Creating the Product.pdf.pdf
- 1. 8-1 1 Chapter 3: Creating the Product Value proposition – why a person should buy the product (benefits she will receive) compared to competitors’ products Product: –Tangible good or intangible service that satisfies customer needs • We can see, touch, smell, hear, taste, or possess tangible goods – Intangible products • services, ideas, people, places
- 2. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-2 Figure 8.2 Layers of the Product
- 3. 8-3 8-3 The Core Product= Benefits Consists of all the benefits the product will provide for consumers or business customers Marketing is about supplying benefits, not products.
- 4. 8-4 The Actual Product Consists of the physical good or delivered service that supplies the desired benefit Example: –A washing machine’s core product is the ability to get clothes clean, but the actual product is a large, square, metal Actual product also includes appearance, styling, packaging, and the brand
- 5. 8-5 8-5 The Augmented Product Consists of the actual product plus other supporting features such as warranty, credit, delivery, installation, and repair service after the sale – A key way to differentiate many products – Consistent with long-term customer relationships
- 6. 8-6 Classifying Consumer Products Durable vs. Nondurable Durable –Benefits accrue to consumer over period of months, years, decades –High involvement –Understand augmented product issues Nondurable –The good is consumed in the short-run –Low involvement –Focus on brand/price/ distribution –Decision made based on past experience
- 7. 8-7 Classifying Goods: Shopping product: purchased with considerable time and effort considering price, attributes, quality Tend to compare alternatives 7
- 8. 8-8 8 Classifying Goods: Specialty products: have unique characteristics important to buyers at any price Consumers may be highly brand loyal Consumers may not be willing to accept substitutes – Rolex watch
- 9. 8-9 9 The Process of Innovation: Creating New Products Customer perspective: Innovation is anything that customers perceive as new and different
- 10. 8-10 Developing New Products New-product development: continuous process of looking for new products or existing product better Successfully introducing new products is becoming more difficult – R&D costs are enormous – Products become obsolete faster – fees are high