Pride

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Product Concepts
2
In the factory, we make cosmetics in the store,
we sell hope. Charles Revson
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• Product Variations
• Classifying Products
• New Products
• Why Products Fail

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Product Variations
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Product Variations

• Product Item

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Product Item
SKU Stock Keeping Unit 20 Yellow Ceramic Table
Lamp
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Product Variations

• Product Item
• Product Line

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Lamp Product Line
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Product Variations

• Product Item
• Product Line
• Product Mix

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Product Mix
Table Product Line
Chair Product Line
Lamp Product Line
Kitchen Dining Room End Coffee Outdoor Conference
Computer
Living Room Bed Room Outdoor Dining Room Desk
Table Ceiling Track Desk

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Product Variations

• Product Item
• Product Line
• Product Mix
• Depth of Product Mix

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Depth of Product MixNumber of Product Items in
Each Product Line
Table Product Line
Chair Product Line
Lamp Product Line
Kitchen Dining Room End Coffee Outdoor Conference
Computer
Living Room Bed Room Outdoor Dining Room Desk
Table Ceiling Track Desk

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Product Variations

• Product Item
• Product Line
• Product Mix
• Depth of Product Mix
• Width of Product Mix

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Width of Product MixNumber of Product Lines
Offered
Table Product Line
Chair Product Line
Lamp Product Line
Kitchen Dining Room End Coffee Outdoor Conference
Computer
Living Room Bed Room Outdoor Dining Room Desk
Table Ceiling Track Desk

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Generic Product Classifications
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Generic Product Classifications

• Classifying by Type of User

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Generic Product Classifications
Consumer Products
Classifying by Type of User
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Generic Product Classifications
Business or Organizational Products
Consumer Products
Classifying by Type of User
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Generic Product Classifications

• Classifying by Type of User
• Classifying by Degree of Tangibility

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Generic Product Classifications
Nondurable Products
Classifying by Degree of Tangibility
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Generic Product Classifications
Nondurable Products
Durable Products
Classifying by Degree of Tangibility
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Generic Product Classifications
Nondurable Products
Services
Durable Products
Classifying by Degree of Tangibility
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Consumer Product Classification
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Consumer Product Classification

• Convenience Products

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• Purchased Frequently . .
• . . With Minimal Effort

Convenience Products
Consumer Products
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Consumer Product Classification

• Convenience Products
• Shopping Products

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• Purchased Relatively Infrequently . . .
• . . . Efforts Made to Compare Price, Quality,
  Style, Features, etc.

Convenience Products
Shopping Products
Consumer Products
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Consumer Product Classification

• Convenience Products
• Shopping Products
• Specialty Products

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• Purchased Infrequently. . .
• . . . Significant Effort Expended

Convenience Products
Shopping Products
Specialty Products
Consumer Products
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Consumer Product Classification

• Convenience Products
• Shopping Products
• Specialty Products
• Unsought Products

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Unsought Products
Convenience Products
Shopping Products
Specialty Products
Consumer Products
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Organizational Product Classification
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Organizational Product Classification

• Production Products

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• . . . Used in Manufacturing/Production Process .
  . .

Production Products
Organizational Products
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Organizational Product Classification

• Production Products
• Support Products

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Support Products
Production Products
Installations
Organizational Products
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Support Products
Accessory Equipment
Production Products
Installations
Organizational Products
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Support Products
Accessory Equipment
Production Products
Installations
Supplies
Organizational Products
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Support Products
Services
Accessory Equipment
Production Products
Installations
Supplies
Organizational Products
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New Products
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I think there is a world market for maybe five
computers Thomas Watson, Chairman of IBM, 1943
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This telephone has too many short- comings to
be seriously considered as a means of
communication. The device is inherently of no
value to us. Western Union, internal memo, 1876
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The wireless music box has no imaginable
commercial value. Who would pay for a message to
nobody in particular? David Sarnoffs
associates in response to his urging an
investment in the radio, 1923
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Who the hell wants to hear actors talk? H.M.
Warner, Warner Brothers, 1927
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A cookie store is a bad idea. Besides, market
research indicates Americans like crispy cookies,
not the soft and chewy cookies that you make. A
bankers response to Debbie Fields idea of
starting Mrs. Fields Cookies
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We dont like their sound, and besides, guitar
music is on the way out. Decca Recording
Company, rejecting the Beatles, 1962
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New Products

• New in Legal Terms

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New Products

• New in Legal Terms
• New From a Company Perspective

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New Products

• New in Legal Terms
• New From a Company Perspective
• New From a Customer Perspective

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New Products

• New in Legal Terms
• New From a Company Perspective
• New From a Customer Perspective
• Continuous Innovation

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New Products

• New in Legal Terms
• New From a Company Perspective
• New From a Customer Perspective
• Continuous Innovation
• Dynamically Continuous Innovation

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New Products

• New in Legal Terms
• New From a Company Perspective
• New From a Customer Perspective
• Continuous Innovation
• Dynamically Continuous Innovation
• Discontinuous Innovation

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Reasons for New Product Failure
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Reasons for New Product Failure

• Insignificant differences with existing products

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Reasons for New Product Failure

• Insignificant differences with existing products
• Poor execution of market mix
• Pricing, distribution, promotion

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Reasons for New Product Failure

• Insignificant differences with existing products
• Poor execution of market mix
• Poor timing for product launch