Product strategy in marketing mix

Product is one of the key factors in the marketing mix. In fact, we can also say that the product strategy in marketing mix has a significant impact on the profitability of the firm. We can also say that it can make or break a firm. Therefore, it is paramount to develop a product strategy in marketing mix.

A brief review of the marketing mix

The marketing mix is a set of four different factors that are under the control of the marketing manager. As the name suggests, the components of the marketing mix are the 4Ps. Generally, These are the variables that help form any marketing effort. An easy way to understand the marketing mix is through the 4Ps of marketing.

1. Product
2. Price
3. Place
4. Promotion

What is the need of a product strategy?

The purpose of any strategy is to reduce the risk and increase the profitability of the firm. Similarly, The product strategy helps the firm in planning, developing, launching, and selling a product. Here are some key benefits of the product:

• A product strategy can help the firm in defining clear, achievable goals.
• Proper goal setting Is the easiest way to increase the chances of success.
• A well-formulated product strategy helps the firm save money during product development.
• Finally, Product development strategy in the marketing mix helps increase sales and revenue.
• There have been cases where an excellent product has failed in the market while a mediocre one has succeeded. We all know about the VHS versus the beta Max war.
• Additionally, Product strategy in the marketing mix can also dissuade us from making failure products. A company loses a lot of money in time over products that fail in the market.
• Last but not the least, Product strategy also helps us unify the vision and mission of the company. A company that does not have a very clear product strategy Is not perceived as a market leader. Although there are many critics of firms like Apple, all their products are from the same unified philosophy.

What is a product strategy?

Open markets are like a quagmire. It is not enough that you try. In fact, if you try too hard you may still sink. Before developing the marketing mix We must ensure that we have done our homework. In this case, we need to develop a background for the formulation of the strategy.

We need to develop a robust product strategy. It has been rightly put together by Jaiden Vu, CEO of a cosmetics firm. He said that “ It is not the best product that wins, but the best known one that wins.”  

We can start with a simple principle. The product serves a simple purpose. A product satisfies the needs and desires of a customer.  We shall develop the product strategy around this concept of serving the customer’s needs and satisfying their problem.

Developing the product strategy in marketing mix 

What are the decisions taken to formulate the product strategy in marketing mix?

Let us look at the process of formulating the product strategy:

Product Family

We have discussed the case of Apple. It is important for any company to align all its product offerings to its vision. Once the phone gathers the product requirement, it should then think about what products to develop.  

There are two dilemmas that the company faces:

Firstly, the products must not be so different from each other that they appear to come from a different company altogether.

Secondly, they must not be so similar to each other that one can be a substitute for the other.

Thereby, we can see that the form has to maintain a fine balance between The product offerings.

Product decisions

Product decisions are governed by customer requirements. Firstly, the product must meet the customer’s needs. Secondly, we have to look at the marketing mix and how the product strategy fits into the entire marketing strategy. Here are some key factors that govern the product decision:

• Product attributes
• Design and aesthetics
• Ergonomics
• Brand image
• Product packaging
• Communication

Connecting the product strategy With other Ps of the marketing mix

We have discussed the importance of the product strategy in the marketing mix. However, by itself, product strategy would mean nothing. marketing works as a holistic approach towards value delivery for the firm. Let us look at the significance of the product in terms of customer need, product, price, and promotion. We are focusing on only 2 other Ps here. However, depending on the requirement, the place can also play a role in the product strategy. Place should also be an important part of developing the product strategy. Place not just signifies the location of the sale it also signifies the mode of the sale. The differentiating factor for Dell was direct to customer sales. While other companies had traditional Brick and mortar distribution, Dell opted to sell directly to the customers, online. However, most product strategies do not consider specific decisions regarding the place. Hence it is omitted from the product planning from marketing perspective.

1. Customer needs: the customer is the central character in the marketing process. All product decisions should start with customer needs.
2. Product definition: This is the interface between the production and marketing departments. New products are designed and developed as per customer needs.
3. Price: Price is an inseparable entity from the product. In fact, there cannot exist a price without a product.
4. Promotion: Promotion still remains a critical aspect of delivering value did the customer. The type of product will determine the channel of promotion. Some products are more conducive for direct marketing while others are more suitable for mass marketing.

Conclusion

Developing a product strategy for marketing mix is critical for success. Research suggests that non-dominant market players can benefit more from a new product strategy in the market. Additionally, we re-emphasize the importance of a holistic approach to marketing.

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