Product modification

From CEOpedia | Management online
Product modification
See also

Product modification is an important product strategy which refers to the value adding modifications to already existing products, mostly in mature markets. Referring to the product life cycle, the accurate moment to make modifications in already existing product is in the stage called "maturity"[1]. This strategy may be only an element in more complex strategies called Production management or Lean product development.

The key marketing information to implement this strategy into an organisation are those about customers such as[2]:

  • preferences
  • buying habits
  • lifestyle habits

Without those 3 important elements, product modification may be difficult to arrange because customer's needs are not known. There is also one specific way of product modification which is made to encourage people do something, for example to stop smoking[3]. Is shows that not only advantages for companies are important.

Types of value adding modifications related to marketing information

In this case 2 types of modifications can be considered from the perspective of marketing information[4]:

  • retention type- is focused on loyal customers of the firm and the main goal is to increase the product's attractiveness for them;
  • conquesting type- is focused on loyal customers of the competitors firms and this modification allows to increase the product's attractiveness for them.

Product’s characteristics allowed to change

In most situations, marketing managers or product managers are responsible for the changes in existing products. There are 3 main characteristics of a products which may be changed[5]:

  • quality modification- it refers mostly to the change in product's durability. There are two ways of quality modifications. Firstly, reducing quality of a product to decrease price and to reach new group of people who are not able to buy an original product. The second way is to increase quality to compete with other, rival firms. It is also a good way to build brand loyalty and it gives an opportunity to raise prices if needed;
  • functional modification- in this case more focus in paid to the product's versatility, effectiveness safety and convenience as well;
  • style modification- the last product's modification is combined with aesthetic product change. This way is more connected to the visual side of the product rather than quality or functionality.


  1. (Sharma, S., (2016)., s.252)
  2. (Iyer, G., (2000)., p.203)
  3. (Waller, R., (1996)., p.202)
  4. (Iyer, G., (2000)., p.204)
  5. (Lamb, Ch., Hair, J., (2009)., p.280.)


Author: Rafał Gamrat