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Product Concept - THE PRODUCT CONCEPT Revised PPT 1...

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Unformatted text preview: THE PRODUCT CONCEPT 02/10/12 Revised PPT 1 Consumer's View of Products Consumers view products as bundles of benefits . We choose product[s] that give us the most value for the money; Or, that gives us the most satisfaction for their available funds. 02/10/12 Revised PPT 2 The Marketer's Challenge To find/create a unique value proposition to satisfy consumers Value = difference between benefits gained from owning or using a product versus the cost to obtain that product Satisfaction = buyer's perceived product performance versus expectations Value is comparative and ours should differentiate us. 02/10/12 Revised PPT 3 DISCUSSION: What is TJX value proposition? What are the benefits to the customer of shopping TJM? 02/10/12 Revised PPT 4 Sources of Product Ideas Business environment Trends, events Reverse engineering Needs, wants, problems, interests Competition Customers Employees Research 02/10/12 Revised PPT 5 Products Have Various Benefits Core Benefit[s]: reason for purchase, point of differentiation Actual Product: quality, features, design, brand name, packaging Augmented Product: additional benefits [warranty] and services [delivery, installation, disposal, tech service] provided as part of product concept 02/10/12 Revised PPT 6 What is Our Point of Difference: the FIST Analysis Features Do we offer a unique point-of-difference in our product features? Does/can using our product have a particular image associated with it? In what way[s] and how well do we service our product? Need for pre or post sale service as part of product concept? Do we have a POD with our product' technology? What are technology's benefits to the consumer? Image Service Technology 02/10/12 Revised PPT 7 What If Your Product Is A SERVICE, Rather Than A Physical Product? Can we still come up with a "bundle of benefits", a `value' for the service or `customer satisfaction'? 02/10/12 Revised PPT 8 What Characterizes Services? Intangible: no physical entity. The service is the product [medical exam] Inseparable: Simultaneous production and consumption, customer has role too. Barber and client Inconsistent: depends on provider. Inventory: there isn't any! If demand exceeds capacity then we lose the sale. Capacity management is critical element, not inventory. Revised PPT 9 02/10/12 With No Physical Product, How Do We Define Satisfaction? Based on our expectations Satisfaction is when perceived performance exceeds expectations of performance We have a range of acceptable customer satisfaction, which can change: Desired / High Acceptable Unacceptable / Low 02/10/12 Revised PPT 10 What Forms Our Expectations? Perceived Service Alternatives i.e., competition physical, psychological, functional, social what level of service are you willing to accept? if customer does their part, expectations are heightened i.e. are we in a hurry? Personal Need Own Personal Service Philosophy Customer Self Service Role Situational Factors Advertising Information sources friends/family/peers Own Prior Experience 02/10/12 Revised PPT 11 YOUR GREAT IDEA: PRODUCT CONCEPT AND POSITIONING Specify the features and benefits to your product, tying them to the needs/wants of the target market and establishing a Point of Difference from the competition. 02/10/12 Revised PPT 12 ...
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