Operations

Quality Assurance
Quality Assurance Jonathan Poland

Quality assurance (QA) is the process of verifying that a product or service meets specific quality standards. This is often done through a combination of testing and inspection, and is typically performed by a dedicated QA team or by an individual with expertise in quality assurance. This may encompass areas such as organizational structure, processes, systems, design, reliability engineering and human factors. The goal of QA is to identify and address any issues or defects in a product or service before it is released to customers. This can help ensure that the product or service meets the expectations of its users and is free of defects or errors that could negatively impact its performance.

QA processes are typically implemented at various stages of the product development lifecycle, including during the design and development phase, during testing, and prior to launch. This can help ensure that any issues or defects are identified and addressed early in the development process, before the product or service is released to customers. QA processes typically involve a combination of manual testing and inspection, as well as automated testing using specialized software tools. Manual testing involves a QA team or individual manually testing the product or service to identify any issues or defects. Automated testing, on the other hand, involves using specialized software tools to test the product or service automatically, allowing for more efficient and comprehensive testing.

Overall, quality assurance is a critical part of the product development process. By verifying that a product or service meets specific quality standards, QA helps ensure that the product or service is able to meet the expectations of its users and is free of defects or errors that could impact its performance.

The following are common techniques and considerations.

  • Benchmarking
  • Business Capabilities
  • Business Process Reengineering
  • Compliance
  • Configuration Management
  • Conformance Quality
  • Continuous Improvement
  • Fail-safe
  • Fit For Purpose
  • Gap Analysis
  • Graceful Degradation
  • Human Error
  • Incident Management
  • Ishikawa Diagrams
  • Kaizen
  • Latent Human Error
  • Operations Analysis
  • Pokayoke
  • Problem Analysis
  • Problem Management
  • Process Improvement
  • Quality
  • Quality Control
  • Quality Goals
  • Quality Objectives
  • Quality Policy
  • Reliability Engineering
  • Requirements
  • Safety By Design
  • Service Management
  • Specifications

Product Management
Product Management Jonathan Poland

Product management is the practice of managing a portfolio of products throughout their lifecycle from concept to end-of-life. It can be thought of as the strategic management of product development and product marketing. This includes defining the product’s features and benefits, creating a product roadmap, managing the product’s budget and resources, and ensuring that the product is aligned with the company’s overall business strategy.

Product managers are responsible for overseeing the entire product development process, from concept to launch. This involves working closely with cross-functional teams, such as engineering, design, sales, and marketing, to ensure that the product meets the needs of its target customers.

One of the key responsibilities of product managers is to define the product’s target market and customer needs. This involves conducting market research, gathering customer feedback, and analyzing data to identify opportunities for new products or product enhancements.

Once the product’s target market and customer needs have been defined, product managers create a product roadmap that outlines the development and launch timeline for the product. This roadmap includes key milestones and deliverables, as well as the resources and budget required to bring the product to market.

Throughout the product development process, product managers work closely with cross-functional teams to ensure that the product is on track and meeting its objectives. This may involve making adjustments to the product roadmap or collaborating with other teams to address any challenges or obstacles that arise.

Once the product is launched, product managers continue to play a critical role in its success. This may involve tracking and analyzing product performance, gathering customer feedback, and working with other teams to identify opportunities for product improvements or enhancements.

Overall, product management is a critical function that plays a vital role in ensuring that a company’s products are successful in the market. By defining the product’s target market and customer needs, creating a product roadmap, and overseeing the product’s development and launch, product managers help ensure that a company’s products are aligned with its overall business strategy and are able to meet the needs of its customers.

The following are common product management techniques and considerations.

  • Adoption Lifecycle
  • Branding
  • Cash Cow
  • Competitive Intelligence
  • Distribution Strategy
  • Market Research
  • Positioning
  • Pre-announcement Effect
  • Product Analysis
  • Product Cannibalization
  • Product Category
  • Product Development
  • Product Economics
  • Product Knowledge
  • Product Management Process
  • Product Objectives
  • Product Rationalization
  • Product Requirements
  • Product Risk
  • Service Life

Product Identity
Product Identity Jonathan Poland

Product identity refers to the overall personality or character of a product. This can include the product’s features, benefits, and branding, as well as how it is perceived by customers. Marketing teams often think of products as having a distinct personality and identity in the market, and customers may describe products using the same words they would use to describe people. A strong product identity can help a product stand out in the market and can contribute to its success. Here are a few examples of product identity.  In each of these examples, the product’s features, benefits, and branding all contribute to its overall product identity.

  • A luxury car may have a product identity that is associated with elegance, performance, and exclusivity.
  • A sports drink may have a product identity that is associated with health, energy, and endurance.
  • A smartphone may have a product identity that is associated with innovation, functionality, and design.
  • A clothing brand may have a product identity that is associated with fashion, quality, and sustainability.
  • A toy may have a product identity that is associated with fun, creativity, and safety.

Product Identity vs Brand Identity
Product identity and brand identity are essentially the same concept. Brand identity is the far more common term. As such, product identity is the application of brand identity to a single product. This can be useful as products under the same brand many have unique identities.

Product Identity vs Product Positioning
Product identity is the concept behind a product framed in terms of target customer perceptions. In other words, it is the overall impression you want customers to have of a product. Product positioning is a unique and valuable market fit for a product. This can include identity and other factors such as price, quality and product experience.

Premiumization
Premiumization Jonathan Poland

Premiumization is the strategy of offering higher-quality products or services that consumers perceive as having greater value. This is in contrast to commoditization, which involves competition to offer lower prices for a standard level of quality. Premiumization occurs in a product category, market, or industry where customers are willing to pay a premium for higher-quality products or services. Premiumization can help a company differentiate itself from its competitors and can lead to increased revenue and market share. Here are some examples.

Rarity
Releasing things in small batches such that demand exceeds supply. For example, a toy manufacturer that releases 10,000 units of a limited addition collectable when demand might be 100,000 units.

Ingredients
Using quality parts, materials and ingredients such as a restaurant that offers artisanal foods.

Craft
Offering handmade things in an automated world.

Customer Service
Customer service that is exemplary in some way. For example, a restaurant with well dressed waiters who are unusually good with people.

Sensory Design
Superior look, feel, taste, smell and sound. For example, a pair of shoes that customers appreciate for their form and overall artistic design.

Experience
The end-to-end experience of a product or service including intangible elements such as the interior design of a restaurant.

Status
Social status attached to a brand, product, service, ingredient or area. For example, a spa that is located in a posh shopping area such as Ginza in Tokyo.

Features
Functionality such as a vehicle with cutting edge safety features.

Performance
A product that outperforms the competition in a measurable way.

Reliability
Quality is heavily associated with durability in real world conditions. A mobile device that breaks the first time you drop it won’t be perceived as a premium item.

Position
A superior position that is difficult for competitors to match. For example, the only hotel on a popular beach.

Details
Attention to details such as packaging.

Product Benefits
Product Benefits Jonathan Poland

A product benefit is the value that a customer derives from a product or service. It is what makes the product useful, desirable, or satisfying to the customer, and is often expressed in terms of the customer’s needs, expectations, requirements, or motivations. Marketing and sales professionals recognize that customers are typically more interested in the benefits of a product than in its technical details or features. Therefore, highlighting the benefits of a product is an effective way to persuade customers to buy it. Examples of product benefits include convenience, performance, reliability, safety, and cost savings. The following are illustrative examples of a product benefit.

Objectives
A product that allows a customer to achieve an objective. For example, a refrigerator that makes small ice cubes allows a customer to make their favorite iced beverage at home.

Cost
A product that saves the customer money. For example, a parent who is looking to save money on batteries for children’s toys finds that rechargeable batteries have a lower lifetime cost than disposables.

Convenience
A product or service that saves the customer time or makes things easier such as delivery of groceries to your door.

Comfort
Comfort such as headphones that you can barely notice you’re wearing.

Usability
A camera that is intuitive to use.

Productivity
Professional software that saves an architect time in developing concepts for a client.

Efficiency
An electric car that can make it from one city to another on a single charge.

Sustainability
An electric bus that helps a city to achieve its sustainability targets.

Peak Experience
A sailboat that helps a customer pursue a life of adventure.

Transformation
A book that helps a person to change in a positive direction.

Style
A pair of shoes that inspire a customer with their style.

Mobility
A game system that allows a customer to play anywhere.

Risk
An airline that has a good safety record and reputation makes a customer feel safe on flights.

Culture
A restaurant in Paris that represents an authentic cultural experience.

Entertainment
A game that is so engaging that you dream about it.

Health & Wellness
A meal that customers perceive as healthy.

Status
A pair of running shoes associated with a customer’s favorite sports hero.

Values
An environmentally friendly product that helps customers to feel good about a purchase.

Performance
A television that doesn’t pause slightly when you turn it on or change channels.

Customer Service
A restaurant that meets customer expectations for service such that they enjoy the experience.

Durability
A customer needs a phone to keep working after they drop it.

Quality
A traveler expects an extremely clean hotel room.

Availability
A customer needs their stock trading app to work at all times with no outages.

Peace of Mind
A customer wants to know that their mobile phone is secure and private.

Flexibility
A customer wants to access their streaming media accounts when they travel without restriction.

Character
An old hotel with character such that customers get a feeling from it.

Sensory
Soap that looks and smells pleasing.

Product Differentiation
Product Differentiation Jonathan Poland

Product differentiation is the unique value that a product offers on the market. This value can come from a variety of factors, including the product’s quality, branding, cost, and features. Differentiation is important because it helps a product stand out from its competitors and appeal to customers. For example, in a crowded supermarket shelf, each product may have its own unique characteristics that set it apart from others, such as branding, organic certification, country of origin, flavor, or price.

Establishing strong differentiation is considered essential for success in many industries. In a commoditized market, where customers perceive all products as the same, it can be difficult or impossible to differentiate a product and compete on other factors. On the other hand, industries with strongly differentiated products, such as luxury goods, often enjoy high margins and revenue.

Product differentiation is the process of making a product stand out from its competitors by highlighting its unique value or characteristics. There are many ways that a product can be differentiated, and the specific approach will depend on the product and the market it is in. Some examples of product differentiation include:

  • Branding: Creating a strong and recognizable brand can differentiate a product from its competitors. This can include the use of a distinctive logo, packaging, or advertising, as well as the development of a brand personality or story.
  • Quality: Offering a high-quality product can differentiate it from cheaper, lower-quality alternatives. This can include using premium materials, offering a longer warranty, or providing exceptional customer service.
  • Features: Adding unique or innovative features to a product can make it stand out from others in its category. This can include new technologies, functionality, or design elements that are not available on competing products.
  • Cost: Differentiating a product on the basis of cost can be effective in certain markets. For example, offering a lower-priced product can make it attractive to price-sensitive customers, while offering a higher-priced product can position it as a premium or luxury option.
  • Customization: Allowing customers to customize a product to their specific needs or preferences can differentiate it from mass-produced alternatives. This can include options for personalization, such as monogramming or color choices, or allowing customers to build their own product from a range of available components.

Everyday Low Price
Everyday Low Price Jonathan Poland

Everyday low price, commonly abbreviated as EDLP, is a pricing strategy in which a retailer offers its products at a consistent, low price without engaging in sales or markdowns. This approach is intended to provide customers with a sense of predictability and value, and to avoid the need for customers to constantly monitor prices and wait for sales in order to get the best deals. EDLP can be contrasted with other pricing strategies, such as high-low pricing, in which prices fluctuate based on sales and other promotions.

By offering everyday low prices, retailers can potentially improve customer satisfaction by providing customers with a consistent and predictable pricing experience. This can simplify customer purchase decisions and can help to avoid post-purchase regrets. Additionally, EDLP can potentially increase customer loyalty and repeat business by providing customers with a sense of value and consistency. Retailers may also offer to match the prices of competitors on the same products in order to further differentiate themselves and provide customers with additional value.

Here are six examples of retailers using everyday low pricing:

  1. A discount grocery store that consistently offers low prices on a wide range of products without engaging in sales or promotions.
  2. A home goods retailer that consistently offers low prices on furniture, appliances, and other household items without engaging in sales or promotions.
  3. A drugstore chain that consistently offers low prices on pharmaceutical products, personal care items, and other health and wellness products without engaging in sales or promotions.
  4. A clothing retailer that consistently offers low prices on clothing, shoes, and accessories without engaging in sales or promotions.
  5. An electronics retailer that consistently offers low prices on computers, tablets, and other consumer electronics without engaging in sales or promotions.
  6. A discount department store that consistently offers low prices on a wide range of products across multiple categories without engaging in sales or promotions.

Penetration Pricing
Penetration Pricing Jonathan Poland

Penetration pricing is a pricing strategy in which a company initially sets a low price for its products or services in order to quickly gain market share and attract customers. This approach is often used by businesses that are launching a new company, brand, product, service, or technology, and are looking to quickly establish themselves in the market. By offering a low price, a company can make its products or services more attractive to potential customers and can potentially increase its sales and market share. However, it is important for a company using penetration pricing to carefully plan and monitor its pricing strategy, as setting prices too low can potentially lead to lower profits or even financial losses.

Here are examples of companies using penetration pricing:

  1. A new smartphone manufacturer offering its phones at a lower price than its competitors in order to quickly gain market share
  2. A startup food delivery service offering discounted prices for its first customers in order to quickly attract a large user base
  3. A new fitness app offering a free trial period in order to encourage customers to try the app and potentially become paying subscribers
  4. A startup electric car company offering its first cars at a lower price than its competitors in order to quickly gain market share
  5. A new online retailer offering discounts to its first customers in order to quickly attract a large user base and build brand awareness
  6. A new streaming service offering a free trial period in order to encourage customers to try the service and potentially become paying subscribers
  7. A new software company offering its first products at a lower price than its competitors in order to quickly gain market share and establish itself in the market.

Premium Pricing
Premium Pricing Jonathan Poland

Premium pricing is a pricing strategy in which a company charges a high price for its products or services in order to maintain the exclusivity and perceived value of its brand, business, product, or service. The idea behind premium pricing is that by charging a high price, a company can limit the number of customers who are able to access its products or services, and can therefore maintain a certain level of exclusivity and prestige.

This approach is often used by luxury brands, which seek to preserve their high-end image by charging premium prices for their products. By charging a high price, a company can potentially increase its revenue and profits, even if its sales volumes are lower compared to companies that charge lower prices. Premium pricing can also be used to differentiate a company’s products from those of its competitors and to create a perception of value among its customers.

Some examples of premium pricing in action include:

  • A luxury car manufacturer charging a high price for its top-of-the-line model in order to maintain the exclusivity and prestige of its brand
  • A high-end fashion retailer charging a premium price for its designer clothes in order to differentiate them from lower-priced clothing sold by other retailers
  • A luxury hotel chain charging a high price for its top-level rooms and suites in order to create a perception of exclusivity and value among its customers
  • A high-end restaurant charging a premium price for its menu items in order to create a perception of exclusivity and quality
  • A luxury skincare brand charging a high price for its products in order to differentiate them from lower-priced skincare products
  • A luxury watch manufacturer charging a premium price for its watches in order to maintain brand position

In each of these cases, the company is charging a high price for its products or services in order to preserve the status and perceived value of its brand. By doing so, it can potentially increase its revenue and profits, even if its sales volumes are lower compared to companies that charge lower prices. Premium pricing can be an effective way for businesses to differentiate their products and to create a perception of value among their customers.

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