topic 4

• this is the process of creating and designing products so customers perceive them as different from competing products.

  product differentiation
• three aspects of product differentiation

  product quality, product design and features, product support services
• what is critical in differentiating products?

  customer perception
• this refers to overall characteristics of a product that allow it to perform as expected in satisfying customer needs.

  product quality
• consumer consider _ products to be reliable, etc

  high-quality
• for business markets, _, _, and _ are important characteristics

  technical suitability, ease of repair, company reputation
• which is the amount of quality a product possess when it is compared to other products

  level of quality
• refers to the degree to which a product has the same level of quality over time

  consistency of quality
• refers to how a product is conceived, planned and produced.it involves the total sum of all the product's physical characteristics

  product design
• one of the best competitive advantages any brand can possess

  good design
• the _ of the product is one design feature that can allow certain products to sell very rapidly.

  style
• these are specific design characteristics that allow a product to perform certain tasks.

  product feature
• 2 types of product design

  demand and invention
• this happens when a product design can directly take advantage of an opportunity in the market


  demand / push innovation
• occurs with an advancement in technology or intelligence.

  invention / pull innovation
• factors affecting the product design (10)

  cost of production including material costs and labor costs, ergonomics, materials, customer requirements, company identity, aesthetics, fashion, culture, functions, environment
• affect the pricing strategy which needs to be in line with what the customer is prepared for it

  cost of production including material costs and labor costs
• the product needs to be user friendly and afford convenience in its function

  ergonomics
• whether the requisite materials are available easily

  materials
• it is vital to capture customer feedback on any prototype or in the planning process

  customer requirements
• a product's design or color schemes and features may be determined by this identity.

  company identity
• the product may need to appear stylish or of a certain shape

  aesthetics
• current fashion trends can affect a product's design

  fashion
• if a product is for a certain market with its own individual culture, this needs to be kept in mind during product design

  culture
• the number of uses and functions a product has will impact its design

  functions
• concerning the environment and its impact to it

  environment
• (customer services) these include any human or mechanical efforts a companu provides

  product support services
• refers to the decisions and activities intended to create and maintain in the minds of the customers and how it is distinguished from the products of the competitors

  positioning
• three standard type of product positioning strategies

  comparative, differentiation, and segmentation
• this work by placing products right next to other brands to highlight their competitive edge

  comparative
• the uniqueness of the product can't be duplicated

  differentiation
• sometimes, helping a product stand out requires focusing on multiple audiences with different needs, but with the same product

  segmentation
• refers to the major change in positioning for the brand/product

  repositioning
• _ involves changing target markets or the differential advantage or both.

  repositioning
• it's not easy to effect such a repositioning because the _ and its _ do not change in any _ way

  company, products, substantive
• firms use _ to help them develop a market positioning strategy for their product or service

  perceptual maps
• these show where existing products and services are positioned in the market

  positioning / perceptual map
• what are the 2 lines in perceptual maps?

  x and y axis
• perceptual maps are based on _

  buyer's perception
• is the process through which a product or an entire product line is removed from the product portfolio either through product elimination or product replacement

  product deletion