Three Levels of a product?
Three Different/levels of Products
Core product —it’s intangible, and benefit of the product makes it valuable to you
Actual product —that’s what customers consider and patronize most frequent. It’s tangible, the carrier of actual benefits.
Augmented product—non-physical part of the product, consisting lots of added value, for which you may or may not pay a premium
-Examples of augmented products include: add-ons, guarantees, servicing, warranties

Marketing Malpractice
· People hire products to do a job. They are not the statistical composite of the market segment.
Develop a product to do a job that people want done. Then build this purpose brand
Ws-
- Observe people in action to determine what jobs they want done. Then think of things that can get that job done better.


Three Jobs of Products
1. Functional—meet people’s physical and safety needs
2. Social—meet people’s belongingness needs
3. Emotional—meet people’s esteem needs and self actualization needs
Purpose brands (disruptive innovation)
1) save time in selection
2)reduce risk of poor selection(above two are what general product can do)
3)make the buyer feel good
4)confer status
Endorser brand (sustaining& disruptive)

5) Goal is that when people think of a job, they think of this brand, e.g. Volvo for car safety


Marketing Myopia
--don’t define your business with a technology. It will be obsolete soon. Understanding the benefit you can provide is more important.
-- There is no such thing as a "growth industry," but rather, companies compete on growth opportunities. Every major industry was considered a "growth" industry at one point in time. But, the fact of the matter is, we cannot determine what technologies will replace/change the industry in the future. In order to sustain, companies must define their industry more broadly and keep up with change.

--Businesses that define themselves in such a manner will inevitably go away.
--Defining the market’s preferences of what a company wants to produce is different than actually listening to the preferences of the market and providing them with their preference.
--Don’t think too highly of yourself or too smugly about the position of your company. It can and will all change. Pay attention to the wants and needs of the customers. Your assumptions can kill you.


Purpose Brands

Finding Jobs
1) Query
2) Observation
sometimes body language can give you an insight into people’s thoughts; this is why focus groups often lead you astray. (e.g. Nike Example. Guests tell what they want to hear to please Nike, therefore bring people randomly from street to office to have a face-to-face interview is more reliable)
- When you talk to people about a job or in seeking to find a job in need you want to talk to people on the extremes as well as the "average people". The extremes is often where you find the really good insights.
  • Product Job Opportunities

Experience is the Product
it means that your experience that is assoccated with the product will determine how do you feelabout this product ,for example when you try a product during a happy situation , You will remeber this situation whenever you see this product .

Meaning Gives Experience Value
  • How Customer's Relate to products
  • what is experience of the customer?
  • what is the meaning?
  • it means that your experience that is assoccated with the product will determine how do you feelabout this product ,for example when you try a product during a happy situation , You will remeber this situation whenever you see this product .

Soliciting Stories
When gathering research from perspective consumers, the goal is to listen to what is being said and ask the right questions. The questions should be open-ended and allow the person to tell a story about an experience. If you are getting single word answers the wrong questions are being asked.

Design Thinking
  • New Product Development (NPD) process
Improving or updating new product is important to any organizations. There are simple steps described below:
1. Idea Generation : idea generation could come from different sources such as employees, competitors, supplier and customers.
2. Idea Screening : because you can't implement all ideas, you have to choose feasible and actionable idea to implement
3. Concept Development and Testing : once you come across your feasible idea, it needs to be taken to targeted market
4. Marketing Strategy and Development : How this idea will be launched in the real market?
5. Business Analysis : Will this product financially be worth while in a long run?
6. Product Development : make product prototype and see that what needs to be improved.
7. Market test : launch your product in specific area/region, in this stage marketing mix can be applied
8. Commercialize the product.
(Source : learnmarketing,net)
  • Linking company's new product development to strategy
One potential reason for their dissatisfaction from developing new product is the disconnection between their organization’s new product development (NPD) and strategy development processes. Without this connection, product development pipelines become stuffed with incremental extensions of existing product lines but void of breakthrough concepts. There are some questions to ask your company that:
- It is easy for your employees to justify the strategic alignment of your new product concepts?
- Does your organization consistently fail to provide adequate funding for longer-term opportunities?
- Does your organization reject many ideas because they are too risky?
If manager couldn't answer these questions clearly, the process probably be broken!
so, how do you fix the broken linkage between your new product pipeline and strategy?
1: Make sure your strategy is discriminating and informed by actionable opportunities.
2: Start from the future and understand what success looks like. From there, it’s possible to envision a logical roadmap to reach the end-state from the current starting point.
3: Build a roadmap that will incorporate a thorough review of the key capability and knowledge gaps for reaching the desired end-state. With this information, early opportunities then can be structured to overcome these gaps as well as fit into the total portfolio of products/services for getting to the end-state.
(Source: American Management Association)

The Knowledge Funnel
Mystery: an observation of an interesting (i.e., it might uncover a value proposition if understood) phenomenon
Heuristic: an incomplete but actionable understanding of what was a mystery
Algorithms: an explicit, step-by-step procedure. Algorithms take unregimented heuristics (usually requiring thought and skill) and simplify, structure and codify them so anyone can perform them with equal efficiency.

Exploration: when the challenge is to seize an emerging radically new opportunity, you must perform like a freewheeling design team.
Exploitation: when a business has honed its heuristic knowledge into an algorithm costs fall, efficiency increases and scale can increase: ERP, CRM, Six Sigma & TQM. Without algorithms a business can not make enough money to invent the future. however, such businesses often see the maintenance of the status-quo as the goal, losing the ability to resign and reinvent themselves in the face of radical change.