Total Product: The Substance

Total Product: The Substance

1. The Total Product (value proposition)

   • Benefits to customer
     • A) The Substance
       • Type of Goods
         • Durable
         • Non-Durable
       • Consumer Goods Classification (how they are bought)
         • Convenience
         • Shopping
         • Specialty
         • Unsought
       • Where
         • Online
         • Offline
       • Industrial Products
         • Materials and components: Raw materials, manufactured materials, and parts
         • Capital items: Products that aid in buyer’s production or operations
         • Supplies: Operating supplies, repair, and maintenance items
       • Dimensions of product Quality
         • Quality Killers: Reliability and Conformance
         • Quality Drivers: Performance and Durability
         • Quality Enhancers: Features and Serviceability
         • Quality Aesthetics: Appearance and Reputation
       • Key Issues
         • Individual Product
           • Product Attributes (quality features, style, design...)
           • Packaging
             • Packaging is influenced by
               • Self-service
               • Consumer affluence
               • Company/Brand Image
               • Innovation Opportunity
           • Labeling
           • Augmentations (Warranty)
         • Product Line
           • Line Filling (adding more items within the present price range)
           • Line Stretching (adding products that are higher or lower priced than the existing line)
             • down-market stretching
             • up-market stretching
             • Two-way stretching
         • Product Range
           • Consists of all the product lines and items that a particular seller offers for sale
         • Product Mix
           • Width: Number of different product lines
           • Depth: Number of different versions of each product in the line
           • Consistancy
       • Product Development
         • The Ansoff Matrix
           • • New Products
               • product replacement
               • improvements and revisions of existing products
               • Adding to existing lines
               • New product lines
               • Cost-reduced products
               • New-to-the-world products
                 • 1) New product strategy
                   • 2) Idea generation
                     • 3) Screening
                       • 4) Concept Testing
                         • 5) Business analysis
                           • 6) Product Dev.ment
                             • 7) Market Testing
                               • 8) Commercialization
         • Guess, Test, Hope, Conceal
       • Product Life Cycle
         • Stages
           • Introduction
             • Growth
               • Maturity
                 • Decline
                   • Declining sales, Low costs, Declining profits, Laggard customers, Declining competition
                 • Peak sales, Low costs, High profits, Middle majority customers, Stable/declining competition
               • Rising sales, Average costs, Rising profits, Early adopters and customers, Growing competition
             • Low sales, High costs per customer, Negative profits, Innovator customers, Few competitors
         • Issues
           • Hard to
             • identify which stage of the PLC a product is in.
             • pinpoint when a product moves to the next stage.
             • identify factors that affect a product’s movement through stages.
             • forecast sales level, length of each stage, and shape of PLC.
         • Product sales pass through distinct stages
           • Profits rise and fall at different stages
             • Products require different marketing, financial, manufacturing, purchasing, and human resource strategies at different stages.
     • B) The Service
       • The Channels
     • C) The Symbol
   • Cost to customer
     • D) The Price

2. Expected Product

3. Gaps

4. Customer satisfaction

5. most market offering are a mixture of Substance (A) and Service (B)

Images and files in the map