BS Product

Question 1

What are the 6 questions for the product?

Answer 1

What are the 6 questions for the product?

• What is the nature of the product?
  
  • It’s benefits/why someone would buy it
• Commodity good or unique good?
  
  • Could company increase differentiation?
• Identify complementary goods
  
  • can we piggyback off growth in compliments or near compliments?
• Identify substitutes*
  
  • are we vulnerable to indirect competitors namely substitutes?
• Determine product’s lifecycle
  
  • new vs. almost obsolete
• Packaging (optional)
  
  • what’s bundled, included (ex. Razor vs. razor blades, with w/o service contract
  • can change in packaging make product more likely to meet needs of specific customer segments

Question 2

Why ask: What is the nature of the product? (5)

Answer 2

Why ask: What is the nature of the product?

• Want to understand the CUSTOMERS POV- how it fits into their world
  
  • What does it do?
  • BENEFITS/ WHY BUY
  • How buy?
  • When buy?
  • Where buy?

Question 3

Why ask: Commodity good or unique good?

Answer 3

Why ask: Commodity good or unique good?

• Commodities requires operational efficiencies or some type of cost advantage
• Commodities are identical across competitors
• If unique, could company increase differentiation?

Question 4

Why ask: are there any complementary goods? (3)

Answer 4

Why ask: are there any complementary goods?

• can we piggyback off growth in compliments or near compliments?
• Develop strategies for bundling products or partnering with companies in other industries
• Strategy for commodity: sell bundled with unique to increase value of both

Question 5

Why ask: Are there any substitutes?

Answer 5

Why ask: Are there any substitutes?

• vulnerable to indirect competitors
• Even when no competition in new markets, there are ALWAYS alternatives
• important for market entry

Question 6

Why ask: What is the product’s lifecycle? (2)

Answer 6

Why ask: What is the product’s lifecycle? (2)

• How long will the market last
  
  • important for technology
• OLDER market= more substitutes and competition

Question 7

Why ask: Packaging (optional)?

• Understand what’s bundled/included
  
  • e.g. Razor vs. razor blades, with w/o service contract
• can change in packaging make product more likely to meet needs of specific customer segments.)

Answer 7

Why ask: Packaging (optional)?

• Understand what produces/ servicesare sold together(bundled)
  
  • e.g. Razor vs. razor blades, with w/o service contract
• can change in packaging make product more likely to meet needs of specific customer segments

Question 8

When to use product questions? (3)

Answer 8

When to use product questions?

• Understand product qualitatively
• Market entry or new product introduction case
• If an understanding of the product isn’t relevant to the core issue for the client, I skip this section.