BSBPRO401 Develop Product Knowledge

PART A – REVIEW QUESTIONS

1. Research and explain the following TERMS in your own words. Fill out the blanks <___> where required. Please remember to include the source of information used.

A. Product knowledge

Production knowledge is defined as the process of understanding the features and benefits of a product. It is recommended that marketers product development the framework of all the benefits and (where necessary - when not to be used) since every client may have a different use for the same products. Therefore, all possible benefits have to be covered so as to match requirement of the client with a niche benefit of the product. The purpose of identifying the product benefit and its purpose is to ensure customer needs are meet and there is long term engagement with the organisation and the customer. Hence, all details of the product like its applications, features are studied with great care. Characteristics of the product, it look, texture, smell and other aspects are also studied with care and product knowledge developed (Scardamalia, M., & Bereiter, C. (1994). Computer support for knowledge-building communities. The journal of the learning sciences, 3(3), 265-283).

B. Information sources

To gain product knowledge it is very important to research products and peer products. For specific information about the product, the POP material or the promotional material is also useful. All of these can be found out from the label of the product or catalogues, materials and other resources such as brochures and flyers.

Sources for product knowledge can also be acquired from practical use, testimonials, sales representatives, role play, training sessions. The important product information required are – pricing, styles, models, history, manufacturing process specialities, use of the product, its distribution and delivery. Other product information required are – servicing, repair, warranty

Other effective sources for product knowledge are – feedback from clients, conversations with customers, sales records, trade publications and product associations(Zack, M. H. (2003). Rethinking the knowledge-based organization. MIT sloan management review, 44(4), 67.)

C. Guarantee

A promise to repair, replace a product within a timeline or specific period is called as product guarantee.

D. Warrant

This is a type of a written guarantee and promises the consumer that a repair or replacing will be done, but in a particular framework or timeline. It could also sometimes be the replacement of goods or repair of goods if there is technical difficulty.

E. Organisational requirement

For marketing communication content development it is very necessary to evaluate as per the following frame work:
1. Are there clear goals set by the management, leadership at the organisation.
2. HR commitment to the mission, capacity to handle policies and benefits, HR and effectiveness
3. Response of the organisation towards reputation, flexibility, commitments and ability to find the type of the company, the need for characteristics and the company and also effectiveness from inside and outside of the company

(Day, G. S. (2011). Closing the marketing capabilities gap. Journal of marketing, 75(4), 183-195).

F. Legislation

The legislations which have to be considered for products are (1) anti-discrimination (2) consumer protection (3) contract law legislation (4) Ethical principle. In this section, the legislation to be considered are – Privacy law, Trade practices Act.

(Zairi, M. (1999). Managing excellence: policy and strategy. the TQM Magazine, 11(2), 74-79.)

G. Branding

It is a commonly used marketing term, but holds a great depth of meaning as it encapsulates the image, response or thoughts about a product or service by the consumer. It is typically associated with emotions or feelings – such as Safety is associated with Volvo automakers, Apple Inc. Products are associated with feelings of innovative, cool and expensive. It also defines the value of the product, the kind of customer service provided, association with a particular logo, slogan, impression, product benefit, reputation, company (Zack, M. H. (2003). Rethinking the knowledge-based organization. MIT sloan management review, 44(4), 67.

H. SWOT Analysis

SWOT analysis is necessary to identify internal and external factors to achieve goals. Internal factors – such as strengths and weaknesses of the organisation, external factors – opportunities and threats are with respect to external environment.

I. A Feature T___s - TANGIBLEs

J. A Benefit S___s - SERVICES

2. Using your own research, how would you gain knowledge of a product that you want to bring to the market?

If I were to gain product knowledge before bringing it the market, I would conduct a phased research. At the very first stage, I would research the product history, patent, patent-related issues, technical issues which have led to high market value of products in this segment or their downfall. This will be followed by a market-segment based research – in which market or typical price range has this product sold well, where have been the negative sales trends. What are the cultural-related features which have led to high sales of the product and limitations. Hence, my product research would also relate to the domestic market or the ‘hyperlocal’ features which would accept the product or reject it. More importantly, I would look at the usefulness of the product to me in particular.

3. Once you have found valuable information on the product you are going to bring to the market, how do you separate the information to identify the benefits and features of the product?

Theoretically, the relevant product information can be grouped together as – approximate pricing range of the product, the type of the model, the style, the color and availability. The product history and if any special manufacturing process, raw material sources are of interest is important. Then the how the product is used and other regional variations; followed by the distribution and delivery of the product. The final relevant information is warranty, servicing and repair/replacement information.

Hence, the features, applications and their use are to be identified. The Features – essentially physical, measurable and tangible factors of the product are highlighted. How the product appears its smell, feel or taste is also understood. The brand, the price of the product and its composition is also understood. These features are identifiable as they appear on the packaging of the product, the label, flyers and brochures.

4. Before you bring your product to the market? How would you successfully evaluate and compare your competitor’s products?

While there are several comparison tools and techniques for understanding product reach and its usefulness in a market, the most theoretically proven tool is the SWOT analysis. Using this method, as a strategic planning tool the factors of the product venture can be evaluated. It essentially helps in understanding internal or external factors which are favourable, unfavourable to achieve the objective. Here S - Strengths, W- Weakness, O-opportunities, T- Threats.

The analysis will provide extensive input and also the creative abilities for the asking, answering four key aspects – the strengths which can be used; the Weakness which has to be stopped; the opportunities which have to be exploited; the threats which have to be defended.

5. Using this website www.accc.gov.au please provide an overview of the Trade Practices Act. 1974?

The Australian Competition and Consumer Commission (ACCC) the original Trade Practices Act 1974 was renamed in January 2011 as the Competition and Consumer Act 2010(CCA).

The objective of this Act is to enhance the welfare of the people by ensuring fair trading and promotion of competition by providing a set of rules for consumer protection. It clearly identifies the rights and duties of the states, territories, and local government bodies towards consumers. It also identifies which are acts of business and consumer and what is defined as competition and the areas or when competition is to be prevented and competition to be hindered. The act also provides for application of leases, licenses, joint ventures, loss and damages caused by injury, personal injury and exceptions to the Australian Consumer Law and severability, extensions and saving of law with respect to breaches of trade or breaches.

6. How would you evaluate a potential buyer market?

The two important factors that the potential buyer market has to be evaluated for – is the attractiveness of the segment and the fit in which the segment and the objectives of the firm, its resources and capabilities are performed. The target marketing tailors the marketing options or mix based on the type of the market segmentation. This helps in identifying if mass marketing is important to single product/entire market has to be deployed. The attractiveness of the market is defined by the size of the market, the growth rate, the competition, the brand loyalty, the promotional budget and market share to be captured to remain break even. The profit margins are also important for identification of the segment.

7. Please create an Organisational Chart ofthe MarketingDepartment and define the responsibilities of each role. What role would you like tofulfiland why?

I prefer the role of digital marketing as it involves creative content development based on market research and other responsible roles.
The Marketing Head is the Director of Marketing Communication and is the nodal authority for the community or the image of the company. The Public Relations coordinates all of the events of the house and that of its customers. It is also very important that the direct relationship between the media in terms of advertisements is handled here. The other is the Public Affairs role which effectively manages a crisis, leads the community and other civic roles. It is also the role which handles the staff, third-party consultants and other project teams. It also helps in organisational product developing the internal stake holders network and also to collect information on a system of operations and other corporate positions. The Media Relations (Traditional Marketing) is also inclusive of various of the message drafting and offline advertising. The responsibilities include supervising advertisements, placements and other organisational services. The media coverage for publicity is with respect to the events and activities. The media kits are developed and magazines and websites are also developed. It collects and compiles media contacts.

8. Name the 5 steps to selling and summarise what you do in each step. Explain why all the 5 steps are important to succeed.

Product knowledge helps in building five-concrete steps to selling a product

1. identification of needs - helps in ensuring the clients are in knowledge of the capabilities and provides quality user experience.

2.selecting the product or service for the market niche – ensures the product is chosen with technical analysis of whether it is useful beneficial and correct for the client.

3. help inthe presentationof sales – Helps in explaining the benefits of the product and helps in saving time. The idea is to ensure that the expert will help in the client looking at the promotion information and ensure client decision-making is vastly improved.

4. closing sales and (5) offer effective after-sales services.

9. Identify key provisions of the followinglegislations:

a.Anti-discrimination– is the legislation which makes it unlawful to discriminate against a number of protected attributes – race, sex, age, disability, intersex status, sexual orientation, gender identity and education as well as employment.
The principle of this legislation is to ensure that the government can promote equality , opportunity for everyone and there is no unfair discrimination.

b.Consumer protection- The competition and consumer Act 2010 is the law which is currently effective and ensures that there is no unfair, fraudulent business practice. It protects consumers by accepting complaints, conducting investigations and legal prosecution against companies found guilty of breaking the law. It continues to dynamically develop the rules as per marketplace needs and educating consumers and businesses on their rights and duties.

c.Contract Law legislation – is defined as the law which encompasses other laws and regulations which ensure certain promises are kept. The primary regulator of this the common law and statutes which supplement the common law of contract and protect the consumers. It offers remedies and breach of contract. The law is divided into five categories.

10. Identify the Ethical principles of Privacy Laws.

The ethical principles of privacy laws are the right of the individual to experience the freedom from intrusion, interference from others. As per the Australian Privacy Principles under the Privacy Act, 1998(Privacy Act) in Schedule 1 have to follow the laws set up for the management of personal information. The specifics are related to not-for-profit organisations which have a turnover of more than $3 million, the private health service providers and small business in the Australian and Norfolk Island.

The fundamental right is the freedom in the democratic society and the need to exercise control over personal information. Any such identifiable information has to be used after consent and collection, use and disclosure of information. The confidentiality of ethical duty is with reference to the obligation of the individual, the organisation and the safeguard of the people entrusted. The obligations include use, modification, disclosure and loss of trust relationship.

PART B - CASE STUDY

1. Identify the needs of each customer

Customer 1: Safety of the product

Customer 2: Ensure that the product is the right fit for him or his needs

Customer 3: model style, design, color, aesthetics are very important

Customer 4: Easy to use; non-complicated usage

Customer 5: Value for money or least priced with full feature-packed model

Customer 6: Quality is primary

2. Describe briefly the main features and benefits of the 3 products.

Product 1: Pre-set for 24 hour, non-stick cooking, auto over-heat cut-off, imported product

Product 2: Pre-set for 12 hour, non-stick cooking, auto over-heat cut-off

12 month warranty, made in australia, priced $159.95

Product 3: Pre-set for 24 hours, non-stick cooking, auto over-heat cut-off, Automatic fruit dispenser, 2 year warranty, made is Australia, instructional video, make variety of breads – pizza, croissants, pasta dough, extra accessories for special bread making, priced $199.95

3. Make a decision about which of the 3 product brands or models you wouldrecomendto each customer and why

Customer 1: Safety product is the need. Therfore, product 2 is recommended as it has auto-over heat cut off and is average priced at $159.95.

Customer 2: Matches the needs or requirements of the client: Product 2 is recommended

Customer 3: Product 2 is recommended as it has the most features,though there is no discussion on color in the product information provided.

Customer 4: Easy to use; non-complicated usage is the need. Recommend the first model, though price is steep in comparison to the second model.

Customer 5: Value for money or least priced with full feature-packed model

Customer 6: Quality is primary. For this customer Product 3 is recommended as it has all of the premium features such as auto fruit dispenser, 2 year warranty, is made in australia, has accessories and also a instructional video.

4. Write down what would you say to each customer, remembering to include your standards and policies (i.e. beingcurteous, using product knowledge to promotethe products features and benefitsto each individual, and doing everything in your power to accommodate customer requests.

Customer 1:

Dear Madam,

we have a great product in our recommended brand of breadmaker for you. It allows you to be away from home when cooking bread 12 hours before but remains safe as it has an auto-overheat cut-off feature. This is the safetest of the three products that we have. Moreover, it is priced at $159.95 and offers highest safety featuers in this price range. It is a sturdy model, with non-stick interiors, compact and easy to use for every kind of baker.

Customer 2:

Dear Sir,

we understand that you want to buy a breadmaker model which exactly matches your baking needs. I think we have found just hte product for you in Product 2, since it matches your requirements. It is perfectly priced at $159.95, and has non-stick cooking interior, a 24-hour timer so you can do other work and return home to have freshly cooked bread welcoming you back! The colorful receipe book will provide the much needed help for easy baking. It has auto-cut off ensuring you have a safe, easy cooking experience.

Customer 3:

Dear Madam,

We have wonderful bread making model in Product 2, since it is feature-packed and comes in compact size and great styling. Its neat rectangular shape with rounded edges are stylish, giving it a classic facade to match with your latest kitchen/interior style and color. Avaialble in netural colors, it can be contrasted with the your existing kitchen color scheme or provide a monochromatic look as per your needs. The stylish bread making machine is easy to use, easy to maintain and has accessories which will ensure you can make a variety of bread for your family and friends.

Customer 4:

Dear Sir,

We have the exact model to match your need for an Easy to use a bread-making machine. It is very simple in its structure and needs minimum input from you beyond the initial ingredients. It has a great pre-set timing feature of 24-hours which allows you to travel or to be at work and return to freshly baked bread. You do not have to worry about the safety factors, since it has an auto cut-off switch for overburning. With a simple few buttons, you are all set to bake your own organic bread at home every week! Priced $159.95, it has great features packed for economic use.

Customer 5:

Dear Madam,

We have checked with your requirements for the type of bread-making machine you would like to invest in previously. From your feedback, we have identified a model, which is widely used and has been a sturdy champion for home bakers. This model is the most economically priced at $159.95 – for its brand value, features, benefits and its after-sales features. It also has a full-packed feature booklet for your complete use.

Customer 6:

Dear Madam,

For us, the primary factor for any product is its Quality. We are happy to share our popular choice of the bread maker, the Product 3 since it has premium features such as auto fruit dispenser, 2-year warranty, is made in Australia, has accessories and also an instructional video. It is a great quality for a decent price of $199.95.