product strategy

product strategy

a firm's policy on the range of PRODUCTS which it supplies. Product strategy involves the periodic updating and modification of the firm's existing products or brands (see PRODUCT RANGE); the introduction of NEW PRODUCTS; and the phasing out of old products whose sales are declining, in order to release production and marketing resources which can be devoted to newer, more active products.

Technological innovation results in new products, new cost-reducing production technologies and new materials. Some innovations can serve to improve existing products or reduce their production costs and so prolong their lives. However, many such technological changes serve to limit the lives of products, shortening the PRODUCT LIFE CYCLE and speeding the onset of decline as new products supersede existing products. Furthermore, rapid changes in consumer tastes may render a particular product obsolete after only a short time, as with, for example, fashion products. Consequently a company's product development policy needs to maintain a constant stream of new products over time if it is to succeed in meeting its growth and profitability goals. Product range strategy should provide for launching new products and deleting old ones so as to avoid having a disproportionate number of products at any one stage of their lives. Indeed firms may deliberately follow a strategy of planned obsolescence, bringing out a continuous stream of new products as a means of increasing their total sales by inducing customers to replace products more frequently. See PRODUCT MODIFICATION, PRODUCT RATIONALIZATION, NEW-PRODUCT DEVELOPMENT.

References in periodicals archive ?
With the 3DEXPERIENCE platform, we can digitally ensure that our customers interests are represented at every phase of product development, from product strategy to shop floor.
Auto Business News-August 17, 2017--Hyundai places electric vehicles at centre of product strategy
That background, coupled with his strong operational experience and keen awareness of market trends, makes him a natural choice to guide Wazee Digital's technology and product strategy."
Mountain View, CA, October 19, 2015 --(PR.com)-- Auxenta is pleased to announce that technology entrepreneur Sanjeev Agrawal, perhaps best known as Google's first global head of product marketing, has taken on the role of product strategy advisor at Auxenta.
During an "Ask Me Anything" session on Reddit, HTC executives answered about the company's product strategy including its use of the Sense UI versus its Google Play Edition.
M2 PHARMA-February 4, 2014-Enanta Pharmaceuticals names Dr Timothy D Ocain as SVP of New Product Strategy and Development
Poulin, former head of product strategy and development for Columbia Management, is charged with product positioning and targeting, and ensuring product-related initiatives are prioritized and supported in an integrated fashion.
Based in Constant Contact's Waltham, Massachusetts headquarters, Surdan in this role will oversee product strategy, engineering and operations creating and delivering products to small business customers and report to CEO Gail Goodman.
New Chief Product Officer Chad Bacher was SVP of product strategy and technology alliances for Webroot.
Stephen Dukes has been appointed to lead product strategy and enhance customer experience.
Zipse started his BMW career in 1991 as a trainee and has since moved through various management positions, including Oxford plant director and VP of corporate planning and product strategy.
Thats why weve developed a product strategy and a client engagement model that helps organizations undertake this complex transformation.

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