Effective strategic management is key to the success of a product or service.
Developing a product or service requires the product manager to understand several business principles, including principles of strategic management. The three principles of strategic management are understanding penetrate an existing market, introduce the product to a new market, and improve existing products or develop a new product for sale in the target market.
Market Penetration
Market penetration, a part of strategic management, increases the market share for a product or service. Those implementing penetration plans do so through various marketing efforts. Project managers implement these efforts by increasing the numbers of salespeople, increasing funding for ad campaigns, increasing publicity or offering promotional items. Several market penetration guidelines include studying whether the current market is saturated with similar products or services and studying whether consumers will use more of the product or service.
Market Development
Market development occurs when a business offers its product or service in a market that it is currently not serving. In the context of global marketing, business leaders can implement market development strategies through joint ventures with other organizations, licensing the product or service for use by other entities, or by direct investment.
Product Development
Product development is focused on improving the product or service, leading to increased sales. In engaging in product development, project managers engage in research and work to implement research findings. For example, if a postal company finds that it can sell stamps online, funds the creation process and starts selling stamps online, the company has engaged in successful product development.
Tags: product service, strategic management, principles strategic, principles strategic management, product development