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PRODUCT DIFFERENTIATION
Form, Features, Performance quality, Conformance quality, Durability, Reliability,
Repairability, Style.
Design is the totality of features that affect how a product looks and functions in terms of
customer requirements. (Relates to all characteristics above). Design alone may condition
a companys position on a competitive edge.
SERVICES DIFFERENTIATION
Ordering ease, Delivery, Installation, Customer training, Customer consulting, and
Maintenance and repair.
PRODUCT HIERARCHY
Need family Product family Product class Product line Product type Item
Product mix is a set of all product lines and individual products available for purchase.
Product lines management <discuss>
Product line length. Down-market, up-market stretching <discuss>
Line filling
Cannibalization
Line modernization
PRODUCT MIX PRICING (in brief; pricing is covered in full further).
Product-line pricing (e.g., Intels celeron, duo, quad, xeon, etc. lines).
Optional feature pricing (selling features for stripped off cars).
Captive product pricing (Epson printers and inks).
Two-part pricing (admission fee and services fee).
By-product pricing (pricing by-products on their value to customers).
Product bundling pricing (MS Office vs. individual programs).
Co-branding - two or more well-known existing brands are combined into a joint product
and/or marketed together in some fashion <pros and cons>.
Ingredient branding is a special case of co-branding. It involves creating brand equity for
materials, components, or parts that are necessarily contained within other branded
products.
PACKAGING, LABELING, WARRANTIES, AND GUARANTEES
Packaging is all the activities of designing and producing the container for a product.