Chapter_Five_Marketing_and_New_Venture.pdf

Marketing strategies are generalized statement which

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Marketing strategies are generalized statement which applies to the marketing mix across a set of product- market entries. It is company - specific and stresses the interrelation of those elements related to the product,
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Entrepreneurship and Enterprise Development Chapter Five| Marketing and New Venture Deve lopment│ AAU| Management │2016│ Compiled by A.M. 24 Page 24 its price, the distribution system, and the communication function. Thus, it emphasizes the commonality of the various entities with respect to marketing action. Marketing strategies are closely connected to product strategies, and must be supportive and interrelated. Policies and strategies related to marketing have to be formulated and implemented on the basis of the 4Ps of the marketing mix. In this part you will learn this concept in detail. 5.4.1. PRODUCT STRATEGY The term product refers to a physical commodity and anything offered by an organization to provide customer satisfaction. A product can be a single commodity, a group of commodities, a product-service combination, or even a combination of several tangible goods and intangible services. Product is the powerful competitive tool in the hands of a marketing manager, it also lays in the heart of marketing mix and all its other elements including pricing, promotion and distribution depends on the product positioning in the market. Product types, quality, features and design largely determine production and marketing cost and consequently exercise a major influence on price. These aspects of a product also play a major role in determination of a company's competitive strategy. In other words, a firm's products play a crucial role not only in marketing success but also in its existence as a competitive business entity in the market place. It should therefore devote considerable attention to the determination of its product objectives and formulation of its strategy which can be used to put in to action the objectives of the firm. Product Strategies Developing a product strategy is not easy. A number of elements are involved, and many appear to be hopelessly entangled or complicated. With a systematic approach to strategy design, these complications can be straightened out. First, the various issues involved in developing product strategy must be isolated and broken down in to their components. Then, developing product strategy becomes a process of making decisions about the individual issues that are discussed next. A. Determining the product line The basic question paramount importance in developing product strategy is: what products should we sell?; what satisfactions or benefits should we provide? The fundamental marketing opportunity is not to sell things but rather to provide satisfaction. So the second question sounds good than the first. In most organizations satisfactions are delivered via products, services, or product - service combinations.
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