ben potter, andy benesh, austin richardson, jason klein, krishna venkata
TRANSCRIPT
PRODUCTSBen Potter, Andy Benesh, Austin Richardson, Jason Klein, Krishna Venkata
Products can be goods, services, or ideas, such as intellectual property.
Products can be tangible or intangible.
Products can also be classified by use, by brand, or by other classifications as well.
Product
Merchandise
Product Offering in Retail Industry
Finished Goods
Product offering in Manufacturing Industry
Project Deliverables
Project offering in Project Management Industry
Product Forms
• Goods
• Services
• Ideas
Product Classification
Tangible Product Intangible Product
Product Classification: By Use or By Association
Insulated wire as a product
Consumer Products
Business products
Core – What the customer needs/wants Actual – What the customer gets Augmented – services or secondary
products for the actual product
Product Level Definitions
Augmented Product
Actual Product
Core Product
Core – the desired benefit Actual – quality, color, style, branding Augmented – warranty, install, deliver,
finance, service
Product Level Descriptors
Augmented Product
Actual Product
Core Product
In the class we discussed the three product levels, Philip Kotler defined 5
Kotler’s 5 Levels
Core(basic
function)
Generic (properties)
Expected (performance)
Augmented (differentiators
)
Potential(future improvements)
83, marketing guru
Product Level Example – Airline Industry
Pro
duct
Lif
e C
ycl
e
Many depictions of development with varying emphasis and detail
Example from a company
Product Development Process
New Idea
Search for “Prior Art”
Patent Application
Quantify Demand &
Develop Strategy
Customer Requirements
Design & Test
Product
Governmental Approval
Manufacture Commercialize
Services are:◦ Intangible◦ Perishable◦ Produced and consumed simultaneously◦ Experienced, not possessed
Our Product is Service
Service businesses are more numerous than good businesses
Most companies are both a good and service
Service is important, even for businesses who sell products
Our Product is Service
Where service takes place◦ Important for goods businesses too
Websites
Servicescape
Where service takes place◦ Important for goods businesses too
Storefronts
Servicescape
Gaining importance in global business environment◦ Search – more information about companies and
products available◦ Experience – access to more good and service
companies◦ Credence – more options make credibility more
important
Service Qualities
Disney’s QSCV◦ Quality, Service, Cleanliness, Value
Clayson’s keys to service◦ Quality◦ Reliability◦ Responsiveness◦ Assurance◦ Employees◦ Management
Service
Why the Four P’s of Marketing are Dead◦ Linkedin, 12/10/2014
Don Tapscott◦ CEO of Tapscott Group◦ Author of fifteen books
Marketing Article
Business is changing◦ Technology is interactive◦ ‘Digital natives’ better diagnose product value◦ Increased availability of information creates
transparency
Marketing Article
Companies must:◦ Engage customers, not just listen to them◦ Realize ‘brand’ is a relationship
Marketing Article
Four P’s are now ABCDE◦ Place > Any place◦ Brand is a relationship◦ Promotion > Collaboration◦ Price > Discovery of price◦ Product > Experience
Marketing Article
Branding
Brand Equity
Awareness Loyalty Connection Price Product
Brand Equity
“Top of mind” awareness
Aided awareness◦ consumer is aided with a
list of company names and he recognizes the company
Strategic awareness◦ When asked about a
product category, the consumers are asked to list brands they know without any cues
Brand Awareness
Brand Awareness v. 2.0
Brief Positive Image Visual Appeal Consistent Unique
◦ Marion Michael Morrison
Brand name should be
Xerox (good or bad?) Panasonic
◦ “Touch Woody – the Internet Pecker” Ford/Firestone – 2000 Ford Explorer
Brand Liability
Definition: is a marketing technique intended to present products in the best possible light to different target audiences
“WHO is our TARGET MARKET?”
Product Positioning
Products must be differentiated from other like products
“WHY should anyone buy your product over your competitors?”
Differentiation
Product differentiation based on QUALITY “Nothing runs like a Deere”
Product differentiation based on SERVICE “Where there’s a helpful smile in every
aisle”
Two Options for Differentiation
• Requirements:1. Reliability Quality Control
2. Conformance Defects should NOT occur
Quality
• Performance “the action or process of carrying out or accomplishing an action, task, or function”
- Example: Audi cars• Durability “the ability to withstand wear, pressure, or
damage”- Example: Cal Ripken Jr. – Baltimore Orioles Shortstop
(1981 – 2001)- 17-year streak of 2,632 consecutive games
played broke Lou Gehrig’s record
Drivers
• Features “a distinctive attribute or aspect of something”
-Examples: Dual air bags or remote-start for a car
• Serviceability “the capacity for being useful for some purpose”
Enhancers
• Appearance “the way that someone or something looks”
• Example: Patrick Dempsey vs. Jabba the Hutt
• Reputation “the beliefs or opinions that are generally held about someone or something”
Aesthetics
Service Reliability:1.Accessibility - Service is available when
desired (when the customer wants to use it).
2.Continuity - Customer has uninterrupted service over desired duration.
3.Performance - Meets the customers' expectations.
Service Assurance “ensures that services offered meet a pre-defined service quality level for an optimal customer experience”
Service Requirements
• Drivers Require:- Performance & Responsiveness
• Enhancers Require:- Extended Services & Customer Empathy
• Aesthetics Require: - Appearance & Reputation
Service: Drivers, Enhancers & Aesthetics
Differentiation can also be based on PRICE: Low-Price Position Lower Transaction Costs Position
Differentiation: A Special Case
Silver Bridge Collapse - December 15, 1967, Point Pleasant, WV
Quality Non-Conformance Example
Investigation of the wreckage pointed to the cause of the collapse being the failure of a single eyebar in a suspension chain, due to a small defect 0.1 inch (2.5 mm) deep
Analysis showed that the bridge was carrying much heavier loads than it had originally been designed for and had been poorly maintained
Anatomy of the Collapse
Questions?