Product strategy refers to the kind of marketing plan that is employed for a commodity depending on the behaviors of the targeted market. Laermer & Simmons (2007) also observed that “such a marketing plan is based on desired product positioning within the market, and profit objectives” (p. 13). When developing a strategic plan to market a commodity, several factors are put into consideration. This paper will focus on such factors and the role they play in ensuring that the marketing process is successful.
- Suitability: This factor focus on the rationale to be employed by the marketing plan. This factor is meant to determine if the strategy will be in a position to address the key issues in a company that manufactures the product. A strategy should therefore focus on issues like the economic position of the company so that it might not spend a lot of money and yet the returns are low.
- Acceptability: This factor focuses on the response received by the consumers of a product based on the outcomes of the strategy. The strategy can face negative reactions from the consumers of a product depending on how it is applied.
- Feasibility: This factor focuses on the availability of resources to be used in order to make a strategy achieve the predetermined goals. Resources in any marketing situation include time, human resources and funds (Lamb 2004). As a result of this, there is need to carry out a feasibility study to determine if a marketing plan will be put into action based on the available resources.
- Demand and Supply: These factors determine the kind of strategy to be employed in developing a marketing plan for a product. They determine the level of marketing to be done in that; there are cases when the demand for a commodity is high thereby reducing the need for extensive marketing. On the other hand, there are cases when the supply for a commodity is high therefore calling for extensive marketing to be done in order to compete with other suppliers.
- Technology: The use of internet has increased at a high rate in the recent past. The use of the internet has given many companies an enabling platform to enable the companies reach the global audience in a very easy and effective way (Lamb 2004). Through the internet media, companies are able to provide responses to their customers promptly, and they are also able to advertise any new product to the large number of people who access the internet globally. The graph below indicates how internet marketing is increasing.
- Gender variability: Many marketing researchers have identified that men, women and children have different cognitive needs. Therefore, when developing a strategy to market a product, companies should design plans to fit the specific class of audiences (Laermer & Simmons 2007).
- Literacy levels: When developing a marketing plan, it is important to consider that consumers have varying levels of knowledge. As a result, the marketing plan adopted is the one that would reach and be understood by as many people as possible.
- Security concerns. Many people who use a commodity or a service are very much interested with the privacy of the personal information (Miles 2003). Many consumers today fear buying commodities or services online because of the fear that their personal information might be exposed. Some companies which do online business have recently be found exposing and even selling information of their customers.
- Media coverage. The faculty of advertisement and information dissemination has been drastically improved after various forms of media were invented and put into use. Companies have continually and naturally utilized various forms of media to enhance their communication in order to let the large number of people’s population to get to know what they produce and what they do (Miles 2003).
- Competition and clutter: Products which are highly competitive require bigger budgets.
Laermer, R. & Simmons, M. 2007. Punk Marketing, New York: Harper Collins.
Lamb, R. 2004. Competitive Strategic Management. Englewood Cliffs, NJ: Prentice- Hall.
Miles, R. 2003. Organizational Strategy, Structure, and Process. Stanford: Stanford University Press.