A Conceptual Framework for Understanding Technical Products

Abstract

Prior to designing a market research project, the industrial marketer must familiarize him/herself with fundamental concepts that explain the benefits and shortcomings of the technical product. The differences between ingredient, component or finished products are addressed. Also, the product functionality is discussed as a major driver to formulate a business unit strategy and future product versions. Product attributes are for the first time classified according to their auxiliary or direct influence over the product functionality, the product intermediation (distribution, integration), or the product usage.

Furthermore, concepts such as product application, technical product category, solver products and positioner products are also explained.

As for commodities, two different classifications shed light to the decommoditization effort: the Periodic Table Commodity (PTC) and the Chemically Complex Compound (CCC). Decommoditization strategies for both categories are also discussed.