Product strategy involves classifying products based on their core, actual, and augmented levels. Products can be classified based on their width, length, and depth, with width referring to entire classes or commodities, length referring to product lines or brands, and depth referring to specific versions of products. Effective product strategy considers decisions around product classes, branding, product lines, product mixes, and new product development across a product's life cycle.

1. Marketing
Product Strategy

2. What is a product?
• A product is “anything that can be offered
to a market for attention , acquisition , use
or consumption and that might satisfy a
want or a need.” (Armstrong et al, 2004)

3. Levels of a Product
•
Core
Actual
Augmented

4. Product Classifications

5. Product decisions
• Product Class.
• Branding and attributes.

6. Width, Length, Depth
Classes/commodity (width)-to
develop: new classes
Innovation
magnitude
increases
Lines/Products (length)—to
develop: new Brands
and/or new product
concepts
e.g.
Walkman
Cassettes/
CD’s
Products’ Versions
(depth)-to develop:Shock-absorbent
new options
/Sound
adjustments,
radio option, etc..
Innovation
magnitude
decreases

7. Product decisions (cont.)
• Product line decisions.
• Product mix decisions.
– Managing the product
portfolio

8. New product development
(Divergence Towards Class/Category
Creation (Ries &Ries,2004)

9. New product development
Product life cycle strategies
(Diversions towards line creations)

10. Types of product development
• Change in the core
• Change in Packaging
and/or core