Product Policy
Creating Value
The aim of marketing to is to create value. It does this in 2 ways, within the firm and outside the firm.
Creating value within the firm
At the Corporate/business unit level
At this level, marketing creates value through corporate culture of customer first. This is then reinforced and measured so that it can transform from only values to action. It is measured by tools such as consumer research, customer visits and market orientation assessments.
At the product level
This is done by analyzing how a product/service should be adapted to the market. The value proposition of the product is decide and stated through positioning as to what benefits it provides to the customer. The product hierarchy also helps to position the product with respect to competition.
At the executional level
Done through integration of the 4 P’s – product, price, promotion and place. This requires consumer research and data analysis. These elements are deigned to flow into the positioning of the product.
Creating Value outside the firm
Value to customers
Stages of New Product Development:
(1) Idea Generation
Ideas for new products can come from the company’s own research and development department, customers, competition, employees, sales people, independent inventors, and top management.
(2) Screening In this stage, ideas that are not technologically feasible or economically feasible are eliminated. Some ideas are eliminated because they do not fit the company’s mission or objectives.
(3) Business Analysis
Techniques taught in finance such as the Net Present Value (NPV) method and breakeven analysis are used to determine whether the idea has the potential of making any money.
(4) Concept Testing Prospects are shown a drawing of the proposed product with a description which includes the price and advantages/disadvantages of the proposed product. Prospects are asked whether they would buy the product.
(5) Product Test
A sample of consumers
The aim of marketing to is to create value. It does this in 2 ways, within the firm and outside the firm.
Creating value within the firm
At the Corporate/business unit level
At this level, marketing creates value through corporate culture of customer first. This is then reinforced and measured so that it can transform from only values to action. It is measured by tools such as consumer research, customer visits and market orientation assessments.
At the product level
This is done by analyzing how a product/service should be adapted to the market. The value proposition of the product is decide and stated through positioning as to what benefits it provides to the customer. The product hierarchy also helps to position the product with respect to competition.
At the executional level
Done through integration of the 4 P’s – product, price, promotion and place. This requires consumer research and data analysis. These elements are deigned to flow into the positioning of the product.
Creating Value outside the firm
Value to customers
Stages of New Product Development:
(1) Idea Generation
Ideas for new products can come from the company’s own research and development department, customers, competition, employees, sales people, independent inventors, and top management.
(2) Screening In this stage, ideas that are not technologically feasible or economically feasible are eliminated. Some ideas are eliminated because they do not fit the company’s mission or objectives.
(3) Business Analysis
Techniques taught in finance such as the Net Present Value (NPV) method and breakeven analysis are used to determine whether the idea has the potential of making any money.
(4) Concept Testing Prospects are shown a drawing of the proposed product with a description which includes the price and advantages/disadvantages of the proposed product. Prospects are asked whether they would buy the product.
(5) Product Test
A sample of consumers