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
is a very data-driven approach with three
phases: observation, ideation, and implementation
Design thinking
encompasses all products offered by a company, including various product categories and product lines
product portfolio
product portfolio has a certain width, length, depth, and consistency
the number of different product lines the company carries.
width
total number of items in the mix
length
consists of the number of variants offered for each product in the line
depth
product portfolio reflects how closely related the various product lines
are in end use, production requirements, distribution channels, or some other way
consistency
group of related products sold by the same company
product line
company lengthens its product line in two way
line stretching and line filling
occurs when a company lengthens its product line beyond its current range, whether
down-market, up-market, or both ways.
Line stretching
by adding
more items within the existing range.
Line Filling
important element of product strategy
packaging and labeling
includes all the activities of designing and producing the container for a product.
Packaging
Several factors contribute to the growing use of packaging as a marketing tool.
Self-service
Consumer affluence
Company and brand image
Innovation opportunity
simple attached tag or an elaborately designed graphic that is an inherent part of the package
label
A label performs several function
identifies the product or brand
describe the product
promote the product through attractive graphics
ensures that if a product fails to function as promised by the company or as customers expect, the company will provide some type of compensation to the purchaser.
guarantee
provide customers and the company with much the same benefits as guarantees do
Warranties
usually cover the repair
or replacement of the purchased item and usually do not allow the customer to return the product for a refund
Warranties
Effective product guarantees and warranties should have three traits:
relevant, easily
understood, and easy for the customer to invoke
