Bus M300 1nd Edition Lecture 14Outline of Current LectureI. Analyzing a productII. 4 levels of product (CAAD)III. Core ProductIV. Actual ProductV. Augmented ProductVI. Desired ProductVII. Industrial Products vs. Consumer ProductsVIII. Critical Q’s for products (NAPS)IX. Competitive Advantage Price MatrixX. Good, Better Best ApproachCurrent Lecture I. Analyzing a product (3 Steps)a. Rational benefitsb. Reason to believec. Emotional benefitsII. 4 levels of product (CAAD)a. Core productb. Actual productc. Augmented productThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.d. Desired productIII. Core Producta. Actual benefits received by consumerb. (The problem that is being solved)c. Example: Automobile – transportation. Coke – thirst. IV. Actual Producta. The quality level, features, design, packaging, and brand name of product.b. Example: BMW – fast off the line, 57 MPG, shaft drivec. What type of value does this sync up with? Form value/Information ValueV. Augmented Producta. Delivery and credit, warranty, and after salve serviceb. Example: Nordstrom’s – gracious return policyc. What type of value does this sync up with? Service Value/ Possession ValueVI. Desired Producta. The product consumers really want or think they wanti. Example: bathtub in home helps sell house, but it is rarely used.ii. Great tasting desserts that have almost zero calories.VII. Industrial Products vs. Consumer Productsa. Industrial products = B2Bi. Sold by one business to another. b. Consumer Products = B2Ci. Expenditures are lowc. Between the two, who they are trying to reach is different, message is different (volume discounts), even products change. VIII. Critical Q’s for products (NAPS)a. N-needsb. A- competitive Advantagec. P- pricei. Will customers pay a price that creates value for Cod. S- sustainablei. Is the CA sustainable?IX. Competitive Advantage Price Matrixa. Best positionsi. High (price) High (perceived CA)ii. Low LowX. Good, Better Best Approacha. There are products in three different categories, good, better, best..b. How cans this hurt firm? Expensive, splinter resourcesc. What is the advantage? If all you offer is Best, someone will offer the Good and Better. d. Example: Car
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