Page 337 - Foundations of Marketing

304 Part 4 | Product and Price Decisions

for a successful product can be enormous, and a fi rm usually cannot produce the required
quantities in a short time. Finally, gradual introduction allows for fi ne-tuning of the market-
ing mix to satisfy target customers. Procter & Gamble, for example, originally conceived of
Febreze deodorizer as a fabric-care product, but over time, the company’s view of the highly
successful brand evolved into an air-freshening line because that is how consumers indicated
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they were using it.
Despite the good reasons for introducing a product gradually, marketers realize that this
approach creates some competitive problems. A gradual introduction allows competitors to
observe what the firm is doing and to monitor results, just as the firm’s own marketers are
doing. If competitors see that the newly introduced product is successful, they may quickly
enter the same target market with similar products. In addition, as a product is introduced
region by region, competitors may expand their marketing efforts to offset promotion of the
new product. Marketers should realize that too much delay in launching a product can cause
the firm to miss out on seizing market opportunities, creating competitive offerings, and
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forming cooperative relationships with channel members.

LO 3 . Know the importance of PRODUCT DIFFERENTIATION THROUGH
product differentiation and the
elements that differentiate one QUALITY, DESIGN, AND SUPPORT
product from another.
SERVICES

Some of the most important characteristics of products are the elements that distinguish them
from one another. Product differentiation is the process of creating and designing products
so that customers perceive them as different from competing products. Customer perception
is critical in differentiating products. Perceived differences might include quality, features,
styling, price, and image. A crucial element used to differentiate one product from another is
the brand. In this section, we examine three aspects of product differentiation that companies
must consider when creating and offering products for sale: product quality, product design
and features, and product support services. These aspects involve the company’s attempt to
create real differences among products. Later in this chapter, we discuss how companies posi-
tion their products in the marketplace based on these three aspects.

Product Quality

Quality refers to the overall characteristics of a product that allow it to perform as expected
in satisfying customer needs. The words as expected are very important to this definition
because quality usually means different things to different customers. For some, durability
signifies quality. Among the most durable products on the market today is the Craftsman
line of tools at Sears; indeed, Sears provides a lifetime guarantee on the durability of its tools.
For other consumers, a product’s ease of use may indicate quality.
The concept of quality also varies between consumer and business markets. For business
product differentiation
Creating and designing markets, technical suitability, ease of repair, and company reputation are important character-
products so that customers istics. Unlike consumers, most businesses place far less emphasis on price than on product
perceive them as different from quality.
competing products One important dimension of quality is level of quality , the amount of quality a product
quality Characteristics of a possesses. The concept is a relative one because the quality level of one product is diffi-
product that allow it to perform cult to describe unless it is compared with that of other products. The American Customer
as expected in satisfying Satisfaction Index, compiled by the National Quality Research Center at the University of
customer needs Michigan, ranks customer satisfaction among a wide variety of businesses. Clorox had the
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level of quality The amount of highest rating of customer satisfaction in the personal care and cleaning products industry.
quality a product possesses The level of quality in Tropicana orange juice is illustrated in its advertising, which claims that

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