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Product Strategy
Product Strategy
Product Strategy
a) Types of Product
The differentiated product The differentiated product enjoys a
distinction from other similar products/brands in the market. The differential
claimed may be real, with a real distinction on ingredient, quality, utility, or
service, or it may be psychological brought about through subtle sales
appeals.
The customized product Customer specific requirements are taken
into account while developing the product. Commonly practised in the
industrial product marketing, where the manufacturer and the user are in
direct contact and the product gets customised to the requirements of the
customer.
The augmented product The augmented product is the result of
voluntary improvements brought about by the manufacturer in order to
enhance the value of the product, which are neither suggested by the
customer nor expected by them. The marketer on his own augments the
product, by adding an extra facility or an extra feature to the product.
The potential product The potential product is tomorrows product
carrying with it all the improvements and finesse possible under the given
technological, economic and competitive condition. There are no limits to the
potential product. Only the technological and economic resources of the
firm set the limit.
b) Product Levels
Core Product- refer to the use, benefit or problem-solving service
that the consumer is really buying when purchasing the product.
Actual Product - tangible, physical product and what the average
person would think of under the generic banner of product.
Augmented Product - a commodity that has both the primary
physical attributes and the non-physical attributes that are added to increase
the products value.
c) Product Strategy
Quality
the major tool in positioning your product. It encompasses two key
elements:
1. quality level -how it made or perceived.
2. quality consistency - how it performs over its life.
Features
the physical or intrinsic characteristics of your product that contribute
to the benefits it offers.
Design
a combination of how the product looks and hot it performs
c.2 Branding
incorporates all the written information about your product and usually
takes the form of an adhesive sticker, a tie-on tag or a printed piece of
packaging.
Product Positioning
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MERGEFORMATINET
Introduction Stage
-
Sales will be low until customers become aware of the product and its
benefits
The firm is likely to incur additional costs associated with the initial
distribution of the product
Growth Stage
-
When competitors enter the market, often during the later part of the
growth stage, there may be price competition and/or increased
promotional cost in order to convince the consumers that the firms
product is better than that of the competition
Maturity Stage
-
production costs are extremely low with minimal advertising costs due
to brand recognition and brand loyalty
Decline Stage
-
Unit costs may increase with the declining production volumes and
eventually no more profit can be made.
Product-use Tests
Trade Shows
Distributor and Dealer Display Rooms
Standard OK Controlled Test Markets
COMMERCIALIZATION
> introducing the new product into the market.