QUESTION
Today, there is a great multitude and varieties of new products available in stores and online, from which consumers can choose. Think about the new products you’ve seen in the past two or three years, then choose a new product from any category.
Referencing style is APA &
Don't use plagiarized sources. Get Your Custom Essay on
1. How would you define the attributes and benefits of the chosen product? 2. Define the core, actual, and augmented product benefits. 3. Briefly describe the steps in the new product development process.
Just from $13/Page
1. How would you define the attributes and benefits of the chosen product?
2. Define the core, actual, and augmented product benefits.
3. Briefly describe the steps in the new product development process.
4. Each product will have a life cycle, although its exact shape and length are not known in advance. Explain each step in the PLC.
5. What are the dimensions upon which a company manages its product portfolio?
ANSWER
Managing Product Portfolios: Key Dimensions for Effective Product Portfolio Management
Introduction
In today’s dynamic marketplace, companies face the challenge of meeting the ever-changing needs and preferences of consumers. With the proliferation of new products in various categories, effective product portfolio management becomes crucial for sustained business success. This essay will explore the dimensions upon which a company manages its product portfolio, focusing on key aspects that optimize performance and drive competitive advantage.
Attributes and Benefits of the Chosen Product
The chosen product is an innovative smartwatch that incorporates advanced health monitoring features. Its attributes include a sleek design, a high-resolution touch screen, water resistance, GPS tracking, and compatibility with various mobile platforms. The primary benefits of this product are convenience, fitness tracking, and overall health monitoring (Lutkevich & Provazza, 2022). It allows users to track their daily activities, heart rate, sleep patterns, and receive notifications, enabling them to make informed decisions regarding their well-being.
Core, Actual, and Augmented Product Benefits
The core product benefit of the smartwatch is timekeeping and convenience, providing users with a fashionable wrist accessory that tells the time accurately. The actual product benefits extend beyond timekeeping and encompass features such as fitness tracking, health monitoring, and connectivity to other devices (Lyons, 2015). Augmented product benefits include customer support, warranty, additional accessories, and software updates, enhancing the overall ownership experience.
Steps in the New Product Development Process
The new product development process typically involves the following steps:
Idea Generation: Generating and screening ideas to identify potential new product opportunities.
Concept Development and Testing: Developing product concepts and testing them with target consumers to evaluate their acceptance and feasibility.
Business Analysis: Assessing the potential market size, profitability, and viability of the new product concept.
Product Development: Designing and developing the physical product, including prototyping, testing, and refining the product’s features and functionality.
Market Testing: Conducting a limited launch of the product in specific market segments to gather feedback and assess market acceptance.
Commercialization: Preparing for full-scale production, marketing, and distribution of the product, considering factors such as pricing, promotion, and supply chain management.
Post-Launch Evaluation: Monitoring and evaluating the product’s performance in the market, gathering customer feedback, and making necessary adjustments or improvements.
Product Life Cycle (PLC) Steps
The Product Life Cycle encompasses the following steps:
Introduction: The product is launched into the market. Sales start slowly as consumers become aware of the new offering. Companies incur high marketing and production costs during this phase.
Growth: Sales and market acceptance increase rapidly. Competitors may enter the market, and prices may stabilize or decrease. Companies focus on brand building, market share expansion, and product improvement.
Maturity: Sales growth slows down as the market becomes saturated. Price competition intensifies, and companies may diversify their product variants or target new customer segments. Marketing efforts focus on product differentiation and customer retention.
Decline: Sales decline due to market saturation, changing consumer preferences, or technological advancements. Companies may discontinue the product or explore niche markets. Marketing efforts may reduce, and companies may streamline operations or divest the product.
Dimensions of Product Portfolio Management
Managing a product portfolio involves strategic decision-making to optimize the collection of products a company offers. Key dimensions include:
Product Mix Breadth: Refers to the number of product lines a company offers. A broader product mix provides diversification and reduces risks associated with market fluctuations.
Product Mix Depth: Refers to the variety of products within each product line. Greater depth enables companies to meet diverse customer needs and preferences.
Product Life Cycle Management: Companies strategically manage the PLC stages of their products by investing in new product development, extending product life cycles, or phasing out declining products.
Product Synergy: Companies seek to create synergy among their products by leveraging shared resources, technologies, and marketing efforts. This allows for cost efficiencies and enhanced customer experiences.
Market Segmentation: Companies divide their target market into distinct segments based on demographics, psychographics, or behaviors (Tarver, 2023). Each segment may require different product offerings or marketing approaches to maximize customer satisfaction and profitability.
Conclusion
Effectively managing a product portfolio is essential for companies to meet evolving consumer demands, stay competitive, and achieve long-term success. By considering dimensions such as product mix breadth, depth, life cycle management, synergy, and market segmentation, companies can optimize their product portfolio to provide value to customers, maximize profitability, and maintain a sustainable competitive advantage in the marketplace.
References
Lutkevich, B., & Provazza, A. (2022). smartwatch. IoT Agenda. https://www.techtarget.com/iotagenda/definition/smartwatch
Lyons, K. (2015). What can a dumb watch teach a smartwatch? https://doi.org/10.1145/2802083.2802084
Tarver, E. (2023). Market Segmentation: Definition, Example, Types, Benefits. Investopedia. https://www.investopedia.com/terms/m/marketsegmentation.asp
