Product Management Lecture 7

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Mark 442 – Product Management Lecture 7

Lecture Objectives

1. Describe the 3 dimensions of a product.
2. Discuss issues relative to product standardization versus customization. 3. To review what constitutes a product and what elements can be standardize or customized. 4. Describe the relationship between product adoption and customization/standardization. 5. describe 5 factors that affect product adoption.

Notes
What is a product?
Product Includes: core product and packaging component
Product: Core component (comp 1,2,3), Packaging Component

Cars: different space for license plate, pollution control, different drivers seat, Tires, fuel Coke: stubbies, glass bottles, aluminum bottles, cans

Why Standardize a Product for International Markets?

• Leads to the development of economies of scale
• Cost savings can be passed onto consumers thus, increasing sales • Increase Quality (doctors specialize in one condition than better then know abundant about of things)

Why Customize a Product for International Markets?

• Leads to increased sales as customized products meet the needs of consumers better

Product Adoption Rates

The goal of the marketer is to gain product acceptance by the largest number of consumers in the market in the shortest span of time.

Different target markets adopt products at different rates.
New product
Innovators: 2.5%
Early adopters 13.5%
Early Majority 34%
Late Majority 34%
Laggards: 16%
|Relative Advantage | the degree to which potential customers perceive a new | | |product as a superior to existing products | |Compatibility | with present needs, values and practices. | |Complexity | the degree the customer feels the new product is difficult to use or...
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