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TMCVocabulary

How to Define a Whole Product

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By Arnold Alderman

Arnold AldermanSituation
The Company was a pioneer in electronic components for power supply design, savoring 75% market share during the embryonic market stage.  As competitors entered the market the Company’s share melted away to 15%.  Although our product portfolio was very competitive, and in some cases superior to competitive offerings, we could not increase market share.  The customer base was pulsed every year in an attempt to update products and services, yet little progress was achieved.  While market share was dwindling, gross margins were also decreasing.  It became more and more difficult to maintain target margins close to 45%, and it was painfully evident that another course of action was required.

How Strategic Marketing Course Concepts Apply
The marketing staff agreed that while the core device performed superbly, on-time delivery and service was mediocre.  In the business environment, services and support related to logistics, design and development cycle, and "in-use" support were extremely important and no longer inseparable from the hardware product.  The Whole Product concept provided a way to shift our thinking about product to include service and support performance.

Core Product, Expected Product, Augmented ProductClick Here To View Image