Presentation on theme: "Product strategy Product analysis and description Lecture 7."— Presentation transcript:
Product strategy Product analysis and description Lecture 7
Content- Products Decisions Product and Service Classification System The Product Life Cycle Introduction to product matrices Boston Matrix (Growth/Share) Ansoff’s Matrix (Product Market)
Products Decisions Product and Service Classification System? The Product Life Cycle stages? Growth/Share? Product Market?
Product and Service Classification System Convenience goods - little effort, relatively inexpensive Shopping goods - e.g ‘white goods’, DIY equipment, more expensive, infrequent Speciality goods - extensive search e.g Jewellery, gourmet food Unsought goods - e.g. double glazing,
Industrial goods Installations - ‘speciality’ goods of industrial markets - plant and machinery Accessories - maintenance and office equipment Raw materials components Business to business e.g. consultants, accountants
Product quality Product features Product style & design Product style & design Ability of product to perform its functions; includes level (performance quality) & consistency (conformance quality) Help to differentiate the product from the competition Help to differentiate the product from the competition Style = appearance Design = performance / function (as well as appearance) Style = appearance Design = performance / function (as well as appearance) Marketing’s role – represent the “voice of the consumer” Developing a product or service involves defining the benefits that it will offer such as: Product Attributes
ATTRIBUTES AN ATTRIBUTE IS A PROPERTY OF A FOOD THAT THE CUSTOMER DESIRES MOST CUSTOMERS ARE LOOKING FOR MULTIPLE ATTRIBUTES IN A FOOD PRODUCT ATTRIBUTES ARE EXPECTED TO REMAIN CONSTANT THROUGHOUT THE SHELF-LIFE OF THE PRODUCT
Attributes and benefits Features-attributes are product characteristics such size, color, horsepower, functionality, design, hours of business, fabric content, etc. Benefits answer the customer’s question: “What’s in it for me?” Benefit is a product attribute expressed in terms of what the user gets from the product rather than its physical characteristics or features. Benefits are often paired with specific features, but they need not be. They are perceived, not necessarily real.
Specification A detailed description of the features and performance characteristics of a product. For example, a laptop computer's specification may read as a 90 megahertz Pentium, with 16 megabytes of ram and 720 megabytes of hard disk space, 3.5 hours of battery life, weighing 4.5 pounds, with an active matrix 256 color screen. To specify a product we need: –attributes and characteristics –measurement and measurements units
Basic classification of attributes chemical, physical, biological, sociological, physiological etc. characteristics
Classification of attributes based on their relation to product core product core attributes –product functionality –Product reliability –product usability including ergonomic attributes –product maintability product environment attributes –product compatibility and portability –environmental attributes –economical attributes –psychological and sociological attributes
Characteristics and attributes according ISO Standard ISO 9216 Information technology -- Software product evaluation -- Quality characteristics and guidelines for their use ISO 9126 sets out six quality characteristics, which are intended to be exhaustive. From this it follows that each quality characteristic is very broad –Functionality –Reliability –Usability –Maintainability –Portability –Efficiency
Functionality A set of attributes that bear on the existence of a set of functions and their specified properties. The functions are those that satisfy stated or implied needs. Suitability: Attribute of software that bears on the presence and appropriateness of a set of functions for specified tasks. (ISO 9126: 1991, A.2.1.1) Accuracy: Attributes of software that bear on the provision of right or agreed results or effects. (ISO 9126: 1991, A.2.1.2) Interoperability: Attributes of software that bear on its ability to interact with specified systems. (ISO 9126: 1991, A.2.1.3) (NOTE -- Interoperability is used in place of compatibility in order to avoid possible ambiguity with replaceability. (ISO 9126: 1991, A.2.1.3) Compliance: Attributes of software that make the software adhere to application related standards or conventions or regulations in laws and similar prescriptions. (ISO 9126: 1991, A.2.1.4) Security: Attributes of software that bear on its ability to prevent unauthorized access, whether accidental or deliberate, to programs and data. (ISO 9126: 1991, A.2.1.5)
Reliability A set of attributes that bear on the capability of software to maintain its level of performance under stated conditions for a stated period of time. Maturity: Attributes of software that bear on the frequency of failure by faults in the software. (ISO 9126: 1991, A.2.2.1) Fault tolerance: Attributes of software that bear on its ability to maintain a specified level of performance in cases of software faults or of infringement of its specified interface. (ISO 9126: 1991, A.2.2.2) Recoverability: Attributes of software that bear on the capability to re-establish its level of performance and recover the data directly affected in case of a failure and on the time and effort needed for it. (ISO 9126: 1991, A.2.2.3)
Maintainability A set of attributes that bear on the effort needed to make specified modifications. Analysability: Attributes of software that bear on the effort needed for diagnosis of deficiencies or causes of failures, or for identification of parts to be modified. (ISO 9126: 1991, A.2.5.1) Changeability: Attributes of software that bear on the effort needed for modification, fault removal or for environmental change. (ISO 9126: 1991, A.2.5.2) Stability: Attributes of software that bear on the risk of unexpected effect of modifications. (ISO 9126: 1991, A.2.5.3) Testability: Attributes of software that bear on the effort needed for validating the modified software. (ISO 9126: 1991, A.2.5.4)
Portability A set of attributes, that bears on the ability of software to be transferred from one environment to another Adaptability: Attributes of software that bear on the opportunity for its adaptation to different specified environments without applying other actions or means than those provided for this purpose for the software considered. (ISO 9126: 1991, A.2.6.1) Installability: Attributes of software that bear on the effort needed to install the software in a specified environment. (ISO 9126: 1991, A.2.6.2) Conformance: Attributes of software that make the software adhere to standards or conventions relating to portability. (ISO 9126: 1991, A.2.6.3) Replaceability: Attributes of software that bear on the opportunity and effort of using it in the place of specified other software in the environment of that software. (ISO 9126: 1991, A.2.6.4) NOTES: Replaceability is used in place of compatibility in order to avoid possible ambiguity with interoperability. Replaceability with a specific software does not imply that this software is replaceable with the software under consideration. Replaceability may include attributes of both installability and adaptability. The concept has been introduced as a subcharacteristic of its own because of its importance.
Efficiency A set of attributes, that bears on the relationship between the level of performance of the software and the amount of resources used, under stated conditions Time behaviour: Attributes of software that bear on response and processing times and on throughput rates in performing its function. (ISO 9126: 1991, A.2.4.1) Resource behaviour: Attributes of software that bear on the amount of resources used and the duration of such use in performing its function. (ISO 9126: 1991, A.2.4.2)
Usability (product attribute) What is usability? –Extend to which a product is designed to fit users’ needs or, in other words, the extend to which a product is easy to use.
How is product usability achieved? Collecting data from user: –Objective Data –Subjective Data –Measurements – such as task time, errors, learning rate, satisfaction, level of frustation...
Why use usability engerneering? Define the needs of the users before building the product. Understand how human interact with technology. Designers CANNOT effectively speak for users. Preference does not equal perfomance.
General usability benefits Reduces engineering/development costs and facilitates speed to market. Reduces testing and quality assurance costs. Reduces sales costs and shortens sales cycles. Can decrease production costs while improving margins Improvers customer Return on Investiment.
Benefits of Usability - examples Automotive industry – reseachers methodically test and mesure drivers in a real or simulated driving environment. Aerospace industry – understand how human interact to technology (pilot cognitive load to air traffic controller) IBM – state that for every $1 invested in usability, the payback is between $10 and $100
Quick Check List TCNVV T- Taste/Texture C – Convenience N – Nutrition/Health V – Variety V – Value (perceived Quality/cost)
FACTORS AFFECTING ATTRIBUTES FOOD TYPE INGREDIENTS –TYPE –AMOUNT –INTERACTION ENVIRONMENT –PH –OXYGEN PROCESSING HISTORY –TEMPERATURE –SHEAR PACKAGING STORAGE CONDITIONS
INFLUENCED BY MARKET POSITION OF THE PRODUCT DESIRED SHELF-LIFE PROCESSING CAPABILITIES PACKAGING CAPABILITIES
ATTRIBUTES MAY BE IN CONFLICT WITH ONE ANOTHER FREQUENTLY OPTIMIZING FOR ONE ATTRIBUTE WILL ADVERSELY AFFECT ANOTHER RECOGNIZE TRADE-OFFS EARLY IN DEVELOPMENT PROCESS -- A TWO YEAR SHELF-LIFE GENERALLY COMPROMISES “FRESH FLAVOR”
LEARN TO RECOGNIZE ATTRIBUTE EXPECTATIONS FROM - PRODUCT TYPE INGREDIENT LABELS PACKAGING PACKAGE INSTRUCTIONS LOCATION AT POINT OF SALE SELL BY DATE ADVERTISING PROMISES
Product Life Cycle
Product Single company produces product Introduction Stage of the PLC Goals Sales Profits Pricing Marketing Get first-time buyers to try the product Increase at a steady but slow pace Negative High: recover R&D costs; or Low: attract large number of customers High: recover R&D costs; or Low: attract large number of customers Informing customers Length of Stage Depends on 1) marketplace acceptance, 2) producer willingness to support product
Sales Profits Goals Marketing Strategies Price Advertising Rapid increase in sales Increase and peak Encourage brand loyalty Introduction of product variations Price competition may appear Heavy advertising is used when competitors appear Growth Stage of the PLC
Sales Profits Competition Product Distribution Marketing Strategies Peak, then level off, even decline Margins narrow Grows intense Mostly replacement products Sell through all suitable retailers Firms alter the marketing mix, try to attract new users Maturity Stage of the PLC
Sales Profits Competitors Product Marketing Strategies Declining sales Declining profits Large number with no one having the advantage Should the product be kept? Keep product, phase out gradually, drop product immediately Decline Stage of the PLC