Product

Product

1. Definition

   • Physical Good Service Capable of Offering Attributes that Customers regard as so Necessary or Satisfying that they are Prepared to Exchange Money or other units of Value in order to Acquire it.

2. Anatomy of a Product

   • Core Product/Benefit
     • Main Purpose or Functionality it Provides e.g, Car - Transports
   • Tangible Product/Benefit
     • Represents the Offer of the Product e.g, Quality or Comfortable Design
   • Augmented Product
     • Differentiating Features that Competitors might Imitate e.g, Low-Polluting
   • Potential Product
     • Possible Evolution of Product through DT e.g, Extended Battery life

3. Classification of a Product

   • Durable Products
     • Lasts Many Uses, Often Years e.g, Cars
   • Non-Durable
     • Usually Consumed Quickly on Few Occasions e.g, Food
   • Service
     • Intangible Offering, Inseparable & Perishable e.g, Flights or Concert

4. Consumer Classification of a Product

   • Convenience Products
     • Little Involvement, Frequent & Low Cost Standardizsd Product e.g, Milk
   • Shopping Products
     • More Involvement/Differentiation, Higher Price & Less Frequent Purchase e.g, Designer Clothes
   • Unsought Products
     • Irregular Purchase, 'Hard Sell', Little Awareness/Interest e.g, Funeral Services
   • Specialty Products
     • HIgh Price, Extensive Involvement, Unique Characteristics, Brand Loyalty e.g, Cars/Phones

5. The Product Mix

   • Product Line
     • Group of Related Products Considered a Unit for Marketing, Technical Use Purposes e.g, Dyson Vacuums
   • Product Line Length
     • Number of Product Items in a Line e.g, Dyson's Selection of Vacuums
   • Product Mix Width
     • Number of Product Lines Offered by a Company e.g, Dyson - Vacuums, Hairdryers, Fans, etc
   • Product Item
     • Specific Version of a Product that is Designated as a Distinct Offering e.g, Dyson V6

6. Product Life Cycle

   • Boston 'Consulting Group' Matrix
   • Five Stages of the PLC
     • Product Development - Start to Develop new Product Ideas, initial costs Related to Designs & Testing.
       • Introduction - High Production Costs, Sales Growth is Marginal & Initially Slow
         • Growth - Market acceptance Leads to Rapid Sales Growth
           • Maturity - Acceptance Gained from Target Buyers = Sales Growth Slows
             • Decline - Drop in Sales as Consumers Switch to Newer, Innovative Alternatives
   • Innovation Diffusion Graph
     • Innovators - Small group of People Exploring New Ideas & Technologies
       • Early Adopters - Opinion Leaders who are Receptive to Change & Share Reviews
         • Early Majority - Followers who are Engaged by Reviews from Earlier Adopters
           • Late Majority - Generally, Sceptics that Reluctantly Follow the Crowd, Can be Engaged by Marketing
             • Laggards - Will only Adopt New Products when Alternatives become Scarce & Product is Established

7. Elements of the Product

   • Product Attributes
     • Performance Quality, Style & Features of the Product
   • Branding
     • Name, Design, Style, or Symbols that Distinguish the Product through Values/Philosophies to Build a Loyal Relationship with the Customer
   • Packaging
     • Contains & Protects Products but, Design often Triggers Brand Recognition/Awareness
   • Labelling
     • Graphics that Identify/Decribe the Brand/Product
   • Product Support Services
     • Customer Service Department for Complaints, Credit Services or Maintenance/Technical Advice, Often Implemented to Gain a Competitive Advantage

Images and files in the map