Often I get asked, “What’s the difference between a product introduction and a product launch?” I thought I would take a few minutes to explain the differences because there is so much misinformation and misapplication of the two terms.
A product introduction refers to the initial unveiling or announcement of a new product to the public or a specific target audience. It is the first opportunity for the company to showcase and generate awareness about the product. During a product introduction, the company may highlight the product’s essential features, benefits, and potential value.
This can be done through various channels such as press releases, media events, trade shows, or online marketing campaigns. A product introduction aims to create excitement, generate buzz, and build anticipation among potential customers, but often in the tech world, it’s nothing more than that and has often been labeled as vaporware. A great example of companies and product introductions was held at the famed DEMO conferences. There, companies showed what they were working on in hopes of raising awareness and, more importantly, the money to deliver the products or services. Some did deliver. Many didn’t.
On the other hand, a product launch goes beyond the introductory phase and involves making the product available for testing, evaluation, purchase, delivery, and actual use by customers. It marks the period when the product is officially released and enters the market.
Product launches typically include inventory management, distribution logistics, sales promotions, marketing campaigns, and customer support readiness. The company focuses on ensuring that the product is readily accessible to customers through various sales channels, both online and offline.
During a product launch, the company may provide additional details about pricing, availability, warranties, and related services or support. This is when customers can finally purchase and start using the product for its intended purpose. The launch phase is crucial for driving initial sales, gaining market traction, and gathering feedback from early adopters. The momentum and anticipation are satisfied if too much of this information is shared during the initial introduction phase. For those who tell their story too early, product sales will suffer as its old news when the product is available, especially if other companies beat them to market with something similar, better, or cheaper with the same claims and promises.
This all makes the main difference between a product introduction and a product launch lie in the availability and usability of the product. A product introduction is about showcasing the product to the world, creating awareness, and building buzz and anticipation. In contrast, a product launch involves the actual availability of the product for purchase, delivery, and use by customers.
Between the two periods, there is now the“order-taking” phase. Apple is the master of this “show, tell, and sell” approach, as they put actual products, not prototypes, into the hands of reporters and industry analysts during the sales period, which is often the same time as the introduction. During that time, they start taking orders, and usually, within three weeks, the first orders will be delivered. Others, whose products usually are sold on crowdfunding platforms like Indegogo or Kickstarter, take the money, have customers waiting, and may never deliver the products.
For marketers who worry about the buzz created early on through social media and in the media, this is often a route fraught with peril, as the hype made early on usually dissipates when product delivery dates keep being pushed out farther and farther, as the promises of what will be get delivered by others much earlier, making it the over the hyped company, me too offering even though it told the story first.