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PRODUCT POLICY


        Meaning of Product Policy

       Policy can be defined as the broad guidelines relating to a particular matter. Policies are framed at the top level of management e.g. Board of Directors. Thus, product policies are broad guideline formulated bu the top management of the company with regard to product planning and development. Coverage of the product policy is very wide. A company can select a suitable policy in this regard to provide maximum consumer satisfaction, optimum use of the resources and fair return on investment. Therefore, product policy can be termed as long-term planning and management of its product-mix by a marketing company in order to achieve maximum consumer satisfaction.

         Objectives of Product Policy

         A marketing company can achieve the following objectives through effective designing of its product policy: 

(1) Survival: The prime objective of a marketing company is to keep itself in the market. An effective product policy aims to follow suitable strategies to keep the products in the markets.

(2) Growth: After securing the survival objectives, the next objectives of product policy would be ‘growth’. Product policy is formulated in such a manner so that it provides development of marketing operations according to long-term planning of the company.

(3) Flexibility: Though product policy is designed for a longer period, it becomes necessary to evaluate the effect of emerging trends in marketing. One of the objectives of product policy is to keep flexibility so that it could be changed according to new consumer aspirations and needs, government rules and regulations.

(4) Stability: Product policies are dynamic in nature, nut it is also equally important to provide stability to marketing operations. Reasonable safeguards and measure are included in the product policy to provide stability.

(5) Maximum Resource Utilization: One objective of the product policy is maximum use of various resources of the company. Product policy is designed and altered in such a manner that the company can adequately utilize its various resources e.g. utilization of surplus funds, full production up to installed capacity, use of idle resources, use of by-products for further production, maximum exposure to managerial talent and sale force of the company.

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