Strategic Marketing Strategic Marketing Product Strategy Session II

Strategic Marketing Product Strategy Session II

What Is Product Strategy?A strategic approach to developing, enhancing, products to fit the needs of the market and;

Going about activities to maximize sustainable sales of the product in the most profitable manner

Product Strategy InvolvesMarket SegmentationDevelopment and differentiationTaglines and unique selling propositions

Overview: DefinitionMarket SegmentationDevelopment & DifferentiationNine Ways to Build DemandWhat Product Development and Differentiation can do

SegmentationWhat are market segments?Why do we need to worry about them?

Differentiated Markets/Segments The five criteria are that a segment should be:Measurable;Accessible;Substantial;Unique in its response; andStable in behaviour.

Differentiated Markets/Segments Market differentiation/segmentation allows an institution to:View a market from the customers point of view;Exploit its strengths better by selecting compatible market segments;Develop more sharply focused strategies aimed at market requirements; andIdentify gaps in the market that offer new product opportunities.

Modifying or Developing New Products Refining your existing products or developing new ones is a complex and risky under-takingUse a systematic process to:Minimize riskMaximize likelihood of successUse a market research and product prototype process and then pilot-test carefully

Creating Demand for our Microfinance Loan Product

Creating Demand For Our Microfinance Loan Product

9 Ways to Build DemandChallenges to Rural BanksOur Response to the Challenges

Philip Kotlers 9 Ways to Build Demand Matrix

ProductExistingModifiedNewMARKETExistingSell more of our existing products to our existing types of customers(Market Penetration)Modify our current products and sell more of them to our existing customers (Product Modification)Design new products that will appeal to our existing customers (New Product Development)Geographically ModifiedEnter and sell our products in other geographic areas (Geographic expansion)Offer and sell modified products to new geographical marketsDesign new products for prospects in new geographic areasNewSell our existing products to new types of customers (Segment Invasion)Offer and sell modified products to new types of customersDesign new products to sell to new customers (Diversification)

STRATEGY 1: EXPANSION THRU MARKET PENETRATION

ProductExisting ProductModified ProductNew ProductMARKETExisting MarketSell more of our existing products to our existing types of customers(Market Penetration)Modify our current products and sell more of them to our existing customers (Product Modification)Design new products that will appeal to our existing customers (New Product Development)Geographically Modified MarketEnter and sell our products in other geographic areas (Geographic expansion)Offer and sell modified products to new geographical marketsDesign new products for prospects in new geographic areasNew MarketSell our existing products to new types of customers (Segment Invasion)Offer and sell modified products to new types of customersDesign new products to sell to new customers (Diversification)

STRATEGY 2: GEOGRAPHICAL EXPANSION USING EXISTING PRODUCT TO BE OFFERED TO SIMILAR MARKET IN NEW AREAS

ProductExisting ProductModified ProductNew ProductMARKETExisting MarketSell more of our existing products to our existing types of customers(Market Penetration)Modify our current products and sell more of them to our existing customers (Product Modification)Design new products that will appeal to our existing customers (New Product Development)Geographically Modified MarketEnter and sell our products in other geographic areas (Geographic expansion)Offer and sell modified products to new geographical marketsDesign new products for prospects in new geographic areasNew MarketSell our existing products to new types of customers (Segment Invasion)Offer and sell modified products to new types of customersDesign new products to sell to new customers (Diversification)

STRATEGY 3: EXPANSION USING EXISTING PRODUCT TO BE OFFERED TO NEW MARKET/S

ProductExisting ProductModified ProductNew ProductMARKETExisting MarketSell more of our existing products to our existing types of customers(Market Penetration)Modify our current products and sell more of them to our existing customers (Product Modification)Design new products that will appeal to our existing customers (New Product Development)Geographically Modified MarketEnter and sell our products in other geographic areas (Geographic expansion)Offer and sell modified products to new geographical marketsDesign new products for prospects in new geographic areasNew MarketSell our existing products to new types of customers (Segment Invasion)Offer and sell modified products to new types of customersDesign new products to sell to new customers (Diversification)

STRATEGY 4: EXPANSION THRU PRODUCT MODIFICATION

ProductExisting ProductModified ProductNew ProductMARKETExisting MarketSell more of our existing products to our existing types of customers(Market Penetration)Modify our current products and sell more of them to our existing customers (Product Modification)Design new products that will appeal to our existing customers (New Product Development)Geographically Modified MarketEnter and sell our products in other geographic areas (Geographic expansion)Offer and sell modified products to new geographical marketsDesign new products for prospects in new geographic areasNew MarketSell our existing products to new types of customers (Segment Invasion)Offer and sell modified products to new types of customersDesign new products to sell to new customers (Diversification)

STRATEGY 5: GEOGRAPHICAL EXPANSION USING MODIFIED PRODUCT

ProductExisting ProductModified ProductNew ProductMARKETExisting MarketSell more of our existing products to our existing types of customers(Market Penetration)Modify our current products and sell more of them to our existing customers (Product Modification)Design new products that will appeal to our existing customers (New Product Development)Geographically Modified MarketEnter and sell our products in other geographic areas (Geographic expansion)Offer and sell modified products to new geographical marketsDesign new products for prospects in new geographic areasNew MarketSell our existing products to new types of customers (Segment Invasion)Offer and sell modified products to new types of customersDesign new products to sell to new customers (Diversification)

STRATEGY 6: EXPANSION THRU A MODIFIED PRODUCT TO BE OFFERED TO NEW MARKET/S

ProductExisting ProductModified ProductNew ProductMARKETExisting MarketSell more of our existing products to our existing types of customers(Market Penetration)Modify our current products and sell more of them to our existing customers (Product Modification)Design new products that will appeal to our existing customers (New Product Development)Geographically Modified MarketEnter and sell our products in other geographic areas (Geographic expansion)Offer and sell modified products to new geographical marketsDesign new products for prospects in new geographic areasNew MarketSell our existing products to new types of customers (Segment Invasion)Offer and sell modified products to new types of customersDesign new products to sell to new customers (Diversification)

STRATEGY 7: EXPANSION THRU A NEWLY DESIGNED PRODUCT TO BE OFFERED TO EXISTING MARKET

ProductExisting ProductModified ProductNew ProductMARKETExisting MarketSell more of our existing products to our existing types of customers(Market Penetration)Modify our current products and sell more of them to our existing customers (Product Modification)Design new products that will appeal to our existing customers (New Product Development)Geographically Modified MarketEnter and sell our products in other geographic areas (Geographic expansion)Offer and sell modified products to new geographical marketsDesign new products for prospects in new geographic areasNew MarketSell our existing products to new types of customers (Segment Invasion)Offer and sell modified products to new types of customersDesign new products to sell to new customers (Diversification)

STRATEGY 8: GEOGRAPHICAL EXPANSION UTILIZING A NEWLY DESIGNED PRODUCT

ProductExisting ProductModified ProductNew ProductMARKETExisting MarketSell more of our existing products to our existing types of customers(Market Penetration)Modify our current products and sell more of them to our existing customers (Product Modification)Design new products that will appeal to our existing customers (New Product Development)Geographically Modified MarketEnter and sell our products in other geographic areas (Geographic expansion)Offer and sell modified products to new geographical marketsDesign new products for prospects in new geographic areasNew MarketSell our existing products to new types of customers (Segment Invasion)Offer and sell modified products to new types of customersDesign new products to sell to new customers (Diversification)

STRATEGY 9: EXPANSION THRU PRODUCT DIVERSIFICATION

ProductExisting ProductModified ProductNew ProductMARKETExisting MarketSell more of our existing products to our existing types of customers(Market Penetration)Modify our current products and sell more of them to our existing customers (Product Modification)Design new products that will appeal to our existing customers (New Product D