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1、Buying Products On-lineWarm-up ActivityWhat types of products do you purchase on-line, such as CDs?Why do you purchase them on-line?Why dont you buy these products elsewhere?Does low price mean poor quality?第1页/共18页第一页,共18页。OutlineProduct PresentationThe Product Life CycleNeed for NEW ProductsGroup
2、Activity (partners)Unique Selling PropositionGroup Presentations (partners)Product Development ProcessSummaryValue Proposition第2页/共18页第二页,共18页。 TimeProductDevelopmentIntroductionProfitsSalesGrowthMaturityDeclineProduct PresentationSales & Profits During Products LifetimeHow long will it take to
3、complete the cycle?第3页/共18页第三页,共18页。Product Presentation4 out of 5-puchases occur in stores, andthe most influential factors are:#1 PRICE; #2 PRODUCT VALUE; #3 QUALITYThree Special Categories 第4页/共18页第四页,共18页。Product PresentationTimeABCD(1)(1) A is at maturity stage Generating money for the developm
4、ent of D(2)(2) Cash from B is used to support C through growth stage and to launch product D(3)(3) Funds from C is used to support the growth of D and possibly to finance an extension of BNew products supply money to extend sales of existing productsWhat are the KEY drivers for new products?Sales第5页
5、/共18页第五页,共18页。Product PresentationProduct Quality improvement: Aim to increase the products functional performanceProduct Feature improvement: Add new features, such as size, to enhance convenienceProduct Style improvement: Increase the products appeal, such as new packagingBut, what is the KEY driv
6、er for NEW products?Market changes: Consumers have changing needs, due to technological advancements, social forces, different interests, etc.第6页/共18页第六页,共18页。Group ActivityProduct PresentationList the followingfactors in the order that influenced you to buy your cell phone:a) PRICEb) PRODUCT VALUEc
7、) QUALITYd) BRAND NAME第7页/共18页第七页,共18页。Product PresentationNew Product DevelopmentNew Product DevelopmentShould a new product be designed (original design or newly-invented)?Should the existing product be modified to better satisfy customer needs?Should the product be expanded into another form to o
8、pen a NEW market or gain more current market coverage?第8页/共18页第八页,共18页。Product PresentationNew Product DevelopmentNew Product DevelopmentThe design process is a series of technical steps in the product development process.What is value and how is it measured?第9页/共18页第九页,共18页。Product PresentationUniq
9、ue Selling PropositionUnique Selling PropositionReasons for consumers to be attracted and buy specific products / services 1) Essential to obtain brand loyalty2) Enlarges the distance between competitors 3) Excites consumers, and creates interest to buy第10页/共18页第十页,共18页。Product PresentationUnique Se
10、lling PropositionUnique Selling PropositionLets understand the ways your customers benefit from buying your product / service1) Why do customers buy your product / service?2) How is your product / service unique? 3) What is your competitive advantage?4) Is your product / service specialized?第11页/共18
11、页第十一页,共18页。Product PresentationValue PropositionValue PropositionUnderstand “Value Proposition”, and the ways of adding “value” to products1) Define target audience via needs & values2) Know how your product / service is valued3) Create value proposition aligned to needs4) Add features to separa
12、te from competitors5) Measure market acceptance and consider making alterations in later revisions based on willingness to pay more money for the product第12页/共18页第十二页,共18页。GroupWork!Step 1: Select any product inside the room to present.Step 2: List the reasons why people buy it; realize its value pr
13、oposition.Step 3: Compare product features to its competitors (uniqueness).Step 4: Present the product highlighting its value to customers.Product Presentation第13页/共18页第十三页,共18页。Product PresentationAppealingInterestingInformativeProfessionalPresentation GuidelinesPresentation Guidelines第14页/共18页第十四页
14、,共18页。Product PresentationPresentation TipsPresentation TipsGood presentations have good structures:1) Welcome the audience2) Self-introduction (who are you?)3) Topic of presentation (product presentation)4) Outline presentation (body, divide into parts)5) Give a short summary6) Include Q & A第15页/共18页第十五页,共18页。Product PresentationSummaryProducts have life cyclesAdapt new products to changing marketALL products have valueSeparate your product from competitorsAlign products to customer needsHighlight product Value PropositionPresentations requ
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