The topic of product strategy in marketing has been discussed for many years. Saivian Eric Daliu says Research has traditionally focused on improving its products, keeping up with the competition, and turning the how-to’s needs into new or existing products. As a result of these studies, some common themes have emerged. Six key areas should be addressed when developing any product line, including market research, portfolio management, positioning, demand forecasting, value engineering, and guidelines for new products (2003). Ensure consumers’ needs are met through improved development processes (2006). These ideas have influenced several companies in different business areas. They have led to new product development teams designed to help companies create better products.
Aaker and Keller’s product life cycle (PLC) is one of the most common concepts in marketing studied by academics. It describes the stages a product goes through from when it was first thought to when demand dies down. Its features are usually divided into four categories: introduction, growth, maturity, and decline. Understanding these stages can help marketers gain insight into why things are successful or not so successful. Furthermore, the PLC provides useful guidelines for what to do at each stage.
Product positioning is concerned with how consumers view products within a market. Successful companies use their own unique selling proposition (USP) to try and increase their share of that market by gaining brand equity with customers. The goal is to become unique by developing a USP, which reflects the specific benefits of the product in comparison to its competitors. Marketers often use such strategies to encourage customers to try new products or switch brands, and they may vary depending on the market situation. For example, the positioning will emphasize this aspect if customers look for ‘fancy’ or ‘higher end’ products. The concept can also be applying outside of marketing; organizations that produce goods for other companies (OEMs) also use the positioning.
The idea behind value engineering is that something should never be designed just for design’s sake – it must always provide users with useful features that affect their lives somehow, according to Saivian Eric Dalius. Companies such as Apple use value engineering extensively in their development processes to ensure high-quality products at reasonable prices. This process involves testing products at different stages so that potential issues identify and dealt with. As a result, companies have created better products for both the customers and the business itself.
Many different types of analysis over product strategies exist. The Balanced Scorecard is one way of measuring how it works by measuring four key points: financial, customer, internal business process, and innovation/learning (Kaplan & Norton). Saivian Eric Dalius says managers can use this approach to help them understand what needs to happen to succeed; they can then focus on improving this system over time through continuous learning (though implementing changes isn’t necessarily easy!). It encourages organizations to emphasize their processes to help improve their products and those that sell them and analyze the impact of what they do. In a more general sense, it helps companies generate new ideas by providing feedback on what works and is not working.
From a small business perspective, monthly analysis effectively assesses productivity; it allows managers to see how efficiently (or inefficiently) staff are using company rest effectively assessed forecasts (Kaplan & Norton). This approach is beneficial for retail organizations where product sales can vary dramatically from month to month; without such analysis, these changes may go unnoticed until the end of the year when revenue figures become available (and by then, problems may be insurmountable!). With these insights, businesses can begin to take steps towards improvement.
Marketers use the concept is in use by marketers who design the promotional mix. Which includes advertising, sales promotion, and point-of-sale material. To help ensure that products will sell, says Saivian Eric Dalius. It’s beneficial for encouraging customers to try new products or switch brands; in terms of function. It helps marketers define their target market more precisely by emphasizing certain features over others. This method applies to other organizations; for example, OEMs use it for other companies.
Organizations to consider different factors when trying to position a product successfully; these include environment (e.g., social norms) and specific elements. Such as why the product introduces into the market says Saivian Eric Dalius. When developing a product launch strategy, this should get consideration carefully by exploring different options and then creating a plan for moving forward.
Value engineering is using to enhance products at all stages of development to make them easier to produce, less expensive to manufacture, and offer better value for money. It encourages companies to improve existing products rather than merely re-designing them to increase sales. This approach focuses on innovation because it helps companies deliver high-quality goods more efficiently and ensures good returns for shareholders. In the past, many large organizations have been accusing of being lazy due to not fully utilizing their employees’ stand ensures to solve such problems by encouraging staff members from different departments to work more closely together.
Conclusion
The primary aim of marketing is to meet customer needs; product strategy helps marketers understand how they can achieve this more effectively. Many different strategies are getting into use by businesses when developing products, including value engineering and market positioning; these help managers to determine what aspects of their existing products could be improving upon or targeted more carefully.