Product Strategy
Product strategy includes
decisions about product mix andlines, brands, packaging andlabeling, and warranties
The product strategy containsthree important elements:
1) the determination of product objectives;
2) the developmentof product plans that will help reach product objectives;
3) the development of strategiesappropriate for the introduction and management of products.
The main product objectives include:
- growth in sales;
- finding new uses for established products;
- using excess capacity;
- maintaining or improving market share;
- developing a full line of products;
- expanding a product’s appeal to new market segments.
Once a marketer has determined a set of product objectives, it is then possible to initiatethe activities that constitute the product plan. Although there are a number of ways to lookat this process, it is expedient to explain this process through the product lifecycle concept(PLC).
Product planning should be an ongoing process that consistently evaluates existing products,
modifies where necessary, deletes products that no longer contribute to the firm, andintroduces new products. Since most companies have at least one product line (and perhapsseveral), each containing several items, product management is a necessary activity. The task involves gathering the necessary data, utilizing a framework toevaluate it in light of a particular product or groups of products,selecting an appropriatestrategy, and implementing that strategy .
⠀ Kotler, P., Keller, K. L.(2012). Marketing management(14th ed.). New Jersey: Prentice Hall (p. A6)
⠀ Burnett, J. (2008). Core Concepts of Marketing. Retrieved from http://www.freeinfosociety.com/media/pdf/2936.pdf.