Pragmatic Marketing: Definition and Structure
According to the Harvard Business School, companies launch around 30,000 new products every year. 95% of them pass unnoticed. They fail because of their choice of assumptive management style. And this is what pragmatic marketing is called to change.
Pragmatic marketing is an approach focused on achieving results, relying on the data. The general idea is to make companies organize marketing around goals and measured results. Pragmatic marketers believe that focusing on the things that work and improving them is the best way to achieve results.
With 25% of worldwide revenue and profits coming from the launch of new products, I suggest having a closer look at pragmatic marketing as a new philosophy at your disposal.
Pragmatic marketing refers to a customer-centric framework that encourages companies to design products for their target audience. It’s all about delivering a product that solves actual problems customers face.
There are three main principles I can outline:
- Focus on customers. The client is always the chief priority of every business. All decisions are customer-driven. Everything matters here: their needs, desires, and pains. They affect the launch and creation of new products and services.
- Focus on product. Quality product is the foundation. Pragmatic marketing implies the creation of products that meet customers’ requests. Each change must be tested to establish its influence on customers’ behavior. Regular testing and perfection are at the heart of the given approach.
- Focus on result. Improvements require an understanding of what and how to enhance. Hence, setting specific measurable goals and estimating progress are inherent parts of work.
Accuracy and structure are the bedrock for result measuring. The heart of this marketing philosophy is the 4P rule (Product, Price, Place, Promotion). Every component stands for a separate aspect of the mix and deserves special attention.
The first P means the product. The process of its development generally consists of 6 steps:
- idea generation;
- product definition;
- initial design;
- validation and testing;
The first step may also include the creation of a roadmap. A product roadmap is a brief description of the stages of product development. It usually includes deadlines and info on product management. A production group uses the roadmap to monitor the product and meet the schedule.
It is the second P. The price must cover the production expenses and leave a place for income. The price is not only about money gained, but also the value of the offer. If customers believe that your product is worth investing in, they will buy it.
The third P stand for the place. The choice of market plays one of the key roles. The goal is to simplify the search and purchase of your product or service on profitable marketing channels. The selection of the market and environment for the distribution of goods depends on the type of sales: direct, indirect, or online. This data will later form your strategy.
The final P is for promotion. It includes advertising, public relations, and marketing communications. In this case, the effectiveness depends on the relevance of an offer and the value of a product.
7 Steps to Implement Framework in B2B
The 4P rule is not a strict formula, but a flexible handbook that can be adapted to variable situation. You should only remember about the customer and focus on the creation of a valuable product.
Step 1: Business context
At the stage of business context, you must establish the need for a product or service, outline the target market, and collect the info on competitors. As soon as the business context is established, a marketer can develop a marketing complex, adapted to the target market’s requests.
Step 2: Customer’s problem
You should understand the problems and needs of the customer. What do they try to reach? How can your product or service help them hit their goals? This data forms the basis for the development of marketing solutions.
You can get the data from surveys, interviews, or with the help of focus groups. You can also use secondary data sources, such as analytical reports.
Step 3: Generation of ideas
As soon as the customer’s problem is found, you can proceed to the search for potential solutions. The goal is to generate an extensive list of ideas you can check at the next stage. There are no wrong answers here, so be creative and ingenious.
Step 4: Selection of the best solution
No matter how you want, you can never implement all ideas — it’s better to choose an optimal approach. Think over the features of each solution. Can it be implemented in a short time? Estimate the influence of the solution on other business areas. Assess the cost of its implementation and find the balance between the fulfillment of customers’ needs and control of expenses.
Step 5: Marketing strategy
When the choice of solution is made, you can begin creating a market strategy. It includes the selection of the target market, goal setting, and the description of the complex of marketing tasks. Each point matters and required detailed analysis.
Step 6: Implementation of strategy
There are several key moments you should bear in mind when implementing the market strategy.
- Creating an accurate and brief plan. This plan must contain goals, tasks, deadlines, and executors.
- Introduce the plan to all team members: a marketing team, contractors, and partners.
- Control and edit the plan if needed to achieve desired results.
Do not forget that the plan must be flexible for you to have a chance to add, remove, or fix something.
Step 7: Evaluation of results
Evaluation of results is an inherent step. By understanding the things that worked out and those that didn’t, you can adjust the approach and get better results next time. And do not forget to monitor the investment pay-back. It will help you allocate resources more effectively.
Everyone wants to see the result, and better a measurable one. Pragmatic Marketing is called to solve this particular request, helping companies focus on results and customer satisfaction. It is a win-win situation: a business meets its goals, while a client gets the solution to their problem instead of empty promises.