bob-cannon

Why

Product Marketing Strategy helps manufacturers with product marketing, product strategy, and marketing strategy to maximize profitability over the product life cycle.

Product Extension

Product ExtensionsProduct extension approaches are a product marketing strategy to extending the life cycle of a product. They are most commonly initiated in the maturity stage although they should be initiated earlier in the cycle to gain market share. Original product sales are or have peaked and the manufacturer looks for new markets, more models, and ways to increase usage or diversify so that profits can be maximized.

One great example is the  ipod. The ipod was a huge success, but as it peaked, Apple realized that it needed new models and new markets to keep the profits growing. Today we have the iPod shuffle, iPod nano, iPod touch and the iPod classic. The iPod technology is part of the iPhone and then there is the whole world of iPod accessories. Examples of successful product extension approaches are frequently touted with words like, “New and Improved” or “Bigger and Better”. Anything to differentiate the new model from the old and encourage another purchase.

Another example is Arm & Hammer baking soda. While well established as a cooking aid, the company created a new market for the product by turning it into a deodorizer.

If you look at any product that has been in the market for a period of time, you will see this same pattern repeat itself over and over again.

Smart marketers always focus on ways to optimize profitability over the life of the product.

head-and-sholders  Robert Cannon

   With over 30 years of expertise in marketing, and leadership, Bob creates innovative systems, 
   products and services for small to mid-size manufacturers. Contact Bob today for more information 
   on the Cannon Advantage services and solutions.