Product policy

The product policy is part of a company's marketing mix and aims to satisfy the needs and wishes of customers with the company's products and services.

Definition / explanation

The product policy includes all decisions and activities that deal with a company's range of products and services.

Im Zentrum stehen sowohl einzelne Produkte und deren Product life cycle, als auch das Produktsortiment in seiner Gesamtheit. Die Tätigkeitsbereiche führen von der Forschung und Entwicklung über die Einführung und Überarbeitung bis zur Elimination der Produkte vom Markt.

Als wichtige Teilaspekte des Marketings müssen die Produktthemen mit den Bereichen Preis, Vertrieb und Kommunikation abgestimmt werden. Produkt-, Preis-, Kommunikations- und Distribution policy ergeben gemeinsam den Marketing-Mix eines Unternehmens.

Components of the product policy

• Product life cycle
• Product innovation
• Product variation
• Product differentiation
• Product diversification
• Product elimination

Video: Explanation of product policy

Product policy objectives

The product policy aims to address and exceed the ideas and requirements of customers. The aim is to actively shape the market with the products, to generate additional demand and to differentiate oneself from the competition accordingly through an optimal market positioning (unique selling proposition).

Product policy decisions and actions are based on the following goals:

• Business growth
• Corporate profit
• Corporate image
• Market position and competitive advantages over competitors
• Risk minimization
• Production optimization

Tasks of product policy

The tasks are to make decisions and take measures in the following areas:

• Product design (properties, functions, design, marking, packaging)
• Service design (additional services such as advice, assembly, financing, maintenance, disposal, guarantee)
• Compilation of the product portfolio (number and type of products offered: design of the breadth and depth of the range)

Summary