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.
- Respond to customer expectations
- Product development strategy in a changing market environment
- Marketing communication channels
- Suppliers / subcontractors / tools
- Market position
- Mission and preferred values versus product development strategy
- What to base product competitiveness on?
- Product development strategy - elements
- Product development strategy - stages
- How to keep a client?
- Effective help in building a brand
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.
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.
Product development strategy in a changing market environment
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.
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Communication channels marketing
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 interruption of supply chains, shortage of stocks, withdrawal or unreliability of a subcontractor may affect the image of the main bidder. 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 also be taken into account by both the offeror and the potential customer. The time of delivery as well as its quality and cost may also influence the customer's opinion of the main bidder.
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.
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 bidder will benefit from a positive reception of its activities. The benefit for the buyer will be the choice of goods or services in accordance with their own beliefs. Proper definition of the mission will certainly positively affect the acquisition of customers. In addition, it will allow you to build a coherent, positive one company image or even a single seller.
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
- determination of the market value of the product
- familiarizing the client with the offer
- sale, service delivery
- customer retention
- further development of the relationship.
Product development strategy - stages
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 choices by consumers. PR agency Commplace has the tools to measure them. This type of information certainly has an impact customer acquisition and profit growth.
How to keep a client?
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.
Effective help in building a brand
A good product development strategy should be well thought out and preceded by extensive analysis. Branding that is, building a new brand requires a holistic approach. It is important not only to know the market or know what the expectations of customers are. 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.
With the support of Commplace's team of experts, your product development strategy is sure to be more effective!
We invite you to cooperation.