Entrepreneurship I - 2.07. Employ product-mix strategies to meet customer expectations. Product mix. The particular assortment of goods and services that a business offers in order to meets its market’s needs and its company’s goals. Target Market.
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Entrepreneurship I - 2.07 Employ product-mix strategies to meet customer expectations.
Product mix • The particular assortment of goods and services that a business offers in order to meets its market’s needs and its company’s goals.
Target Market • A particular group of customers that a business seeks to attract. • Sometimes, a business can take an existing good or service and change it so it will fulfill the needs of another target market. • Example: some products can be altered to accommodate people with certain disabilities.
How to obtain customer feedback • Ask the customer • To compete in the marketplace, a business must develop or find products that will fulfill its customers’ changing needs and wants. • Obtaining customer feedback is a good way for a business to evaluate how it is meeting its customers’ needs and what it needs to do to increase customer satisfaction.
What is a Feature? • A feature is a physical characteristic or quality of a product. • It is something the customer can touch, feel, smell, see, or measure • It helps describe the product. • A feature answers the question, “What is it?” • Ex: color, style, size
What is a benefit? • A benefit is the personal satisfaction or advantage that a customer wants from a product. • It is how the feature helps a particular buyer • For customers, it answers the questions: • How will I benefit? • What’s in it for me?
Feature-benefit Selling • Prove to customers your product has features that benefit them • Customers buy benefits-not features • Compare to competition • Determine what each customer is looking for in a good or service Nike plus
Obtaining Customer Input on Benefits • Conduct a Customer Survey • Are your customers happy or satisfied? • Do you know how your customers feel about your products or service? • Today's competitive marketplace requires every organization to listen to the voice of its customers, which can be captured with a customer survey. • Benefits of Surveys • Increase customer retention • Performance feedback – what needs improvement • Customers can be the best source to derive new innovative ideas.
Customer Input through Social Media • Twitter • Facebook • Pinterest • Others…..
Customer Input through Ideation Sessions • Focus groups & Interviews • Gather customer data and observes problems that need fixing. • Let customers give input on new concepts. • Consumer involvement in designing products.
Customer Input by observing product use • What needs to be improved? • What would make the product easier for consumers to use? • When would the consumer use the product the most? • How would the consumer use the product?
Importance of Customer Input • Successful entrepreneurs, however, say there's one key ingredient in launching a new product: Listen to your customers before going to market. • Provide room for improvement or change • Provide additional selling points • Provide validation of your brand
Procedure of identifying products to meet customers’ needs • Step 1: Identify Critical Needs ~ What needs does your product/service have to meet? • Step 2: Identify Quality Drivers ~ What is driving this need? Key factors to include in your product/service. • Step 3: Identify Performance Requirements ~ identify the minimum performance requirements that you must satisfy for each quality need, in order to actually provide a quality product