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Product Strategy Essentials

The document discusses key concepts in product strategy and new product development including: 1) It defines products and services, and outlines the product continuum ranging from goods to services. 2) It describes the different levels of a product from the actual to the augmented product and how products are classified. 3) It outlines the new product development process and key factors for new product success or failure such as understanding customer needs, senior management commitment, and innovation.

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143 views13 pages

Product Strategy Essentials

The document discusses key concepts in product strategy and new product development including: 1) It defines products and services, and outlines the product continuum ranging from goods to services. 2) It describes the different levels of a product from the actual to the augmented product and how products are classified. 3) It outlines the new product development process and key factors for new product success or failure such as understanding customer needs, senior management commitment, and innovation.

Uploaded by

Anonymous CzxY69
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Product Strategy

The First P

The Product Continuum


(Bovee et al., 1995)

GOODS
Salt

Tangible Dominant

SERVICES
Restaurant

Education

Intangible Dominant

Definitions (Kotler and Armstrong, 2001)


PRODUCT
Anything that can be offered to a market for
attention, use, or consumption that might
satisfy a want or need
SERVICE

Any activity or benefit that one party


can offer to another that is essentially
intangible and does not result in the
ownership of anything

Levels of Products
Actual Product: Brand
Name, Packaging, Features,
Design, Quality Level
Core Product: Core Benefit
or Service

Augmented Product:
Installation, Delivery and
Credit, Warranty, Aftersales Service

Product Classification
z
z

Durable and Nondurable


Consumer products (convenience, shopping,
speciality, unsought)

Industrial products (raw materials, components,


equipment, business services)

Others (places, ideas, persons, organisations)


(Bovee et al, 1995; Kotler and Armstrong, 2001)

Individual Product Decision


z

Product Attributes (quality, features,style and


design)

z
z

Brand
Packaging (promotion, distribution, safety,
environmental impact, cost)

Labelling (identification, description, regulations,


promotion)

Product Support Services

Brand Defined

A name, term, sign, symbol, or


design, or a combination of these,
that identifies the maker or reseller
of a product or service

(Kotler and Armstrong, 2001)

Major Branding Decisions

Brand Sponsor

Brand Strategy

Brand Name
Selection

Manufacturers Brand

Line extensions

Selection

Private Brand

Protection

Licensing

Multibrands

Co-Branding

New Brands

Brand

Product Line

and

A group of products that


are closely related
because they function in
a similar manner, are
sold to the same
customer groups, are
marketed through the
same types of outlets, or
fall within given price
ranges

Product Mix
The set of all product lines
and items that a
particular seller offers for
sale

Product Life Cycle


Sales and Profits

Time

10

Product
Development Introduction Growth Maturity

Decline

New Product Development Process


1. Idea Generation
2. Idea Screening
3. Concept Development and Testing
4. Marketing Strategy Development
5. Business Analysis
6. Product Development
7. Test Marketing

11

8. Commercialisation

Factors that Determine


New-Product Success
z
z
z
z
z
z

12

Studying Successes and Failures


Developing a Unique Superior Product
Well-defined Product Concept
Senior Management Commitment
Relentless Innovation
Smoothly Functioning New Product
Development Process

Why New Products Fail


z
z
z
z
z
z

13

No-value products
No understanding of the
product/market/technology
Me-too Marketing
Wrong branding partnerships
Too-different Marketing
Creating Negative Feelings

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