TABLE OF CONTENTS About this chapter
Decisions relating to the product offer that an organization chooses to present to the market are critical in determining the success of any enterprise. Organizations have to continually monitor the performance of their products in the market and react to changes in the external environment by developing and launching new competitive offerings to the consumer.
After reading this chapter, you will understand:
The three levels of a product offering.
The key attributes of a service product.
The relevance of the product life cycle in product decision-making.
The role of portfolio models in managing products.
The main steps in the new product development process.
The critical issues involved in managing the innovation process.
The impact of e-commerce upon product management decisions.
The American Marketing Association defines a product as:
Anything that can be offered to the market for attention, acquisition or consumption including physical objects, services, personalities, organizations and desires.
Jobber (2004) gives a more succinct definition by saying a product is anything that has the ability to satisfy a customer need.
Kotler et al. (1999) suggest that a product has three levels (see Figure 6.1). First, the core product addresses the fundamental need the consumer is trying to resolve. Fundamental needs are generic in nature and cover a wide spectrum of issues, such as, transport, data storage or self-esteem. Secondly, the actual product is the specific offering aimed at meeting a need. This includes...
