Practicum : 3

Highlights : Company Strategy in Product Management

Topic : Product Management Based on Market Concepts and
Marketing Strategy

1. Specific Instructional Purposes

Students are expected to be able to:
a) Explain the definition of the market.
b) Describes the management of a product and designing a product marketing
strategy.

2. Teory
A marketing strategy is a set of goals and objectives, policies and rules that
give direction to marketing efforts over time at each level and location. Modern
marketing strategy generally consists of three stages, namely: market
segmentation, targeting, and positioning (Kotler, 2001). After knowing the market
segment, target market, and market position, a marketing mix strategy can be
drawn up which consists of product, price, distribution and promotion strategies
(Kotler, 2001).
A. Market Segmentation (Segmenting)
In general, there are three basic philosophies as a guide for companies to
approach the market, namely mass marketing where the decision to mass produce
and distribute products, marketing of various products that provide different
product choices for different segments, and targeted marketing that develops
products for specific markets. .
Market segmentation is the activity of dividing heterogeneous markets from a
product into homogeneous market units (market segments) (Kotler, 2001). In
other words, market segmentation is the activity of dividing the market into
differentiated groups of buyers with different needs, characteristics, or behaviors
that may require a separate product or marketing mix.

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 There is no single way to segment your market. Marketers should try
different segmentation variables, alone or in combination to find the best way to
map market structure. There are several main variables that are often used to
determine market segmentation, namely geographical, demographic,
psychographic and behavioral variables.

B. Target Market (Targetting)

What is meant by the target market is a group of consumers who have almost
the same (homogeneous) characteristics or characteristics that the company
chooses and which will be achieved with a marketing mix strategy. By
determining the target market, the company can develop its product position and
marketing mix strategy for each of these target markets.
In choosing the target market (target market), companies can take three
alternative strategies, namely: (1) Undifferentiated Marketing, (2) Differentiated
Marketing Strategies, (3) ) Concentrated Marketing Strategy.

C. Differentiation and Positioning

After identifying market segments, a company must also identify specific
ways that it can differentiate its products and choose a "competitive positioning".
Differentiation
Basically, differentiation is the act of designing a set of meaningful
differences to differentiate the company's offering from competitors' offers
(Kotler, 2001). Differentiation can be done through the following five dimensions:
• Product Differentiation
• Service Differentiation
• Personnel Differentiation
• Channel Differentiation
• Image Differentiation
Positioning of the Product in the Market (Positioning)
Positioning is the act of designing a company's offer and image so that it
occupies a meaningful competitive position in the minds of its target customers

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(Kotler, 2001). Positioning is a very important element in a marketing strategy. A
company can determine its position through customer perceptions of its products
and competitors' products so that a perception map will be generated.

5. Questions (individual assignments) are submitted next week

Product Marketing Strategy and Management Sheet

No. Question Answer
1. How do we manage products
that are less attractive to the
public so that they can be
properly absorbed by the
market
2. If the market is in a sluggish
condition (due to the economic
crisis that has occurred), what
steps can you take so that the
market will be able to receive
your product well again
3. Perceive yourself as the leader
of a company engaged in a
particular field. Next, try to
formulate a company strategy
so that your product marketing
can run successfully.
4. From question number 3,
determine the marketing mix
that matches the marketing
strategy

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