Product policy is used in marketing in order to maximize the satisfaction of all the wishes of the client and, as a result, to increase profits. That is, it is precisely the desire and opportunity of the consumer group to purchase a particular product, and not the capacity of production capacities , that are considered as primary factors .
The product policy in marketing is aimed at selling exactly the products that customers need, and not at forcing them to purchase those goods or services that are profitable for enterprises to produce. At the same time, it is not enough just to engage in production in accordance with the wishes of consumers, you need to make a quality product. After all, the main characteristic of a product is quality, it can be conditionally divided into real and perceived.
The first is that which the finished product actually possesses, managers and technologists of the enterprise have an idea about it, since they are engaged in its direct development. Perceived quality refers to the customer’s impression of using a particular product. From the point of view of product policy, it is the latter that is important, because the level of sales depends on it. If the client does not like the purchase, he will not listen to the opinions of technologists and will never pay attention to this company again.
Another important feature in marketing activities is the competitiveness of a particular product in the market. Moreover, product policy in this case implies the ability to compete with others in consumer properties. A common mistake in promoting a product is that experts consider it as an item, and you should understand how it satisfies the needs of the client. The consumer, in fact, does not really care what the product is, the main thing for him is what benefit he will bring to him and how much he will be satisfied.
If the company occupies its niche in the market, but there is no increase in profitability, then you should choose one of the following three types of product policy. Horizontal involves the introduction into production of new products that are not too different from existing ones, which means that they do not require additional costs for implementation needs. It helps the company to attract the attention of the client, to interest him. For example, a company is engaged in strictly auditing organizations, and now provides consulting services of highly qualified specialists in the field of accounting.
As a radical measure, a conglomerate product policy is used, which is based on the introduction of new products into production that radically differs from the specifics of the company. This method requires a serious approach, since high-quality planning of all costs is necessary, and new markets will have to be developed . Nevertheless, this will attract a large share of the consumer group. Concentric product policy takes an intermediate position and is based on the search for a product similar in technological characteristics that would interest the client, but would not require the development of other market sectors.
A well-chosen product policy allows the company not only to gain a foothold in the market, but also to take a leading position. The creation of a logo or brand recognition is considered very important, because if the company is identified by customers, then it has won their trust. Of course, this is due to the clear work of the advertising campaign, which also helps to increase the number of customers. But in order to be consistently successful, you should adhere to the tactics of continuous updating of the product range.