- How is the product defined?
A product can be tangible(can touch) or intangible (services). They are for transaction purposes. There are two types of products physical and services. The Internet is changing some accepted limitations of service-based offerings such as intangibility, simultaneity, heterogeneity, and perishability. There are three components for the value proposition: core benefit, basic product and augmented product.
- How do interactivity and individualization affect product?
They affect product development, it also allows the firm to learn about their consumers. It also allows the personalization of the product for the preference of consumers. It also will decrease costs for sellers. In other words, the 2Is allow a company to learn more about its customer, personalize a product to meet their preferences, and offer CRM tools to provide more value for customers. This can help companies in the development augmented products. Websites that require a login/password allow the company to recognize the customer individually and to see their frequency in logins. Meanwhile, websites that use log files allow the company to see what are the consumers interest by viewing their every click.
- What are the key marketing levers for products?
Attributes and Features-this is used to differentiate companies from each other, by customizing specific things for the customer (taste or preferences). (for example Dell) Companies should not overwhelm customers with too many choices. Customer Service program-support for customers before/during/after sales, customer care and it also helps the relationship with the management. loyalty programs and privileges – rewarding customers by increasing their relationship. Packaging- this makes the product stand out from the rest of the products (subconsciously and consciously) Availability of complementary products- it improves the value or potential value of the basic product. Upgrades- this offers a greater potential value for the customer. Plus it can add-on to their long term relationship.
- What does the overall product development process look like?
Idea Generation ( basically, Brainstorming).Screening Ideas- (having a set of objective and a way on how the product will go into the development). Then it will go to the Product Design ( self explanatory). Prototype development – (this is like a model of the product. helps determine if there are flaws, safety issues, and it saves time/money since its just a model). Then its the Business Analysis (analyze comapny with theproduct image).Testing Marketing – (its a test to show where the new products should be open and looks if it is supported by the target area). Commercialization -( this includes the implementation of the plan, resources, marketing and the distribution to be done corectly in order for the process to be successful.
- How can companies manage their product portfolio?
For starters they need to have a new product development. Then they can support their current products/services, by expanding with their existing products. (extend the line)
- How can products help enable a customer relationship?
The company can upgrade their value at the important stages in the relationship. Keep customers interested. There are two type of techniques : developing the product development levers that are appropriate for the existing relationship. Emphasizing the elements of the value proposition that are most relevant at a given stage of the relationship.
- How can a customer-centric approach to product development create strategic advantages?
Product development is impacted: Customers need, Production needs and capabilities, Research and development, and competitors and marketplace forces.