You’ve developed a great new product and are ready to launch it to the world. Any good business strategist will tell you that before you launch, you need a product strategy. A product strategy is defined by businessdictionary.com as “a plan for marketing a good that is founded upon an analysis of the nature of the intended market, how much market share is to be achieved, how the good is to be marketed and how much profit is anticipated. Most business marketing directors will develop a clear and realistic product strategy prior to the launch of a new product into its intended market.” If that sounds like a lot of work and a big investment, you’re not wrong. But the benefits far outweigh the inconvenience.
What are the benefits of investing in product strategy?
Company strategy - A product doesn’t stand on its own; rather it is part of the development of an entire company. It’s important to figure out how each product marketed by the company fits into the growth strategy of the company. This helps with allocating resources and prioritizing projects.
Ownership of the process - Development, marketing and company strategy are all involved in a product’s launch and that can cause chaos. A well-thought out strategy assigns ownership of the process to one of the departments, ensuring that decisions are carried through.
Collaboration - A product strategy spells out how the various departments will work together to reach the final goals. When the process is clear and known to everyone, collaboration is simple and conflicts are easily resolved.
Uniqueness - Each product must follow a different process, so a unique strategy is necessary for each one. For instance, a breakthrough product will require a determination of whether there is a need for the innovation, while a mature product will benefit from being optimized for efficiency.
Foundation for other corporate processes - A successful product strategy serves as a basis for other corporate decisions, such as budgets and HR.
Product strategies are not just for large businesses with equally large budgets. Not matter what size your business is, investing in a product strategy at the outset will ultimately save you time and money. It will ensure you create a better product, succeed at marketing it and move closer to your big picture corporate goals.
At Triode, we specialize in developing new products and services for complex industries like medical devices and transportation. We work with you closely to help define your product strategy, with an emphasis on reducing the risks associated with innovating in these sophisticated and often regulated consumer-oriented environments.