Product development strategy - what do you need to know about it?

Product development strategy (a broader concept is product marketing strategy) is used to introduce a new product or service to the market. It also involves presenting new possibilities for items and services or highlighting the benefits of using them after modification or improvement. Below are some important aspects that need to be considered for your product development strategy to be effective.

What will you learn from the article?

In the business world, where competition constantly raises the bar, understanding and meeting customer expectations becomes crucial. This article is a compendium of knowledge on developing an effective product development strategy that will not only respond to these expectations, but also create long-term value. We will become familiar with fundamental issues such as the company's mission and preferred values that should shape the product strategy. We will explain what elements the competitiveness of the offer should be based on and what stages should be included in a well-thought-out development strategy. Additionally, we will consider whether By properly managing product development, we can not only attract but also retain customers with our brand.

Contents

What is a development strategy? For a product, it may be, for example, a new label, a more ergonomic shape or an improvement in the safety conditions for operating a given device. For the service, it may be a modification or a significant extension of its scope, for example in tourism with the possibility of using a treatment base or renting a vehicle. These are well-thought-out and planned activities aimed at increasing the benefits for the bidder and recipient.

How do you respond to customer expectations?

Product development concept should be preceded by a thorough recognition of the customer's expectations. After all, the most important thing is the satisfaction of the consumer. They are the ones who will ultimately confirm whether the chosen promotional direction was the right one. The basic thing is to establish exactly which target group you are addressing. Important elements of such market recognition are, for example, age range, gender or location.

Market research will help determine whether the product will arouse interest and what are the customer's needs related to the offered product. It is also important to determine whether the demand for a given product is seasonal, occasional or whether the customer should have constant access to it. In long-term projects, you need to plan what measures and methods will keep the customer's attention. 

What issues should a product development strategy take into account?

No entrepreneur is currently operating in a vacuum. Knowing what your competitors have to offer is very important. Other companies present in the environment in which we will run our own business or simply sell goods, usually already have some sales tools already in place. You should know the price range of competing sellers, the quality of their products and services, or even the range of their activities.

It is also worth tracing the offerings and operating model of the industry leaders in question. Product development strategy should also take into account whether our business will be local, national or perhaps wider? Depending on the current market situation and the available budget, different options for market expansion can be adopted. You can plan placing the product on the market for example, by a strong impact as a so-called star among offers or in a sustainable manner, for example as an elite product available only to a narrow audience.

Marketing communication channels

Today, new technologies allow for almost unlimited contact with the recipient. For example, social networks or sales platforms are a convenient form of presenting our new proposal. If you need to reach a specific local community, age group or people with a specific profile of interests, you can use them. If our product is addressed to a narrow group of professionals, it is worth using specialized blogs or discussion forums. Traditional ways of contacting customers can also be - and still are - effective. An interesting TV advertisement or a street banner also attracts attention and arouse interest in new products.

Product development strategy should also include a kind of dialogue with the audience and the market environment. The best tools for winning customers and building relationships of mutual trust are effective PR efforts. They make it possible to strengthen a brand or introduce a new one, the so-called branding. In turn, in difficult and crisis situations, they help to discreetly avert them, often additionally strengthening a given organization or enterprise. Modern PR offers the most advanced technologies, such as SEO positioning, as well as other non-standard channels to reach the client.

Suppliers / subcontractors / tools

Well thought out product development strategy must also take into account the extent to which our product is affected by other market players. Unforeseen interruption of supply chains, lack of stock, withdrawal or unreliability of a subcontractor can affect the image of the main bidder.

Also, the quality of IT tools, an essential element of selling products or services nowadays, i.e. the availability of software or the duration of the license, should be taken into account by both the offeror and the potential customer. Delivery time, quality and costs may also influence the customer's opinion of the main supplier.

Product development strategy must take all these elements into account. Unforeseen and crisis situations can usually be managed with a well-chosen PR strategy. Good contact with a customer or supplier can significantly influence the opinion of a product or service.

Market position

Efficient product development strategy It should also take into account the company's current market position and real opportunities for growth. It should be part of an overall action plan. It must be consistent with the company's overall concept and preferred image. It should identify the strengths and weaknesses of both its own offering and the products with which it will compete. The development vision must include a clear objective, such as achieving a market leadership position.

In long-term projects, sub-goals and possibly stages of individual activities should also be taken into account. The expansive market of goods and services forces a permanent struggle for a position on the market. It is effective to track publicly available economic data and trends for your industry. It is also worth preparing your own tools to monitor the market environment on an ongoing basis. Well-chosen instruments will allow you to achieve a market advantage.

Mission and preferred values versus product development strategy 

Long-term product development strategy or services should also take into account the purpose and values associated with them. For example, when offering a rubbish collection service, it is possible to present only the obvious benefit, i.e. the collection of waste. However, it is worth showing this activity in a broader context: it protects the environment, allows efficient recycling and is therefore ecological and simply provides work for many people.

Depending on the scale of the project, it is worth using appropriately advanced PR techniques. The tenderer's benefit will be a positive perception of his business. The benefit for the buyer will be the choice of goods or services in line with their own beliefs. Proper definition of the mission will certainly have a positive impact on customer acquisition. In addition, it will allow you to build a consistent, positive image of a company or even a single seller.

What does creating a product development strategy involve?

Creation of product development strategy is a key component of product management, aiming to ensure the long-term success of a product in the market. The process involves setting clear courses of action and planning the steps that will contribute to the achievement of specific goals. It is important to new product development strategy was flexible and able to adapt to changing market conditions and consumer needs. The elements that comprise an effective product strategy are market analysis, researching the preferences of the target group, defining a unique value proposition and setting a competitive price. A good strategy also involves skilful product lifecycle management. This requires a well-thought-out positioning and distribution concept, as well as ongoing monitoring of sales performance and adjustment of marketing activities. Innovation and trend-setting are also essential in creating a strategy to differentiate from the competition and increase the chances of market success.

What should you consider when creating a new product development strategy?

Creating an effective product development strategy requires a number of key aspects to be taken into account, which often means facing different challenges. However, before we undertake to construct such a strategy, it is important to understand the problem the product is intended to solve and the needs of our potential customers.

During new product development Not only do we need to focus on innovation and functionality in order to stand out from the competition, but we also need to ensure solid market research and trend analysis. In doing so, it is worth bearing in mind the flexibility of the strategy to adapt to changing conditions and consumer expectations. Examples of product development strategies include implementing a meticulously developed marketing plan, observing KPIs and using agile project management methods to facilitate real-time improvements.

What might a new product launch look like?

Introducing a new product to market is a task that requires planning. The first step is an effective new product development strategy; it must include a comprehensive analysis of the market, the competition, as well as the needs and expectations of potential customers. The second step is to develop a well-thought-out plan product development strategywhich will define the product's unique features, positioning and promotional tactics. The final stage is the precise implementation of the objectives and foundations of the strategy, launching the product with a prudent budget and an effective marketing plan. Focusing on these three steps not only facilitates the go-to-market process, but is also key to building an effective growth strategy and achieving long-term product success.

What to base product competitiveness on?

Depending on the adopted concept, the product can be promoted, for example, on the basis of price attractiveness, higher quality, better availability, visual attractiveness or better channels of reaching the customer. You can also introduce additional, more abstract values, with which the product will be associated, for example values such as freedom or tradition.

More effective customer acquisition can also be achieved by using analogies to current events or the colors of your favorite sports club. It is important to make the most of the advantages of the product or service offered and to show the buyer the benefits of his choice. Regardless of the adopted strategy or funds available for promotion, it is worth building good relations with the client by also using PR tools.

Product development strategy - elements

- planning

- determination of the market value of the product

- familiarizing the client with the offer

- sale, service delivery

- customer retention

- further development of the relationship.

What stages should a product development strategy include?

Well-constructed product development strategy should include tools to monitor the extent to which the objective has been achieved. The various stages should be objectively measurable. After all, not only such easily verifiable parameters as the amount of sold goods or net profit can be controlled. If it is assumed that the product is to develop, it is also worth knowing, for example, the scale of interest in the product, its position in search engines, its reach or the availability of information about it.

It is also worth following current market trends, preferences and ways of making consumer choice. PR agency Commplace has the tools to make them measurable. This type of information certainly has an impact on customer acquisition and profit growth.

What does a product development strategy consist of?

Comprehensive product development strategy is based on plans to tailor the offer to customers' needs, effective communication and efficient logistics. The key is to inform the market about the new offer, which requires a well-planned the marketing strategy for the new product. It is also important to ensure that the product is available - without this, there will be no transaction. The final pillar is accurate pricing, which must balance value for the customer and profit for the company. Each of these components influences the success of the entire process and plays an important role in the subsequent stages of marketing a new product. An effective strategy is not only a plan, but also the ability to respond to changing market realities.

Types of new product marketing strategies

Depending on the target, product development strategy can take many forms. Innovation is the creation of novelties that set trends and respond to unmet needs. Modernisation is the improvement of existing products, while line extension means offering new variants. Brand development - offering new products under a recognisable banner - is also a popular approach. The riskiest, but potentially profitable, is diversification. Each of these activities requires thoughtful the marketing strategy for the new productin order to successfully pass all stages of marketing a new product. Whatever the form, the key remains long-term product development and delivering value to customers.

The importance of a product development strategy

Thoughtful product development strategy allows a company to maintain its competitive edge and adapt to market expectations. It makes it possible to effectively manage the life cycle of an offer - from idea to full implementation. Properly planned stages of marketing a new product increase the chances of success, reduce risk and facilitate cost optimisation. It is also crucial to marketing strategy for the new productwhich builds recognition and supports sales. Regular product development influences customer loyalty and increases brand value, ensuring the stability of the company in a dynamic environment.

Can you retain a customer with a product strategy?

In many industries, acquiring a new customer is much more expensive than maintaining the current one. Not all companies have a good idea of who exactly the recipient of their product is. At the same time, with the large supply of all kinds of goods, customers are becoming more and more picky. Their tastes are changing and so are their expectations. Customer loyalty is an added value to the company's value, so it is worth striving for it in particular.

The buyer's loyalty to a given product or brand is best ensured by using professional methods. PR specialists can play a special role in this process. Among the many used PR techniques, one can mention, for example, adjusting the offer to individual needs, i.e. personalized marketing. A personalized proposal allows you to reach the right recipient through the appropriate communication channel. With the right PR technique, the client feels appreciated because his needs have been properly identified and, what's more, satisfied. It is best to approach this issue comprehensively, using many different, complementary techniques.

How to get effective help in building your brand?

Good strategy for product development should be well thought out and preceded by extensive analysis. Branding, or building a new brand, requires a holistic approach. It is not only important to know the market or what customers expect. It is important to reach them with our proposal and convince them that we are worth trusting. A professional approach in this area should be based on a kind of dialogue.

It is best to entrust the team of experts to ensure effective communication between the various participants of the market game. Competing on the modern market requires not only knowledge of the latest technologies, but also tracking their development.

Product development strategy – summary

The implementation and product development process are key elements of the success of any company striving to innovate and compete in the market. The stages of new product development include detailed planning, market analysis, design, testing and implementation.

An effective product development strategy allows you to identify customer needs, create innovative solutions and introduce them to the market in a timely manner. Product innovations play an important role in improving the quality and increasing the value of offered products. Understanding and properly managing the individual stages of the product development process allows companies to achieve lasting success and customer satisfaction.

With the support of Commplace's team of experts, your product development strategy is sure to be more effective!

We invite you to cooperation.