Presentation is loading. Please wait.

Presentation is loading. Please wait.

Lecture 3 Product.

Published byEustace Johns Modified over 6 years ago

Similar presentations

Presentation on theme: "Lecture 3 Product."— Presentation transcript:

1 Lecture 3 Product

2 Product — Today’s Objectives
Objectives will be to: Develop a clear definition of product Discuss how the 2Is affect product Examine the product development process Explore how products enable customer relationships

3 Product Defining Product How the 2Is Affect Product
The Product Development Process How Products Enable Customer Relationships EBay Case Study Conclusion

4 Product Defining Product How the 2Is Affect Product
The Product Development Process How Products Enable Customer Relationships EBay Case Study Conclusion

5 Exhibit 3.1: Product Value Hierarchy
Differentiation Extended Warranty Trade In Financing Meal Preparation Fitness Books Exercise Plan Augmented Product Value Proposition Engine Tires Radio Daily Newsletter Advice In-Depth Information Basic Product Transportation Dieting Information Core Benefit Traditional: Sports Utility Vehicle New Economy: e-diets.com

6 Exhibit 3.2: Internet Product Types

7 Product Defining Product How the 2Is Affect Product
The Product Development Process How Products Enable Customer Relationships EBay Case Study Conclusion

8 The Effects of the 2Is on Product
Individualization Interactivity Users can redevelop aspects of the product to meet individual needs and preferences Firms can provide more targeted, personalized products Increases “stickiness” as customers invest time and effort to personalize Enables responsive service interaction to provide augmented value to the product Allows companies to quickly gather valuable customer data such as preferences Customers can be directly involved in the product development process Product

9 Product Portfolio New to Firm New to Market New Technology
Degree of Innovation None Incremental Breakthrough or Discontinuous Existing Products Line Extensions New Products

10 Order of Market Entry Effect
Typical “Hockey Stick” Adoption Curve Market Adoption Fast Follower “Me Too” Entrant Laggard First to Market Time

11 Product Life Cycle

12 Product Defining Product How the 2Is Affect Product
The Product Development Process How Products Enable Customer Relationships EBay Case Study Conclusion

13 The Product Development Process
Idea generation 1. Idea screening 2. Concept development 3. Product design 4. Prototype development 5. Test marketing 6. Commercialization 7.

14 Stage-Gate New Product Development Process

15 Divergent and Convergent Thinking in Development
1. Brainstorming 2. Idea Screening T A S K E P R I O N Number of Ideas Divergent Thinking Convergent Thinking Start Finish Ideas Expand Over Time Critical Evaluation Narrows the Focus Over Time Time

16 New Product Development Metrics
Business Extending an existing brand name or developing a new brand? How does this concept fit into the overall product / service portfolio of the enterprise? What is the competitive landscape in this market: fierce, non-existent or somewhere in between? How attractive is the economic potential of this proposition? What is the role of each channel and how will they be integrated? Customer Is our objective to generate more business among the existing customer base, attract new users or keep existing customers? Do customers have expectations of a particular imagery or positioning that the new product must be consistent with? Does the new product fulfill a customer’s needs or aspirations? Drivers Process What is the desired timing for market introduction, seasonality or industry event? Do we have the necessary resources to bring this concept to market? How long will it take and how much will it cost to develop this new product and bring it to market? What is the required business model and how will it mesh with the existing business model? Technology Does the enterprise have the capabilities to develop and deliver this product or is an alliance partner or subcontractor required? Is there sufficient existing capacity or do new sources need to be identified? Does the required technology exist today or will new technology need to be developed? Should the technology be managed internally or outsourced? People How will the performance of the development team be measured? What does an individual employee have to commit him or herself to a particular new product development effort? What resources and skills will be needed to maximize the team’s probability of success? Enablers

17 Internet-Enabled Product Development Process

18 Beta Testing Point-Counterpoint

19 Product Defining Product How the 2Is Affect Product
The Product Development Process How Products Enable Customer Relationships EBay Case Study Conclusion

20 Product Levers by Relationship Phase
Four Key Stages of Customer Relationships Awareness Exploration/ Expansion Commitment Dissolution Core benefit Presentation and packaging Presentation and packaging Attributes and features Presales support Fulfillment Availability of complementary products Customer-specific attributes and features Upgrades Customer-specific attributes and features Post-sales support Tiered service Personalization Customer care Migration to different product in the portfolio Customer care

21 Product Defining Product How the 2Is Affect Product
The Product Development Process How Products Enable Customer Relationships EBay Case Study Conclusion

22 EBay Expansion Through Features and Platforms

23 Product Defining Product How the 2Is Affect Product
The Product Development Process How Products Enable Customer Relationships EBay Case Study Conclusion

24 Product — Conclusion Products come in two basic types: physical products and services. For all products there are three components to the overall value proposition: the core benefit, the basic product and the augmented product. There are certain product development levers available to managers The levers may be applied to both physical and service products The product development levers can be organized by product type Basic product development levers Augmented product development levers The 2Is allow firms to learn about their customers, personalize a product to meet customer preferences and offer customer relationship management tools to provide more value for customers and cut costs for product sellers

Download ppt "Lecture 3 Product."

Similar presentations

Chapter 3 E-Strategy.

Chapter 3 E-Strategy.
Chapter 10 Product Issues in Channel Management.

Chapter 10 Product Issues in Channel Management.
Effects of the 2Is on Product Users can redevelop aspects of the product to meet individual needs and preferences Firms can provide more targeted, personalized.

Effects of the 2Is on Product Users can redevelop aspects of the product to meet individual needs and preferences Firms can provide more targeted, personalized.
CHAPTER 7: PRODUCT STRATEGY AND NEW-PRODUCT DEVELOPMENT Part 3: Develop the Value Offering—The Product Experience McGraw-Hill Education 1 Copyright © McGraw-Hill.

CHAPTER 7: PRODUCT STRATEGY AND NEW-PRODUCT DEVELOPMENT Part 3: Develop the Value Offering—The Product Experience McGraw-Hill Education 1 Copyright © McGraw-Hill.
Chapter 10 Product Issues in Channel Management. 10 By understanding how the other marketing mix variables interface with the channel variable, and the.

Chapter 10 Product Issues in Channel Management. 10 By understanding how the other marketing mix variables interface with the channel variable, and the.
chapter 7 Product McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

chapter 7 Product McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
Definitions – High Technology What is “High Tech?” –Markets, in which the key or core benefits provided by the offering are –produced by technology which.

Definitions – High Technology What is “High Tech?” –Markets, in which the key or core benefits provided by the offering are –produced by technology which.
1 Pertemuan Kesepuluh Industry and Competition Analysis.

1 Pertemuan Kesepuluh Industry and Competition Analysis.
Class 6: Chapter 4 : Product/Process Innovation

Class 6: Chapter 4 : Product/Process Innovation
Www.mhhe.com/fourps Product Management and New-Product Development CHAPTER TEN For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts.

Product Management and New-Product Development CHAPTER TEN For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts.
7-1 Ch.7:PRODUCT STRATEGY Product Classification (1 of 3) Consumer Product Classifications –Convenience Products –Shopping Products –Specialty Products.

7-1 Ch.7:PRODUCT STRATEGY Product Classification (1 of 3) Consumer Product Classifications –Convenience Products –Shopping Products –Specialty Products.
1 Strategy in the Global Environment Lecture 8. 2 Major Strategic Issues  Why go global?  What are the strategic choices?  Market selection  Market.

1 Strategy in the Global Environment Lecture 8. 2 Major Strategic Issues  Why go global?  What are the strategic choices?  Market selection  Market.
Objectives Understand how companies find and develop new-product ideas. Learn the steps in the new-product development process. Know the stages of the.

Objectives Understand how companies find and develop new-product ideas. Learn the steps in the new-product development process. Know the stages of the.
chapter 13 Designing the Marketspace Matrix McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

chapter 13 Designing the Marketspace Matrix McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
Dawn Pedersen Art Institute

Dawn Pedersen Art Institute
Copyright © 2003 by Marketspace LLC Mohammed, Fisher, Jaworski, Paddison Internet Marketing, 2 nd Ed Chapter 1 Lecture Slides Introduction to Internet.

Copyright © 2003 by Marketspace LLC Mohammed, Fisher, Jaworski, Paddison Internet Marketing, 2 nd Ed Chapter 1 Lecture Slides Introduction to Internet.
Major Stages in New-Product Development

Major Stages in New-Product Development
Essentials of Marketing Chapter 9 Product Management and New–Product Development McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc.

Essentials of Marketing Chapter 9 Product Management and New–Product Development McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc.
Chapter 8 Developing and Managing Offerings: What do Customers Want? EMC.

Chapter 8 Developing and Managing Offerings: What do Customers Want? EMC.
Www.mhhe.com/fourps For use only with Perreault and McCarthy texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin CHAPTER TEN Product Management.

For use only with Perreault and McCarthy texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin CHAPTER TEN Product Management.

Similar presentations

Ads by Google