New Product Messaging Effectiveness
New product messages are very effective when they are well -planned and executed. The product launch strategy greatly improves new product success and revealing different examples of the product will improve brand metrics.
- A firm’s communication strategy is a critical element of its launch plan. In fact, the element is most directly responsible for aiding the market’s acceptance of a new product.
- Commonly accepted elements of a communication strategy include pre-announcement and advertising.
- A lack of product knowledge causes a need for the customers to be educated before any innovative product is introduced to the market.
- Pre-announcement not only can preempt the market against competitors but also can be used as a tool to familiarize potential customers with the new product concept and can help shape their expectations.
- Firms frequently advertise new products and services before they are launched, however, how they do it highly diverges.
- Product characteristics should be considered when investing in digital communications to support a new product’s launch since they define the optimal level of investments in social media communication and online advertising.
- Beyond the level of efforts, the content of the advertising message is critical to help ease customer anxiety about new products.
- Investment in online advertising stimulates awareness and helps generate a preference for the new product.
- The main goal of advertising activities at product launch is to speed up the rate of adoption (the process in which individuals accept and use new products) and diffusion of the new product into the marketplace.
- When done efficaciously, advertising has the ability to generate consumer reactions, including judgments and emotion that can affect consumer purchase intents and decisions. This should translate to consumer purchase intent and ultimately the purchase.
- Some of the best examples of how brands successfully launched a new product include belVita which promoted its product through YouTube TrueView. They mentioned their brand name and displayed the product on screen. As a result, they were able to obtain 57% ad recall and brand awareness of 27%.
- Hershey's launched a candy bar and posted a 20-second teaser video of a poster that looked like it was a 3D image. Then, they used Facebook Live to stream an 11-minute clip from a mock product launch event. According to Facebook, the campaign lifted brand awareness by 11 points and ad recall by 20 points.
- Airbnb streamed 6 films live on Facebook to promote the release of their new app and had a 22 point lift in ad recall and 7 point lift in brand approval.
WHY ADVERTISE NEW PRODUCTS?
- Marketing new products before their release, referred to as Nextopia advertising can have positive effects on consumers’ evaluation of both advertisement and brand and can increase buzz and word of mouth.
- Advertising yet-to-launch products and services can be beneficial because consumers evaluate forthcoming products more positively than currently available ones.
- This effect is independent of the content of the advertisements because consumers respond optimistically to the generally uncertain future.
- Researches showed that in the context of designer alarm clocks, mineral water, and movies that pre-release advertising creates online and offline buzz for forthcoming products, which is positively related to business outcomes.
- Advertising strategy plays an essential role throughout the purchasing decision process.
- Studies suggest that the magnitude of advertising effort significantly impacts non-personal promotion.
- For certain products, pre-launch marketing is crucial for financial success.
- Research studies in the field of product innovation management show that a well-planned and executed product launch strategy greatly improves new product success.
- A number of studies highlight the important role that communication investments play in new product launch strategies.