MM – product

1)      How is product defined?

 

•         Can be defined as both tangible goods and intangible services generally created for the purpose of transaction.

•         Two general types of products for which the levers of product development differ – physical and services.

•         The Internet is changing some accepted limitations of service-based offerings such as intangibility, simultaneity, heterogeneity, and perish ability.

•         Three components to overall value proposition: core benefit, basic product and augmented product.

 

2)  How do interactivity and individualization affect product?

 

•         The 2Is allow a company to learn more about its customer, personalize a product to meet customer preferences, and offer CRM tools to provide more value for customers and cut costs for product sellers.

•         Websites which require customers to register to use the site have access to numerous tools to interact with the user as an individual.

 

3)     What are the key marketing levers for products?

 

Basic Product includes the packaging, attributes & features, Customer- Specified Attributes & Features, and Mass-Customized Product.

 

These are the key marketing levers for products:

•         Customer Service Programs

–        Postsales support, customer care, &  customer relationship management.

•         Loyalty Programs and Privileges

•         Availability of Complementary Products

•         Upgrades

•         Enabling Community

•         Additional Functionality

•         Fulfillment Capabilities

 

4)     What does the overall product development process look like?

 

1. Idea generation
2. Screening ideas
3. Product design
4. Prototype development
5. Business analysis
6. Test marketing
7. Commercialization

 

5)     How can companies manage their product portfolio?

 

A strong product development portfolio generally includes:

1. New product development
2. Enhancements and line extensions of current products and services
3. Development of existing products
4. Support of current products and services

 

6)     How can products help enable a customer relationship?

 

•         Two primary techniques:

1.     Deploying the product development levers that are appropriate for the existing relationship and

2.     Emphasizing the elements of the value proposition that are most relevant at a given stage of the relationship.

7)     How can a customer-centric approach to product development create strategic advantages?

 

New product development is impacted by:

1. Customer needs
2. Production needs and capabilities
3. Research and Development
4. Competitors and Marketplace Forces