Insights, Number 7


The Whole-Product Concept

Today, technology marketers are being challenged to bring new software and hardware products to market more rapidly than ever.  Going forward, we can expect to see a continuation of product life cycle compression, ever-tightening profit margins on many types of products, ferociously competitive markets and rising customer expectations.

The classic problem for companies with novel and innovative products is that of moving beyond their initial success with marketing to early adopters to then reach mainstream buyers. This is "crossing the chasm", as Geoffrey Moore refers to it in his book by the same name. The chasm is where many new products fail.

In this environment, the product definition and development processes as well as the overall marketing strategy your company has followed in the past may not be up to the challenge. To win in this environment, you'll need to continually improve the way you define, develop, launch and sell new products. Increasingly, technology companies are re-thinking the way they bring products to the market.

For example, the traditional linear product development process—research, define, design, test-fix-test, release to market—has evolved to incorporate concurrency and staged risk management. This serves to compress development times and to insure you're bringing the right product to the right customers when they want it and with the highest value and quality.The role of product management is to take ownership of all aspects of the product from concept, market research and formal definition, to development, testing, branding, pricing, launching, promotion, and so on.

We believe that the entire organization needs to be committed and involved with respect to new product programs. This is absolutely required to insure communication, teamwork and a rapid response to changing customer requirements and new market opportunities.

Creating empowered Cross Functional Teams (CFTs) is an excellent way to make this strategy work.

There is often a gap between the promise made to the customer—the compelling value proposition—and the ability of the product that is actually delivered to fulfill that promise. Therefore, the product must be enhanced by variety of services and add-on and associated products to become the whole product (click here to view the WPC diagram).

World class marketers have embraced the whole-product concept (WPC) as a key strategy to "crossing the chasm. The WPC is an approach that considers every aspect of a product in order to meet or (even better) exceed customers'

Nexentra Technology Marketing Strategy Insights

expectations and deliver a good ROI to both the supplier and the customer. The WPC looks at all product-related issues such as: costs (MLB), price, value proposition, sales readiness, channel strategy, feature set, warranty and support.

Further, the value proposition for each type of customer must be clearly articulated by the product manager and focused messaging clearly targeted to each.

Ensuring that your customers have an excellent experience with your company and its products throughout the sales cycle, and ultimately, through the life cycle of the product, results in delighted customers. Delighted customers can be counted on to buy more of your products or services and to come back when they need replacements. Further, loyal buyers are usually willing to pay more for your product/service, thereby, maximizing your gross margins and help you to achieve and hold market leadership.

It's the product manager's job to understand and address his or her customers at each stage in their relationship, from the initial inquiry to purchase and from delivery and installation to service and support.

The product management process helps to insure a successful product development program and launch. This is an important way in which you can differentiate your company from your competitors, ensure that you get the best price for your product and win customers and keep them delighted.

Contact us to learn how we may be able to help you implement a product management program.

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