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DISCUSSION STARTERS
Discussion Starter 1: Gillette’s Target Market Criticizes Upgrades
Since the 1970’s, Gillette has modified its razor products by increasing the number of blades to create a
smoother shave. Its newest innovation touts improved blade suspension systems and better handles.
However, rather than embracing these product modifications, many men are drawing the line. These men
go to great lengths to avoid purchasing new razors, preferring single blades and lower prices. Tired of
having to purchase upgrades, more men are stockpiling blades designed for older razors. They feel like
these improved razors are more hype than anything else.
ASK: Is Gillette embracing innovation at the expense of customer satisfaction?
ASK: Should Gillette continue to modify its razors, or go back to selling a simpler product?
Discussion Starter 2: New Product Ideas
ASK: What two groups of people know the most about your products and services?
The answer is your employees and customers.
ASK: If you are an online content provider, who knows the most about your service and what
consumers want from the site?
Discussion Starter 3: Concept Testing
ASK: How do organizations know whether or not consumers will respond to a new concept?
Discussion Starter 4: Product Development
Zipcar is a car-sharing service that promotes itself as an alternative to the “hassle” of owning an
expensive car. Company members can reserve and rent cars by the hour or by the day, with gas and
insurance included for up to 180 miles. Zipcar claims it saves people hundreds of dollars each month.
Zipcar has developed a partnership with Ford, making Ford Zipcar’s largest provider for its
University program.
ASK:
How does Zipcar differentiate its product from competitors’?
Which stage of product development is Zipcar in?
Chapter 12: Error! Unknown document property name. 237
Answers:
1. Ford F-150—Performance, full-size
2. Prius—Environmental Consciousness, compact
SEMESTER PROJECT
In the last Semester Project exercise, you were asked to describe your product, you, and to define what
value you offer the marketplace. In this exercise, further examine your product, including any product
innovations you intend to undertake.
Step 1: In thinking about you as a product, were there any aspects of your product you wish to modify?
Aesthetics, for example, might transition your look from student to professional employee. How would
these modifications impact you, the product?
Step 2: New products often include plans for brand extensions or next generation products. Think about
what a next generation you, the product, would be like. Would you return to graduate school? Would you
change positions within your organization to diversify your experience? How would you position you to
introduce the next generation of you, the product?
Step 3: Organizations often test market new products before they go to market. This allows developers to
identify flaws prior to a full launch. What opportunities are available to test market your product? How
would you use these opportunities to better your product?
ANSWERS TO DEVELOPING YOUR MARKETING PLAN
The information obtained from these questions should assist you in developing various aspects of your
Performance
Environmental
Consciousness
Compact
Full-
Size
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
with a certain product or service or otherwise on a password-protected website for classroom use.
characteristics potential customers find most valuable.
7. What are the benefits and disadvantages of test marketing?
Benefits:
• Marketers can expose a product in a natural environment to gauge its sales performance.
• Marketers can identify perceived weaknesses in the product or other parts of the mix.
Disadvantages:
• Test marketing can be expensive.
• Test marketing can delay new product introduction.
8. Why can the process of commercialization take a considerable amount of time?
Organizations usually launch a product in stages, beginning in a limited geographic area and
gradually expanding to include other areas. Using this process, known as a roll-out, often means
9. What is product differentiation, and how can it be achieved?
Product differentiation is the process of creating and designing products so customers perceive them
differently from competing products. The issue of customer perception is critically important in
10. Explain how the term quality has been used to differentiate products in the automobile industry
in recent years. What are some makes and models of automobiles that come to mind when you
hear the terms high quality and poor quality?
We have heard the phrase “Quality is Job 1” in commercials for Ford automobiles and references to
“commitment to quality” in Chrysler commercials. While the term “quality” has varied definitions,
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed
with a certain product or service or otherwise on a password-protected website for classroom use.
2. How has AXE used line extensions to increase its reach among consumers?
3. Why are younger generations attracted to AXE products?
CASE 12.2: CATERPILLAR INC. CRAWLS OVER THE
COMPETITION WITH PRODUCT DEVELOPMENT
Summary
Caterpillar, Inc. is a global manufacturer of construction and mining equipment, machinery, and engines.
The company is best known for its more than 300 machines, including tractors, forest machines, off-
highway trucks, wheel dozers, and underground mining machines. The organization must continually
develop new products, modify existing ones, and spread awareness of its offerings to maintain its global
competitive edge. The product development process at Caterpillar involves several steps, including
brainstorming, concept testing, business analysis, quality control, and limited release. The company also
modifies existing models and has started extending its product lines into consumer products.
Questions for Discussion
1. Why is it so important for Caterpillar to develop new products on a regular basis?
Since Caterpillar’s machines and equipment are by far its most popular products, the organization
2. Why is Caterpillar so careful to test-market its products prior to commercialization?
When it comes to actually developing the product, quality is everything for Caterpillar. Creating
high-quality products is embedded in Caterpillar’s Code of Conduct as one of its highest values.
3. What are some of the benefits and risks of Caterpillar’s line extensions?
Line extensions have both benefits and potential risks. If the line extension has little to do with the
core product, then the extension could fail or, even worse, contaminate the brand. On the other hand,
