Product Definition and Approaches in Product Management

TEMA 6

Definition of product and the two approaches in product management

A product is a set of physical and psychological features that an individual perceives.

• Focused in the product itself
• Focused on the consumer's needs

List ten of the product decisions and briefly explain what they mean

• Current product positioning
• Brand product positioning
• Identifying target segment
• Modifications and changes in products
• Positioning of product line

Depending on who buys the goods, products can be:

Consumer product:

Industrial product

According to their duration, consumer goods can be:

• Non-durable consumer goods
• Durable consumer goods

That avoids problems arising from negative interpretations of the name in other areas (different countries, regions, languages)

List the main features of non-durable consumer goods. [Nombra las principales características de los productos perecederos]

Impulse buying, Cash payment, Price (important purchase factor), High stock rotation, Low gross margins, Long distribution processes

According to the frequency of purchase consumer products can be:

Convenience goods, Shopping goods, Specialty goods

What are the main characteristics of Convenience products?

They are products that are bought frequently and the buyer makes no effort in the decision.

What are the main characteristics of shopping products?

The requires a greater search for information and more comparison.

What are the main characteristics of Specialty products?

The buyer is more willing to make a greater effort in the decision, due to the features or the prestige of the brand.