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Problem

A particular product strategy will stimulate a response from the market and a corresponding response from competitors. Which specific features of the competitive environment should the business marketing strategist evaluate?

Step-by-step solution

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Step 1/2

As Companies innovate to produce new products, even other companies are forced to make changes and bring about new innovations to products. Sustainability is a new trend which forces companies to change in terms of thinking about their products, processes and business models.

Sustainability is the integration of environmental, economic and social factors that leads into business decision making. Many business strategists feel that sustainability is an important part of value creation. Companies that make the right strategy have a better advantage over their competitors. A well managed business that uses lot of resources, expertise and management can manage problems better and would have a greater impact in the society.

When a company’s product or service provides superior quality product, better pricing to consumers then there is customer value to the product. The add- on benefits of a product gives value added services to the product and this enables satisfaction to the consumers. The consumers get attracted to the product which has an advantage over its competitors.

Step 2/2

It is important to jot out a strategic marketing plan for an existing product line. After identifying a product market, planning product strategy needs to be given attention. Product positioning analysis is a useful tool. Product positioning creates a place for the product in a particular market. There are different steps involved in product positioning.

The first step is to identify the relevant set of products that are competing. The second step is to identify the important criteria that consumers use to differentiate between different brands they prefer. The third step is to collect necessary information from customers regarding their perception towards the product. After understanding the present position of the company’s product the analyst can determine the competitive strength of the product. The fifth step is to understand the different preferences of market segments and the current position of the product. The last step is to select the strategy options.

Therefore company’s performance of the product would be better than its competitors by doing the product positioning strategy.