If you wonder why some companies have an uncanny knack for designing and selling products that most consumers like and relish, look no further than the firms’ product strategies. Leading businesses generally rely on these blueprints and marketing tactics to win the economic competition and remain in the pole position in customer-satisfaction surveys.
Product strategy marketing deals with the tools, technology and methodologies a business uses to distinguish its products and services. With sound marketing, the firm may receive more attention for its efforts to woo customers and make its products and services more desirable. A company that consistently comes up with sound product outlines and adeptly markets its merchandise is the darling of investors and securities exchange players. They view this consistency as a vigil for profitability and a sign that the business can remain solvent for a long time. To formulate a good product blueprint, an organization may decide whether to invest in a new technology, evaluate how much it will cost and whether it will enhance the firm’s goods, and whether it makes sense to make the investment now or later.
Effective product strategy marketing enables businesses to estimate potential cost and performance attributes for their products, as well as determine which attributes could spur profitability down the road. The goal is to find out features that customers like and how much it will cost to add them to products, while keeping in mind profitability goals top leadership has set. A properly defined and implemented product blueprint draws on the 4P concept, which stands for “product, price, promotion and place.” This concept helps a business chart a product strategy compatible with other parts of its marketing plan -- meaning the firm must make sure it designs goods it effectively can sell, promote and distribute.
Product strategy marketing can relate to a single item or a series of related or affiliated items. Corporate strategists often use the term “transactional marketing” or “transactional strategy” to describe how a company can engineer a plan for a specific product or one-time transaction. For example, a maker of cruise ships may devise a transactional product strategy to sell its multi-million dollar vessels to the few clients who can afford them.
A company often implements product strategy marketing to have a broader, better picture of its activities. In a sense, the firm draws up a marketing plan it can apply to all its products and services. This may be possible if the business manufactures items with plenty of substitutes or goods for which specific marketing may not be suitable. For example, a mass-scale clothing retailer may be better off adopting a broader-view product strategy for all its merchandise.