Marketing mixMarketing Mix (Product, Place, Price, Promotion) Strategies Product Strategies
1. Marketing Research : A new product strategy will ultimately need to be tested through focus groups, phone surveys and beta tests. Focus groups are sessions where company managers observe consumers through a one-way mirror. A moderator or interviewer will ask the consumers questions related to the company's product concept, including their likes, dislikes and suggestions for the product. This information is usually evaluated later to help tweak the product concept. After focus groups, companies use phone surveys to obtain a more reliable sample about the market's reaction to the product. 2. Product Positioning: Product positioning is a "best practice" strategy used for both new and existing products. Small companies typically use a grid when developing a product positioning matrix. The objective of product positioning is to determine which segment of the market to place a product. Companies often use two important product variables in a product positioning matrix. For hot cereal, these variables may include "price" and "time to cook." The product price can be low or high, and the time to cook the cereal can be slow or quick. Consequently, segments for hot cereal may be low price/quick to cook, low price/slow to cook, high price/quick to cook or high price/slow to cook. A small company will usually plot its existing products as well as competitive products within the various segments. The segment with the least amount of plotting points may indicate an opportunity for the company, as that particular segment is under-served.
Place of Distribution Strategies
Depending on the type of product being distributed there are three common distribution strategies available: 1. Intensive distribution: Used commonly to distribute low priced or impulse purchase products eg chocolates, soft drinks. 2. Exclusive distribution: Involves limiting distribution to a single outlet. The...
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