6_307_Product

6_307_Product - U SC M ar k eting 307 #6 Pr oduct 1. 2. 3....

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USC Marketing 307 • #6 Product © 2006 Ira S. Kalb. All rights reserved. 1 1. Definition . Goods and services developed to meet the needs of market targets and to achieve the goals of the Marketing Plan. 2. Fulfils the promise of positioning strategy . The positioning strategy creates the image blueprint of the product, and the product has to deliver. 3. Satisfies an important need . To be successful, the product has to satisfy a need in the marketplace that is important to our target audience. 4. Meets or exceeds expectations . A successful product cannot disappoint the buyer. It has to meet or exceed the expectations of the positioning strategy. 5. Product components . A product is made up of two main components. 5-1. Core component. This is what it is designed to do. 5-2. Peripheral component. Customer service while finding, buying, and using the product. This gives service tangible value. 6. Product Design Models . A product can be designed in different ways. 6-1. Standard Product Model. Everyone who buys the product starts accessories that are sold as separate add-ons. 6-2. Diversified Product Model. Each product is already diversified to meet the needs of the target market segment. 6-2. Hybrid. Start with a diversified product, and add options and accessories to further customize it. Everyone starts with the  same basic PC and can add  custom options. Alfred P. Sloan of GM  offered Chevrolet at the low  end, Olds, Pontiac and Buick  for the middle, and Cadillac  at the high-end.
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USC Marketing 307 • #6 Product © 2006 Ira S. Kalb. All rights reserved. 2 7. Revenue • Product Model With the Internet, product and revenue models can realized. 7-1. Traditional and E-commerce Sell your product off or online. 7-2. Digital downloads You can sell digital products such as music, art, photos, books, designs, and documents for a fee. Long tail. 7-3. Advertising You can sell billboard space above your office, store, or in your parking lot or on your Web site. 7-4. Database You can rent or sell your database to others who want to reach your prospect/customer list. 7-5. Commissions You can get commissions for selling other peoples products on your site.
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6_307_Product - U SC M ar k eting 307 #6 Pr oduct 1. 2. 3....

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