Week 5: product

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Product:

Tangible/intangible on a continuum that satisfies a need.

B2B Product: u in manufacture of other products with the end goal to resell as part of another product.

B2C: satisfies individual wants.

Types of products: shopping/convenience/speciality/unsought

Moore's law: cost of technology rapidly decreases so consumers reluctant to buy new technology

Product decision:

product mix strategy = add/delete a new line

product line = extend/delete products

individual product strategy = broad brand targeting

brand leverage: use of your own brand to promote new products

product moderation: change of a product's quality, functionality or style

planned obsolescence: modify products so that they become obsolete before they need replacing

Product lifecycle: intro(no profit), growth, maturity (sales peak), decline (market shrinks, sales fall)

WHY NEW PRODUCTS FAIL:

Internal

lack of management commitment

non innovative culture

no NPD process

Poor strategic fit

inadequate research/plan

external

misread customer needs

overestimate demand

poor quality

lack of differentiation

poor positioning

poor distribution

underestimate competitors