Product is defined as tangible goods and intangible services generally created for the purpose of transaction.
The 2is affect product by allowing companies to learn about customer needs/wants and develop a product (or alter an existing product) to meet these needs. They also allow companies offer relationship building tools post purchase
The key marketing levers for products are:
• Basic Product Development Levers
o Packaging
o Attributes and Features
o Customer-Specified Attributes and Features
o Mass-Customized Product
• . Augmented Product Development Levers
o Customer Service Programs
Post sales support, customer care, & customer relationship management.
o Loyalty Programs and Privileges
o Availability of Complementary Products
o Upgrades
o Enabling Community
o Additional Functionality
o Fulfillment Capabilities
The product development process is as follows:
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 portfolios through:
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 can help enable a customer relationship in two ways. The first way is by implementing the appropriate levers to product development in that existing relationship and by emphasizing the elements of the value proposition that are relevant to the current stage of the relationship.
A customer centric approach to product development creates strategic advantages by providing exactly what the customers has been said to value. The market already exists because it has been created by the customer. Once the product is developed, the customer is already likely to purchase (as it is what they have requested).