Product
Defined as tangible goods and intangible services created for the purpose of transaction. Levers-physical and services.. The internet is changing some accepted limitations of service-based offerings such as intangibility, simultaneity, heterogeniety, and perishability. 2 components of value proposition: core benefit, basic product and augmented product.
Interactivity and Individualization affect product because of the 21s bc a company learns more about its customers, personalizes a prdouct to meet customer preferces, and offer CRm tools to provide more value for customers and cut costs for product sellers. Also websites which require customers to register to use the site have access to numerous tools to interact with the user as an individual.
Key marketing levers for products basic product levers: packaging, attribute & features, customer-specifiend attributes &features, and mass-customized product. customer service progrmas- postsales support, customer care, and customer relationship management. 1) loyatly programs and privileges, availability of complementary products, upgrades, enabling community, additional functionality, fulfillment capabilities.
Overall product development process is: 1) idea generation 2) screening ideas 3) product design 4) prototype development 5) business analysis 6) test marketing 7) commercialization
Companies can manage their product porfolios 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
Products help enable customer relationships by : awareness: packaging exploration/expansion: packaging, product attributes and features, fulfillment capabilities and customer experiences, availability of complementary products, customer-specified attributes and features, mass customization, advanced internet functionality. Commitment: upgrades, customer-specified attributes and features, mass customization, postsales support, loyalty programs, customer experience, enabling community, CRM. dissolution- customer care
Customer-centric approach to product development create strategic advantages by 1) customer needs 2) production needs and capabilities 3) research and development 4) competitos and marketplace forces.