use this dlide for pricing

1. Product Strategy Decisions
Dr. Sudhinder Singh Chowhan

2. Product Strategy Decisions
• A product strategy outlines a company's
strategic vision for its product offerings
by stating where the products are going,
how they will get there and why they will
succeed.
• A product strategy should include
information about the product vision,
unique value proposition, target
market, and goals.

3. Elements of a Product Strategy
• Who are you selling to? - Define your target customer or market. Identify whom you are
selling to.
• What are you selling? - Describe how potential customers will perceive your product
compared to competitive products. Understand what makes your product unique in the market.
• What value do you provide your customers? - Determine what problems your product
solves for customers. Create a value proposition to position the value you provide and
the benefits that customers will receive with your solution.
• How will you price your product? - State how you will price the product. Include its
perceived value and a pricing model.
• How will you distribute your product? - Describe how you will sell your product, and how
your target market will acquire your product.
• Creating your product strategy - To create your product strategy, start with identifying
the market problems.

5. Product Strategy
• The product
strategy is
a Detailed
Plan that lays out
your company’s
goals and how it
plans to achieve
them.
• A map to develop
product and its
features.
• Understand Customer
Needs and How They
Change
• Understand How You
Add Value

6. Types of Product Strategies?
• The Cost Product Strategy: To create the best product at a less
than average price.
• The Focus Product Strategy: when the organization has a large
customer base.
• The Quality Product Strategy: For high-quality products in the
market.
• The Service Product Strategy: Customers don’t just buy the
product for its experience but also for their interaction with the
company.
• Differentiation Strategy: Price isn't the end-all-be-all when it
comes to differentiating your product.

7. • Product differentiation is fundamentally a marketing strategy to encourage
the consumer to choose one brand or product over another in a crowded
field of competitors. It identifies the qualities that set one product apart from
other similar products and uses those differences to drive consumer choice.
• The elements of differentiation include product design, marketing, packaging,
and pricing.
• A product differentiation strategy should demonstrate that a product has all
the features of competing choices but with additional exclusive benefits
no one else offers.
• Product differentiation increases market competition and controls prices for
consumers.
Product Differentiation Strategy

8. Product differentiation Strategy
• Price
• Features
• Performance and Quality
• Reliability
• Looks
• Channels of Distribution
• Location and Service
• Marketing efforts
• After-sale services
Vertical Differentiation - when customers rank
products based on a measurable factor, such as price
or quality, and then choose the most highly ranked
item.
Horizontal Differentiation - when customers choose
between products based on personal preference rather
than an objective measurement.
Mixed Differentiation - More complex purchases
tend to consider a mix of vertical and horizontal
differentiation

9. STP
Segmentation
Targeting, and
Positioning
STP process, Segment market,
Target customers, and Position
offering to each segment.
The STP model is useful when creating marketing
communications plans since it helps marketers to
prioritize propositions and then develop and
deliver personalized and relevant messages to
engage with different audiences.

10. Segmentation
• Market segmentation is the process of dividing a nonhomogeneous
(heterogeneous) market into a homogeneous sub-units.
Benefits of Segmentation
• Designing optimal product/market matches
• Proper promotional strategies
• Effective advertising and media allocation
• Identifying the most appropriate media channel

11. Segmentation
• Segmentation is dividing the market into homogenous groups
• Segmentation means to divide the marketplace into parts, or segments,
which are definable, accessible, actionable, and profitable and have a
growth potential. In other words, a company would find it impossible to
target the entire market, because of time, cost and effort restrictions.
• Segmentation is the process of dividing a company's target market into
groups of potential customers with similar needs and behaviours.

14. MARKET
TARGETING
• Target marketing, the seller divides the market
into segments, choose one or more of them and
develops products and marketing mixes most
appropriates for each selected segments
• Its impossible to all customers in the marketplace
who are widely scattered with their varied needs.

15. Targeting
After defining all possible segments of the market, the
marketer needs to determine the target market; the market
which will be served.
1.Is this segment large enough?
• Internal medicine, Pediatrics, Neurologists are three
different segments in size.
2.Is there enough profit potential with this segment?
• Oncology and Autoimmune pharmaceutical branches are known of
higher profitability due to the premium pricing of the
medications.
3.How aggressive are the competitors targeting the same segment?
• Higher competition is usually noticed with novel medications
(with high prices), mass and OTC products (selling huge
number of units) or rapidly growing markets.

16. Benefits and Importance of Target
Marketing
• Understand customers’ needs,
• Suitable marketing mix,
• Differentiation

17. Market Targeting
Strategies
Single segment Concentration
Selective Specialization
Product specialization
Market specialization

18. MARKET TARGETING
1. Single segment concentration:
Only one single segment is selected and is served with single product
M1 M2 M3
P1
P2
P3

19. MARKET TARGETING
2. Selective specialization:
It is a multi segment strategy in which a firm selects a number of segments and
product
M1 M2 M3
P1
P2
P3

20. MARKET TARGRTING
3. Product Specialization:
The company specializes in making a certain product for different customer.
M1 M2 M3
P1
P2
P3

21. MARKET TARGRTING
4.Market Specialization:
The company concentrates on serving many need of a particular market
segment
M1 M2 M3
P1
P2
P3

22. Positioning
Positioning is product to appeal to the target market in order
for the customer/s to have interest in what you’re offering
and accordingly prescribe and/or purchase.
This concept is applied in the pharmaceutical marketing
through 4 main types of product positioning:
1.By Feature/ Benefit: Describing an important product characteristic like
fast onset of action or extended half lifetime.
2.By occasion: Showing usage or prescription or usage methodology of the
product, i.e.: Post-operative antibiotic or Add-on antidiabetic therapy.
3.Against Competitors: Showing advantage like higher efficacy or better
tolerability.
4.Hybrid Positioning through combining one or more factors of the above.

23. Positioning
Positioning- is the act of designing a company’s offering and image
to occupy a distinctive place in the minds of the target markets
and the customers.
To introduce a new pharmaceutical product in the market, it needs to be
presented in the segments where there is highest competitive advantage and
solves customer needs.
Thus, the company would need to position the product highlighting its
Unique Selling Proposition aligning with company’s strategies as well as the
customer’s needs and preferences.

24. Price based
positioning
Eg- Supermarkets
Quality based
positioning
Eg- Rolex , Apple
Differentiation
based positioning
Eg- Tesla
Convenience
based positioning
Paytm , Pharmeasy,
Myntra
Characteristics
based positioning
Eg- Automobile
industry
Basis of positioning
Eg- Johnson’s
VS Axe
Safety- TATA or
Mahindra
Reliability- Honda ,
Suzuki , Hyunda
Customer
Service
Eg - Restaurants, E
commerce
User group

26. 5) Connect to
consumer
needs
Benefits of positioning
3) Define a
clearer target
market
2)
Improves
sales
6) Create an
effective
promotional
strategy
1.Create a
strong
competitive
position
4) Make more
effective
decision

27. https://www.mindtools.com/pages/article/stp-model.htm