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Preparation for marketing may include the design of strategies for the goods. One example is the expansion of a successful product line by adding supplementary products. A business may also add to the product mix by focusing on adding more product lines, which is the total range of products it sells. Another tactic is to adjust a product’s packaging to make it more attractive than a rival’s, or to create the impression that the product has been changed too.
Introduction and Goal
A product strategy is a high-level plan that outlines what a company’s marketing target is to accomplish, and how it aims to do so. The approach will address important questions such as who should represent the product (people), how it will help those people and what are the company’s expectations for the product during its lifecycle. A product strategy serves a variety of important market objectives. A product strategy forms the basis for the entire product life cycle. As marketers develop and change their marketing strategy, they zero in on target audiences and what they need. It tells the strategic planning required to make a good company happen. When your strategy concept is complete, you can use it to shape your product understanding. It is where you explain the solution which will deliver and prepare when and when to develop your product. Customer definition defines key product criteria — including changes, features, user interface and design, and technical requirements. A marketing strategy refers to an organization ‘s overall game plan for attracting potential customers and making them buyers of the organization’s products or services. An organizational value proposition, major brand ads, customer demographic target data and other high-level elements are included in a marketing campaign.
The product strategy says the marketing plan, which is a document detailing a company’s specific types of marketing activities, which includes timetables for executing different marketing campaigns.
Ideally, marketing campaigns would have longer lifespans than individual marketing initiatives, since they incorporate value propositions and other core elements of a company’s identity that are typically consistent over the long haul. Marketing tactics, in other words, cover specific picture advertising while marketing plans delineate the technical specifics of individual campaigns.
A marketing strategy draws on the ultimate vision that the company has. It states where the product will end up. By setting a product strategy you can determine the direction of your product endeavors.
Just like making good use of a map, first you need a destination and then you can plan your itinerary. Just as a corporation has a simple vision of what it wants to be as it expands, so it has its own goal and purpose.
The product strategy forms the basis for implementing a product plan and subsequent product releases. The product strategy helps the company to focus on a particular target audience and collection of features, instead of attempting to be all to all.
You can consider that a marketing plan is the dream of a company. When a company starts a product, it has a dream of where the product will go. The marketing technique is to plan the measures bare bone to ensure the product reaches the room it needs. A strategy like this helps set the right course for the business.
The advertising strategy helps to determine a company’s key components, such as its marketing mix and design. It also helps to tailor the product to the right market, expand the product range, etc. at the same time. All of this will be addressed during the measures to build a marketing plan.
Elements of a Product Strategy
To who you sell to?Defines target market or client. Identify who you are selling to, and how the market looks.
What are you selling?
Describe how potential customers will view the company versus competing goods. Compose what makes the market special for the company.
What interest do you give your customers?
Determine what problems your product solves for its customers. You can’t be everything to everyone within a given sector, but you can help solve unique issues. Create a value proposition to set the value that your approach offers and the benefits that consumers can expect.
How are you going to price your product?
State how the commodity would be priced. Including its perceived interest and a guide for prices.
Marketing strategy requires careful planning, often based on exhaustive results from market research. Typically planning includes designing and implementing strategies to accomplish a particular objective, such as growing market share or having wider distribution. Planning can take place in one or more marketing mix areas, including pricing, promotion, product and location, also known as channels of distribution.
Planning for marketing may include the design of strategies for the goods. One example is the expansion of a popular product line by adding supplementary items.
A business may also add to the product mix by focusing on adding more product lines, which is the total range of products it sells. Another tactic is to adjust a product’s packaging to make it more attractive than a rival’s, or to create the impression that the product has been changed too.
Importance of Product Strategy
- In each case it helps to identify the exact steps to be taken in order to make the product a success.
- It prepares the organization for a response from the competitors or for changes in market conditions.
It lets the company identify and enter the target market. And a vision of the product is created, putting the product on an independent path with time-to – time interference that allows the business to concentrate on several items in a short time.
Creating the Product Strategies
Start by defining the business challenges you wish to tackle to build a product strategy. It involves questioning the target audience, knowing the business environment and deciding how you can distinguish from each other.
The product strategy will evolve over time as you know more about your business and when (if) you want to join new markets. It’s a constant process to listen to your customers and plan your product strategy; as you learn more, your product strategy and the challenges you ‘re solving will evolve.
Steps to Develop a Product strategy – How to build a plan for the drug?
This requires a lot of commodity study to develop a plan. You need to evaluate your rivals, the competition and different segments in addition to the product, so that you can come up with the best marketing plan.
Marketing mixProduct is the marketing mix’s principal component. If you have chosen to target a market segment then product design plays a key role. This is because a product transition is triggering a shift in all the other components of the marketing mix. Where it is a service or a commodity, for other factors such as promotions, position and price, the marketing mix is largely based on the product. Before deciding upon a promotional strategy, you need to consider the marketing mix. You will need to understand various aspects of the product, such as product line and length, what the product packaging should be and what kind of labeling will be involved. This stage essentially focuses on the product’s key aspects and its relationship to the marketing mix. Example – When deciding on a product strategy for electronics, you need to choose the different product line and length that a single model will have. The packaging and labeling to be used must also be determined, in addition to considering the impact of any of these costs on the marketing mix.
Levels of a productThere are different rates to a product. Some of the posts on this site address the three types of a product which include the main product, the actual product and the modified product. The article also addresses similar examples so if you want to learn about the three stages of a product then click here. A marketer has to assume the various levels of a product while deciding on the product strategy. Example – An automotive supplier or machinery supplier wants to offer service along with the product to the end-customer. If the supplier fails to operate the goods will not be sold. Hence, at such a time, the supplier must consider the significant role of the enhanced product in the product strategy. Without the various product levels and proper implementation of them, the product strategy the fail.
Type of Products
- Lasting products / Non-lasting products
- Shopping goods / Specialty products / Commodity products
- Consumer goods / Industrial goods
Deciding what product category will help you decide how to reach your target market. STP is an important strategic step, but this step will make your mind clear on which segment you are going to target, as the product is limited to that segment only.
The power of a strategy for a product comes from both what you define and what you exclude. You also exclude other markets by identifying a given target market in your product strategy. This helps your company understand which projects fall outside the strategy of the product and distract from the strategic objectives.
- Text Book: Marketing Management (By Yusniza Kamrulzaman Nor Khalidah Abu)
- Article: Marketing Strategy (By Adam Barone)https://www.investopedia.com/terms/m/marketing-strategy.aspPDF: Strategic Marketing Plan (By Collins Nwabuibe)
- https://www.researchgate.net/publication/268689035_STRATEGIC_MARKETING_PLANArticle: Product Strategy (By Product Plan)
- https://www.productplan.com/glossary/product-strategy/Article: Introduction to Product Strategy (By Aha!)
- https://www.aha.io/roadmapping/guide/product-strategyArticle: Product Strategy: Setting your strategic vision product offerings (By MaRS)
- https://learn.marsdd.com/article/product-strategy-setting-your-strategic-vision-for-product-offerings/Article: Examples of Strategy in Marketing Planning (By Chris Joseph)
- https://smallbusiness.chron.com/examples-strategy-marketing-planning-11945.htmlArticle: What is Product Strategy? How to develop a product strategy? (By Hitesh Bhasin)https://www.marketing91.com/product-strategy/