Product Decision All Chapter
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Transcript of Product Decision All Chapter
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Product decisionPresentation By
Narendra MishraGovindBallabh Dugrakoti
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• 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
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Customer value hierarchy
Potential product
Core benefit
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ON THE BASIS OF CHARACTERSTICS OF PRODUCT
• Durable products
• Non-durable products
• Service products
PRODUCT CLASSIFICATION
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Goods and services
Good Goods /Service Service
shovelRestaurant’s
offeringEmployment
agency service
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consumer behaviour based classifications; Melvin T. Copeland
• Convenience goods
• Shopping goods
• Speciality goods
• Unsought goods
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ON THE BASIS OF CONSUMER BEHAVIOUR
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• Raw material
• Manufactured materials and component parts.
• process materials.
• Installation.
• Accessory equipment.
• Operating services and Supplies
CLASSIFICATION OF ORGANIZATIONAL PRODUCT
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FormFea-
turesPerfor-mance
Confor-manceQuality
Dura-bility
Relia-bility
Repair-ability
Style Design
PRODUCT DIFFERENTIATION
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The Product Life Cycle
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Introduction
Growth Maturity
Decline
Four stages
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Growth slump-maturity patternx axis-time, y axis-sales
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Rollout takes timePromotional expenditure /sales is highest 1)inform potential customer
2)Induce product trial 3)Secure distribution outletsProfits are negativePIONEER ADVANTAGE
introduction stage
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ProductPriceDistribution – selective
Promotion - brand awareness. early adopters
Marketing strategies
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Rapid climb in sales Marketing strategies Product
Price
Distribution
Promotion
Growth stage
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Exists for longer period three stages 1. growth 2. stability 3. decline competition
Maturity stage
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Technological advancement
Consumer taste
Competition
Decline stage
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Weed out weak products
Focus on potential products
Research and development
Investments
Marketing strategies
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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
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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
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product 1 product 2 product 3 product 4 product 50
10
20
30
40
50
60
salesprofiit
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NEW PRODUCT DEVELOPMENT
PROCESS
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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
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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
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◦New product ideas come from a variety of sources:
customers
competitors
channel members
company employees
research and development departments
GENERATING IDEAS
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Ideas for new products are screened and evaluated, and matched against the company's overall objectives to see if they fit.
SCREENING IDEAS
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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
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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
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◦Newly developed products are usuallytested to obtain customers' responses. Common strategies are:
evaluation by a focus group
TESTING THE PRODUCT
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◦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
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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
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Branding, packaging, and labeling
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Branding
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It is any name, term, symbol, sign design or unifying combination of these that identifies and distinguishes one product from competitors product
BRAND
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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.
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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
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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.
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Easy to rememberEasy to pronouncePositive connotationReinforces and communicates product benefits
Good brand name
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Good Brand Names:
SuggestProductBenefits
Distinctive
Lack PoorForeign
LanguageMeanings
SuggestProductQualities
Easy to:PronounceRecognizeRemember
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All activities that are aimed at designing and producing container for products
packaging
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Identify the brand
Convey information
Transportation and protection
Aid product consumption
objectives
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Self service
Customer affluence Company and brand image
Innovation opportunity
As marketing tool
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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
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Labels
IdentifyIdentify
DescribeDescribe
PromotePromote
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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
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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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?
Any querries
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Thank you