Product

Ingredient Branding

Ingredient Branding Jonathan Poland

Ingredient branding, also known as component branding or parts branding, is a marketing strategy that focuses on promoting the individual components or ingredients that go into a product rather than the product itself. This can involve branding the individual parts of a product with their own distinct logos, names, or packaging, or it can involve highlighting the unique features or benefits of the ingredients in marketing materials. The goal of ingredient branding is to create a positive association between the component and the finished product, and to differentiate the product from competitors by highlighting the high-quality or unique ingredients that it contains. Ingredient branding is often used in industries where the quality or uniqueness of the individual components is a key selling point, such as in the food, cosmetics, and automotive industries. The following are common types of ingredient branding.

Agricultural Products
A brand of organic olive oil is prominently displayed as an ingredient on a bag of potato chips.

Materials
Sunglasses made with a brand of metal alloy.

Chemicals
A brand name of an artificial sweetener is advertised on food labels.

Systems
A bank card lists branded payment systems that the card supports.

Software
A brand of operating system installed on a mobile device.

Parts
A game system lists a popular brand of graphics processing unit that is known for its performance.

Components & Options
A model of car is available with a popular brand of speakers factory installed.

Standards & Certifications
A brand of organic cosmetics lists product and ingredient certifications related to sustainability, quality and ethics.

Product in a Product
A brand of ice cream contains chunks of a popular chocolate bar.

Methods
A child safety seat features a patented docking system that parents find easy to use.

Services
A site advertises that they always use a particular delivery service that has a prominent brand name.

Examples of Customer Needs

Examples of Customer Needs Jonathan Poland

Customer needs refer to the specific requirements, desires, or expectations that a customer has for a product or service. These needs can be functional, such as the need for a product to perform a certain task, or emotional, such as the need for a product to provide a sense of comfort or satisfaction. Companies often strive to understand and meet the needs of their customers in order to create products or services that are valuable and desirable to them. This can involve conducting market research, gathering customer feedback, and analyzing customer behavior to identify trends and patterns. By fulfilling the needs of their customers, businesses can increase customer satisfaction, loyalty, and overall success. The following are common types of customer needs.

Functionality & Features
Customers need products and services to accomplish objectives. For example, a customer needs a refrigerator that makes small ice cubes.

Price
A customer needs a product or service that meets their budget objectives or constraints. For example, a student needs a reliable bicycle for under $100.

Time & Convenience
Requirements for products and services that save time and are easy to use. For example, a hotel that is close to major attractions.

Terms
A customer requires certain terms of service. For example, a mobile network customer requires privacy such that their location and data isn’t sold to third parties.

Experience
Expectations regarding end-to-end customer experience. For example, a customer may require a hotel that feels elegant and tranquil.

Look
A customer requires a product in a particular style and color.

Design
Design related requirements such as usability. For example, a customer requires a baby stroller that is easy to fold.

Status & Identity
Customers may view certain types of products and service as an extension of their identity and element of their social status. For example, a customer may require clothing that doesn’t have a visible brand logo.

Reliability & Durability
Customers often have requirements that products and services be reliable, available and durable. For example, an airline requires aircraft that can be operated safely for many hours each month.

Performance
Performance requirements such as speed or accuracy. For example, a customer requires a software service that can process a million transactions an hour.

Efficiency
Customer requirements for efficient resource utilization. For example, a customer requires solar panels with a high conversion efficiency.

Safety
A customer may have safety related requirements. For example, a customer may strongly prefer vehicles that do well in crash tests.

Quality of Life
Requirements related to quality of life such as a customer that expects healthy menu items from a restaurant.

Risk
Needs related to risk such as a customer that requires delivery insurance.

Formulations
A customer needs a product with specific ingredients such as a moisturizer made with shea butter.

Sustainability
Requirements related to community impact, ethics and the environment.

Packaging
A customer needs a product that is easy to open and reseal.

Integration & Compatibility
Requirements for products and services to work with other products and services. For example, a mobile device that accepts memory cards.

Standards & Compliance
A customer may require that a product or service adhere to a particular set of standards or rules. For example, a restaurant may require organic certifications for its ingredients.

Product Quality

Product Quality Jonathan Poland

Product quality refers to the inherent characteristics of a product that determine its value to customers. It can include factors such as durability, reliability, functionality, and performance. Customers often consider product quality when making purchasing decisions, as they want to ensure that they are getting a product that will meet their needs and expectations. High-quality products tend to have a positive reputation and can often command higher prices due to their perceived value. On the other hand, products with poor quality may not be as well received by customers and may result in negative reviews or low sales. Ensuring that a product has high quality is important for businesses, as it can lead to customer satisfaction, loyalty, and increased revenue. The following are common types of product quality.

Conformance
Manufacturers view product quality in terms of conformance to specifications. This is achieved with a process of quality control and quality assurance. Done correctly, this results in products that are extremely consistent.

Fit For Purpose
Customers view product quality primarily in terms of how a product fulfills their needs.

Communication & Information
Customer expectations also influence quality perceptions. Negative surprises such as a missing feature can result in poor product ratings. As such, packaging, instructional content and marketing communication play a role in quality by managing expectations. For example, a jar of organic peanut butter made without a thickening agent might carefully communicate that it separates easily and needs to be stirred before each use.

Reliability
The durability of a product in a variety of real world conditions. A product that breaks earlier than expected tends to attract poor product reviews.

Safety & Security
Safety and security incidents can cause serious damage to a product’s reputation. For example, an operating system that is vulnerable to information security attacks may be viewed as low quality.

Efficiency
Efficiency is a primary quality consideration for products that are resource intensive. For example, energy efficiency is a core quality factor for transportation products such as high speed trains.

Experience
Intangible elements of a product such as how much fun it is to use.

What is a Product Line?

What is a Product Line? Jonathan Poland

A product line refers to a group of related products that are marketed together as a single unit. Product lines often share a common theme or focus, such as a particular type of product, target audience, or price point. For example, a company that sells outdoor gear may have a product line of camping equipment, another product line of hiking gear, and another product line of water sports equipment.

Product lines can be an effective way for companies to differentiate themselves in the market and offer a range of options to meet the needs of different customers. By creating product lines, companies can segment their offerings and target specific customer groups, allowing them to better meet the needs of these customers and differentiate themselves from their competitors.

It’s important for companies to carefully manage their product lines in order to ensure that they are aligned with the overall goals and strategy of the business. This may involve regularly reviewing the products in each product line, making adjustments as needed to ensure that they are meeting the needs of customers and contributing to the overall success of the business.

Product Diffusion

Product Diffusion Jonathan Poland

Product diffusion refers to the process by which a product or service is accepted and adopted by a target market. It involves the communication of information about the product to potential consumers, as well as their trial and evaluation of the product. During this process, consumers may share their experiences and impressions of the product with others, which can influence the overall acceptance and adoption of the product by the target market. The following are illustrative examples.

Media

A shoe design debuts at a fashion week and is widely covered by fashion magazines and blogs. By the time it hits the shelves, it is already in high demand. The shoe receives positive customer reviews and sells out without a need to discount.

Person to Person

A new lighter material for aircraft components is launched by an industrial materials firm at a trade fair. Engineers and media representatives are invited to visit company’s lab for product demonstrations that showcase the mechanical properties of the material. Word spreads through the industry and the material gets incorporated into new designs.

Product Giveaways

A small musical instrument company releases a set of desktop speakers designed to appeal to musicians working at home. The company gifts the speakers to up and coming indie musicians to generate publicity. They find this to be an effective way to spark word of mouth about a product that they are confident musicians will find attractive.

Trial Versions

A market data service is stable, fast and reliable with an intuitive user interface. The firm competes with free services that are slow, buggy and unreliable. However, customers are resistant to paying for a service that is commonly available for free. The service fails to take off in its first year. In the second year, the company launches a free version that allows financial bloggers to export images of custom graphs and charts based on vast stores of data. This is instantly popular and generates much publicity. The service exceeds its own revenue targets in the second year.

Penetration Pricing

An organic cosmetics company adopts a strategy of releasing new products with ecommerce partners at a penetration price in order to generate initial reviews. For example, they release a hand cream on a high volume ecommerce site for $1 that normally costs $6. They continue this pricing until the product has 100 reviews. The company finds that products with many reviews tend to sell. They have confidence in the quality of products and know that customers tend to write more positive reviews when they get a surprisingly good price.

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