Product Planning: Use Product Objectives to
Decide on a Product Strategy
• product planning plays a big role in the firm’s marketing planning
• product planning (AKA brand management): the systematic and usually team-based
approach to coordinating all aspects of a product’s strategy development and execution
o product managers / brand managers - organization members that coordinate
these processes
Getting Product Objectives Right
• clearly stated product objectives
provide focus and attention
• support the broader marketing
objectives of the business unit
o in addition to being consistent with
the firm's overall mission
• effective - measurable, clear and
unambiguous and feasible, and indicate
specific time frame
• competitive intelligence - an up-to-
date knowledge of competitive product
innovations is important to develop
product objectives
• consider the long term implications
of product decisions
o planners who sacrifice the long-term health of the firm to reach short- term sales
or financial goals choose a risky course
• may focus on one or more individual products at a time, or may look at a group of
product offerings as a whole
Objectives and Strategies for Individual Products
, • often focus on a single new product
• objectives relate heavily to producing a very successful
introduction
o local or regional market -> nationally
• mature products - focus on bringing new life to a product while
holding on their traditional brand personality
Objectives and Strategies for Multiple Products
• strategic decisions affect two or more products simultaneously
• must think in terms of its entire portfolio of products
• product line: a firm’s total product offering designed to satisfy a single need or desire of
target customers
o product line length: determined by the number of separate items within the
same category
o stock-keeping unit (SKU): a unique identifier for each distinct product
o large number of variations in a product line
full line - targets many customer segments to boost sales potential
limited-line strategy - fewer product variations, can improve firm's image
if consumers perceive it as a specialist with a clear, specific position in the
market
Decide on a Product Strategy
• product planning plays a big role in the firm’s marketing planning
• product planning (AKA brand management): the systematic and usually team-based
approach to coordinating all aspects of a product’s strategy development and execution
o product managers / brand managers - organization members that coordinate
these processes
Getting Product Objectives Right
• clearly stated product objectives
provide focus and attention
• support the broader marketing
objectives of the business unit
o in addition to being consistent with
the firm's overall mission
• effective - measurable, clear and
unambiguous and feasible, and indicate
specific time frame
• competitive intelligence - an up-to-
date knowledge of competitive product
innovations is important to develop
product objectives
• consider the long term implications
of product decisions
o planners who sacrifice the long-term health of the firm to reach short- term sales
or financial goals choose a risky course
• may focus on one or more individual products at a time, or may look at a group of
product offerings as a whole
Objectives and Strategies for Individual Products
, • often focus on a single new product
• objectives relate heavily to producing a very successful
introduction
o local or regional market -> nationally
• mature products - focus on bringing new life to a product while
holding on their traditional brand personality
Objectives and Strategies for Multiple Products
• strategic decisions affect two or more products simultaneously
• must think in terms of its entire portfolio of products
• product line: a firm’s total product offering designed to satisfy a single need or desire of
target customers
o product line length: determined by the number of separate items within the
same category
o stock-keeping unit (SKU): a unique identifier for each distinct product
o large number of variations in a product line
full line - targets many customer segments to boost sales potential
limited-line strategy - fewer product variations, can improve firm's image
if consumers perceive it as a specialist with a clear, specific position in the
market
