Implementing product strategies - Marketing Management

It is necessary to consider ways in which the decision to choose any of the above options is taken while recognizing the absolute need for new products. If the rate of new product development and launch is not equal to, or better than, the rate of product deletion or obsolescence, the company will become unprofitable and unable to survive. A long-term view of product strategy must be taken. Product strategy is central to all company decisions and should emanate from and support the overall objectives of the company. Because organizations have different, and often multiple, objectives there exists a wide variety of possible product strategies that might be selected to support them. This notion, together with the range of possible product strategies which O’Shaughnessy8 suggests.

Summarizing the discussion of product item, product line and product mix decisions, together with the range of possible product strategies, it can be seen that product decisions are complex and multifaceted. Product strategies need to be evaluated in relation to both the strengths and weaknesses of the company itself, and to the opportunities and threats that are prevalent and likely in the future. Product strategy involves the management of existing successful products, the elimination of obsolete or non-profit-making ones and the development and introduction of new products. Each of these elements of product strategy is important in achieving company objectives. The pace of change, fierce competition and the product life cycle all heighten the significance of the new product development and innovation process, and it is to this particular aspect of product strategy and management that we now turn.

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