chapter 8 Flashcards
Chapter 8
Designing and Managing
Products
3 basic elements
product
service
brand
Well-differentiated products can create significant competitive advantages. Crafting a distinctive aura for a product that helps distance it from competitors can involve moves that range from impressive technological advances
Product Differentiation
Attributes on the basis of which to differentiate include:
core functionality
features
performance quality
conformance quality
durability
reliability
form
style
customization
To create customer value, products must deliver on their core benefit. Products that fail to deliver on their core value proposition will inevitably fail in the market.
Core Functionality
Most products can be offered with varying features that supplement their basic function
Features
is the level at which the product’s primary characteristics operate.
Performance quality
the degree to which all produced units are identical and meet promised specifications.
conformance quality
measure of the product’s expected operating life under natural or stressful conditions
Durability
a measure of the probability that a product will not malfunction within a specified time period.
Reliability
the size, shape, or physical structure of a
product
Form
describes the product’s look and feel to the buyer and creates distinctiveness that is hard to copy.
Style
Customized products and marketing enable firms to differentiate strategically by finding out exactly what a person wants—and doesn’t want—and delivering on that
Customization
the totality of features that affect the way consumers perceive a product’s
look, feel, and function.
Design
In our visually oriented culture, transmitting brand meaning and positioning through design is critical.
Eye-catching form, color, and graphics can help an offering separate itself from competitive products.
Power of Design
