Disadvantages Of Product Strategy

Good Essays
Product Strategy
Strategies are crucial for the success of each and every business entity. Depending on how they are formulated they can mean the success or failure of any given business venture in the world. The strategies are executed at various management levels in any given business entity. Each strategy is implemented to serve a particular purpose for the company all in a bid to ensure that the objectives of the business institutions are met and the business is able to be profitable and productive. Strategies cover many different areas and they come in a number of forms. For any given company the strategies implemented differ from those of their competitors in terms of the type or the method of execution. One of the most
…show more content…
As a result of the product strategy the company is able to be in a position to draw in and observe specific target markets for the product and from this point on gain the insight of the consumers with regard to the product in question. Using the product strategy the company is able to plan for the processes that will ensure the success of the product in the market which is one of the ways in which the company will achieve its vision. In this way the company is able to plan for the future, put in motion activities that play a crucial role in the same and implement strategic actions that support the desired product strategy.
Product strategy is based on a number of key elements which ensure its success once it is implemented. The elements include price, customer value and product or service that is being offered to the market. In order to effectively come up with a product strategy the company needs to consider the product or service they are offering to the market and ask relevant questions such as how the product will impact the market especially in relation to the presence of other competitor goods, its impact on the consumers and what it is that makes the product or service on offer stand out from the rest of the
…show more content…
Some of the theories include market segmentation, brand equity and market orientation. Brand equity is the added value that is given to a product by the consumers. Its concept is based on the knowledge of the brand in the minds of the consumers. In this way the product strategy applies the customer value element in order to ensure the success of its product. Market segmentation is the division of the market into a number of segments each depending on a number of similarities between them (Sarkissian, 2016). In this way the company is able to have a specific target market for its products. Market orientation defines the manner of doing business in a manner that places great importance on the customer. The way of doing business is oriented to what needs of the customer can be serviced by the product or service that is being offered by the

Related Documents

  • Decent Essays

    Positioning is the act of designing the company’s offer and image so that it offers a distinct and valued place in the target customer’s mind. An organization can improve this perception through its various strategic promotional activities. Every organization should also define themselves to the consumers in comparison to their competition. Brands can be positioned in relation to their competitive brands on product maps in which relative positions are defined in terms of how buyers perceive key characteristics. What are product maps?…

    • 1380 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    Through surveys, or FGD (Focus Group Discussion), there needs to be an identification of how important this selling proposition is to the target market/customer and whether they are intrigued by the offering. It needs to be clearly understood what the key features and benefits of the product are and whether they will help ensure sales. Next is understanding the Consumer. The product can be focused by identifying who will purchase it. All other elements of the marketing mix follow from this understanding.…

    • 1167 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    A positioning statement communicates the parameters of the company’s position to a number of different audiences. Position statement includes the target segment as well as the unique selling point, which is the company’s competitive advantage. Marketers have to state who they are trying to persuade, who they are competing with, and how they are better than the competition. The positioning statements according the author, is “a basic guiding principle in all their collective decisions, so as to enhance the likelihood of consistencies in the results of those decisions” (pg. 63, Iacobucci), positioning statement is a memorandum of company information needed as a way to fix problems and create new ways to improve segments.…

    • 810 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    The actions that can be taken by marketers to attract and keep customers is known as the marketing mix. The marketing mix is popularly known as the four P’s of product, price, promotion, and place. For a successful trade to occur, the customer must see a value in the product or service. A value proposition is a promise to customers of the value to be delivered in exchange for some…

    • 1041 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Essentially, the company is providing a product or service that the specific customer segment requires or wants. Since organizations must make a strategic trade-off between value and cost (Rothaermel, 2017), value propositions enable a company to determine what their customers value. Once an organization determines what their customers value, they can effectively determine the rest of the business model. resulting in a successful business plan that provides the company with a competitive…

    • 877 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    However to ensure your marketing plan is successful, it is essential for a business to take a customer view across the marketing mix. Whether it is products, or pricing, distribution or communications, consumers can provide important information to feed into the strategic decision making process. The most common way to gather this information is through consumer surveys or focus groups. Through market research consumers can tell you which products they find appealing and why. They can provide an indication…

    • 766 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Once the problem has been recognised the consumers must seek information to make a decision. That is the beginning of the information search process. To the consumer information search may take time, money and energy. Therefore marketers need to consider their strategies to best target their consumers and facilitate the search by presenting a product or service that will meet the consumes needs. According to (Quester, Pettigrew, Kopanidis, Rao Hill, & Hawkins, 2014) there are two sources of information that influence consumer behaviour.…

    • 1798 Words
    • 8 Pages
    Decent Essays
  • Decent Essays

    Whereas, Market Targeting is next step which involves evaluating and exploring each market segment’s attractiveness and suitability according to the company’s nature, then selecting one or more market segments as the target market of the company. Positioning process requires forming a product that will occupy an idiosyncratic and desirable place analogous to rival products in the minds and hearts of target customers. This gives the company and its product a competitive edge over rival companies and products. Differentiation is the beginning of effective positioning process. Its primary focus is on providing consumers with greater value by differentiating the company’s marketing schemes, offerings and…

    • 1012 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    B & G Shoprite Case Study

    • 1423 Words
    • 6 Pages

    Question 1: Market Segmentation is the process of grouping a market of potential buyers into distinctive groups of buyers that have mutual needs and respond equally to a marketing action. This help the companies like B & G Shoprite to target different groups of consumers perceiving the benefits of their products, A Close Shave. At the end of marketing segmentation, the Company (B & G Shoprite) will be able to establish their target market. B & G Shoprite should concentrate market efforts toward one or a few key market segments consisting with needs mostly close related to the new product A Close Shave. After B & G Shoprite have segment and target the market, they should consider the best way to position the product.…

    • 1423 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    CRM therefore manages the customer relationships by creating a clear understanding of the market (Know), by developing services and products based on the added value for target groups (Target), then enabling the actual sale and delivery of services and products via a portfolio of channels (Sell) and finally developing long-term profitable relationships with after sales services (Service). The relationship is developed with strategically significant customers, and hence necessary for the organization to determine the nature of this significance. Traditionally, this has been done by determining the value of the customer to the organization, but other criteria that can be used include whether a customer serves as a benchmark for other customers or whether the customer inspires change in the supplier. However, under certain circumstances CRM may result in the termination of relationships. It has not worked out that well in practice as many large companies sometimes spend huge amounts of money on CRM systems only to find disappointing results.…

    • 731 Words
    • 3 Pages
    Decent Essays

Related Topics