What comes first, the product or the marketing?

Synergy between marketing and product development has become more crucial than ever. The success of a company hinges on the ability to align these two critical functions, and in this article, we’ll explore why this alignment is essential and how to achieve it effectively.

Marketing and product positioning are critical to the success of both a product and a company. However, if marketing is executed in isolation from the product teams, it is likely to derail the company. This is because your audience will expect your product to do X when it may actually do Y. This mismatch makes it impossible for product development teams to create a product that fits its market. Your customer interviews and analysis will produce inaccurate results, leading to the acquisition of customers who may not be the right fit. As a result, your churn rate is likely to be high, and it may take time to pivot and align with your marketing promise.

If this aspect is so important for building companies, why do executives often overlook it? Well, marketing teams have their own Key Performance Indicators (KPIs), often tied to their bonuses. These KPIs can be as simple as the number of leads generated by marketing efforts, with ongoing debates about the type of leads (MQL or SQL) or their quality.

To achieve good KPI results, marketing teams often aim to keep things simple: they bring in MQL leads, and the sales team handles the rest. Simultaneously, the sales team prefers high-quality leads that are easier to convert and ready to buy. This article isn’t about determining which approach is right, as it may vary for each organization. It’s about why marketing efforts may not align with product efforts and how to achieve that alignment.

Let’s return to marketing KPIs. To maximize the number of leads, teams often focus on low-cost channels that generate the most leads quickly. They optimize landing pages and articles for search engine rankings by incorporating keywords. However, many product teams don’t actively participate in writing this content. Even when asked, they may lack enthusiasm or allow content writers to figure out product functionality on their own.

This creates a problem where content and pages are crafted by people who may have never used the product. Over time, the number of web pages increases, along with generic information not specific to the product. As a result, website visitors develop an image of the product that may be far from reality, leading to wishful thinking.

These prospects may purchase the product, start a free trial, or contact the sales team. Even if the product isn’t an ideal fit, many prospects buy it and eventually realize it doesn’t meet their expectations. This leads to a customer base that isn’t genuinely satisfied, inconsistent segmentation, and confusion about the product’s purpose.

So, how can you avoid this situation? Start by identifying the problem the product solves and for whom. The founders and early team members who conceived the product likely understand the problem it’s meant to address. Capture their early notes and memories to help new team members and external partners comprehend the problem’s source. This information is crucial and requires honesty rather than marketing spin.

Once everyone has a clear understanding of the problem, the rest becomes more manageable. To align marketing and product efforts, especially in the long term, consider the right channels for each stage of your business’s maturity. It’s tempting to flood all marketing channels to maximize leads, but it’s essential to identify your target customers. Segment your customer base and focus on those who fit your ideal customer profile. Over time, you can expand your focus to adjacent areas and less-than-perfect-fit customers to broaden your product’s appeal.

The best product professionals have a deep understanding of their customers, making it easier to communicate with them through marketing tools. Avoid overcomplicating marketing efforts and KPIs, and ensure that product and marketing teams work together. Blending product management and marketing together helps prevent working in silos and having disjointed KPIs.

Let’s consider this example. Traditionally, marketing was blended with sales. I often said that the higher the cost of a product, the more power you give to Sales (e.g., Enterprise sales), and the lower the cost of a product, the more power goes to Marketing. When the cost of a product goes very low, sales teams might not be an effective way of selling, and marketing becomes a driving force in the sales process.

I now think that a similar logic applies to the alignment of product and marketing. At some point, the functions of product and marketing become inseparable. While it may make sense to have multiple product code versions and regional marketing teams when the sales ticket size is in six figures, for a product costing under $5,000 per year, it’s hard to justify fragmented efforts. The tighter the integration between product and marketing (including sales), the better. The messaging, conversion metrics, and pricing should be developed as a unified package. Alignment should be maintained throughout the process, and any misalignments should be addressed as organizational issues rather than specific to marketing or product teams.

Avoid overburdening your teams with numerous KPIs and metrics; focus on a few that are well understood by all. Some organizations say “we are customer centric”. This is an excellent reminder to all teams to work as one! Everyone’s attitude should be – your problem is my problem.

The journey to alignment is ongoing, and as you progress, keep in mind that your customer’s success is your success. So, keep listening, keep adapting, and keep thriving.