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productandbrandmanagementppt-111024014530-phpapp02
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Transcript of productandbrandmanagementppt-111024014530-phpapp02
M.Jakkaraiah Asst.professor PBR VITS KAVALI
A
product is anything that can offered to market for attention, acquisition ,use, consumption that might satisfy a want or need.
PRODUCTS
Tangible products
Intangible products
GOODS
SEVICES
tangibility Associated attributes Features of product
Intangible attributes
Exchange value
Customer satisfaction
Unexpected features
Potential product Augmented product Expected product Generic product Core benefit
Luxury features Expected features Basic features
Basic product
Durable products
Consumer products,Business products
Durable
Non-durable
Services
Shopping Products Convenience Products
Specialty Products
Unsought Products
. . To satisfy information needs & buying motives
Convenience goods consumers use minimal effort for frequently purchased low cost items
Staples
goods
Emergency
Impulse
purchases
Shopping
considerable effort to evaluate
goods - consumers make a
Consumers make product comparison(s), They seek information before purchase, they are not impulsive Moderate substitutions are made Products last a considerable time Monetary & social costs may be high
Attribute-basedPlasma LCD screen
Price-basedLOW PRICE
WARRANTY REMOTE CONTROL PICTURE SIZEHomogeneous products select on price Heterogeneous products select on benefits
Materials
and parts
Raw materials and parts Manufactured materials and parts
Capitals
items
1.installation 2.equiptment
Suppliers
and business services
1.maitainance and repair items 2.operating suppliers
Farm
products
Natural
products
1.installation
2.equiptment
1.mainteinance
2.operating
and repair items
suppliers
Product Item
The
assortment of products that a company offers to a market Width how many different product lines? Length the number of items in the product mix Depth The no. of variants offered in a product line Consistency how closely the product lines are related in usage
Product LineLAMPS Table Ceiling Track Desk
Product MixProduct Line 1LAMPS Table Ceiling Track Desk
Product Line 2TABLES Kitchen Dining Room End Coffee Outdoor Conference Computer
Product Line 3CHAIRS Dining Room Living Room Bedroom Outdoor Desk
Home Depot, Lowes
WIDTH
Tata Motors BUS
Tata Steel BARS PLATES
Tata Tea Tata DTH GEMINI TEA
# of lines = 4 LORRY # of items = 12CARS
D E P T H
A wide product mix facilitates one stop shopping
Width (# of product lines)
HAIR CARE
SALTY SNACKS
DENTAL CARE
SOFT DRINKS
Shampoo Chips
Tooth Brush Cola
Tooth Paste Ginger Ale Conditione Nuts r Dental Floss Root Beer Crackers Hair Spray
Changes
in market demand Cost of production Quantity of production Changes in company desire Competitors actions and reactions
Expansion
of product mix Contracting or dropping the product mix Alteration of existing product s Trading up/trading down stratagies
Planning Forecasting Marketing
of products of a company is product management
To design product stratagies To spot market opportunities To develop strategies for each stage of product life cycle To generate new product ideas
New product : New to the company even it is in the world Types of new products 1.New to the world 2.New to the firm 3.Addition to existing product line 4.Improved and revised 5.Reduction in cost
To
meet consumer needs and wants To meet competition To increase profits To avoid threats from substitutes
New Product Development ProcessStep 1. Idea Generation Systematic Search for New Product Ideas Internal sources
CustomersCompetitors
DistributorsSuppliers
Step 2. Idea Screening
Process
to spot good ideas and drop poor
ones Technically feasibility Financially viable
Step 3. Concept Development & Testing1. Develop Product Ideas into Alternative Product Concepts
2. Concept Testing - Test the Product Concepts with Groups of Target Customers
3. Choose the Best One
Step 4. Marketing Strategy Development
Part One - Overall:
Target Market Planned Product Positioning Sales & Profit Goals Market SharePart Two - Short-Term:
Products Planned Price Distribution Marketing BudgetPart Three - Long-Term:
Sales & Profit Goals Marketing Mix Strategy
Step 5. Business Analysis Step 6. Product DevelopmentBusiness Analysis Review of Product Sales, Costs, and Profits Projections to See if They Meet Company Objectives
If No, Eliminate Product Concept
If Yes, Move to Product Development
Step 7. Test MarketingStandard Test MarketFull marketing campaign in a small number of representative cities.
Controlled Test MarketA few stores that have agreed to carry new products for a fee.
Simulated Test MarketTest in a simulated shopping environment to a sample of consumers.
Introducing the product into the market
Sales and Profits ($) Sales
Profits Time
Product DevelopmentLosses/ Investments ($)
Introduction
Growth
Maturity
Decline
Sales Costs ProfitsMarketing Objectives
Low sales High cost per customer Negative Create product awareness and trial Offer a basic product Use cost-plus Build selective distribution Build product awareness among early adopters and dealers
Product Price Distribution Advertising
Growth Stage of the PLCSales Costs ProfitsMarketing Objectives Rapidly rising sales Average cost per customer Rising profits Maximize market share Offer product extensions, service, warranty Price to penetrate market Build intensive distribution Build awareness and interest in the mass market
Product Price Distribution Advertising
Maturity Stage of the PLCSales Costs ProfitsMarketing Objectives Peak sales Low cost per customer High profits Maximize profit while defending market share Diversify brand and models Price to match or best competitors Build more intensive distribution Stress brand differences and benefits
Product Price Distribution Advertising
Decline Stage of the PLCSales Costs ProfitsMarketing Objectives Declining sales Low cost per customer Declining profits Reduce expenditure and milk the brand Phase out weak items Cut price Go selective: phase out unprofitable outlets Reduce to level needed to retain hard-core loyal customers
Product Price Distribution Advertising
PRODUCT PRICESALES PROMOTION
Offer a basic product Cost +profit Heavy expenditure to create trails Build selective distribution Build product awareness among early adopters and dealers
Distribution Advertising
Growth Stage of the PLCProduct PriceOffer product extensions, service, warranty penetrate Price Build intensive distribution Build awareness and interest in the mass market Consumer demo
DistributionAdvertising Sales promotion
Maturity Stage of the PLCProduct Price Distribution AdvertisingDiversify brand and models Price to match or beat competitors Build more intensive distribution Stress brand differences and benefits Encourage to brand switching
Sales promotion
Decline Stage of the PLCProduct PricePhase out weak items Cut price Go selective: phase out unprofitable outlets Reduce to level needed to retain hard-core loyal customers Reduce to minimal level
DistributionAdvertising Sales promotion
Overestimation of Market Size Product Design Problems Product Incorrectly Positioned, Priced or Advertised Costs of Product Development Competitive Actions Technical problems Poor planning Inadequate promotion Poor packing Fault pricing
Adopt Trail Evaluation Interest Awareness
Potential product Augmented productExpected Product
Generic product
Core Benefit