Developing New Products and Services: Learning, Differentiation, and Innovation.

Topics: Marketing, Product management, Supply and demand Pages: 10 (2962 words) Published: March 4, 2014
Case 1

Contents

The most important ten points in the book
FAD template applied in physical product- 3D Printing
FAD template applied in service product- Butler service in hospitality industry What a small startup company can learn from this book
What an established, multi-billion dollar company can learn from this book Summary

The most important ten points in the book

For chapter 1, technology life cycles and the product life cycles are used to understand the diffusion of technologies and products. From the cycles, people can know what is the difference between the products and process and can tracking which area are the products in. Meanwhile, the bridge can use as found that where the problems are in technology life cycles. It is helpful to understand your product in detail, and people can position their product or services business accurately. Technology updates day by day, the speed of renewing products are really fast. Finding where your products are and positioning new marketing strategy is so important in nowadays. From chapter 2 I learned that there are three approaches of price discrimination: Personalized pricing, versioning, and group pricing. Before I saw this theory, I always thinking that personalized pricing is a perfect price discrimination. It can use collaborative filtering to determine products. The second one is versioning price discrimination. The book gives us an example of versioning found in airline industry, which I totally understand this is a marketing method but also price discrimination. This makes me considering some of the apple store game app, when you played in some charge point, you must be charged if you want to continue playing the games. In some of games, you will be charged twice or more. The third one is group pricing. It happens a lot in our daily life. For instance, when you go to a museum or landmark spots, you may pay less if you have a student ID or over 65 years old. I believe this belongs to group pricing but it seems people actually can accept that. Although price discrimination is illegal in most parts and negative connotation leads to monopolies and oligopolies, we still can use a little bit legally to gain more market share and make products more competitive. Chapter 3 begins with Joan’s case and I think the most important part is price differentiation. In this case, Joan use different price level to segment target market and target customer, which I think it is helpful. Demand and supply curve is also a significant data to analysis market trend. Scarcity and design products can lead to high demand. How to use price differentiation to irritating consumers is one of the biggest problem the companies should considered. I believe that airplane industry, service in hospitality industry, and app game industry are all works on this principle and needs to be careful to deal with their price differentiation not leads to price discrimination. Using it in a right way can make additional revenues for any of a business. Both chapter 4 and chapter 5 are talking about product differentiation and versioning curves. Chapter 4 gives us the PD theory and chapter 5 gives us examples. PD curve shows the relationships between price and quantity demand, the same as versioning curve. It can be applied in many industries to identify products and services, especially new development. Based on the successful examples the book shows, I know that high-end midas products, mass-appeal atlas, and the low-end hermes products and services are three categories for differentiation. For chapter 6, it focuses on creativity and innovation. To be honest, everyone can be creative just keep curiosity and questioning. As many of successful entrepreneurs, creativity is one of the most important elements they supposed have, and at the same time, collaboration always better than lonely developing theory in daily life. Interesting thing is, the book also...
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