Product Development

2 The Role of Marketing in Product Development

Corporate Strategy – Strategic Planning

What is strategic planning? This can mean different things to different people. While strategy can be used to guide a company to the next level of performance or change the corporate culture, in product development, strategy can help bring focus. Even corporations get operational plans (short-term focus) mixed up with strategic plans (long-term focus). Essentially, the strategic plan is performed at the highest levels of corporate leadership and may even involve the firm’s Board of Directors.

A strategic plan (corporate strategy) should focus on long-term actions to move the company in a new direction. For years, Coca-Cola was primarily distributing its iconic soft drinks through distributors all over the world. However, as people became more concerned about sugar and corn syrup content in soft drinks, Coke, and other drink makers, decided as a strategic decision to augment their portfolio of products. This now includes Dasani® bottled water, Minute Maid® fruit juices, as well as several tea and coffee products. A conscious decision (or strategy) was made to diversify Coke’s product mix to better serve their customers’ tastes. Their largest competitor, namely PepsiCo, has followed the same strategy and offers not only a variety of beverages, but also various food lines, including Frito-Lay® and Quaker Oats®.

For technology companies, there is a similar approach to offer a continuous stream ...