Product Strategy and Product Purchase Strategy (1)

1. The basic content of the overall concept of the product:

Material products mainly include product entities and their qualities, characteristics, styles, brands, and packaging. They can meet consumers' needs for use value; non-material forms of services mainly include after-sales services and guarantees, product images, dealer image, etc. It can bring satisfaction and trust to consumers in terms of benefits, psychology, etc., have symbolic value, and can satisfy people's psychological and spiritual needs. In short, the modern product concept is also known as the overall concept of the product: product-entity ten service. Specifically, it consists of three levels of content, namely, the physical product (or core product), the formal product, and the additional product (or augmented product).

Entity refers to the basic utility or benefits provided by a product to a customer. This is the center of consumer demand and the goal pursued. It is the fundamental reason for the survival of a product. The real products are mainly reflected by the indicators of product performance, applicability, reliability, durability, economy, etc. Formal products are the forms in which real products can be realized, and they are enlarged real products. It is generally determined by the quality level, characteristics, styles, trademarks, labels and packaging. It is used to adapt and meet consumer specific requirements for the product. An add-on product (or augmented product) refers to an incidental benefit or service that is acquired along with the consumer's acquisition of a form product. It can bring more benefits and greater satisfaction to consumers, generally including installation and commissioning services; maintenance and consulting services; and other sales and after-sales services.

2. Product life cycle extension:

Extending the product life cycle is mainly to prolong the maturity of the product. There are two main methods for the product life cycle: 1 improving existing products; 2 changing marketing strategies.

(1) Ways to improve the product. 1 Improve product appearance and packaging performance; 2 Change product quality. Through the change of product quality, meet different levels of demand; 3 change the function of the product and expand the use of the product.

(2) Methods for changing marketing strategies. 1 Transfer the market. Products from more advanced industrial countries can often find their markets for recessionary products in developing countries; 2 seek new uses. Looking for new uses of the product means developing new uses without changing the quality, characteristics, and functionality of the product.

(3) Change marketing mix strategy.

Combining the changes in the product itself, as well as changing the price strategy, advertising strategy, sales channel strategy, and sales mix strategy, will also often prolong the product life cycle.

3. The basic content of the product line strategy:

A group of products produced or sold by a company that have the same performance but differ in their specifications form a product line. The number of similar products contained in a product line is called the depth of the product line. The number of product lines owned by a company is called the width of the product line. The width and depth of the product line constitute the product portfolio of the company. Product line strategy is also known as product portfolio strategy. The product mix is ​​a product of the variety and category of all products produced and sold by a company. Is an important part of corporate product decisions. The width of the product line is subject to the constraints of market and technology. It should not be widened indefinitely. Each product line is either technically related or has relevance in the market. The depth of the product line is limited by the size of the market. The deeper the product line, the more able to meet the needs of some special users, but the market will be smaller and smaller.

Product line strategies can be divided into product line width strategies and product line depth strategies.

(1) Product line width strategy. Product line width strategies can be further divided into product line expansion strategies and product line simplification strategies. 1 Product line expansion strategy refers to increasing product lines; expanding the width of product portfolio. The expansion of the product portfolio width has two directions: First, horizontal expansion, that is based on the existing market production technology and experience, the development of product lines associated with existing product lines. In this way, due to the same market, we can make full use of existing sales channels and service networks, develop the relationship between production and demand, and improve corporate reputation. The same production technology can make full use of the company's technological advantages and the impact of certain brand-name products, quickly open up sales, and expand business impact. The second is the direction of lateral expansion, that is, the development of product lines that are completely different or completely unrelated to existing product lines. 2 Simplify the product line strategy. Simplifying the product line strategy means reducing product types. Due to the product line expansion strategy, sometimes the power of the enterprise is dispersed and no competitive advantage can be formed. Therefore, in the market operations activities, in order to highlight the competitiveness of enterprises, it is often necessary to focus on the company's capital and technology, give priority to the development of several favorable products, and give up some weak product lines, which will use the strategy to simplify the product line. In general, starting from the long-term stable development, we should adopt the strategy of expanding the product line; starting from the maximum profits in the near future, we should adopt the strategy of simplifying the product line.

(2) Product line depth strategy. The product line depth strategy refers to product development strategies that do not increase product lines, but extend them on the basis of existing product lines, and increase product line product varieties and specifications. This product development strategy can be divided into three strategies: extending upwards, extending downwards, and extending upwards and downwards.

By adopting a product line depth strategy, product serialization, generalization and standardization can be relatively easily realized; new products can be developed at a faster rate to meet the needs of different consumers in the market; and production and sales of high-end products can be used to increase production capacity. There are product prestige and sales volume; it is also possible to produce and sell low-end products through the reputation of the brand-name high-end products that have been produced and sold, so as to attract low-purchasing customers to purchase low-grade cheap products.