Business Marketing Product Strategy and Value Proposition
Creating a business marketing success story is a little like baking a cake. You take a little bit of this, a little more of that, and you arrive at one result. If you change the mix, you get a different outcome.
In marketing, the ingredients you juggle are your product, place (also called distribution), pricing, and promotions. Together, these four elements are known as the marketing mix or the four Ps.
Every marketing action falls under one of the four Ps of the marketing mix, which is why you need a marketing strategy for each area. Explain your goals in detail in your complete marketing plan, and which you can summarize in the marketing strategy section of your business plan.
Your product strategy
As part of your marketing plan, you may be planning changes to the products you sell.
The most obvious change is to introduce new products, but you may also plan to communicate different uses, benefits, or distinctions for existing products, shift marketing emphasis from one product in your line to another, rename or relabel products to make them more relevant in the current marketplace, add accessories or services to boost appeal, bundle products into new package options, or target particular products to unique market segments.
The aim is to heighten product interest, selection, and purchase by using these or other approaches.
In other parts of your business plan, you’ll present your product development and production plans. In the marketing section, you’ll summarize how you plan to use your products to achieve marketing success.
Your value proposition
As part of your product strategy, be sure to spend time determining how your product decisions deliver clear value to your customers. When making purchase decisions, customers weigh the price being asked against their impressions of the quality, benefits, convenience, reliability, expertise, and support they’ll receive from the product or service they’re purchasing.
To develop the value proposition you’re promising customers, describe the results customers can depend on from your business. By selecting your product, does your customer increase revenue, save time, cut costs, improve efficiency, receive unrivaled quality, enjoy tremendous convenience, have the peace of mind of unparalleled expertise, guarantees, or product support, or other compelling values that make customers believe that what they’re getting is worth every penny they’re paying?
Summarize your value proposition in the marketing strategy section of your business plan.