Final answer:
Marketers consider factors such as the product life cycle, product mix, positioning, and branding in developing a product strategy. These are complemented by strategic decisions on production processes, output levels, pricing, labor, and differentiation based on market structure and competitive conditions.
Step-by-step explanation:
When putting together a product strategy, marketers consider several factors, including the phases of the product life cycle, which describe the stages a product goes through from development to decline. The product mix encompasses the variety of products a firm offers, targeting different customer needs and market segments. Positioning involves how a product is perceived relative to competitors, often emphasizing unique benefits or features to create a distinct place in the consumers' minds. Branding is about creating a unique identity for the product, fostering recognition and customer loyalty.
Additionally, firms make strategic decisions about what products to produce, the most efficient production processes, the appropriate levels of output, pricing strategies, and the amount of labor to employ. These decisions are influenced by production and cost conditions as well as the market structure, which includes the degree of competition, similarity of products, and barriers to entry for new firms. Offering differentiated products can be a way to stand out in a competitive market by varying physical aspects, location, intangible aspects, and consumer perceptions.