MARKETING MANAGEMENT

PRESENTED BY

NEERAJ BHANDARIBINIT PANT

KUNAL GURUNGNIVESH SHRESTHA

SAILENDRA SHRESTHAAVISHEKH BUDHATHOKI

SUNIL SHAH

TOPICS• Product classification

• Product mix

• New product development,

• Product life cycle

• Brand decisions

PRODUCT: BUNCH OF BENEFITS

• anything that is offered to a market for attention, acquisition, use or consumption and satisfies a want or need. It includes physical objects, services, persons, places, organizations and ideas.

BASIC 3 LEVELS OF A PRODUCT• Core Product: The problem-solving services or core

benefits that consumers are buying when they obtain the product. (Mobile phone)

• Actual Product: a product’s parts, quality, features, design, brand name, packaging, staling etc., that combine to deliver core product benefits. Mobile Charger, Head Phones

• Augmented product: additional consumer services and benefits built around the core and actual products (installation, delivery etc. – for example , the Sony Camcorder, one year warranty on mobile)

Core BenefitOr service

Installation

DeliveryandCredit

Warranty

AfterSalesservice

Packaging

Brandname

QualityStaling

Features

AUGMENTEDRPODUCT

ACTUALPRODUCT

COREPRODUCT

The three levels of a product

PRODUCT ATTRIBUTES• Product quality: the ability of a product to perform its functions; it includes the

product’s overall durability, precision, ease of operation and repair, and other valued attributes.• Total quality management (TQM) (Improve all product/process quality in every

phase of production)• Conformance quality• Freedom from defects/consistency in delivering a targeted level of performance.

• Product features: features are a competitive tool for differentiating the company’s product from competitors’ products. Being the first producer to introduce a valued new feature is one of the most effective ways to compete.

• Product style and design: how a product is designed and how it appears. Companies may have many designs for a product (i.e., Nike shoes – 500 footwear designs each year)

commercialization

ConceptDevelopmentAnd testing

Test marketing

Productdevelopment

Businessanalysis

Marketingstrategy

New ProductStrategy

Ideageneration

Ideascreening

THE NEW PRODUCT DEVELOPMENT PROCESS

ORGANIZING FOR NEW PRODUCT DEVELOPMENTSpecial organizational arrangements are to be made for

NPD which can answer three important questions-1) Who is to be responsible for NPD.2) What are the tasks to be accomplished.3) How the tasks will be accomplished. The Brooks, Allen and Hamilton Study of NPD suggests

that “the organizations which encounter the greatest success in NPD are the ones that have given the greatest care to organizing NPD”

GENERATING, SCREENING & DEVELOPMENT OF NEW PRODUCT IDEAS (NPI)• Generating New Product Ideas.

• NPI generating sources .

• Internal Recourses- Sales Personnel,Marketing personnel, R&D, top Management Executives, Production Departments, Purchase Department, Customer service division, employee suggestion systems.

• External Recourses- customers, competitive products, foreign products, consultants, advertising agencies, researchers/investors,distribution channels,

METHODS OF GENERATING NEW IDEAS

• Direct Methods. Individual Techniques- Morphological analysis, Consumer Surveys

Group Techniques- Brain Storming, focus groups, interviews, • Indirect Methods- Consumer, engineering magnitude,

estimations ,Quadrant Analysis.

CONCEPT GENERATION• Generating concept is a creative process and there is

mechanism in concept generation which is categorized in two segments-

• Problem based ideation.• This is the most simple method of progress, where someone has found a

problem and as a result, solves it. • Attribute based ideation.• As we know that product is a bundle of attributes and to alter a attribute in an

analytical method is attribute based ideation.

PHYSICAL DEVELOPMENT OF PRODUCT.

• Product architecture.

• Industrial Designing in Product Development.

• Product prototyping

• Concurrent engineering

PRETEST MARKETING & TEST MARKETING• Test Marketing is Penultimate step in NPD but as its

costly ,time consuming and exposes product to competitors hence pre test marketing is the solution. Wide PTM we simulate market conditions under a controlled environment which helps in understanding the key market impacts and forces.

• Various Models Of PTM-• Assessors Model.• Preference Model.• Trail repeat Model.

THE PRODUCT LIFE CYCLE

Productdevelopment

Introduction

Growth

Maturity

Decline

SALES

PROFITS

PRODUCT LIFE CYCLE: SALES AND PROFITS

PLC STAGES-PROFITS

• The product life cycle is the course of a product’s sales and profits over its lifetime. It involves the 5 stages below:

• Product development: the company finds and develops a new product idea – costs mount,

• Introduction: the product is being introduced in the market – profits are absent

• Growth: a period of rapid market acceptance – increased profits• Maturity: the product has achieved acceptance – profits start to

decline• Decline: the period when sales fall off and profits drop.

WHY PLC ?

• Products have a limited life,

• Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller,

• Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage.

STAGES OF PLC

• Product Development- When the new idea is being converted into a product

• Introduction- When developed product is introduced in markets.

PLC STAGES-SALES

• Growth: the product life cycle stage at which a product’s sales start climbing quickly. Here we have high market share or high current profit.

• Maturity: the stage where sales growth slows or levels off. (market development, product development or innovation)

SUCCESS RATE OF NEW PRODUCTS

• The success rate of new products is very low – less than 5%. ‘You have to kiss a lot of frogs to find a prince.”

• Product obsolescence is rapid with improvements in technology

• Shorter PLCs

COMMERCIALIZATION

• When? (Timing)

• Where? (Which geographical markets)

• To whom? (Target markets)

• How? (Introductory Marketing strategy)

PRODUCT HIERARCHY

• Need

• Product family

• Product class

• Product Line

• Product type

• Brand

• Item

THE IMPORTANCE OF BRANDS

• “Consumers are starved for time and overwhelmed by the choices available to them. They want strong brands that simplify their decision making and reduce their risks”

• Are there other good reasons?

BRAND

• A name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service

• It is the seller’s promise to deliver the same bundle of benefits/services consistently to buyers

Defines the differential features of a product or service:• Real or Imaginary• Rational or Irrational• Tangible or Intangible

DEFINITION OF A BRAND

(2) Constitutes an image that creates a personal experience:

• Own

• Third party

• Imaginary

DEFINITION OF A BRAND CONTD...

(3) With conscious and unconscious contents that the consumer projects and deposits on it;

(4) Constitutes part of and builds up his/her identity;

(5) Generates certain perceptions, attitudes and behaviors and enables fulfillment in their lives

DEFINITION OF A BRAND CONTD...

In a highly competitive world, where manufacturers are losing their pricing power, branding is seen as a way of clawing back some of the lost influence.

ROLE OF BRANDS: FOR THE COMPANY

BRAND IDENTITY• Mind share (cognitive level)

• Heart Share (Emotional relationship)

• Buying intention share

• Self share (self-expression and self-design)

• Legend Share (cultural-sociological proposition; legendary; mythological)

BRAND EQUITY

• When a commodity becomes a brand, it is said to have equity.

• The premium a brand can command in the market

• The difference between the perceived value and the intrinsic value

BRAND POWER

• Customer will change brands for price reasons• Customer is satisfied. No reason to change.• Customer is satisfied and would take pains to get the

brand• Customer values the brand and sees it as a friend• Customer is devoted to the brand

ADVANTAGES OF BRANDING

• Easy for the seller to track down problems and process orders

• Provide legal protection of unique product features

• Branding gives an opportunity to attract loyal and profitable set of customers

• It helps to give a product category at different segments, having separate bundle of benefits

• It helps build corporate image

• It minimises harm to company reputation if the brand fails