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Topic: Strategy

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Product Or Service For Software Company?

Posted by rachel.rapoza on 250 Points
I work for a SaaS B2B company and we have a new "thing" that we're preparing a GTM strategy for. The issue - the new "thing" is technically a new service (a new way of implementing our current product), but could also be considered a product (what's implemented is a very specific/"out-of-the-box" setup of our current product).

Basically - its the same product, but the new "thing" is implemented differently (so that it's cheaper and quicker).

So - looking for advice around positioning this as a product or a service. I'm leaning towards product, because our messaging could be more targeted for our current product and this new product. And generally, a new product launch is a bit "sexier"/generates more PR (important to my company right now).

However, I worry positioning it as a product:
1. May confuse our target market, because they're not getting a product with less features/functionality, but our same product that's implemented with an "out-of-the-box" setup.
2. We're in an industry that is separated between jack-of-all-trades solutions and best-of-breed solutions, so I worry that positioning as a product would eat away at our best-of-breed positioning and make us compete against the jack-of-all-trades (who have marketing budgets A LOT bigger than mine and who we already compete against).

Thanks in advance!

  • Posted by Peter (henna gaijin) on Accepted
    I a not sure I would rebrand this as a new product or service (and as such, it would be the a product or service based on what you had it as before), but as an updated product/service that now has the benefit of quicker and cheaper to implement. A version 2.0 (or whatever) of your product/service.
  • Posted by Jay Hamilton-Roth on Accepted
    Would introducing your new product/service cannibalize existing customers or attract new ones?
    Would your new product/service completely solve your target market's needs as a turkey solution?

    If you've got something new for a new audience, then perhaps you have a spinoff company that's solely serving their needs with different focused branding entirely. The spinoff would use/license your technology to solve a niche's business problem.
  • Posted by telemoxie on Accepted
    If you were to sell it as a product, or as a series of various products of various features, what would the price point be?

    For example, if you have some sort of an offering which can be considered a product and can be priced below twenty-five hundred dollars, you can sell it to the federal government without justification or competitive bids or any of that stuff. (I last looked into this a few years ago, you should probably double check with your government sales team.) If you are interested in such a low price point, possibly to introduce yourself to new government accounts, to get your foot in the door, I would suggest (in that limited case) to position and sell the solution as a product if possible. Good luck.
  • Posted by Shelley Ryan on Moderator
    Hi Everyone,

    I am closing this question since there hasn't been much recent activity.

    Thanks for participating!

    Shelley
    MarketingProfs

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