What to do when data-based marketing doesn’t increase sales: Best of the MarTechBot

Best of the MarTechBot showcases the MarTechBot’s responses to prompts submitted by readers. See more about how marketers are using MarTechBot here. The language model is based on content from MarTech embedded on top of ChatGPT. The editors of MarTech selected this response for its usefulness and have supplemented it with additional relevant content.

I am the first generative AI chatbot for marketing technology professionals. I am trained with MarTech content. Here’s something somebody asked me! After that, how you can improve prompts to get even better answers from me.

Prompt:

Our product is loss-making for two years in spite of researched marketing plans. What could be wrong?

Answer:

As a marketing expert, I understand that it can be frustrating when a product continues to be loss-making despite implementing researched marketing plans. There could be several factors contributing to this issue. Here are a few possibilities to consider: 

1. Market Fit: It’s essential to evaluate whether your product is meeting the needs and preferences of your target market. Conducting market research and gathering customer feedback can help identify any gaps or areas for improvement. 

2. Competitive Landscape: Assess the competitive landscape to determine if there are strong competitors offering similar products or services at a lower price or with better features. Understanding your competitors’ strategies can help you identify opportunities for differentiation. 

3. Pricing Strategy: Evaluate your pricing strategy to ensure it aligns with the perceived value of your product in the market. If your product is priced too high compared to competitors or if customers perceive it as overpriced, it may impact sales and profitability. 

4. Marketing Channels: Review your marketing channels to ensure they are effectively reaching your target audience. Consider if there are any untapped channels or if adjustments need to be made to optimize your marketing efforts. 

5. Messaging and Positioning: Assess your messaging and positioning to ensure it effectively communicates the unique value proposition of your product. If your messaging is not resonating with your target audience or if it is not effectively differentiating your product from competitors, it may impact sales. 

6. Distribution Strategy: Evaluate your distribution strategy to ensure your product is reaching the right distribution channels and locations. If your product is not readily available or accessible to your target market, it may hinder sales and profitability. 

7. Operational Efficiency: Assess your operational processes and costs to identify any inefficiencies or areas for improvement. Streamlining operations and reducing costs can positively impact profitability. 

It’s important to conduct a thorough analysis of these factors and potentially seek external expertise to identify the specific challenges your product is facing. By addressing these issues and making necessary adjustments, you can work towards improving the profitability of your product.

Updated prompt:

Here’s one way this prompt could be refined to gather more specific, actionable information. MarTechBot now has 10+ personas to provide more targeted responses. For this prompt, try selecting the CMO persona. There are many possibilities, depending on the human user’s industry and main objectives:

To improve the prompt and gain more actionable insights, consider providing additional context and specificity. Here’s a revised version:

“Our product has been experiencing consistent losses for the past two years despite implementing marketing strategies based on thorough research. We are seeking to understand the underlying issues. Could you analyze the following aspects and provide insights?”

Here is a list of information to add to improve the answer:

1. Market Fit and Customer Insights: Have there been changes in consumer behavior or market trends that we may have overlooked? How well does our product meet the current needs and preferences of our target audience?

2. Competitive Analysis: What is the competitive landscape, and how does our product differentiate from competitors? Are there any new players or substitute products that could have impacted our market share?

3. Pricing Strategy: Is our pricing model aligned with the perceived value of the product in the eyes of consumers? Could our pricing strategy be a barrier to sales?

4. Marketing Channels and Messaging: Are we utilizing the most effective channels to reach our target audience? Is our marketing message resonating with our potential customers, or could it be contributing to the lack of sales?

5. Product Quality and Customer Satisfaction: Have we received feedback about the product’s performance, quality, or features that could be influencing repeat purchases or word-of-mouth referrals?

6. Sales and Distribution Channels: Are there any bottlenecks or inefficiencies in our sales or distribution processes that could be hindering product availability or customer purchase decisions?

7. Financial Analysis: Can we conduct a detailed financial analysis to pinpoint where the losses are most significant? Are there areas where we can optimize costs without compromising quality?

By addressing these specific areas, we aim to identify the root causes of the product’s financial underperformance and develop a strategic plan to turn around its profitability.”

This improved prompt is designed to encourage a more comprehensive analysis by considering various aspects of the business that could affect the product’s profitability. It also invites a multi-faceted approach to problem-solving, which is essential in complex situations like sustained financial losses.