Marketing: The Product and Customer Value Creation.
The Product and Customer Value Creation.
Marketers sometimes say that nothing happens in business unless somebody sells something. That something is the firmâ€™s product or service offering. However, the marketer must cultivate the attitude that he or she is not selling a product or service per se. Rather, the marketer is selling an experience or a means to solve a problem. The offeringâ€™s value comes from the ability to deliver benefits to enhance the customer’s situation.
(i) Describe how a successful marketing firm might determine the various product attributes, both tangible and intangible, that constitute a product offering. Give examples to illustrate how the marketing firm might create customer value.
(ii) Many marketers sell a variety of closely related products to relatively similar types of customers. Why? What are the implications for the ability of the firm to manage these product offerings? What would the advantages and disadvantages of such an approach be?
(iii) Consider a portfolio approach to product management. How do marketers using such an approach make decision about product investment? What happens when products are no longer profitable?