Product strategy, as part of the marketing mix, should be driven by consumer needs. Consumers make purchase decisions based on perceived benefits. Sometimes translating desired benefits to product design, features, and overall product strategy can be challenging for marketers. Define the word product as it relates to business specifically marketing. Discuss specific real-world examples of products that have been successful and products that have been unsuccessful. Cite your examples.
Product Strategy as Part of the Marketing Mix: The Role of Consumer Needs
In marketing, the concept of “product” goes beyond the physical item or service a business offers. It encompasses everything that satisfies the consumer’s needs or desires, including tangible goods, services, ideas, experiences, or a combination thereof. A well-conceived product strategy is essential to the success of any business, as it involves planning and developing products in a way that aligns with consumer preferences, offering benefits that fulfill their needs. However, translating these needs into a product’s design, features, and overall strategy can be a challenging task for marketers.
Defining “Product” in Marketing
In business and marketing, the term “product” refers to anything that can be offered to a market to satisfy a want or need. This definition includes physical goods like smartphones, services like insurance plans, digital goods like software, and even ideas like sustainability initiatives. The product is one of the four key elements of the marketing mix (Product, Price, Place, Promotion), and it must be designed with a clear understanding of the target consumer’s needs, preferences, and desires. This understanding of consumer needs drives decisions regarding a product’s features, quality, branding, and packaging. It also influences how the product will be positioned in the marketplace.
The Importance of Product Strategy and Consumer Needs
A strong product strategy is vital for a product’s success. It involves not only identifying what consumers need but also how they perceive value and benefits. Consumers make purchasing decisions based on the perceived benefits a product offers, which could be functional (e.g., the utility or performance of a product), emotional (e.g., how a product makes them feel), or symbolic (e.g., the status or identity it confers). Successful product strategies align the product with consumer needs and convey the value that satisfies these needs in a compelling way.
However, interpreting consumer needs and translating them into a product’s design and features can be complex. Consumer preferences are often dynamic and influenced by cultural trends, technological advancements, and economic factors. Marketers must be adept at recognizing shifts in these preferences and adjusting product strategies accordingly.
Successful Product Examples
1. Apple iPhone
The iPhone is one of the most successful product examples in recent history. Apple’s product strategy is driven by a deep understanding of consumer needs, combining sleek design, cutting-edge technology, and user-friendly functionality. When the first iPhone was introduced in 2007, it revolutionized the smartphone industry by addressing consumers’ growing need for multifunctional devices that could integrate communication, internet browsing, media consumption, and more. Apple’s focus on innovation and seamless user experience has kept the iPhone at the forefront of the smartphone market for over a decade. Apple continues to iterate on its product design by enhancing features such as camera quality, processing power, and battery life while maintaining its iconic branding and design aesthetics.
Apple’s product strategy is also supported by a strong ecosystem, where various devices (e.g., iPads, MacBooks, Apple Watches) work together seamlessly. This ecosystem offers an additional benefit to consumers, increasing the value of owning multiple Apple products and encouraging brand loyalty.
2. Tesla Model 3
Tesla’s Model 3 is another successful example of a product that aligns well with consumer needs. The product strategy for Tesla has focused on producing electric vehicles (EVs) that are not only environmentally friendly but also high-performing, stylish, and technologically advanced. Tesla understood the growing consumer desire for sustainable transportation, and it positioned the Model 3 as an affordable option for the mass market without compromising on quality or performance.
Tesla’s product strategy highlights the importance of innovation in product development. The Model 3 combines cutting-edge battery technology, autonomous driving features, and a sleek, minimalistic design. Moreover, Tesla has used its brand to convey a sense of status and prestige associated with sustainability, appealing to consumers who want to reduce their carbon footprint without sacrificing luxury.
Unsuccessful Product Examples
1. Google Glass
Google Glass, a wearable technology introduced in 2013, is a notable example of a product that failed to translate consumer needs into a viable product. The product was a pair of smart glasses designed to allow users to access information, take photos, and perform various tasks hands-free. While it was an innovative concept, Google Glass was met with widespread criticism for its impractical design, high price point, and privacy concerns due to its ability to discreetly record videos.
The failure of Google Glass can be attributed to a disconnect between the product’s features and consumer needs. While Google attempted to push the boundaries of wearable technology, the product failed to address a clear consumer problem or deliver enough perceived benefits to justify its high cost. Additionally, concerns over privacy led to public backlash, and the product was ultimately discontinued for consumers in 2015.
2. New Coke
In 1985, Coca-Cola introduced “New Coke,” a reformulated version of its classic soda, in response to the growing popularity of Pepsi. The new formula was sweeter and designed to compete directly with Pepsi’s taste profile. However, this product launch was a massive failure, largely because it did not align with consumers’ emotional attachment to the original Coke. Consumers rebelled against the new formula, and Coca-Cola was forced to reintroduce the original formula as “Coca-Cola Classic” just a few months later.
The New Coke debacle demonstrates how failing to consider consumer loyalty and emotional connections can undermine a product strategy. Coca-Cola misunderstood that many consumers valued the original product not just for its taste but for its cultural significance and sense of nostalgia. The company’s focus on competing with Pepsi on taste alone ignored these deeper consumer connections.
Conclusion
A successful product strategy must be driven by a thorough understanding of consumer needs and the ability to translate these needs into a product that delivers meaningful benefits. Products like the iPhone and Tesla Model 3 have succeeded because they offer clear functional and emotional benefits that resonate with consumers. On the other hand, products like Google Glass and New Coke failed because they either misunderstood or neglected key aspects of consumer preferences and expectations. Ultimately, the success of any product depends on the marketer’s ability to continuously adapt to changing consumer needs and to design products that offer real value in a competitive marketplace.
References
- Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
- Solomon, M. R. (2020). Consumer Behavior: Buying, Having, and Being (13th ed.). Pearson.
- Jenkins, A. (2015). Why Google Glass Broke. Fortune. Retrieved from https://fortune.com
- Coca-Cola Company. (2021). Coca-Cola’s New Coke Failure and Comeback. Coca-Cola Company Website