Product Strategy Options

Save

If you want to have a successful product, it is necessary to pick a product strategy. Without a strategy, you are simply depending on good fortune to provide success. Picking a strategy allows you to angle your product in a particular way that will create a strategic, competitive advantage. A strategic, competitive advantage is something that you can benefit from in order to have a leg up on your competition. There are a variety of specific product strategies that are used by marketing managers. Generally, however, successful strategies will fall into one of the three generic strategies identified by Harvard professor and strategy guru, Michael Porter.

Cost Strategy

  • Using a cost-based strategy involves attempting to keep your production costs as low as possible. Ways of reducing costs can include bulk buying power (buying wholesale lots at a discount) and economies of scale (production becomes cheaper per unit with a greater over all production quantity). In recent years, manufacturers have moved production into low-wage countries in order to further reduce production costs. If you can keep your production costs low enough, you will be able to offer your product at a price that is below your competitors' production costs. This makes it impossible for competitors to compete with you.

Differentiation Strategy

  • The differentiation strategy involves positioning your product in a way that differentiates it from others in the marketplace. Your product needs to have a special feature that is different from others available. A good example of a company that uses a strategy of product differentiation is Apple. Apple differentiates itself by having user-friendly computers and electronics. This gives them an advantage over similar products in the marketplace. It also contributes to profitability because this differentiating factor allows them to ask higher prices than competitors with similar products. This strategy is popular because it provides a unique selling advantage and it creates higher price points.

Focus Strategy

  • The third strategy is called the focus strategy. It is called that because it involves focusing on a small customer base that is willing to pay premium prices. An example of this is niche marketing, where a specialty product is developed for a small niche market. Production costs will typically be higher for a smaller, niche market, but selling prices will also be higher. Another example of the focus strategy is customization, where customers can buy a product that is customized to their particular wants and needs. This is common in the automotive industry, where you can buy a basic model car and have it customized with features that you choose.

Related Searches

References

  • Photo Credit bottle image by AGITA LEIMANE from Fotolia.com
Promoted By Zergnet

Comments

You May Also Like

  • The Advantages of an Aggregate Production Plan

    Manufacturers and service providers usually find that the demand for their products or services is not constant. Thus planning their production to...

  • Apple Marketing Strategies

    Few companies have made as big an impact on world culture as Apple. A company once on the verge of fading into...

  • What Are Product-Based Marketing Strategies & Customer-Based Marketing Strategies?

    One of the most well known models of marketing management is known as "the 4 Ps" of the marketing mix. The first...

  • Competitive Marketing Positioning Strategy

    The main objective of developing competitive marketing strategies consists of building and maintaining a sustainable competitive advantage for an organization over others...

  • What Is Product Strategy Marketing?

    If you wonder why some companies have an uncanny knack for designing and selling products that most consumers like and relish, look...

  • Marketing Strategies Examples

    Marketing is one of the greatest sales tools available for start-up and existing businesses today. It is, in its simplest form, all...

  • Business Differentiation Strategies

    Companies use many business strategies to differentiate themselves in a market saturated with competitors. A business can leverage its pricing and product...

  • Product Positioning Strategies

    Product positioning is a marketing strategy that helps place a product perceptually in the minds of consumers. Positioning typically requires creating differences...

  • Product Adaptation Strategy

    The term "product adaptation" can be used to describe a "follower mentality" in product innovation strategy or a particular aspect of business...

  • Product Differentiation Strategy

    Successful companies strive to distinguish their products from competitors through differentiation strategies. In an often crowded product market, customers crave product distinctions...

  • Product Strategy Examples

    A business looking to introduce some product into the stream of commerce must plan and design a product strategy carefully. Two major...

  • Apple Differentiation Strategy

    Businesses use the marketing strategy of product differentiation to distinguish their products from those of their competitors. Since the 1980s, Apple Inc....

Related Searches

Check It Out

Are You Really Getting A Deal From Discount Stores?

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!