Product and Service Strategies Essay Example | Topics and Well Written Essays - 2750 words

Product and Service Strategies - Essay Example Style - look, fashion etc. Integrative force: Changing one or more of the above-discussed parameters could differentiate a Product. This will act as the competitive advantage or unique selling proposition of that particular product and to the company as a whole. Product Hierarchy: The hierarchy of a product starts from the basic need of the customer. A product is designed to fulfill the need. Then a product family emerges which includes major categories. i.e. for a life insurance both savings and income schemes will be included here or all insurance schemes will be grouped here. Then a product class emerges. i.e. considering only the income part of insurance. This is followed by product line where age groups come. Here the target market is known clearly. Then finally item comes where the focus will be on countries. i.e. Italian marble items are known world wide. Product Hierarchy Need Product family Product class Product line Product type Item Product Line Analysis This analysis will give clear details about the product Sales Profit Market profile Positioning Competition Identifying market segments Differentiation Finally, the management will be in a position to decide which product to focus more and which one to drop. Product Line Length The product line would be short if profits increase by adding items. The product line would be long if profits increase by dropping items. The General notion about the product length goes like this: A Company will have shorter product lines if its objective is short-term profitability or high profitability. A Company will have longer product lines if its objective is capturing more market share and market growth. The product line would lengthen for companies in due course of time. Commonly, companies...Product line pricing, a type of product mix strategy, sets price steps (also known as price points) between products in the line to appeal to different groups of consumers. Another product mix strategy called price bundling clusters two or more sports products into a single "packaged" price. Conversely, captive product pricing unbundled two or more sports products and sells each at a separate price. This type of product mix strategy is also referred to as two-part pricing. In economics and marketing, a service is the non-material equivalent of a good. Service provision has been defined as an economic activity that does not result in ownership, and this is what differentiates it from providing physical goods. It is claimed to be a process that creates benefits by facilitating either a change in customers, a change in their physical possessions, or a change in their intangible assets Intangibility - They cannot be seen, handled, smelled, etc. There is no need for storage. Because services are difficult to conceptualize, marketing them requires creative visualization to effectively evoke a concrete image in the customer's mind. From the customer's point of view, this attribute makes it difficult to evaluate or compare services prior to experiencing the service. Perishability - Unsold service time is "lost", that is, it can