- PRICING STRATEGY: PRICE SKIMMING!
- PRICING STRATEGY: GIVING YOUR PRODUCT/SERVICE FOR FREE
- SHOULD WE COMPARE OURSELVES?
- WHAT SHOULD WE MEASURE WHEN WE EVALUATE OUR MARKETING EFFORTS?
- WHAT IS THE VALUE OF A CUSTOMER?
- DOES CONTENT MARKETING WORK?
- WHAT IS THE DIFFERENCE BETWEEN A BRAND, BRANDING, A PERSONAL BRAND AND A COMPANY/PRODUCT NAME?
- WHAT IS GROWTH HACKING?
- HOW MANY « P » CAN BE FOUND IN THE MARKETING MIX?
- THE CUSTOMER VALUE CHAIN
- HOW CAN YOU PROTECT YOUR UNIQUE PRODUCT OR SERVICE?
- CONFERENCE ON FINANCING - MAY 2, 2017
- WHAT IS DRIP PRICING?
- WHICH AMOUNT SHOULD YOU CHOOSE FOR YOUR PRICES?
- DETERMINING YOUR HOURLY RATE BASED ON THE VALUE YOU THINK YOU HAVE
- IS LOWERING YOUR PRICES A GOOD IDEA?
- TO OFFER OR NOT TO OFFER FINANCING?
- HOW TO PROTECT YOURSELF AGAINST EXCHANGE RATE RISKS
- WHEN IS A GOOD TIME TO INCREASE YOUR PRICES?
- DEMAND BASED PRICING
- WHAT IS A LOSS LEADER?
- HOW TO ORGANIZE A DRAW THE RIGHT WAY?
- HOW TO HAVE REMOTE EMPLOYEES
- IS IT GOOD TO BE FIRST IN A MARKET?
- THE THREE TYPES OF CUSTOMERS
- EXPORTING TO MEXICO - QUERETARO REGION
- DEFINING BUSINESS SUCCESS
- ARE YOU USING REBATES? WATCH OUT FOR THESE
- IS THE CUSTOMER ALWAYS RIGHT?
- EXPORTS AND QUEBEC COMPANIES
- COWORKING SPACES
- YOUR PLACE OF BUSINESS AND INTERNET
- WHY IS SOCIAL MEDIA IMPORTANT FOR YOUR BUSINESS?
- HOW TO USE FREEBIES
- WHAT IS THE MAGICAL FORMULA FOR HAVING SUCCESS IN BUSINESS?
- DO YOU HAVE EXPERIENCE IN MY FIELD?
- WHEN CAN WE STOP OUR MARKETING?
- WHAT IS A CALL TO ACTION?
- WE ARE ALL SALESPEOPLE; HERE'S HOW TO GET THERE
- HOW CAN MARKETING AND SALES COLLABORATE?
- HOW TO SELL MORE TO YOUR EXISTING CLIENTS
- WHAT IS CROSS-MARKETING?
- WHY SHOULD I SEGMENT?
- WHO IS RESPONSIBLE FOR MANAGING YOUR COMPANY'S IMAGE?
- HOW TO CHARGE FOR YOUR PRODUCTS / SERVICES?
- HOW TO DEFINE YOUR PRICING STRATEGY: PRICE POSITIONING
- HOW TO DEFINE YOUR PRICING STRATEGY: MARKET PRICING
- WHAT PRICE SHOULD YOU SELL AT? - COST-BASED PRICING
- WHAT IS A PRODUCT?
- HOW TO MARKET YOUR NEW BUSINESS?
- IS BUYING A FRANCHISE A GOOD WAY TO START A BUSINESS?
- HOW SOCIAL MEDIA HAS CHANGED WORD-OF-MOUTH
- HOW SOCIAL MEDIA HAS CHANGED PUBLIC RELATIONS
- WHAT IS BRANDING?
- WHY INCREASING SALES IS NOT THE SOLUTION
- HOW TO SELECT YOUR COMPANY NAME?
- WHY HAVING A WEBSITE IS ONLY THE BEGINNING?
- WHAT IS MARKETING?
- HOW TO MAXIMIZE THE VALUE OF YOUR SOLE PROPRIETORSHIP BUSINESS
- WHY SELLING IN MEXICO?
- LOW COST MARKETING INITIATIVES
- WHY IS PRODUCT DIFFERENCIATION IMPORTANT?
- hOW TO PRESENT OUR COMPANY
- WHAT IS THE DIFFERENCE BETWEEN MARKETING AND PUBLICITY?
- 50% OF YOUR ADVERTISING BUDGET DOES NOT PRODUCE AS MUCH AS THE REST
- RIGHT SELL AND OVER DELIVER
WHAT IS A PRODUCT?
This question may seem trivial, but it is one which has become more and more complex thanks to our increasingly competitive environment. Because of that environment, companies employ a lot of effort in differentiating their products from the competition with value added services that we have come to see as an integral part of a product.
Does that definition seem confusing? Let take a real life example. Jeep’s Trail Rated certification is a very good example of this. In brief, Trail Rated is a certification system that testifies to a vehicle’s ability to go off-road and perform well under those conditions. There are many technical components to that certification, most of them escape my limited technical understanding. But what is interesting is the fact that the marketing people at Jeep thought about that certification and with it, the image of ruggedness that it gives to the products. Also very interesting is the fact that this certification is only available to Jeep products; I am convinced that other SUVs undoubtedly possess some of the attributes that earn Jeep vehicles their badge of honour, but these vehicles are not eligible for the Trail Rated certification. So in essence, only a Jeep can be called Trail Rated. This is an example of a very interesting value added service component.
Another example? Few can argue the passion the Mac users have toward their brand; the line-ups to get the latest iPhone are a testament to this. Having used a Mac in the past, I can confidently say that their machines are very well made and durable. And having recently experimented with Windows 8, I can also say that Mac’s operating system is excellent. I can also say that the celebrated aesthetic component of Mac products does nothing for my productivity or the quality of my work. However, this is such a strong aspect of any Mac product that compared to equivalent machines, the Mac will sell for more. Of course some of the price difference is down to the components and in large part, for the brand, but my Dell computer which is brushed aluminum just like some of the Mac products and has all the bells and whistle of those machines, is at least $600 less expensive. And it does the job just fine. So what part of the added price can be attributed to the aesthetics? I leave that debate to experts but it is a significant chunk for sure.
Now, how can all of this be applied to our own products? In conceiving a product, we need to think about all the component of that product:
- - Brand notoriety (a very important aspect of product differentiation);
- - Styling;
- - Support (pre-sales, customer support, website, etc.);
- - Guarantee;
- - After-sales support;
- - Turn-key selling process (widely used in furniture and appliance, where they deliver the product to your home and install it);
- - Payment options;
- - Product availability;
- - Others.
Nowadays, most if not all of these attributes help define what a product is. It is important when you are defining your next product that you consider these elements as they are strong differentiation factors which will set you apart from your competitors.
Stéphane Elmaleh-Riel, B.Ed, MBA