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International Marketing
Notes
Notes Production is stable, with a focus on cost-cutting manufacturing methods, so that
lowered prices may be passed on to value-conscious consumers.
Product innovators must guard both foreign and domestic markets from international
competition, while finally breaking into riskier developing markets in search of new customers.
When the product reaches the decline stage, the innovators may move production into these
developing countries in an effort to boost sales and keep costs low. During decline,
the product may become obsolete in most developed countries, or the price is driven so low that
the market becomes close to 100% saturated.
7.9 Product Strategy
Product strategy is the ultimate vision of the product, as it states where the product will end up.
By setting a product strategy, you can determine the direction of your product efforts.
Similar to making effective use of a map, you first need a destination, and then you can plan
your route. Just as a business has a strategic vision of what it wants to be when it grows up, the
product has its own strategy and destination.
7.9.1 Why is a Product Strategy Important?
The product strategy forms the basis for executing a product roadmap and subsequent product
releases. The product strategy enables the company to focus on a specific target market and
feature set, instead of trying to be everything to everyone.
7.9.2 Elements of a Product Strategy
When defining your product strategy, be sure to answer the following questions. Each question
below links to an article that further develops the topic, so make sure to review the linked
articles as you create your strategy. Who are you selling to? Define your target customer or
market. Identify whom you are selling to, and what that market looks like.
What are you selling? Describe how potential customers will perceive your product
compared to competitive products. Understand what makes your product unique in the
market.
What value do you provide your customers? Determine what problems your product
solves for customers. You cannot be everything to everyone within a particular market,
but you can help to solve specific problems. Create a value proposition to position the
value you provide and the benefits that customers will receive with your solution.
How will you price your product? State how you will price the product. Include its perceived
value and a pricing model.
How will you distribute your product? Describe how you will sell your product, and how
your target market will acquire your product.
7.9.3 Creating your Product Strategy
To create your product strategy, start with identifying the market problems you would like to
solve. This includes interviewing your target market, understanding the competitive landscape
and identifying how you will differentiate yourself.
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