Marketing & Distribution Channels

While working as a product manager, I realised nowadays software products are getting easier and easier to build. We have no-code tools & frameworks that aid to quickly deploy an MVP with minimal dev effort. It’s only going to get easier as we ride the wave of such new tools.

But on the flip side, it’s getting very hard to capture the attention of the market to sell the product. Cost of acquiring new customers / retaining them is rocketing that’s why companies are focussing more on enhancing their distribution channels to address their TAM (If calculated correctly, not bloated like the one’s shown on investor deck :))

Distribution Channels for Software Products refer to the methods and platforms through which software is made available to end-users. These channels facilitate the delivery and installation of software applications. Common distribution channels for software products include:

1. Direct Downloads: Users can download software directly from the developer’s website or an official app store. This is a common distribution method for mobile apps, desktop software, and web applications.
2. App Stores: App stores such as Apple App Store, Google Play Store, Microsoft Store, and various other third-party app marketplaces provide centralized platforms for users to discover, purchase, and download software applications.
3. Cloud-Based Delivery: Software-as-a-Service (SaaS) and cloud-based software are delivered over the internet, and users access them via web browsers. This distribution method is common for cloud applications like Google Workspace and Salesforce.
4. Third-Party Resellers: Software companies may partner with resellers or distributors who sell and distribute their software to a broader customer base, often in specific regions or industries.
5. OEM (Original Equipment Manufacturer) Partnerships: Software may come pre-installed on hardware devices like computers, smartphones, or IoT devices through OEM agreements.

Marketing Channels for Software Products involve the strategies and channels used to promote and market software applications to potential users. These channels encompass various marketing activities and communication methods. Common marketing channels for software products include:

1. Digital Advertising: Online advertising campaigns using platforms like Google Ads, social media advertising, and display advertising to reach potential users.
2. Content Marketing: Creating and promoting blog posts, articles, videos, and other content to educate and engage users. This can include tutorials, user guides, and industry-related content.
3. Email Marketing: Sending newsletters, product updates, and promotional offers to a subscribed user base to nurture relationships and encourage software adoption.
4. Social Media Marketing: Leveraging social media platforms to engage with users, share updates, and run targeted advertising campaigns.
5. Search Engine Optimization (SEO): Optimizing website content and structure to improve organic search engine rankings and increase visibility in search results.
6. Public Relations (PR): Building relationships with media outlets and industry influencers to secure press coverage and reviews of the software. We’re yet to see a creator-tech where creative agencies can leverage technologies to boost creator initiatives.
7. Affiliate Marketing: Partnering with affiliates or influencers who promote the software to their audiences in exchange for a commission on sales.
8. Webinars and Events: Hosting online webinars, workshops, and participating in industry events and trade shows to showcase the software’s capabilities.
9. Word-of-Mouth and Referrals: Encouraging satisfied users to refer others to the software through referral programs or incentivized referrals.

Leveraging Martech (to improve marketing strategies, customer engagement, and overall marketing performance) & Adtech (to facilitate the buying and selling of advertising space or inventory in real-time across digital channels) solutions are the most effective ways improve the ROI of the channels.

MarTech and AdTech are two complementary sets of technologies that can be used to improve the effectiveness of all of the marketing channels mentioned above.

MarTech (marketing technology) refers to the software and tools used to automate, manage, and analyze marketing campaigns. MarTech can help businesses to:

• Automate tasks: MarTech can automate tasks such as email marketing, social media management, and lead generation. This can free up time for marketers to focus on more strategic initiatives.
• Manage data: MarTech can help businesses to collect, store, and analyze data about their customers. This data can be used to create more targeted and effective marketing campaigns. Also used are the push channels — including email, SMS, push notifications, and now WhatsApp.
• Analyze performance: MarTech can help businesses to track the performance of their marketing campaigns. This data can be used to optimize campaigns and improve results.
• Identifying each customer’s preferred channel and implementing a journey overlay for message delivery. This means that if I receive a push notification and respond to it, no additional messages with the same theme will be sent to me. If I don’t respond within a specified time, an email can be triggered, and so forth with follow-ups on other channels as needed. Unichannel essentially adheres to the “One Customer, One Message” principle. It is designed to fix another commonly broken customer experience — the repetition of identical offers or alerts.
• Segmenting customers and applying targeted marketing techniques such as Velvet Rope Marketing (VRM) is a potent strategy where firm creates a ‘VIP experience’ for high-value customers based on their customer lifetime value (CLV).

AdTech (advertising technology) refers to the software and tools used to deliver, target, and measure online advertising campaigns. AdTech can help businesses to:

• Deliver ads: AdTech can help businesses to deliver their ads to the right people at the right time. This can be done by targeting ads based on factors such as demographics, interests, and browsing behavior.
• Target ads: AdTech can help businesses to target their ads to specific audiences. This can be done by using data about past purchase behavior, website visits, and social media activity.
• Measure performance: AdTech can help businesses to measure the performance of their online advertising campaigns. This data can be used to optimize campaigns and improve results.

By using MarTech and AdTech together, businesses can create more effective marketing campaigns that reach the right people, at the right time, with the right message. This can lead to increased brand awareness, improved lead generation, and higher sales.

Here are some specific examples of how MarTech and AdTech can be used to improve the effectiveness of marketing channels:

• Social media: MarTech can be used to automate social media posting, track engagement, and measure results. AdTech can be used to target social media ads to specific audiences.
• Email marketing: MarTech can be used to automate email marketing campaigns, track opens and clicks, and measure conversions. AdTech can be used to target email ads to specific audiences.
• Content marketing: MarTech can be used to track website traffic, measure engagement, and optimize content for search engines. AdTech can be used to promote content on social media and other channels.
• Search engine optimization (SEO): MarTech can be used to track keywords, monitor search engine rankings, and optimize website content for search engines. We can introduce a Generative AI tool that optimises the website content accordingly & AdTech can be used to promote website content on social media and other channels.
• Pay-per-click (PPC) advertising: MarTech can be used to track clicks and conversions, optimize bids, and measure results. AdTech can be used to target PPC ads to specific audiences.
• Influencer marketing: MarTech can be used to track influencer engagement, measure results, and optimize campaigns. AdTech can be used to target influencer ads to specific audiences.
• Word-of-mouth marketing: MarTech can be used to track mentions of the brand online, measure sentiment, and optimize campaigns. AdTech can be used to promote word-of-mouth marketing through social media and other channels.
• Also, brands are missing an opportunity for a high quality, high-ROI channel known as Newsletters because they either don’t know about it or it is too time-consuming to execute. We can build a platform for newsletter writers to land great brand deals.

Brands don’t really know about all the opportunities present in the market, a platform that helps them find creators of newsletters, social media & other forms of creator-driven advertisements would make their lives easier to find perfect ad-sources.