Successful product marketing requires a concerted effort from every department in your company. From the moment your product idea has been green-lit by management, you’ll need to coordinate activities across marketing, sales, user research, and design so that they all work in synergy toward a single goal: creating demand for your new product.
What’s your product matrix and what are the benefits? If you’re not familiar with the term, a product matrix is a marketing strategy in which manufacturers release their products concurrently for sale.
In other words, you sell different versions of the same thing at the same time in order to increase visibility and reduce pricing competition. This article will explain what a product matrix is, how it benefits marketers, and other related details. Keep reading to learn more about it.
What is a Product Matrix?
A product matrix is a purchasing strategy in which a manufacturer simultaneously sells two versions of the same product. This strategy has many benefits and can increase your brand’s presence on the market in several ways.
One of the main reasons to use a product matrix is to avoid overpricing and to reduce pricing competition. By releasing two versions of the same product, you can offer one version more expensive than the other and sell both of them at the same time. This way, you can increase your sales and avoid cannibalizing your brand’s sales with low-cost copies.
How Does a Product Matrix Work?
If you remember from the beginning of this article, a product matrix is an approach to selling different items at the same time. It’s a great way to increase visibility, as customers can see your different items at the same time and compare them.
Companies that use product matrices sometimes also resort to price matching and/or bundle sales to keep the costs down. The items that you sell under the product matrix are usually not direct competitors. You usually do not sell the same items but different versions of the same product.
By releasing two or more versions of the same product, you can reduce pricing competition and increase brand awareness. With increased brand awareness, you can achieve more sales, as more people will notice your brand and buy your items.
Why Use a Product Matrix?
Reduced Overhead Costs:
One of the benefits of a product matrix is that you can reduce overhead costs by releasing two or more versions of the same product.
This way, you can avoid big investments, such as purchasing brand-new production equipment, hiring brand-new employees, and leasing new production facilities just for one version of the product. This will save you money in the long run and help you save on overhead costs.
Increased Brand Visibility:
Some business owners choose to use a product matrix as a way to increase brand visibility. With increased brand visibility, you can achieve more sales, as more people will notice your brand and buy your items. This is a great way to increase brand equity and boost sales if your product is not very well-known.
Increased Customer Loyalty:
One of the most important benefits of a product matrix is that you can increase customer loyalty. When you offer different items under a single brand name, customers may become more loyal to the brand, as they will associate different items under the same logo with the same logo. This can lead to brand loyalty and increased customer retention rates.
Upcoming Marketing Strategies That Could Replace Product Matrix
As previously mentioned, product matrices are great for increasing brand visibility and sales. This is why many businesses think about making their next move a product matrix strategy.
If you want to take advantage of the product matrix strategy and start selling other items, you should also think about implementing a future-oriented marketing strategy. Some effective future-oriented marketing strategies are: product hoarder, where you release different brands of the same product, bundle sales, and/or product stacking.
Should You Implement a Product Matrix in Your Business?
If you want to use a product matrix strategy in your business and you are at the right stage, you should do it. However, if you want to start with a product matrix strategy, you should also consider your current stage.
For example, if you manufacture a few low-priced items that are not well-known, releasing them under a single brand name can boost sales and brand recognition. However, if your products are very well-known, you can probably achieve the same results by releasing two or more versions at once.
You should also consider each item in your product matrix. If one of them is not very popular, you can probably make a profit by releasing another version of it. However, if all of them are popular and well-known, it’s probably not worth the effort.
Final Words: Tips to Improve Your Marketing Strategy
If you want to make the most out of a product matrix strategy, you should choose your items carefully. Select products that are well-known and popular in the market.
Also, make sure to research the market and choose your items carefully. Select items that have a large market share, as they are usually more profitable.
If you want to use a product matrix strategy and you can’t decide what items to release, you can make a list of your best-selling items and release different versions of those items under a single brand name. This way, you will still achieve the same results.
