What to Consider When Creating A Product Strategy
The most important thing when launching a new product to market is the marketing strategy specific to your product. This is often referred to as a product strategy. All good businessmen know marketing strategies are essential to meeting the challenges of the competition. The primary objective of a marketing strategy is to put the products or services in the right place, and within the reach of all target consumers.
Having a product management strategy brings you many benefits to your business, such as: increasing sales and profits, improving the effectiveness of the marketing message for customers and partners, distinguishing your business from the competition by identifying the distinctive advantage and elements of support, among others.
If you are thinking of launching a new product on the market, but you aren’t sure what you need to create your product strategy, you’re in the right place!
Before telling you about the essential factors that are needed to create an adequate strategy, we first need to cover what product strategies are.
What Are Product Strategies?
Product Strategies are actions that companies undertake to design a product or service, taking into account the needs of the potential customer.
The objective of these strategies is to give an accurate and targeted visibility to what the brand and product offers. There are four key points of a product strategy to consider:
- Market research
- Creation of short, medium and long term objectives
- Creating a budget
- Establishing a target audience
It’s good to create several strategies as it helps to have a well defined path and avoids wasting time and money due to a bad approach during the campaign. If you want to develop a good product strategy, it’s very important to analyze your consumers. Today, the market is very volatile and you must adapt to it. Because of this, it’s very important to constantly update your brand so as not to be left behind. Before, customers were looking for the best product or service; now they are looking for companies to listen and understand them.
Now that we understand why product strategies are important, let’s talk about three different approaches to marketing your new product.
1. Pricing Strategies For Your Product
Like most strategies, this strategy plays a crucial role in the success or failure of your product. Before determining a price point for your product, it’s helpful to carry out a thorough market analysis to ensure the sustained presence of your product in the market. To determine the price of your product, it’s essential to know what type of consumer you are targeting. To aid this process, you can ask yourself the following questions:
- Are my consumers looking for exclusivity and luxury?
- Is my product a basic consumption for people?
- Are my clients more interested in price than in quality?
- Is my product focused on the market I want to reach?
Asking yourself these types of questions can help you avoid sending the wrong message to your consumer. For example, if you offer your product at a lower price to get your customer’s attention, but your customer is interested in quality, they may question the quality of your product and therefore their purchase. You have to keep in mind that the price of your products or services must be fair for both: for you and for consumers.
2. Developing Strategies For New Product Lines
For this specific strategy, it important to try to meet the objective of reaching more consumers in more specific markets by increasing the variety of products. To do this, consider making personalized changes or offering customized products. Consider the following 4 factors:
- The variety of products: If you specialize in a single product, your strategy may be to focus on the product launch, but this may be specified for different industries so that consumers will know that your product is flexible enough to satisfy multiple needs.
- Creating product value: In order to execute this strategy, it’s important to listen to the customer and understand what they are looking for. Many people are willing to pay more to have a product that delivers beyond their basic needs. Delivering value is all about positioning your product in a way where the consumer finds your product useful in their every day life – something “they can’t lie without.”
- Developing your products image: It is necessary to implement this step! It’s all about making the image of your product attractive and setting the tone of the brand. The appearance of the product you launch is essential to your overall success. Starting off on the right foot is critical to developing brand recognition and trust.
- Focus on the details: When developing your product, don’t stop at the product itself. It’s important to also consider the consumer experience. What do you want your customers to feel, hear and smell when they unwrap your product? Now more than ever, it is important to set your product apart from the rest and product packaging is an easy place to start!
3. Strategies Based On Seasonality
This strategy is the most common among companies. Seasonality typically goes hand in hand with increased demand for various products. During the holidays, consumers always buy more. Take advantage of consumer buying behaviors to help boost your product sales.
Depending on the product you want to launch, it may be advantageous to change your approach depending on the season. For those with versatile products, adapt your product to summer, winter, autumn or spring.
This article has been published in accordance with Socialnomics’ disclosure policy.