I learnt a very important concept yesterday while watching a video of Brendon Burchard from the ilovemarketing mastery program by Joe Polish.
He was explaining about how he strategizes a book launch. A book launch is another form of a product launch with the product over here being a book.
I have been in Product Management for quite a long time and some of the concepts that he spoke about were standard.
However one thing which got me thinking and which you also need to understand if you are into Product Management is differentiating between ancillary products / services versus next set of products / services which are higher up in aspiration but are however part of a common ecosystem.
As per Brendon an ear phone, phone cover are ancillary while the iPhone, the iPad and the Mac all part of the integrated product set which Apple sell all the 3 items to their customer base all the time.
So even though Android is there with the so called “open” environment with a huge ecosystem, with full fledged interoperability and there are so many companies who sell more phones than Apple but no company makes as much money whether its with phones, tablets and computers.
This got me thinking. If you look at other companies who are really have ruled a lot of industries – the integrated product suite does come to mind.
IBM had their set of products and services which were generally all integrated. That was the biggest value to large customers who did not want the hassle of integrating products from different vendors. Customers could easily buy another set of products with a clear knowledge that they were safe because it was IBM. So even though a lot of companies came out with so called “open-systems” and individual discreet products, IBM had their clientele clearly defined and have been making a lot of money.
This has got me thinking. While we do think in terms of the next set of products/services that we should have in our suite, to clearly have an integrated suite where the customer has the comfort as well as the aspiration to take the next product from us needs to be thought off. We also need to clearly differentiate between ancillaries and next level of products so that we have 2 sets of revenue streams.
Pls tell me if you have had success with this kind of an integrated product suite. I would like to know your inputs in the comments section below.
Till next time then.