially, the writer.
We now know that the failure rate of financial goods and services is more than 80% after watching their launches for over twenty years. Despite this, nearly every respectable marketing director in the financial services industry is always on the lookout for the next great financial product idea.
The great majority of newly released financial goods and services were profitable just a few decades ago. The marketing landscape for financial services is extremely crowded and competitive nowadays, and almost every category of financial products and services is oversaturated. A new financial product typically needs to steal customers away from more well-known companies in order to succeed in the marketplace.
Economists use the term "monopolistic competition" to describe the current state of the financial product and service industries. This seemingly contradictory statement characterizes a market where no particular brand has a stranglehold, where pricing rivalry can be fierce, and where brand perception rather than performance is the primary differentiator among rivals.
When properly prepared, the product launch activities that accompany the introduction of a new financial product or service can have an impact on its success comparable to that of its design or pricing. Marketers with experience understand that:While internal events should inspire excitement and rally support for the next product launch, pre-launch events should pique attention and develop anticipation.Launching a product successfully requires generating buzz and interest.Launch-related actions should keep people interested and moving forward; they should also lay the groundwork for the company's long-term, cumulative marketing strategy.
The consequences of new financial products failing to meet expectations are significant. Based on our extensive analysis of failed launches of financial products and services, we have identified the following critical factors as the most important determinants of the success or failure of such launches:The pursuit of novel, improved ideas that hold the potential of success is an eternal human desire. Thus, it is crucial to acknowledge that buyers purchase expectations rather than actual goods and services when crafting positioning and messaging for new product launches.Keep in mind that a product's name is crucial. A well-known and respected brand name can attract more customers and boost sales. An advantage-oriented moniker receives more use and opens doors to more cost-effective branding options.The majority of product launch expenses are not budgeted for. To ensure a successful launch, allocate sufficient funds and then some.You can learn a lot from other people's blunders when launching their products. Learning to foresee difficulties and grasp precedence is key. Being ignorant in this domain is never going to make you happy.Differentiate yourself in a meaningful way in the marketplace. Products and services that are similar to your competitors' may be novel for your business, but they may seem like "more of the same" to your target customers. Without an edge over the competition, you'll need a huge money to make people excited and buy your way to success.Without proper distribution and sales support, even the most excellent financial products or services would not succeed. Prior to launching, flex your distribution muscles and make sure your distributors are well-informed on the product's advantages and highly driven to sell it.Regardless of the branding, the sponsoring company's image and reputation will always be associated with financial products and services. That the new product's marketing materials and its accompanying claims are coherent with the sponsor's brand identity is, then, of paramount importance.Recognize that honesty leads to achievement. Develop an enticing offer of value and strive to go above and beyond for your customers.
Testing the market is the next crucial stage after developing a financial product or service. But we think it's a waste of time and money to use the same focus groups that marketers of consumer goods use for selling financial services. Alternatively, a more detailed and personal understanding of the market's demands and requirements can be gained through targeted one-on-one interviews with distribution channel representatives and prospects in the target market.
The high percentage of unsuccessful financial products and services usually stems from the same problems: not meeting customer expectations; not effectively establishing and motivating distribution channels; not creating messaging that resonates with target markets; not effectively identifying and appealing to marketplace needs and wants; and lastly, not providing relevant differentiation from more established brands. Despite how common these mistakes are, marketers in the financial services industry continue to make them. "We have seen the enemy and he is us," Pogo correctly stated.
No way!
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