Formulating Product Strategy

Deciding Priorities - Which products to concentrate on and which to run down.

Influenced by - Segmentation of markets, the goods supplied to the markets.

Market Segmentation - Means of discovering product/customer equations sufficiently large in volume and profit potential to be worth while investing in.

• Must be sure you are looking at the right segment
• Range marketing must cater for genuine consumer needs

Consumer Goods/Industrial Goods - Correct sector, In right form for sector.

New product development strategy - Considerations: Will it succeed? How much will it cost? Can it be handled by existing resources? Is money better spent elsewhere?

• The need for disciplined planning
• Shortcommings of forecasting techniques
• The demands for more ambitious targets