Product Management 1 (7.1 7.2, 8.1, 8.2) Flashcards
3 Layers of a Product (AAC)
Augmented, Actual, Core
What is a Product
A tangible good, service, person, place (destination), or idea/ ideology that satisfies a customer’s needs through the exchange process
Augmented Product
is the non-physical part of the product. It usually consists of lots of added value
- Warranty, Delivery, Installation
Actual Good
Is the tangible, physical product
Core Product
The core benefit of the product
- Car = Transportation
Durable Product
Long-lasting
Non Durable Product
Benefit over short period
-Toothpaste
Convenience Product (Staples)
Typically, durable goods that are purchased frequently and consumed immediately.
FMCGs
Type of convenience product with more variations and planned purchases. (More brand loyalty)
Impulse Goods
An item that a consumer does not plan to buy on a specific trip to the store.
Emergency Goods
Items purchased when we are in dire need,such as an umbrella during a rainstorm, a tire to replace a flat ,or aspirin for a headache
Price may be irrelevant and sizes are smaller.
Shopping Products
Product where consumers spend a considerable amount of time and effort on
Unsought products
These are goods and services for which a consumer has little awareness or interest in purchasing until it is needed.
- Casket, Fire extinguisher,
Continuous Innovation
Small change to an existing product to stand out from the competition. (easy for the consumer to adjust)
Dynamically Continuous Innovation
Pronounced change to an old product. (harder for consumer to change)
- CD to Digital
Discontinuous innovation
A Major groundbreaking change
- Intro to the first iphone
Phases in New Product Development
1) Idea Generation,
2) Product concept development and screening
3) Marketing strategy development
4) Business Analysis
5) Technical Development
6) Test Marketing
7) Commercialisation (full-scale plan)
Product Adoption
the process by which a consumer or customer beginsto buy and usea new good, service or idea
Diffusion
When the use of a product spreads throughout a population
Stages in the adoption process
Awareness
Interest
Evaluation
Trial
Adoption
Confirmation
Awareness
Seeing the product exists – need to educate customers about the product
Interest
Prospect consumer may see how the product can satisfy a new or existing need
Evaluation
Customer weighs the costs and benefits
Trial
The potential buyer will experience or test the product (Samples)
