Product Management Flashcards
What is at the core of bringing value to the customer?
The product experience
Example customer experience
-Apple
-it´s not only about the product but because of the lifestyle one wants to live
Definition product
A product is anything that delivers value to satisfy a need or want and includes physical merchandise, services, events, people, places, organizations, information, or ideas.
SKU
stock-keeping unit
3 Product characteristics
1) Essential benefit
2) Core product
3) Enhanced product
Name the essential benefit of a product
the fundamental need met by the product (getting from point A to point B on an
Southwest Airlines)
Name the core product characteristic
the physical, tangible elements (e.g.,one kind of aircraft, low fares, good website).
Name the enhanced product characteristic
includes additional features, designs, and innovation that exceed expectations (e.g., frequent flyer program, fun and entertaining flight attendants).
How can a product be classified?
-by the nature of the product
-by who uses the product
Aspects of product nature
1) Tangibility (physical aspects of the product experience, is the product tangible?)
2) Durability (product usage)
Types of durability
-durable products: can be used many times, e.g. refrigerators, cars etc.
-non-durable goods: will be consumed after one or few uses (e.g. coke, soap etc.)
Who uses the product?
1) Consumers
2) Businesses
Types of consumer goods (4)
-Convenience Goods Staples: Impulse, Emergency
-Shopping Goods Furniture: Clothes, Appliances
-Specialty Goods: Unique characteristics iPhone
-Unsought Goods: Insurance
Types of business goods
-materials
-parts
-MRO (maintenance, repair, operations) supplies
-capital goods
Product aspects to create differentiation with
-Form
-Features
-Performance QUality
-Durability
-Realiability
-Repairability
-Style
Definition Product Line
A group of products linked through usage, customer profile, price points, and distribution channels or needs satisfaction
Definition Product Mix
all the products offered by a company
Difference of product and product item
Product = coke
Product item = Coke in 0,5 bottles
The product item is what you sell and the product is what you market
Stages PLC
-Introduction
-Growth
-Maturity
-Decline
3 main aspects to know about PLC
1) Provides a framework for market analysis
2) It is looked at aggregated data from a whole industry not at a single company (Smartphone not Iphone)
3) It is a function of time and shows the development of a product category
Objective Intro-Phase
-Build awareness
-Trial purchase of customer
Profitability Intro-Phase
-Low sales, typically high failure rate
-High marketing and product costs
Objective Growth-Phase
-differentiate product from competitors
-promote rapid expansion
Profitability Growth phase
-Sales grow at increasing rate
-Profits are healthier as operations are streamlined
