A product cannot be successful without a developed strategy for its implementation in a constantly changing world. Even if at the present stage of existence it is profitable and meets the requirements of customers. The stage of preparation of the product Strategy occurs with simultaneous research and analysis of the market. Market research includes customer and competitor information.
Product Strategy Definition
A strategy is a set of activities for the gradual development of a new product or improving the results of an existing one. This is a marketing plan that may include brand architecture and identity, customer service, business model, design, functions, release, market niche, pricing, promotion, risks and so on.
Essential Elements of Product Strategy
To be effective, the product strategy must be coordinated with other marketing areas. This is the price, distribution, and promotion. The strategy includes
- The formation of the product function, which consists of determining the characteristics of its future image: physical characteristics, quality.
- Packaging and scope of warranty and after-sales services. These features influence the customer’s perception of its usefulness. So they have a significant impact on purchasing decisions.
- The formation of the structure of the range. That is, the width and depth of the range (types and varieties) of the products offered.
- Planning the product’s life cycle. That is, actions related to the launch of the market, monitoring of the subsequent stages of the life cycle, improvement, exit from the market.
- Creation of new needs and products that can satisfy them. That is the result of technological progress and changes in lifestyle.
Key Step to Develop Product Strategy
When you have a complete understanding of the strategy and the necessary analysis is made, you can begin to develop. At this stage of the product life cycle, its design, design and testing take place. Development brings new products and updates to the market.
The launch of the product ensures its appearance on the market and includes an operational and marketing component. This is a unique moment of truth for all team members because the product is ready for acquisition by customers.
Product launch planning takes place in parallel with development. This may include sales planning, promotion issues, customer support, pricing, risk management and monitoring.
Branding determines the value and individuality of the product, which should “settle down” in the minds of customers. This process includes such marketing elements as concept definition, naming, company identity, creating visuals, brand recognition, positioning, brand loyalty and more.
Promotion includes a communication strategy to increase product awareness and awareness. Promotional activities also accelerate customer interest and enthusiasm.
The main goal of any advertising campaign is to generate demand for products in support of sales.
Therefore, product managers must have sufficient experience and skills of marketers to work with advertising, PR, communications and sales.
Work with clients is a business approach focused on customer satisfaction. It consists of any interaction with the client and their support.
Pricing refers to setting a specific price, which is aimed at maximizing long-term profit. It depends on supply and demand, market competition, behavioral factors, rules, and relevant norms.
Product managers must take care of how and in what form the product reaches potential customers. This is related to marketing channels and may include retail sales, affiliate campaigns, direct marketing, dealer networks, sales agents, resellers and other options.
This is the final step in managing the product cycle and building customer relationships. This is the process of closing a deal and a commercial agreement.
This is a post-sale stage. Customer reviews play a key role in improving the product features offered. This provides product managers with valuable information and suggestions and helps identify problems they were not aware of.
What is the main goal of a product strategy?
Any strategy is aimed at satisfying the interests of stakeholders and achieving goals at different levels. It should contain a clear idea of the product values for all team members.
Product strategy is the foundation of its life cycle. If you want to build a reliable and successful strategy for your product, pay attention to its aspects: vision, goals, ideas, and initiatives.
- The vision of the product consists of research on market opportunities, positioning issues, target audience, competitor analysis, etc. It describes the needs of customers and how you plan to satisfy their needs.
- Product objectives should be clear, relevant, measurable and time definable. They can help product managers establish what they want to achieve over a period of time. For example, enter the Asian market, increase revenue by 25%, etc.
- Product ideas and initiatives are efforts that must be implemented to achieve strategic goals. For example, improving the user interface, optimizing performance, expanding opportunities for customers from the United States and more.
5 key questions for a product manager to help define a strategy
It may seem trite, but the correct definition of the target audience is the first step to success.
Describe for yourself what you are selling, and think about how customers will perceive your product compared to competitors. Identify unique features.
It’s time to think about the perceived value of the product and pricing model.
Think about real customer issues that can be resolved with your product.
Describe how you will sell and market your product.
A product strategy is a direction for optimizing the assortment range of company products, which is most preferable for achieving its maximum effect. These are options for long-term strategies. They relate to the assortment, its rationality and profitability of individual products in the lineup. A product strategy can determine the vector of a firm’s development in relation to the choice of its product offer on the market, taking into account the opinions of customers