Developing Product Strategy
Developing a product strategy is the toughest and the most difficult job that has to done by the marketer. Creating an efficient marketing strategy for a new or even existing product is done by every marketer and consists of different steps which are as follows :
- Establishing the objective that the product should acquire
- Selecting the strategic alternatives for the achievement of the objective
- Selecting the customers who should be targeted
- Identifying the competitor target
- Deciding on the core strategy for the product
- Description of the marketing mix i.e product, price, place ,promotion
- Deciding for the supporting functional programs
Establishing the objective– For deciding the objective of the product , it should be taken care that it should have the following characteristics:
- They can be quantified based on the performance.
- The should be more of challenging and practical.
- They should focus more on increasing the revenue for the firm in terms of share of market
- They should increase the profitability of the firm
Positioning strategy for the firm – In order to develop the product strategy the firm also needs to focus on the positioning strategy. Some factors that affect the positioning of the firm are:
i. The product
ii. Firm behind it
iii. Competitors
iv. customers
Positioning- Choice of customer targets
The choice of selecting customers for effective positioning is based on some important considerations :
- Size of the segment selected
- Resources available
- Various opportunities for obtaining the competitive advantage
Positioning –core Strategy
The core strategy defines the unique or distinctive advantage that has to be delivered to target customers in terms of price of the product and the values or offerings from the product.
Positioning Methods
The type of the product has a major impact on the positioning techniques. Different types of product are positioned in different way. According to this products are classified into different types:
i. Daily use product
ii. Impulse product
iii. Speciality items
iv. Industrial products
The technique in which the product needs to be positioned is also classified on the basis of following considerations:Positioning by specific product features
i. On the basis of benefits delivered
ii. On the type of usage
iii. For a particular user category
iv. On the basis of the price
v. On the basis of the quality
vi. On the basis of product specification
vii. On the basis of lifestyle of the user
viii. On the basis of reference groups
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