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Marketing
Product Strategy
What is a product?
• A product is “anything that can be offered
to a market for attention , acquisition , use
or consumption and that might satisfy a
want or a need.” (Armstrong et al, 2004)
Levels of a Product
•

Core
Actual
Augmented
Product Classifications
Product decisions
• Product Class.

• Branding and attributes.
Width, Length, Depth

Classes/commodity (width)-to
develop: new classes

Innovation
magnitude
increases

Lines/Products (length)—to
develop: new Brands
and/or new product
concepts

e.g.
Walkman

Cassettes/
CD’s

Products’ Versions
(depth)-to develop:Shock-absorbent
new options

/Sound
adjustments,
radio option, etc..

Innovation
magnitude
decreases
Product decisions (cont.)
• Product line decisions.

• Product mix decisions.
– Managing the product
portfolio
New product development
(Divergence Towards Class/Category
Creation (Ries &Ries,2004)
New product development
Product life cycle strategies
(Diversions towards line creations)
Types of product development
• Change in the core

• Change in Packaging
and/or core

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