Module 11 Product Decisions By: Dr Shahinaz Abdellatif Objectives of the Session 1. To understand the product concept 2. To understand the concept of branding 3. To understand the stage gate system for new product development Objectives of the Session Questions that marketers face in differentiating their offerings from those of their competitors. How should our product offering, whether a good or a service, be designed to give it a chance to win sustainable competitive advantage? What product decisions must we make to deliver the benefits and value promised in our positioning statement or value proposition? How can products and product lines best be managed to satisfy the needs of different market segments, rather than simply taking market share from the firm’s other products? Finally, given the importance of new products in the long-term success of most firms, how can new product development be managed, from a process perspective, to ensure a timely flow of new products that enjoy favourable reception by customers? The Product Concept What is a product? A product can be defined as anything that satisfies a want or need through use, consumption, or acquisition. Thus, products include : objects (TVs, radios, cars), services (medical, educational), places (New York, Moscow), people (Tony Blair and other politicians everywhere), activities (entering a contest or visiting aweight-loss clinic), and ideas Features versus benefits Features are the tangible or intangible attributes given the product by its designers. Benefits are the solutions to customer problems or needs delivered by the product. What is a product? 3 levels of product Core product or benefit Tangible product Product features Packaging Augmented product Warranty Other services eg delivery, installation And intangible associations such as image What is a Product? Eight dimensions of quality for goods Five dimensions of service quality Prod