Last month I pointed to a column by Scott Dalgleish on the vagueness of quality claims. In this Month’s Quality Magazine, he brings a basic product/marketing question of quality.
Probing the Limits: Taking the Quality High Ground – Column – Quality:
“I’m currently designing a line of product for my business and I’m facing some fundamental quality questions. Do I develop a high-quality product or a cheaper low-quality product? This isn’t an easy question.
My inclination as a quality professional is to develop a high-quality product without even thinking about it, but that could be a foolish approach. As I drive past discount stores with packed parking lots, I quickly realize how much consumers love low prices.”
The basic 101 lesson:
Reading this article reminded me my MBA economics classes, which I really enjoyed because of the order it creates with such complex questions. It all is based on the supply and demand curves that intersect. Here is a good review of supply and demand with interactive curves. Scott also realizes that price, cost, and quality are not also always dependent on each other.
The 600 level case study:
Right now most of us are dealing with existing products, or new products similar to others, so that we can make some assessments of the market, at least in an educated gut/Blink-style. Scott’s problem is that there is no existing supply or demand curve for his new product. While he decides that market testing will help him decide, he also acknowledges that his final decision will be the one he can live with.
The column sums up with this subhead: “Feeling good about making a high-quality product can be just as important as being profitable.” Agree or disagree?
This is an interesting post. Based on the information provided here he is asking the wrong question. A couple of key points to consider before addressing quality;Has the final client been identified? What are their expectations, how do they already view the company if it is already notable? How will the product be portrayed; Luxury, Affluent, or Commodity?What channel/ channels does he intend to use to get the product placed through to the final client? Can the value proposition of price versus quality carry the demands of the selected channels and still motivate the end client to buy? Will there be enough left for the company to make a profit, after a serious investment in creating the demand is made? Can that branding investment be maintained throughout the life cycle of the product without eroding the profit?
This is an interesting post. Based on the information provided here he is asking the wrong question. A couple of key points to consider before addressing quality;Has the final client been identified? What are their expectations, how do they already view the company if it is already notable? How will the product be portrayed; Luxury, Affluent, or Commodity?What channel/ channels does he intend to use to get the product placed through to the final client? Can the value proposition of price versus quality carry the demands of the selected channels and still motivate the end client to buy? Will there be enough left for the company to make a profit, after a serious investment in creating the demand is made? Can that branding investment be maintained throughout the life cycle of the product without eroding the profit?