Developing Product Strategy

Jul 16 • General • 1488 Views • No Comments on 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 :    Developing Product Strategy

  1. Establishing the objective that the product should acquire
  2. Selecting the strategic alternatives for the achievement of the objective
  3. Selecting the customers who should be targeted
  4. Identifying the competitor target
  5. Deciding on the core strategy for the product
  6. Description of the marketing mix i.e product, price, place ,promotion
  7. 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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