Brief contents of this article:
The main question is:
0)"How to define the product or service offering?"
Regarding the main topic and problem, we have found such subtopics (learning objectives):
1)How to make desirable product or service offering?
2)How does culture affect product decisions?
3)How to benefit from networks?
4)Where to find relevant information?
0.1. "How to define the product or service offering?" From my personal expirience, product\service offering usually rely on definition of unique selling proposition (USP): "contains the one feature of the product that most stands out as different from the competition, and is usually a feature that conveys unique benefits to the consumer." (Source: Blythe, Jim (2005-01-01). Essentials of Marketing (3rd ed.). Financial Times Prentice Hall. p. 250) However it also could include information about other product attributes: "all features (both tangible and intangible) of a good or service that can be evaluated by customers" . (Source: Lovelock C., Wirtz, J. & Chew, P. 2012, Essentials of Services Marketing, p. 653)
1.1. How to make desirable product or service offering? Steven Blank in his book "The Four Steps to the Epiphany" (2006) recommends reversed approach for a startups: to begin with a Customer Discovery and Validation, only then proceed to Customer creation and Building a company. In such paradigm a product shaped to the offering, but not the contrary. I, myself, find such conception very useful in operational business positioning also.
1.2.
I believe, that we have to begin with a question "Why people are going to pay money for a particular product or a service?" What is an existing problem, sufficient enough to be paid for its resolve?
When a person or organisation decides to buy or use a service, it is triggered by an underlying need or need arousal.
(Source: Lovelock C., Wirtz, J. & Chew, P. 2012, Essentials of Services Marketing, p.37)
Case: For example, in Jamil's case tourist guide services, as I suppose, may solve problem of uncertainy. This problem could be based on fear, e.g. tourists just do not know where to go in India, what to eat, what to expect, how to behave themselves etc. Safety is one of the two basic needs, according to Maslow's five-stage hierarchy model of needs. That is why people generally pay for products and services, which would provide them safety. Same deliberation should be made on other possible variants, interior decoration and cultural training.
(Source: http://www.simplypsychology.org/maslow.html Accessed 28.08.16)
1.3. The first question "Why?" is usually followed by question "Who are they?" (customers).
From previous studies I have learned that process of prioritization of company’s stakeholders is important, because there are too many of them existing and it is almost impossible to be equally good for all of them, due to variety of interests.
To provide outstanding core product and supplementary services you have to be aware of your main customer profile, likewise to maximize profitability of your venture. And that means analyzing work in STP (Segmentation, Targeting and Positioning) (Source: Lovelock C., Wirtz, J. & Chew, P. 2012, Essentials of Services Marketing, p.70-82)
Case:
Jamil had sorted his business ideas on a scale of customers needs importancy and now should think about those customers. For instance interior design clients. Are they private or business clients? Young or old? Poor or rich? Are they returning customers or single-entry? Who makes the decision? Etc.
Case:
4. Where to find relevant information?
The main question is:
0)"How to define the product or service offering?"
Regarding the main topic and problem, we have found such subtopics (learning objectives):
1)How to make desirable product or service offering?
2)How does culture affect product decisions?
3)How to benefit from networks?
4)Where to find relevant information?
0.1. "How to define the product or service offering?" From my personal expirience, product\service offering usually rely on definition of unique selling proposition (USP): "contains the one feature of the product that most stands out as different from the competition, and is usually a feature that conveys unique benefits to the consumer." (Source: Blythe, Jim (2005-01-01). Essentials of Marketing (3rd ed.). Financial Times Prentice Hall. p. 250) However it also could include information about other product attributes: "all features (both tangible and intangible) of a good or service that can be evaluated by customers" . (Source: Lovelock C., Wirtz, J. & Chew, P. 2012, Essentials of Services Marketing, p. 653)
1.1. How to make desirable product or service offering? Steven Blank in his book "The Four Steps to the Epiphany" (2006) recommends reversed approach for a startups: to begin with a Customer Discovery and Validation, only then proceed to Customer creation and Building a company. In such paradigm a product shaped to the offering, but not the contrary. I, myself, find such conception very useful in operational business positioning also.
1.2.
I believe, that we have to begin with a question "Why people are going to pay money for a particular product or a service?" What is an existing problem, sufficient enough to be paid for its resolve?
When a person or organisation decides to buy or use a service, it is triggered by an underlying need or need arousal.
(Source: Lovelock C., Wirtz, J. & Chew, P. 2012, Essentials of Services Marketing, p.37)
Case: For example, in Jamil's case tourist guide services, as I suppose, may solve problem of uncertainy. This problem could be based on fear, e.g. tourists just do not know where to go in India, what to eat, what to expect, how to behave themselves etc. Safety is one of the two basic needs, according to Maslow's five-stage hierarchy model of needs. That is why people generally pay for products and services, which would provide them safety. Same deliberation should be made on other possible variants, interior decoration and cultural training.
(Source: http://www.simplypsychology.org/maslow.html Accessed 28.08.16)
1.3. The first question "Why?" is usually followed by question "Who are they?" (customers).
From previous studies I have learned that process of prioritization of company’s stakeholders is important, because there are too many of them existing and it is almost impossible to be equally good for all of them, due to variety of interests.
To provide outstanding core product and supplementary services you have to be aware of your main customer profile, likewise to maximize profitability of your venture. And that means analyzing work in STP (Segmentation, Targeting and Positioning) (Source: Lovelock C., Wirtz, J. & Chew, P. 2012, Essentials of Services Marketing, p.70-82)
Case:
Jamil had sorted his business ideas on a scale of customers needs importancy and now should think about those customers. For instance interior design clients. Are they private or business clients? Young or old? Poor or rich? Are they returning customers or single-entry? Who makes the decision? Etc.
1.4. After successful work on previous two questions it is time to apply the 4Ps of Marketing to our product or service. For a good there are: Product; Place and Time; Prices; Promotion and education. If we have a service, then 3 other P's also have significant role in process, it affect how customer interfere with a acompany: Process; Physical Environment; People. (Source: Lovelock C., Wirtz, J. & Chew, P. 2012, Essentials of Services Marketing, p.26)
Case: Jamil had formed a report and now understand his main customer group and why they would pay for his product. But now he has another challenging task, to find out about his business in Cultural Training:
A) Product. Does his cultural training should also involve some priests lectures or would it be enough just his speech? Does he need to make a block about Indian food?
B) Place. Should it be 3 hours or 2 day seminars? Should it be in downtown or in cabin in woods?
C) Price. Should I make one pricing for everyone or several pricing plans? Should I set average price or premium?
D) Promotion. Would it be enough to just post it on Facebook and to my contacts? Should I ask my network connections to place liflets in their shops?
E) Process. How many payment options should I offer? Do I have to arrange a transfer to the place?
F) Servicescape. Should it be a posh place? Do we need blanckets for our guests?
G) People. Do I need a smiling assistant? Do I need some smiling monks?
1.5. All actions of the above could facilitate the process of creating offering and make it clear, structured and balanced.
2. How does culture affect product decisions? Consumer behaviour is influenced by internal and external conditions such as demographics, psychographics (lifestyle), personality, environment, motivation, knowledge, attitudes, beliefs, and feelings.People from different cultures tend to make decisions differently and even impulse purchases behavior differs.
Case: Jamil had formed a report and now understand his main customer group and why they would pay for his product. But now he has another challenging task, to find out about his business in Cultural Training:
A) Product. Does his cultural training should also involve some priests lectures or would it be enough just his speech? Does he need to make a block about Indian food?
B) Place. Should it be 3 hours or 2 day seminars? Should it be in downtown or in cabin in woods?
C) Price. Should I make one pricing for everyone or several pricing plans? Should I set average price or premium?
D) Promotion. Would it be enough to just post it on Facebook and to my contacts? Should I ask my network connections to place liflets in their shops?
E) Process. How many payment options should I offer? Do I have to arrange a transfer to the place?
F) Servicescape. Should it be a posh place? Do we need blanckets for our guests?
G) People. Do I need a smiling assistant? Do I need some smiling monks?
1.5. All actions of the above could facilitate the process of creating offering and make it clear, structured and balanced.
2. How does culture affect product decisions? Consumer behaviour is influenced by internal and external conditions such as demographics, psychographics (lifestyle), personality, environment, motivation, knowledge, attitudes, beliefs, and feelings.People from different cultures tend to make decisions differently and even impulse purchases behavior differs.
Case:
Jamil has unexpectedly found that people wanted his Interior decorations not because they would feel there comfortable and enjoy sleeping in this beautiful living room, but for other reasons. One person wanted to brag with his own modern house to friends, another one tried to cover his poverty with cheap laconic interior solutions. One woman ordered two rooms for her massage saloon.
That was a good experience and a good reason to asses his positioning and maybe change it to fit customers demands in this culture. Now he start to understand more about underlies of his clients.
3. How to benefit from networks? Keith Ferrazzi in his book "Never Eat Alone" suggest to establish connections with people before you are planning to have benefits from those people. Keith suggest to find themes, that you are genuinely intrested in, like sports or other hobbies. The one valuable advise from Ferazzi is to do not do networking for a networking itself, and try to find unique contact areas with a person.
On web-site of Queensland Goverment I have found neat list of possible benefits of networking and I may say, that I share this position.
Building your network web may help you to find:-staff
That was a good experience and a good reason to asses his positioning and maybe change it to fit customers demands in this culture. Now he start to understand more about underlies of his clients.
3. How to benefit from networks? Keith Ferrazzi in his book "Never Eat Alone" suggest to establish connections with people before you are planning to have benefits from those people. Keith suggest to find themes, that you are genuinely intrested in, like sports or other hobbies. The one valuable advise from Ferazzi is to do not do networking for a networking itself, and try to find unique contact areas with a person.
On web-site of Queensland Goverment I have found neat list of possible benefits of networking and I may say, that I share this position.
Building your network web may help you to find:-staff
-suppliers
-customers
-business partners and investors
-new locations to operate in
-a business mentor or mentee
-leads and referrals
-new opportunities
-information on current business trends and developments in your industry
-information to help you benchmark your business.
(Source: https://www.business.qld.gov.au/business/running/managing-business-relationships/networking-in-business/networking-improve-business Page 6)
It was a useful reminder for me, to maintain my connections in order to keep in vision insights and market trends.
Case:
Jamil's first tourist was a builder and two years later helped him to finish new sauna. Second's Jamil client told about his services in dance class. Jamil got few more clients because of that. Third client of Jamil was from another part of Finland and he come up with idea about franchise to him.
4. Where to find relevant information?
One of the best ways to find information to fill a report with is to create this information. The most reliable method in customer development, accordingly to Steve Blank is to interview your customer.
To Identify customer needs, determine functional requirements, concept development
To Identify customer needs, determine functional requirements, concept development
and analysing of competitive products may be used Kano model.
(Source: Jacobs, Randy, Evaluating Satisfaction with Media Products and Services: An Attribute
(Source: Jacobs, Randy, Evaluating Satisfaction with Media Products and Services: An Attribute
Based Approach, European Media Management Review, 1999)
Kano model helps to place diverse functions of your product on a scale with two dimensions: Satisfaction and Execution. With Kano surveys it is possible to expose necessity of separate functions.
However, there are also other traditional ways to search information such as: Internet search, Expert consultation, network reccomendations.
Kano model helps to place diverse functions of your product on a scale with two dimensions: Satisfaction and Execution. With Kano surveys it is possible to expose necessity of separate functions.
However, there are also other traditional ways to search information such as: Internet search, Expert consultation, network reccomendations.
