Business Management

Running head: PRODUCT STRTAEGY 0

Product Strategy

Victor J. Ayala

University of Phoenix

MKT/571

Patricia Estabrooks

May 15, 2017

Introduction

Upon the identification of the objective in manufacturing a commodity, the process that follows is launching the product into the market. During the process, management considers the lifecycle of the product in the decision. The acknowledgment of the implication in the decision of the organization is critical. In the first step, the formulation of ways of introducing the commodity into the market proceeds. The task entails utilization of media in the creation of awareness to entice consumers develops a positive image towards the brand. The management of Ikea can exploit integrated marketing communication tactics. The consideration of the market mix components can guide the process.

Product promotion strategy

The branding of the product can strive to establish a resounding image in the American market. The methodology at most differs with the approach to utilization in the exploitation of the European market. The pricing has to consider a penetrative tactic in which the consumer's ability to make a decision should be pegged on the impression of the price. Ikea can exploit skimming techniques that only strives to create equilibrium in expenditure and returns at the commencement (Suh, & Huppes, 2005). The consideration of place as a marketing mix component involves using stores that create a sensation to consumers. The location of the facilities has profound effects both locally and internationally. The promotion tactics must ensure that the communication creates a sense of loyalty besides sensitizing consumers about the benefits of making a decision to purchase Ikea products.

The consideration of the marketing mix components also applies in the growth stage. However, the approach to exploitation of the process must seek to create a sense of loyalty to entice the group identify with the brand. Additionally, the process must maintain the momentum that drives demand. The marketers must liaise with the manufacturers to ensure that the company maintains consistency in the production of the brand. To some extent, the accentuation of quality through innovation is advisable. The provision of additional services while using direct selling tactics is also helpful in the markets. The model of pricing should ensure that the consumers perceive value in the commodity. In the placement of the product, the marketers should consider increasing the challenges for reaching consumers. The step can entail utilization of the online platform in merchandising the products. The marketing tools must strive to increase the audience for the commodity.

The maturity stage as the third step in product cycle witnesses the decline in demand for the new product launched in the market. On numerous occasion, the stage proceeds decline in excitement for the product. Therefore, in a bid to ensure continuity in the progress of the brand, the exploitation of innovative strategies is necessary for the retention of the controlled by the brand. According to Cravens, & Piercy (2006), many organization concentrates on augmenting the quality of the product through differentiation tactics. The same should apply to Ikea products because of the existence of many other competitors in the market. Throughout the stage, the management has the duty of maintaining communication with consumers to address any public relationship issue that might affect sales. The leadership must maintain an interactive website that creates a sense of concern in the action of managers. After which the public relations official can capitalize in enticing consumers to maintain loyalty to the brand.

The exploitation of pricing as a tool for promotion at times takes the form of reduction to create an impression that the entity has the interest of consumers at heart. While deploying the tactics, the promoters must not compromise on the ability of the venture to make profits. The prioritization of efficiency in the distribution channels follows. The business at times expands the channels to reach consumers in their homes (Cravens, & Piercy, 2006). The campaign tactics, on the other hand, emphasizes the uniqueness of the brand to ensure continuation in demand.

The last stage of product promotion is the decline that requires exploitation of new strategies to ensure that a venture remains in the market. The company has the alternative of rebranding the product to create an impression of novelty. The team pricing the commodity can consider introducing discounts to retain the loyalty of consumers.

Factors that can affect outcome of promotion and variation in markets

The level of innovation and prevailing economic situation affects the effectiveness of promotion tools. For that reason, the utilization of an integrated approach to marketing is mandatory in the penetration of the American market at such times. During the process, the media strategy requires caution because the perception of the consumers tends to depends on the dynamics of the surrounding environment (Suh, & Huppes, 2005). In times of economic growth, advertisers ought to consider pricing a critical component in the promotion of the brand. After the 2008 recession, for instance, the communication of the value aspect should precede pricing aspect in advertising in the country. Consideration of culture is equally critical when designing promotion tools.

Marketers should also note that the approach to publicity of the launch in the United States has profound effects on the perception of people in the US, but such is not the case for the European market. The values of the consumer about the brand have immense effects in the latter region. The activities of the competitors also play a role in the promotion. In cases where the competitors are effective, Ikea might struggle through all the stages. In the international market, the regulation by the respective government also plays a role. In the context where the policies interfere with marketing activities the business might records losses.

References

Cravens, D. W., & Piercy, N. (2006). Strategic marketing (Vol. 7). New York: McGraw-Hill.

Suh, S., & Huppes, G. (2005). Methods for life cycle inventory of a product. Journal of Cleaner Production, 13(7), 687-697.