EOC: Week 10: What are the benefits vs the features?

‘The company must also decide how it will serve targeted customers—how it will differentiate and position itself in the marketplace. A brand’s value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

(Book page 9)’

‘Consumers see products as complex bundles of benefits that satisfy their needs. When developing products, marketers first must identify the core customer value that consumers seek from the product. They must then design the actual product and find ways to augment it in order to create this customer value and the most satisfying customer experience.

(book page 211)’

‘How can a company identify new features and decide which ones to add to its product? The company should periodically survey buyers who have used the product and ask these questions: How do you like the product? Which specific features of the product do you like most? Which features could we add to improve the product? The answers provide the company with a rich list of feature ideas. The company can then assess each feature’s value to customers versus its cost to the company. Features that customers value highly in relation to costs should be added.

(book page 215)’

‘Value-based pricing doesn’t mean simply charging what customers want to pay or setting low prices to meet the competition. Instead, many companies adopt value-added pricing strategies. Rather than cutting prices to match competitors, they attach value-added features and services to differentiate their offers and thus support higher prices.

(book page 278)’

Benefits versus features of the Otsu snack product:

Benefits:
· promotes a healthy lifestyle
· satisfying
· tasty
· good with beer
· exotic
· exciting

 Features:

• low calories
• good with beer
• convenient
• good value relative to other snacks
• seaweed flavor
• rice cracker

A value added feature of the Otsu product could be that it tastes good and is healthy.