Page 329 - Foundations of Marketing

296 Part 4 | Product and Price Decisions

Functional Modifications
Changes that affect a product’s versatility, effectiveness, convenience, or safety are called
functional modifi cations; they usually require that the product be redesigned. Product catego-
ries that have undergone considerable functional modification include agricultural equipment,
appliances, cleaning products, and telecommunications services. For example, making programs
available in 3 D on DirectTV is a functional modification. Functional modifications can make a
product useful to more people and thus enlarge its market. Microsoft overhauled its Bing search
engine to make searching more “social.” Bing now uses information gleaned from users’ social
networks to create a sidebar of topics relevant to users’ search queries. Bing hopes that this func-
tional modification will not only enhance its social search capabilities but also give it a competi-
6
tive edge over Google. Companies can place a product in a favorable competitive position by
providing benefits that competing brands do not offer. Additionally, they can help an organization
achieve and maintain a progressive image. Finally, functional modifications are sometimes made
to reduce the possibility of product liability lawsuits, such as adding a kill switch on a machine.

Aesthetic Modifications

Aesthetic modifi cations change the sensory appeal of a product by altering its taste, tex-
ture, sound, smell, or appearance. A buyer making a purchase decision is swayed by how a
product looks, smells, tastes, feels, or sounds. Thus, an aesthetic modification may strongly
affect purchases. The fashion industry relies heavily on aesthetic modifications from season
to season. For example, Louis Vuitton clothing, handbags, and leather goods are leaders in the
haute couture industry. In order to maintain its reputation for the utmost level of quality and
style, the company performs aesthetic modifications on its products regularly. This ensures
that Louis Vuitton maintains its reputation for cutting-edge design and quality. In addition,
functional modifications
Changes affecting a product’s aesthetic modifications attempt to minimize the amount of illegal product counterfeiting that
versatility, effectiveness, occurs through constant change in design and quality.
convenience, or safety Aesthetic modifi cations can help a fi rm differentiate its product from competing brands
aesthetic modifications and thus gain a sizable market share. The major drawback in using aesthetic modifi cations is
Changes to the sensory appeal that their value is determined subjectively. Although a fi rm may strive to improve the product’s
of a product sensory appeal, customers actually may fi nd the modifi ed product less attractive.

Functional Modifications in the
Automobile Industry
One of the ways in which © Darren Brode/Shutterstock.com
Ford is engaging in functional
modification is by developing
vehicles that can run on electric
energy.

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