Product Strategy


N's spirit Basic MBA > Product Strategy

Product Strategy

Product Strategy is one of the 4P's of Marketing.


Features of a product

To identify features of a product is the most important things when making a product strategy. The following things are examples of features of a product.

Variation and quantities
The positioning on Product Life Cycle
Purchase behavior when it is bought
Purchase process like AIDMA or AMTUL
Decision making unit
Customer's knowledge of the product
Opportunity to try it before buying
Frequency to buy it
Necessary or not in customer's life
Switching cost


KBF should be considered based on these features of a product.

Also, change with the times makes features of a product change. For example, radio was a necessary item for people before, but now, it has become a pleasure item for a few parts of people.


Structure of features of a product

Features of a product consist of three layers as below.

Core
This is a function making essential needs of customers satisfied, for example, contents of a book or liquid of a drink.

Form
This means associated features with core, for example, package, brand and name of a product.

Associated functions
This includes after services or warranties, for example, point card or quality assurance.


Types of a product

Durable product
It means a product that users can use for a long-term. For this kind of product, quality assurance and after services are more important. Therefore, to cover them by SG&A, the product should generate higher margin.

Nondurable product
It means a product that users can use instantly. For this kind of product, getting not only one-time customers but also repeaters is important. Besides, it is important to focus on quantity even if it is lower price.

Service
It is what production, sales and consumption occur simultaneously. Therefore, once it is sold, it cannot be fixed or returned. Since it is invisible, credibility is more important for service.


Process of product development

It normally consists of four steps as below.

Concept development
In this step, many ideas are come up with based on both company's technologies and customer's needs.

Strategic hypothesis consideration
In this step, marketing goal such as targeting or positioning is decided in compliance with the concept and revenue, cost and profit of the product is planned

Productization
In this step, actual design begins and test marketing is conducted. Finally, brand and package design is frozen and production plan is planned.

Launching
In this step, the product is launched into the market actually. In introduction stage, careful market watch is necessary because there are possibilities for unexpected occasion in this stage.


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Marketing
Marketing Process
Segmentation
Positioning
Marketing Mix (4P)
Product Strategy
Pricing Strategy 1
Pricing Strategy 2
Pricing Strategy 3
Pricing Strategy 4
Price Strategy for Service
Innovation of Pricing Model
Channel Strategy
Promotion Strategy
Prevention of Competitor's Imitation
Brand Strategy
B2B Marketing 1
B2B Marketing 2
Estimation of Market Size
Estimation of Market Size (ATAR model)
Estimation of Market Size (Logistic curve)
Estimation of Market Size(BASS model)
Stage Gate System


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N's spirit Basic MBA > Product Strategy

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