Product developement
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Product.pptxWhat is a product?
Product is the overall experience provided by the combination of goods and services to satisfy the customer’s needs before they use it, while they use it and after they have stopped using it
Product = Goods + Services
What is a “good” ?
Goods
“Tangible”
“Physical products”
Goods
Consumer products – items that are used daily
4 types
Convenience products – purchased immediately & frequently. E.g. Food, beverages
Shopping products – goods that require research and analysis before purchasing. E.g. automobiles
Specialty products – unique. E.g. luxury goods
Unsought products – don’t know about or want to think about. E.g. burial plots
Business to business (b2b): used for running business or selling directly to business customers
E.g. Copiers, Point-of-sale equipment
Other examples?
Industrial products: used by industry or business than by individuals
E.g. Testers, Fork-lifts, Data Servers
Other examples?
Other products:
Perishable – non-durable, e.g. food
Durable – e.g. electronic equipment
Finished goods – do not require further processing, e.g. bottled water
Services
Any activity or benefit that one party can offer to another which is essentially intangible and does not result in ownership of anything
Services
4 Characteristics
Intangibility
Perishability
Inseperability
Variability
What are examples of “service”?
Professional services – assistance by one person to another, e.g. medical service (like doctor)
Business services – e.g. consulting
Technical support – often accompany a manufactured product
Financial services – e.g. insurances, investments
Service warranties – protection against repair cost etc. e.g. maintenance service contracts
Brand
A strategic asset, experience, perception and reputation of an organization’s values and beliefs, personality and behavior. It also comprises the name and visual mark by which an organization is recognized.
Which company’s brand is this?
What does the brand convey?
Which company is this?
What does this brand convey?
What does this brand convey?
Brand lives in mind, while product is the delivery mechanism of the brand
Product Lines
A group of products that are closely related because they function in a similar manner, are sold to the same customer groups and marketed through the same types of outlets, or fall within given price ranges
Any example of product lines?
Example
Extensions
Brand extension: using an established brand to introduce new product
E.g. Celebrities using their name fragrances, clothing, jewelry etc
E.g. Coke Cherry Coke Coca-Cola Coke
Summary
Definition of product, product lines
Good
Services
Definition of brand, brand extensions
Brand lives in mind, while product is the delivery mechanism of the brand
Please read chapter #3 of the book
Next topic
Product Management – what is product management?
