Product Strategy?

CHAPTER 6

MARRY JOY COLA

What is Product?
Anything that can be offered to a market for attention, acquisition,
use or consumption.
Satisfies a want or a need.
Includes:
Physical Products
Services Organizations
Persons Ideas
Places Combinations of the above
What is Product?
Product value is derived from
◦ Features, and
◦ Benefits received
Products can be tangible goods, services, places, ideas,
organizations, or people.

6-3
Product Strategy
◦ Helps in deciding the basic elements of a products
such as its marketing mix and it’s design
◦critical to the success of the overall marketing
strategy.
◦ Helps the formation of the product road map.
Importance of Product Strategy
 Helps decide the exact steps to be taken in any event t make the
product a success
It prepared the company for response by competitors or towards
changing market conditions.
It helps the company decides the target market.
 A product vision is formed thereby setting the product on an
independent path with a time to time intervention allowing the
company to focus on multiple products in a short time.
7 STEPS- How to develop a Product
strategy?
1. Marketing Mix
2. Level of a product
3. Types of products
4. Differentiation
5. Brand Elements
6. Product Design
7. Product Mix
Marketing Mix
Product Design is a crucial role because a change of
product brings a change to other elements of the
marketing mix.
Majorly depends on the product; like promotions,
plan and price
Core Customer Value
 The first one of the levels of product
Answers the question: What is the buyer really buying?
 What does the consumer really seek?
What benefit does the customer really seek?
What is the problem that needs to be solved?

When a marketer designs a product, he should first think of the core

problem.

Example: A woman buying a lipstick seeks more than just a colorful cosmetic. In fact, she might
seek hope.
Actual Product
 Marketers should turn the core benefit, the core customer value
they identified into an actual product.
This involves developing product features, design, a quality level, a
brand name and even a packaging.
Augmented Product
 being built around the core value and the actual product.
 the complete solution to your connectivity problems as defined by
the core customer value.
take the form of a warranty, after-sale service, product support,
instructions on how to use the device and so further.
 Types of Products
When deciding the product strategy you need to consider what is the
type you want to target.

 Durable Products/Non Durable products

 Shopping Goods/Specialty Goods/Convenience
Goods
Industrial Goods/Consumer Goods
Service Products
Note: STP is an important step in strategy but this step will clear your mind on
what segment you are going to target because of its restrictions to chosen
segment.
Differentiation
Features which can be use to differentiate a products.

• Product Form and Product features

• Product performance levels
• Reliability / Reparability / Durability
• Style and Design
• Ordering ease / Ease of installation
• Customer service / Warranties and
Guarantee
Brand Elements
Branding gives a product a distinct identity and differentiates it from competitive
products using: words, designs, and symbols.
In terms of branding, a product may carry:
◦ Company name and individual brand.
◦ Courtyard by Marriott
◦ Individual name.
◦ Gap, Old Navy
◦ Private-label brand.
◦ Wal-Mart
◦ Multiple Brands (co-branding, ingredient branding).
◦ Dell PC with Intel computer chips
Brands Should Be….
Meaningful.
Recognizable and memorable.
Capable of being legally protected.
Suitable for international markets.
Product Design
product design plays a crucial role in the success of a product and should be given due
consideration while designing the product strategy.
 The technology market is built on product design
If we want to talk about product design, we just cannot ignore the fashion industry which is
completely dependent on the design of the product to build its brand identity.
Product Mix
Product Mix: The overall assortment of all product or services offered.

Product mix, also known as product assortment.

is the total number of product lines that a company
offers to its customers. The product lines may range
from one to many and the company may have many
products under the same product line as well.
 All of these product lines when grouped together
form the product mix of the company.
Sometimes a single product might not make the cut
but its product variant might be an instant hit. Take
shampoos for example.
Most in demand shampoo are the Anti-dandruff
shampoo.
Thank you and Good
luck to the
Summative Test!!