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?

The concept of product development should be preceded by a thorough diagnosis of customer expectations. The most important thing is consumer satisfaction. It is he who will finally confirm whether the chosen direction of promotion was correct. The basic thing is to determine exactly to which target group we are addressing our offer. Significant elements of such market recognition are, for example, the 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 following the offer and operating model of industry leaders. The product development strategy should also take into account whether our activity will be local, national or maybe wider? Depending on the current market situation and the available budget, various variants of market expansion can be adopted. You can schedule 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.

The product development strategy should also take into account a specific dialogue with the recipient and the market environment. The best tool for acquiring customers and building a relationship of mutual trust are effective PR treatments. They allow you to strengthen the brand or introduce a new one, i.e. 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

A well-thought-out product development strategy must also take into account the extent to which our product is influenced by other market participants. Unforeseen interruptions in supply chains, stock shortages, withdrawals or unreliability of a subcontractor can impact 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.

Your product development strategy must include all of these elements. Unforeseen and crisis situations are usually mastered by a properly selected PR strategy. Good contact with the customer or supplier can significantly affect the opinion about a product or service.

Market position

An effective product development strategy should also take into account the current market position and real development opportunities of the company. It should be part of an overall action plan. It must be consistent with the overall concept of the company and the preferred image. Identify the strengths and weaknesses of both your own offer and the products with which it will compete. The development vision must contain a clear goal, for example to become a market leader.

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 

A long-term product or service development strategy should also take into account the goal and values associated with them. For example, by offering a garbage collection service, you can only offer the obvious benefit of collecting your waste. However, it is worth presenting this activity in a broader context: it protects the environment, allows for effective recycling, so it is ecological and simply gives jobs to 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?

Creating a product development strategy is a key component of product management aimed at ensuring its long-term success in the market. This process involves setting clear directions of action and planning stages that will contribute to achieving specific goals. It is important that the new product development strategy is flexible and allows for adaptation to changing market conditions and consumer needs. The elements of 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 means skillful management of the product life cycle. This requires a well-thought-out concept of positioning and distribution, as well as ongoing monitoring of sales results and adjustment of marketing activities. When creating a strategy, innovation and creating trends are also necessary, which will enable you to stand out from the competition and increase your chances of achieving market success.

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

Creating an effective product strategy requires taking into account many key aspects, which often means facing various challenges. However, before we undertake to construct such a strategy, it is important to understand the problem that a given product is intended to solve and the needs of our potential customers.

When developing a new product, we must not only focus on innovation and functionality in order to stand out from the competition, but also ensure solid market research and trend analysis. It is worth remembering about the flexibility of the strategy, which will allow you to adapt to changing conditions and consumer expectations. Examples of product development strategies include: implementing a carefully developed marketing plan, monitoring KPIs and using agile project management methods that will facilitate the introduction of improvements in real time.

What might a new product launch look like?

Introducing a new product to the market is a task that requires planning. The first step is an effective new product development strategy; it must contain a comprehensive analysis of the market, competition, as well as the needs and expectations of potential customers. The second step is to develop a well-thought-out product strategy plan that will define the product's unique features, positioning and promotional tactics. The final stage is the precise implementation of the assumed goals and foundations of the strategy, introducing the product to the market with a prudent budget and an effective marketing plan. Focusing on these three steps not only makes the go-to-market process easier, but is also crucial in building an effective development 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?

A well-structured product development strategy should include tools allowing to control the degree of achievement of the assumed goal. The individual steps should be objectively measurable. After all, you can control not only such easily verifiable parameters as the quantity of goods sold or net profit. If you assume 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 range 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.

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?

A good product development strategy should be thought out and preceded by extensive analysis. Branding, i.e. building a new brand, requires a holistic approach. It is not only the knowledge of the market or the knowledge of customer expectations that is important. It is important to reach out to them with our proposal and convince them that it is worth trusting us. A professional approach in this regard should be based on a specific 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.