You can call a product strategy to be the vision of the product. A product strategy is a high-level plan describing what a business hopes to accomplish with its product, and how it plans to do so. Product is a good (tangible) or a service (intangible) that is offered to the customer to meet a requirement or satisfy a need. You can call a product strategy to be the vision of the product. Your marketing and sales teams will be able to articulate the product’s benefits and unique selling proposition. Besides product, you need to analyze your competitors, the market and various segments so that you can come up with the right product strategy. As with marketing strategy, product strategy should flow from the wider business strategy. The product strategy is comprised of … The technology market is built on product design. The market for the product and the specific needs it will address. If the manufacturer does not give service, then the product will not sell. These goals will, in turn, influence what the team prioritizes on its product roadmap. Both of them have CPU and both have monitors. Fashion labels like Gucci, Armani and others spend a fortune getting the design right. This strategy should answer key questions such as who the product will serve (personas), how it will benefit those personas, and what are the company’s goals for the product throughout its lifecycle. Naturally, when deciding on the product strategy, you need to decide the brand elements for the product. Without a product strategy to guide these decisions, the team is more likely to prioritize the wrong items and find itself misusing its limited time and resources. If a company launches a product, then it has a vision of where the product will reach. It outlines the steps needed to bring your vision to life, reach your target market and overcome any challenges that may arise. The marketing mix, which is the foundational strategy businesses use to engage consumers with their products, includes product, price, place and promotion. In essence, the core aspects of the product and its contribution to the marketing mix is decided in this step. a more strategically sound product roadmap, a product strategy should contain three key elements. As a result, their complete marketing strategy is focused towards one direction – Promoting their products as far superior then competition due to the differentiating factors. Take shampoos for example. How to develop a product strategy? hbspt.cta.load(3434168, '6fa10245-3006-4cd8-ac3a-41be902a0dac', {}); Product management expert Roman Pilcher suggests a product strategy should contain three key elements: An effective product strategy should include the following: A product vision (written as a product vision statement) describes the long-term mission for your product. The product is the most important element of the marketing mix. For this reason, a product vision should remain static. 2. Business Offering:The product/service offered by the business. What is Product Strategy? Just like with product roadmaps, goals should be Specific, Measurable, Attainable, Relevant, and Time-bound. Target Market: It is the customer segmentto whom all the marketing activities are directed. A product vision is formed thereby setting the product on an independent path with a time to time intervention allowing the company to focus on multiple. Product marketing is guided by a product marketing manager, but also requires the participation of a product manager and a sales team. Your email address will not be published. Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved. Is there any difference in product mix strategies and product strategies? You also need to consider various aspects of the product such as product line and length, what would be the packaging of the product and what kind of labelling will be involved. 3. STP is an important step in strategy but this step will clear your mind on which segment you are going to target because the product is restricted to that segment only. Sometimes a single product might not make the cut but its product variant might be an instant hit. Once you notice the rise of the product, you can decide on the type of product mix you want to introduce in the market to encourage further purchases and to improve brand equity of the product. However, to make it simpler, here are the features which you can use to differentiate a product or a service. You also need to decide the packaging and labelling to use besides considering the effect of all these expenses on the marketing mix. Your developers will understand how the parts of the product that they’re working on contributes to the larger companywide strategic goals. 4Ps of Marketing: Product Strategy. These are brands which have targeted product reliability and durability as a differentiating factor right from the product strategy stage. Marketing embraces the coordination of four elements (the 4 Ps of marketing): product (identification, selection, development), price, place of distribution, and promotion strategy (development and implementation). However, while deciding the product strategy you need to consider what is the type you want to target? Thus, product design plays a crucial role in the success of a product and should be given due consideration while designing the product strategy. If a company launches a product, then it has a vision of where the product will reach. If you have decided on a market segment to target, then product design plays a crucial role. They are large, complex objectives your team must break down into actionable tasks. Value Proposition: The benefitthat separates the company from the competition. The product strategy is the Developers can sometimes feel caught amongst all the details and lose sight of the overarching purpose behind all of their work, and a product strategy clarifies that for them. Additionally, your customer success team will better understand your product’s use cases and provide better support for your users’ frustrations. As said before, a product strategy helps you prepare for the future of the product and to give the right targeted direction to the product. hbspt.cta.load(3434168, 'e24240ff-5561-48cb-abf8-f013f03926b4', {}); After you’ve earned stakeholder agreement for your proposal, it will be time to translate that strategy into a high-level action plan. The symbols are unique too thereby clearly helping the customers pick the right product. Think of it as the road map for your product. Initiatives are the strategic themes you derive from your product goals and then place on your roadmap. 5. The only difference between laptops and desktops is the product design. The product strategy is the bare bone planning of the steps to ensure the product reaches the desired space. Example – Victorinox as a brand has several elements which can help differentiate between the genuine products vs a fake one. When developing the product strategy, it’s important to also consider the other three marketing mix elements to ensure they're all aligned. One of the articles on this site discusses the three levels of a product which includes the core product, the actual product, and the augmented product. Some of them are. Without the various levels of the product and their proper implementation, the product strategy can fail. Hence at such a time, the manufacturer has to understand the important role of the augmented product in the product strategy. Goal:A milestone which decides whether the marketing strategy was successful or not. I love writing about the latest in marketing & advertising. Similarly, it has symbols on the top of the knife as well as in smaller tools within the knife to differentiate the genuine from the fake. Even though there are numerous types of marketing strategies, all of them consists of these 5 components. A product strategy serves three main valuable business purposes. These are nothing but a combination of the product mix. What is Charisma? 7 Steps of Product Quality Management, Role of marketing in new product adoption, New Product Development - Process and 7 Stages. A lot of product analysis is needed to develop a strategy. What is Midlife Crisis and How to Deal with it? A product vision should lead to high-level strategic goals. This means building an effective product roadmap. Here is an article on Product design and its influence on the marketing of a product.