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.
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.
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
What does the overall product development process look like?
Idea generation
Screening ideas
Product design
Prototype development
Business analysis
Test marketing
Commercialization
How can companies manage their product portfolio?
A strong product development portfolio generally includes:
New product development
Enhancements and line extensions of current products and services
Development of existing products
Support of current products and services
How can products help enable a customer relationship? Can enhance value at relevant stages in the relationship.
How can a customer-centric approach to product development create strategic advantages? It is able to gain insight into customer’s needs that can start at the registration stage when it’s a online product. Increase success base on customers’ acceptance