MBA Distance education learning/ Product Marketing strategy

Product Marketing strategy

A Product Marketing strategy is a text form of marketing and communication mix which include product development, promotion, distribution, and pricing approach, identifies the firm's marketing goals, and explains how they will be achieved within a stated timeframe.

A Product Marketing strategy is a process that allows a marketer to employ his limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantages.

A Product Marketing strategy should be centered on customer satisfaction as a main goal.

Product Marketing strategy determines the choice of target market segment, positioning, marketing mix and allocation of resources.

It is most effective when it is an integral component of firm strategy, defining how the organization will successfully engage customers,

Tactics and actions used in a Product Marketing strategy

A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy.

For example:

Use a low cost product to attract consumers as per market penetration strategy Once the organization, has established a relationship with consumers, our organization will sell with higher-margin products and services that enhance the consumer's interaction with the low-cost product or service.

Typically there are three types of market dominance strategies:

1. Leader : Like Coca Cola has been the market leader on coke segment.
2. Challenger : Pepsi has been the challenger to Coca Cola in the Coke segment.
3. Follower

• Porter generic strategies - The generic strategy framework comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow.
  1. Product differentiation
  2. Market segmentation
• Innovation strategies - This deals with the firm's rate of the new product development and business model innovation.. There are three types:
  1. Pioneers
  2. Close followers
  3. Late followers
• Growth strategies - In this scheme we ask the question, “How should the firm grow?” the most common gives four answers:
  1. Horizontal integration
  2. Vertical integration
  3. Diversification
  4. Intensification

Q: What are the Key elements of a successful marketing strategy?

A: The Key elements of a successful marketing strategy are

One of the key elements of a successful marketing strategy is the acknowledgment that your existing and potential customers will fall into particular groups or segments.

You can then create a successful marketing strategy that makes the most of your strengths and matches them to the needs of the customers you want to target.

For example, if a particular group of customers is looking for quality first and foremost, then any marketing activity aimed at them should draw attention to the high quality of your products or service.

Once this has been completed, decide on the best marketing activity that will ensure your target market know about the products or services you offer, and why they meet their needs.

This could be achieved through various forms of advertising, exhibitions, public relations initiatives, internet activity and by creating an effective 'point of sale' strategy if you rely on others to actually sell your products. Limit your activities to those methods you think will work best, to avoid spreading your budget too thinly.

Once you have decided on your product marketing strategy, draw up a marketing plan to set out how you intend to execute and evaluate the success of that strategy. The plan should be constantly reviewed and, if necessary, updated so you can respond quickly to changes in customer needs.

Q: Discuss the Swot analysis in the context of marketing strategy?

Ans: Understanding your strengths ,weaknesses, opportunities and threats in very crucial for charting out a marketing strategy.

Your strategy must take account of how your business' strengths and weaknesses will affect your marketing.

Begin your marketing strategy document with an honest and rigorous SWOT analysis, looking at your strengths, weaknesses, opportunities and threats through market research..

Strengths could include:

1) Personal and flexible customer service

2) Special features or benefits that your product offers

1. Specialist knowledge or skills

Weaknesses could include:

1) Limited financial resources

2) Lack of an established reputation

3) Inefficient accounting systems

Opportunities could include:

1) Increased demand from a particular market sector

2) Using the internet to reach new markets

3) New technologies that allow you to improve product quality

Threats could include:

1) The emergence of a new competitor

2) More sophisticated, attractive or cheaper versions of your product or service

1. New legislation increasing your costs
2. A downturn in the economy, reducing overall demand