1. Product Strategy Three Requirements:
Achieve coordination among various functional organizations of the company (recognize conflicting interests)
2. Blueprint for allocation of resources
3. Demonstrate its efficacy to achieve a superior market position
Competitor cannot imitate it
Competitor will not choose to imitate it
Competitor would be at a disadvantage if it chose to imitate it
Company would gain if the competitors choose to imitate it

2. Seven Elements Of A Product Strategy
Selection of the objectives the product should attain
Selection of the strategic alternatives
Selection of customers targets
Choice of competitors’ targets
Statement of the core strategy
Description of the supporting marketing mix
Description of the supporting functional programs

3. Strategic Alternatives: Profit
Growth In Sales / Market Share --- Long Run Profit
A. Market development
New segments
New channels
Convert Nonusers
B. Market penetration
Existing customers
Competitor’s customers
C. New product development
Extension
Augmentation
2. Greater Efficiency: Short Run Profit
A. Decrease input
Reduce costs
Improve asset utilization
B. Increase outputs
C. Increase price
D. Improve sales mix

4. Positioning: Systematic Approach
Step 1: Identity alternative themes
Consult adv. And product teams and past marketing plans
Step 2: Evaluate alternatives in terms of:
Meaningfulness to customers and their perceptions
Feasible with company resources
Competitive advantage (distinctive competency)
Advances product (brand) objectives
Step 3: Select position that best satisfies above criteria
Step 4: Implement programs (E.G. Advertising) that are consistent with product positioning selected

5. Total Product Concept Generic Product Expected Product
Augmented Product
Potential Product

6. Five Areas For Differentiation
Quality
Improved performances – Intel
Superior design – Lexus
Customers service – Caterpillar
Reliability and durability – Maytag
Status and Image – Evian, Perrier, Rolex, Polo
Branding – IBM, McDonald’s, Coca Cola, “Intel Inside”
Convenience – Lexus + Infiniti offer loaner cars and pick-up service
5. Distribution Channels – Federal Express Powership Terminals