A product approach implies focusing on an end-product. The concept first appeared in teaching and writing and was later adopted by marketers and managers. In marketing, a product approach means that a business concentrates on its output rather than on customers’ demand, needs, and values.
In the business environment, the term “product approach” has changed in meaning over time. This article explores the product approach in marketing and the company management. We’ll start with an overview of two primary management frameworks.
Product Approach vs. Process Approach
When setting up a business, companies employ one of two approaches: product or process. Both of them aim to boost a firm’s efficiency and improve results. However, they have different focal points.
The process approach sees a company as a set of interconnected processes. Thus, to achieve the desirable outcomes, you need to streamline inner business processes. This strategy implies a high degree of team-organization and fine-tuned corporate culture. It is crucial to put employees in charge of improving the firm's procedures by brainstorming, group discussion, and collaborative revision.
On the contrary, the product approach pivots around output. To release in-demand products, an organization often employs this proven business model. On average, the product approach requires less teamwork and collaboration than the process perspective.
When it comes to marketing, the term “product approach” changes in meaning and confronts not a process but a marketing-oriented approach. Let’s get into detail and find out the best option.
Product Approach in Marketing
“Build it, and they will come” – this saying precisely describes the product approach in marketing. A better way to understand this concept is by contrasting it to a marketing-oriented outlook. Marketing-oriented businesses start with defining and exploring their target audience and creating the demand for their product or service.
The product approach goes the opposite way and crafts an output to meet the existing demand. Hence, businesses that use a product approach have to compete on pricing. This framework can drive desirable outcomes, but it has a weakness.
Companies that work inside the product approach are often blind to buyers' changes of heart and the upcoming shifts in the market. For instance, Kodak fell into a trap by using the product approach.
The company used to be a market leader for decades and produced the best-in-class cameras. However, Kodak failed to notice that customers started to favor digital cameras to analog ones. As a result, the company lost its market share and almost went bankrupt.
The product approach in marketing gets outdated. To keep up with trends, adopt a marketing-oriented approach and employ actual tactics. Sign up with SendPulse to reap the benefits of email, web push notification, SMS, and chatbot marketing.
References
- The article “B2B: product approach vs. market approach?” will help you dive deeper into the concepts above.
- Read the article “What is the product approach vs. the process approach?” to learn more about the difference and similarities between these frameworks.
Last Updated: 22.03.2023
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