Thursday, January 14, 2010

Top Ten Concepts on Setting Product Strategy

1. Product levels must be addressed. These are the several product levels: core benefit, basic product, expected product, augmented product, and potential product

2. Create a brand identity. To differentiate yourself from others. this can be done through the product's form, features, customization, performance quality, conformance quality, durability, reliability, repairability, and style.

3. Provide value-added services for further differentiation. Aside from the product itself, you should provide services to enhance or support your product, such as: ordering ease, delivery, installation, customer training, maintenance and repair.

4. Market an optimal set of products. There are several product hierarchies which may be looked into for your offerings: Need family, product family, product class, product line, product type, and the most distinct unit, the item.

5. Offer customizable product mixes. Offer customers other products which may complement your main product or even a primary product which may be customized to the customers' needs.

6. Create a product map to assess the competition. Know the competition, identify your market segment.

7. Utilize line stretching to cater to a spectrum of markets. Stretching beyond your usual line or market, whether up, down, or both ways provides a wider base of customers with choices.

8. Product-mix pricing provides customers with options. Offering different prices featuring different combination of items from your offerings caters to a spectrum of customers with different needs and also buying capacities.

9. Involve in co-branding and ingredient branding to maximize exposure. Partnering your product with different products will further expose and make visible your product as customers of the other products would also be familiarized with your product.

10. Looks do matter. Good packaging and aesthetics always interest and entice the customer.