Product Decision All Chapter

Product decisionPresentation By

Narendra MishraGovindBallabh Dugrakoti

• In marketing, a product is anything that can be offered to a market that might satisfy a want or need.

• A product is a physical good, service, idea, person or place that is capable of offering tangible and intangible attributes that individuals or organisations regard as so necessary, worthwhile, or satisfying that they are prepared to exchange money, patronage or some other unit of value in order to acquire it.

CONCEPT OF PRODUCT

Customer value hierarchy

Potential product

Core benefit

ON THE BASIS OF CHARACTERSTICS OF PRODUCT

• Durable products

• Non-durable products

• Service products

PRODUCT CLASSIFICATION

Goods and services

Good Goods /Service Service

shovelRestaurant’s

offeringEmployment

agency service

consumer behaviour based classifications; Melvin T. Copeland

• Convenience goods

• Shopping goods

• Speciality goods

• Unsought goods

ON THE BASIS OF CONSUMER BEHAVIOUR

• Raw material

• Manufactured materials and component parts.

• process materials.

• Installation.

• Accessory equipment.

• Operating services and Supplies

CLASSIFICATION OF ORGANIZATIONAL PRODUCT

FormFea-

turesPerfor-mance

Confor-manceQuality

Dura-bility

Relia-bility

Repair-ability

Style Design

PRODUCT DIFFERENTIATION

The Product Life Cycle

Introduction

Growth Maturity

Decline

Four stages

Growth slump-maturity patternx axis-time, y axis-sales

Rollout takes timePromotional expenditure /sales is highest 1)inform potential customer

2)Induce product trial 3)Secure distribution outletsProfits are negativePIONEER ADVANTAGE

introduction stage

ProductPriceDistribution – selective

Promotion - brand awareness. early adopters

Marketing strategies

Rapid climb in sales Marketing strategies Product

Price

Distribution

Promotion

Growth stage

Exists for longer period three stages 1. growth 2. stability 3. decline competition

Maturity stage

Technological advancement

Consumer taste

Competition

Decline stage

Weed out weak products

Focus on potential products

Research and development

Investments

Marketing strategies

The sum of all the products and variants offered by an organisation.

The product mix can be split into the following:

• Product lines.

• Product mix width.

• Product line length

• Product line depth.

• Product consistency

PRODUCT MIX

DETERGENTS TOOTHPASTE BAR SOAP DISPOSABLE PAPER

DIAPERS PRODUCT

IVORY GLEEM IVORY PAMPERS CHARMIN DREFT CREST CAMAY LUVS PUFFS TIDE ZEST BOUNTY CHEER SAFEGUARD BOLD OIL OF OLAY GAIN ERA DASH

Product-Mix Width

product 1 product 2 product 3 product 4 product 50

10

20

30

40

50

60

salesprofiit

NEW PRODUCT DEVELOPMENT

PROCESS

make a company look innovative

increase profits because they are generally priced 10 to 15 percent above older items

become a major part of a product line

BENEFITS FROM DEVELOPING NEW PRODUCTS

1. Generating ideas

2. Screening ideas

3. Developing a business proposal

4. Developing the product

5. Testing the product

6. Introducing the product

7. Evaluation customer acceptance

STEPS REQUIRED FOR DEVELOPING NEW PRODUCTS

◦New product ideas come from a variety of sources:

customers

competitors

channel members

company employees

research and development departments

GENERATING IDEAS

Ideas for new products are screened and evaluated, and matched against the company's overall objectives to see if they fit.

SCREENING IDEAS

A product idea must be considered in regard to its potential for profit. A business proposal is developed to evaluate the size of the market, sales, production requirements, costs, technological trends, and risk

DEVELOPING A BUSINESS PROPOSAL

During product development, a prototype (a model of the product) is made, and marketers develop a marketing strategy. The prototype is tested, and adjustments are made to improve the final product.

DEVELOPING THE PRODUCT

◦Newly developed products are usuallytested to obtain customers' responses. Common strategies are:

evaluation by a focus group

TESTING THE PRODUCT

◦If customer response is favorable, the product is introduced into the marketplace. This stage is called commercialization. The costs of introducing a new product often are quite high. At this stage, the company will need to:

advertise the product

train its sales force

INTRODUCING THE PRODUCT

After the product has been introduced, marketers track new product performance to evaluate customer acceptance of the product and the marketing strategies used to introduce the product.

EVALUATING CUSTOMER ACCEPTANCE

Branding, packaging, and labeling

Branding

It is any name, term, symbol, sign design or unifying combination of these that identifies and distinguishes one product from competitors product

BRAND

Branding terms

• Trade mark - brand name, symbol, or logo which is registered and protected for the owner’s sole use.

• Brand mark - the element of the visual brand identity that does not consist of words but design and symbols.

• Brand name - word or illustration that distinguishes one seller’s goods from another.

An Overview ofBranding Decisions

BrandingDecision

•Brand

•No brand

Brand-SponsorDecision

•Manu-facturerbrand

•Distribu-tor

(private)brand

•Licensedbrand

Brand-Name

Decision•Individualbrandnames•Blanketfamilyname•Separatefamilynames•Company-individualnames

Brand-Repositioning

Decision

•Reposi-tioning

•Noreposi-tioning

Brand-StrategyDecision•BrandextensionLineextension

•Multi-brands•Newbrands•Cobrands

Brand Equity A brand has value, called brand equity.

Brand equity is based on brand loyalty, name awareness, perceived quality, strong associations, patents, etc.

Brand equity makes brand and line extensions easier.

Easy to rememberEasy to pronouncePositive connotationReinforces and communicates product benefits

Good brand name

Good Brand Names:

SuggestProductBenefits

Distinctive

Lack PoorForeign

LanguageMeanings

SuggestProductQualities

Easy to:PronounceRecognizeRemember

All activities that are aimed at designing and producing container for products

packaging

Identify the brand

Convey information

Transportation and protection

Aid product consumption

objectives

Self service

Customer affluence Company and brand image

Innovation opportunity

As marketing tool

A simple tag attach to the product or an elaborately designed graphic that is part of the package

legal obligations

Huge information is to be provided

LABELING

Labels

IdentifyIdentify

DescribeDescribe

PromotePromote

Obligation of seller about performance of product

a formal assurance that certain conditions will be fulfilled, especially that a product will be of a specified quality

Warranty and guarentee

Marketing management: Philip kotlar, kelvin lane keller (12edition,2006)

Pearson prentice hall Marketing by Zikmund &d”Amico www.wikipedia.com

refrences

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