Geoff Anderson here. This time we will dive into the most important topic you will learn from the Marketing Tecnnology Products course. While it is arguable that all the topics covered are critical, one really stands out as paramount is the concept of Whole Product. In a nutshell, the "whole product" is the complete solution that you wrap around a product to enhance its appeal to the market. An example to illustrate the concept of whole product would be the Apple iPod. Apple began the iPod with hardware that was differentiated from the competition. The initial integration with their application, iTunes, made the portable media more accessible to the general population than what went before it (e.g. Diamond Rio player). As time went on, they added a music store, video playback (and purchasing through the music store). Today, the iPod/iPhone franchise is undoubtedly the dominant player in the music player market.
While many of the visible examples of whole product application are in the consumer space, the concept and practice are equally important to the B2B world. Thinking way back to the end of the 19th century, and the concept of the Light Bulb. We all know that Thomas Edison invented the viable incandescent light bulb. However, the rest of the story is more important. At the time, the dominant technology for light in residences was the use of Whale Oil. It had a source (whalers), a distribution channel, and it was a technology that everyone could relate to. To bridge the chasm of what was already regarded as an adequate technology, Edison realized that all the sundry attributes that go around the electric light bulb to make a complete system (or solution) was essential to adoption and success. Electricity generation equipment, transmission wires (his original plan was to run them along the steam pipes in Manhattan), and the rest of the infrastructure required to create a "system" were on his drawing board. In this way, Edison was thinking with a marketing mindset.
Can we think of a similar example from today? Surely the transportation industry is a natural analog. There is a current technology that is mature and accepted. There is infrastructure in place that supports this (think of the system of petrol stations, petroleum pipelines, and refineries), and geopolitical environment of instability in the regions that produce the oil (research will show that whaling, the chief source for lamp oil was in decline in the late 19th century).
While there are several viable electric cars either on the market or or nearing readiness, but the main questions of infrastructure are unanswered. However there is hope, an entrepreneur, Shai Agassi, the motive force behind Better Place, has an interesting business model. Instead of selling cars and batteries, he is proposing to charge by the mile (similar to cell phone plans), and leave the rest to his infrastructure. Currently under trial in Israel, a system of battery change stations, and charging stations are being implemented. The idea is that a driver can pull into a "refuelling" station, and in a couple of minutes, the batter pack is exchanged for a freshly charged one, and the driver is on the way.
Clearly, this is the thinking of the whole product that a paradigm shift like the transition to a post petroluem transportation economy will take.
Other examples are easy to identify. Thinking of the semiconductor manufacturing business. The eco system of companies that exist to sell equipment to to the major manufacturers provide more than just implanters, lithography systems, and etch systems. They provide assistance in process optimizations (applications engineers), 24x7x365 service and support, and data collating and process monitoring (search "KLA-Tencor" and "Yield Management" for a sampling of the value add beyond just the equipment expected in the industry).
Lastly, it is possible that even large and admired companies make mistakes with regards to the whole product concept. A recent example is Google and their new Nexus 1 phone. It is reasonable to believe that Google entered the mobile handset market as a counter to Apple and their iPhone. Google, long a strong advocate open standards, and access, was frustrated with the carrier restrictions on phones and features, so the Nexus 1 is marketed directly to the end user. However, being a major force in business realms doesn't mean a free pass on the Expected Product. There were many early reports of slow response to customer inquiries for support. There was no call center to handle customer support, and emailed inquiries were taking up to 48 hours for a response. It appears that Google, long used to providing minimal support for their "beta" applications failed to ramp up the level of support expected of consumer products. No doubt Google will quickly rectify this, but it remains an example of the importance of the whole product.
I am sure we will return to the concept of Whole Product again in this series, adding supporting cast members to build a marketing framework.
Until the next installment, happy marketing!
Comments