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In the late 1990s, Nokia produced cell phones that were widely used by the public – worldwide. Nokia, headquartered in Helsinki, Finland appeared to have a dominant position in the market. The Nokia 3210 (Figure 2.3) was compact, had many features, was very rugged and ergonomically comfortable to hold and operate. As a result, around 150-million units were sold. But, based on the previous discussion, we know that dominance in the marketplace can be upset by newer technology or lower-priced models with the same features. Along came the Apple 2G (Figure 2.4), which gained immediate acceptance by the public. The iPhone 2G had numerous apps, used a color touchscreen, and could connect with the internet in addition to all the things that the Nokia did (texting, photos, etc.).

Figure 2.3 Nokia Phone. Isaac Smith / Unsplash

Figure 2.4 Apple iPhone. Michal Weidemann / Unsplash

Some general characteristics of products include:

Features – nice displays (computer screens), user friendly operation (electric vehicles), the wow factor (new and innovative, nobody does this – Wow!), and a variety of models to fit various budgets (low, middle, and high-end). The Apple iPhone definitely had the “wow” factor. Thirty years later, there are now competitors to the Apple iPhone.

Specifications – a technical description or requirement of what the product can do. For example, if our new product is an electric motor for electric vehicles: the materials used to make the product (steel, stainless steel, etc.); the number of motor brushes and material; outputs –horsepower, torque; the range of temperatures for optimum operation, etc. If you pick up any standard-powered car brochure, specifications usually include items such as horsepower, torque, engine displacement, fuel requirements, etc. Specifications may sometimes be spelled out by the customer for special orders or custom applications.

Warranties and guarantees – will your company stand behind its new product?

Service Centers – what if I need service for my new scanner/printer? Where do I go? Is there a center nearby? Note: a service center can generate additional after-sale profits: think of automobile dealers and their service center networks.