Question

Topic: Strategy

Credibility Problems For A New Product

Posted by Anonymous on 11/16/2005 at 1:23 PM ET 125 Points
Hello,

One of my clients is getting ready to launch a manufactured electronics product, and I'm anticipating a problem in our marketing to resellers.

I am confident in the quality of the product -- I watched it being built, I've seen it in action, and I know the brains behind the operation.

And once we have the product in customers' hands, I'm confident that we can get reference stories and reliability stats that back up our claim.

But a smart reseller will be reluctant to carry the product at first, because new products sometimes prove unreliable; unreliable products increase customer service costs, lengthen rental amortization, decrease repeat business, and damage reputations.

What's the best way to deal with this credibility problem in he initial push to resellers?

I considered publishing test data. Unfortunately, the product can be used 100 different ways -- but if we tested its most likely uses I'm sure we could come up with some good stats.

I also considered using the company's history in another vertical (creating custom electronics solutions and consulting on big projects) -- essentially, leveraging their good reputation in another vertical.

Any recommendations? I want to make sure we launch with the best possible message.

Thanks in advance for any help you can provide.

All the best,
Dave
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RESPONSES

  • Posted by michael on 11/16/2005 at 2:45 PM Member
    Dave,
    You could guarantee the reliability of the product and ask the retailer if they want service issues brought to their store or direct to you.

    Yet, I'm a believer in pull marketing. I'd rather see you market directly to the end user...with guarantees and quality et al....and have them come to the retailer asking for the product.

    Truth is, the very technical side of the product lends itself to marketing to the end user. Often the retailer doesn't have near enough knowledge. OFTEN, not always.

    Michael

    Michael
  • Posted by Mushfique Manzoor on 11/18/2005 at 11:12 AM Accepted
    hi Dave

    great response from experts so far. my 2 cents are...

    i would put myself in the shoes of the retailers/dealers. What would they get to take the risk of putting your brand on their shelves?

    my suggestions will be to provide the following to the dealers:
    1) Product Warranty (if possible more than your competitors' figures).
    2) Service Guarantee on top of product warranty to the end user as well as dealers/retailers.
    3) you will bear the logistics cost for servicing/repairing
    4) create a consumer experience collection mechanism. you can create a webpage, a toll-free number or even a simple postcard delivered with the product. Share the consumer feedbacks with the retailers/dealers to increase their confidence level.
    5) for quality and reliability issues, is there any certification mechanism/authority that will certify your product.
    6) Also you can create campaigns based on recommendations of downstream or upstream equipments or users which supplement your product, i.e. famous Stage Light Director who will endorse your brand or Camera makers etc.

    hope this helps.

    cheers!!
  • Posted on 11/19/2005 at 5:14 PM Accepted
    You have two other options that are frequently used in B2B technology companies -- magazine reviews and beta testing.

    For theatrical lighting, getting "endorsement" or mentions in trade pubs could a real plus -- and you could reprint and hand out to retailers.

    As for beta testing -- well, you're beyond this. What is more relevant would be product "seeding" -- that is, to donate lighting to a significant theater for reciprocal endorsements.

    From this I can see an "ad" (ad format, really testimonial reprint) created with the theater manager in a photo with the light, endorsing the product.
    This, again you can use with retailers, on your Web site, etc.

    But, first, I agree with my colleagues: A guarantee and strong "break-and-fix" clause does wonders. It shows your belief and willingness to back up your product.

    But, of course, you MUST come through. No delays. No hassles. No nickel-and-diming them. Create a image of "customer first" and follow through.

    Good luck!
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