Module 6: Selecting Best Product or Service

MODULE 6: Selecting Best Product or Service that will meet the Market Need OBJECTIVES 1. The learner selects the best product or service that will meet the market need  2. The learner understands the value proposition for the best product and servi...

MODULE 6: Selecting Best Product or Service that will meet the Market Need OBJECTIVES 1. The learner selects the best product or service that will meet the market need  2. The learner understands the value proposition for the best product and service. 3. The learner considers competition in the market that affects product offerings  INTRODUCTION After screening the proposed solution based on viability, profitability and customer requirements, the products or services that will meet the needs of the market are affected by Market segment decision, product mix decisions, product specifications, positioning and communication decisions (3G ELEARNING. 2015).  Market Segment Decision  It is a decision on a product or service considering the market group or segment. It is important that there is a demand for the product or services to be created that will meet a certain segment. It is discussed in week four about analyzing market needs and some companies are doing it through market research and surveys EXAMPLE:  Product Mix Decisions  Product varieties for a target market to ensure market need is solved. There can be changes with the design, color, texture etc. but with the same content to create varieties to choose from. This will be further discussed on week 7-9 for the marketing mix and on Quarter 2 for creating a prototype product.  Product Specifications  Some customers especially in the industry need exact specification and other detail for the product. This involves the measurements required by the customer related to size, shape, materials or composition and including its description  Examples To achieve the most quality product that will meet the specification of the customer should have a good production plan, resources needed which composed of 6 M’s of management (Man, machine, method, materials, money and management) Positioning and Communication Decisions  It is how you position your products to your customers. You align your product to the minds of your customers creating an image that fits their needs. It can be related with how you advertise your product to the customer. Some companies invest on research through surveys, interviews and product testing to know the needs of the customers and then they create a product that will answer their problems. Selecting the best product that can be offered to a market should satisfy a want or need, or else no one will buy it  In retailing, products are called merchandise. In manufacturing, products are called finished goods which come from purchased raw materials The best product can be defined as one that satisfies the needs of the customers. Satisfaction can be physiological, economic, social and psychological Satisfactions Aspects of the Customer Physiological satisfactions  These are needs for survival like “need for sleep, food air and reproduction” (Study.com 2015).  Physiology is the science of life. It is the branch of biology that aims to understand the mechanisms of living things, from the basis of cell function at the ionic and molecular level to the integrated behaviour of the whole body and the influence of the external environment.  We must drink enough water and get enough sleep to allow our bodies to continue to function. Humans need access to air to breathe, which is perhaps the most primal of all physiological needs. Human bodies also need adequate clothing and shelter, as humans can only survive within a certain range of temperatures.  Maslow’s Hierarchy of Needs  Economic Satisfactions  Customers want to have a guaranteed good value for their money. It can also be connected with the price and quality of the product.  Examples: A Budget-Friendly Smartphone Brand  A Solar Panel Installation Company  Social Satisfactions These are related with how the customer deals with other people or society with its approval. A product will be best for these people if it will be recommended by friends. Example: Trends  Psychological Satisfactions It includes feelings and emotions to the customer. Best products for these customers are those things that are associated with their positive and negative experiences, memories of their youth and love.  Value Proposition “A value proposition is a promise of value to be delivered. It’s the primary reason a prospect should buy from you”. (Laja.n.d.) The best product that can be offered should be valued by the customer. When you say best product, it should have the quality the customer desired or expected accompanied by the company's promotional drive.  Value Proposition o A company's value proposition tells a customer the number one reason why a product or service is best suited for that particular customer. o A value proposition should be communicated to customers directly, either via the company's website or other marketing or advertising materials. o Value propositions can follow different formats, as long as they are "on brand," unique, and specific to the company in question. o A successful value proposition should be persuasive and help turn a prospect into a paying customer.  Market Competition “Competition is the rivalry between companies selling similar products and services with the goal of achieving revenue, profit, and market share growth”(Carnrite. 2016)  ACTIVITY Choose the item inside the box that best apply with the situations below it. A. Market segment decision C. Product specifications B. Product mix decisions D. Positioning and communication decisions __1. Products created by John are dedicated for male customers only. __2. The bakery shop products displayed by Christy in her store has an elegant packaging but higher priced __3. Variety of products is the best way to cater customers of all ages. __4. The buyer is very strict with the precise measurements of raw materials __5. The sportswear product is dedicated for teens only __6. Products sold to customers in Airlines are usually priced higher. __7. The company should think of additional products to offer to increase market retention. __8. The size, weight and materials used is identified by the customer __9. They are selling low priced products because majority of their customers are students 1. Decisions for Product varieties for a target market to ensure market need is solved. A. Market segment B. Product mix C. Product specifications D. Positioning and communication QUIZ 2. It is a decision on product or services considering the market group or segment. B. Market segment B. Product mix C. Product specifications D. Positioning and communication 3. You align your product to the minds of your customers creating an image that fits their needs. C. Market segment B. Product mix C.Product specifications D. Positioning and communication 4. This involves the measurements required by the customer related to size, shape, materials or composition and including its description D. Market segment B. Product mix C. Product specifications D. Positioning and communication 5. These are needs for survival like “need for sleep, food air and reproduction E. Physiological B. Economic C. Social D. Psychological 6. It includes feelings and emotions to the customer. F. Physiological B. Economic C. Social D. Psychological 7. These are related with how the customer deals with other people or society with its approval G. Physiological B. Economic C. Social D. Psychological 8. Customers want to have a guaranteed good value for their money H. Physiological B. Economic C. Socia D. Psychological 9. It is a promise of value to be delivered I. Market competition B. Positioning C. Value proposition D. Segmentation 10. It is considered as market rivalry between companies selling similar products and services with the goal of achieving revenue, profit, and market share growth