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What is Product Knowledge? Definition, Types, and Examples

Last updated: Nov 06, 2023

What is Product Knowledge? Definition, Types, and Examples
Cover image: Illustration of product knowledge to increase the effectivity in presenting products to potential customers.

What is Product Knowledge?

In the competitive and dynamic landscape of digital marketing, product knowledge plays a pivotal role in bridging customer interactions and effective product promotion. 

Product knowledge is one of the business strategies involving a profound understanding of a brand's products or services.

In the business world, it is a concept concerning the understanding of products not only required by the marketing team but also by various departments such as customer service and product development.

So, what is product knowledge and its function in the modern business world?

In general, a comprehensive knowledge of products is an aspect that empowers business practitioners to navigate the market with confidence.

Some good product knowledge examples typically include detailed information about the technical specifications of products, ranging from benefits, technical features, and usage instructions, to all relevant aspects.

It can be said that this kind of knowledge significantly aids the sales team in increasing brand awareness by providing accurate information to potential customers and assisting them in making decisions based on relevant information.

This deep understanding not only aids in marketing products efficiently but also forms the foundation for successful marketing strategies. Here, we explore the concept, importance, and product knowledge examples. Hence, make sure to read the following details comprehensively.

Why is it Important?

After understanding the basic concept of this strategy, you might wonder why it is crucial for businesses. What benefits can it provide, and how can businesses leverage this strategy to increase revenue?

A sales professional with a solid understanding of what is product knowledge can be more effective in presenting products to potential customers.

They tend to be more confident when explaining product features, providing practical usage examples, and responding to various questions clearly.

Understanding the product also allows them to identify customer needs and offer the most suitable solutions.

Moreover, this strategy can also help build customer trust. When customers feel they are talking to someone who truly understands the product, they tend to be more comfortable and confident in making purchasing decisions.


Benefits of Product Knowledge

In order to delve further into why this kind of knowledge is a crucial aspect that should not be underestimated, let's review the benefits of this strategy:

1. Enhances Brand Authority and Credibility

A deep understanding of products allows business practitioners, especially the marketing team, to convey accurate information to potential customers. 

This accuracy creates an impression that a brand not only sells but also possesses a profound understanding of the functionality, advantages, and uniqueness of the products they offer. 

Mastery of this business knowledge is a vital obligation that helps create a solid foundation for building positive relationships with customers.

2. Fosters Brand Confidence and Self-Assurance

Confidence is not only a personal attribute but also a crucial key in building a brand image. Based on that, this strategy can also forms a robust foundation for brands to enhance their confidence in executing marketing strategies, both digitally and conventionally. 

With in-depth knowledge of the product, business professionals, especially the marketing team, can confidently convey information to potential customers, avoiding uncertainties and creating a more solid relationship between the brand and consumers.

3. Facilitates More Effective Marketing Campaigns

With mastery of product knowledge, campaign developers can create more relevant content. 

They can understand product features and benefits, allowing them to communicate more suitable and value-added information to potential customers. 

In-depth knowledge of the product also enables the selection of more precise and measurable keywords

Knowing the terms commonly searched by potential customers related to the product allows campaigns to be optimized to increase visibility in search engine results (SERP). 

Smart keyword selection can also generate leads directing potential customers to your websiteweb app, or digital e-commerce platform.

4. Increasing Sales

Mastering knowledge about products is a primary step that can help businesses run campaigns targeting relevant audiences. 

In other words, product knowledge is a crucial aspect of digital marketing that significantly contributes to the increased sales of a product. 

With a comprehensive understanding of a product, business professionals can explain how the product meets customer needs, strengthens the product's appeal, and increases sales figures.

5. Enhances Brand Identity

Brand identity is a crucial asset in the business world. With in-depth knowledge of the product, businesses can shape a better brand identity. 

Understanding the uniqueness of the product, the company's values, and how the product meets customer needs can form a solid foundation for creating a positive brand identity.


How to Create Product Knowledge in Digital Marketing

In the competitive and dynamic business era, product knowledge is a key player in bridging customer interactions and product promotion. 

Therefore, business professionals need to know how to create product knowledge and maximize it in all forms of marketing activities. Here is a comprehensive guide with tips. 

1. Identify Every Category, Type, and Variant of Products

The first tip in understanding your product is to recognize each product's categorization, both in terms of type and offered variants. 

To start this step, conduct an in-depth analysis of the product to be promoted. Understand the characteristics, benefits, and added value offered so that you can more easily communicate this information to potential customers. 

In addition, regular training and periodic reviews of products can also be carried out to ensure that each team member is equipped with the latest information about the products.

2. Conduct Regular Product Socialization

Another crucial step in optimizing this kind of business knowledge is to regularly organize structured product socialization sessions. 

By routinely conducting socialization sessions, the latest information about the product can be directly communicated to ensure that the entire team understands the latest features, benefits, and changes to the products/services being sold. 

With an increased level of coordination between departments, businesses can maximize a more positive and satisfying customer experience.

3. Provide Comprehensive Written Resources

The next step to maximize your strategy is by providing comprehensive written resources. These resources can include product guides, brochures, and presentation materials in digital formats.

In essence, businesses need to ensure that these information sources are easily accessible and can be continuously updated.

4. Conduct Usage Case Simulations

In order to create or enhance understanding of the product, companies can also organize simulations of product usage cases to involve the team in direct experiences.

5. Open to Feedback and Conduct Regular Evaluations

Another equally important strategy within this spectrum is always to open up space for feedback and conduct regular evaluations related to product understanding.

By involving team members in the evaluation process, businesses can identify areas that require attention or further improvement.

With the above steps, a company can create a strong and sustainable culture, influence sales, create a better customer journey, and strengthen the brand's position in the market.


Product Knowledge Examples

This concept should never be underestimated, especially when we are talking about the dynamic field of digital marketing.

A deep understanding of products not only helps you market them effectively but also forms the basis for the development of successful marketing strategies.

For that reason, here are some product knowledge examples you need to consider in determining your product's Unique Selling Proposition (USP).

  • Product Value: Knowing the value of a product is the first step in differentiating your product from competitors.
  • Product Price: Understanding the exact reasons for pricing a product enables you to explain its value to consumers.
  • Product Lifespan: Related to the possibility of a decrease in quality over time, especially in food and beverage products.
  • Product Usage: Understand how to use the product and its functional aspects as strong selling points.
  • Product Attributes: Recognize the physical attributes and visual identity of the product, such as model, size, and color, which can influence purchasing decisions.
  • Product History: Knowing how a product has evolved over time can provide insight into its sustainability and brand reputation.
  • Production Process: Revealing the stages of production helps customers understand the product's quality through transparency.
  • Product Benefits: Understanding what consumers experience through the product can guide your marketing strategy.
  • Product Services: Understand the types of services accompanying the product, such as warranties or repair guarantees.
  • Additional Features or Add-ons: Know about new features or additions that are relevant and meet consumer expectations.
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