Unit 5 Product .pptx

7/25/2019 Unit 5 Product .pptx

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ProductUnit 5


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Unit 5 : Course Contents

Concept and level of product

Product Classication

Product life cycle

New product development process

Individual product decision( product attributes)

Branding, Packaging, labeling Product support services

Product line and mi decisions

!ervice marketing, ( Nature, and c"aracteristics # )

!ervice marketing !trategies ( service prot c"ain) !ervice di$erentiation, service %uality and service

productivity


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Product:Meaning and concept:

"It is a Bundle of benefits and satisfaction"

It is one of the components of marketing mix. It is the center of the

marketing operation. A product is any thing that satisfies a need or want of

customers.It is physical goods plus the services attached with the goods.

It is a set of tangible and intangible attributes including packaging, color,

price , quality, brand, plus the seller's services and reputation. A Product

is any things that can be offered to a market to satisfy a want or need. It is

every thing one receives in an exchange. herefore products include all

entities such as !oods services experiences events properties and

organi#ations in formations and ideas and mixes of these entities.

In the broadest sense a product is anything offered to satisfy customer

needs. Its components are design, quality, variety, features, branding,

packaging, services and warranties.

According to Philip otler! A product is anything that can be offered to a

market to satisfy a want or need.$


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ey points" #attributes of the product$

%oods: Physical goods % tangible &

&ervices: Intangible like airlines train hotels health club hospitals and

engineer sectors teacher and cinema theaters discos etc. (periences: 'oga and meditation camp etc.

vents: sports music business expositions.

Persons: (ilm stars musicians sport person professionals) politician.

Places: *isit +epal ,- % ourist &

Properties: /eal state financial property stocks and bonds.

)rgani*ation: 0ony hulas Phillips. 1nhance corporate image

Information: 2istribution of information by news paper internet school

college etc. they are being bought and sold as products.

Product Mi(: 2esign 3 4uality 3 features 3 Brand 3 packaging 30hape color grading si#e3styles mark sign wrapper

0ervice 3 warranty3 variety

Pre3after sale free repair item of product


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&evels of product' +ore product #enefits& satisfaction: 5ere service and benefits customers buy. At the

first level there is a core benefit and essential utility attached with a product. Buyers

purchase a product for the benefit and satisfaction attached with the product. A womanBuyers buys lipstick for solving her problems. 0he is not buying any chemical or

physical attributes of the product %car for prestige and cream for beautiful&.

Actual product #formal products & : the formal product is the outer part of the product

including physical and chemical attributes such as package brand name 4uality

styles etc. through which the product is formally recogni#ed as a tangible item.

-he e(pected product: At the third level there is expected product that includes a set of

attributes and conditions buyers normally expect in a product. 5otel guests expect

clean beds and bath room.

Augmented product #e(tra benefit&: It is the totality of benefit or a hope that a persons

receive or experiences or prestige in obtaining the formal product. (or example free

helmets with motorcycles (resh flowers in hotel rooms. 6ipstick with package 4uality

style etc.

Potential product: his level includes all possible augmentations and transformations

the product may undergo in future.

7ey: satisfactions 3 utility 3 benefits 3 Attributes 3 feature 1xtra benefit


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-ypes of Products # +lassification of Products )Products can be classified according to their ultimate use they

can on the basis of Buying behavior:

+onsumer Product Industrial Product

8onvenience Raw Materials and parts

0hopping Capital items

0pecialty Supplies and business services

9nsought # (oundation goods

Entering goods :( Raw materialsAccessory equipment

Facilitating goods: (operating supplies)


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. +onsumer Product classification on the basis of nature"

. Perishable consumer products" these product cant be stored in long time

like vegetables, fruits, meats etc.

. /on durable consumer products" These products have longer life than

perishable consumer products. For example soap, shampoo. Packaged

food and drinks etc

. 0urable consumer products: consumer uses its benefits for many years.

Examples are cars, motorcycles, refrigerators, home appliances etc.

2. +onsumer product classification on the basis of uying motives:. /ecessity products: these products are bought by consumers to meet

their Psychological, safety and social needs. For example food items,

home, clinic, furniture etc.

. 1u(ury Products: for example expensive car, e!elry, foreign holiday

package etc.". +onsumer product classification on the basis of buying involvement:

. #igh involvement products: computer, television ,cars etc

. $o! involvement products: toothpaste, hair comb, tea coffee etc.

%.uying behavior : &onvenience, shopping, specialty. 'nsought


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Consumer Product:hey are bought by consumer for personal need family

need and satisfaction. hey may be goods or services.hey are used by ultimate consumers. It consists food

items cigarettes cars etc. hey can be used without

further processing. e should follow the marketing

consideration in

+onvenience products: Bread news paper cigarettes

sweets salt sugar etc. hey are non durable type and

low involment in purchase.

Shopping products: 0hopping goods are those goods

for which the consumer lacks sufficient information

about product alternatives. And their attributes.

% Bicycles 3 furniture shoes &


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&pecialty product" hey are those products for which

consumers are to much brand loyal. 8onsumers are fully

aware of these products and their attributes prior to making a

purchase decision. he price of this product is comparatively

higher. (or example technical product 5ealth related product

automobiles plant and machinery color television etc.

2nsought product: 9nsought products are normally grouped

under unusual type of product because such as product)s

characteristics use and image mean little to the consumers.

hey may be two types of unsought products %a& +ew

products that the consumers are not yet aware of and %b&

product that can consumers have no intention or don)t want topurchase in the first place. (or example life insurance and

encyclopedias are the traditional unsought products.


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Industrial products:Industrial products are also known as business products that are to

be sold primarily for use in producing other goods or renderingservices. (or example a type writer may be a consumer product if

a consumer buys it for type his personal letters or articles. But if a

retailers or wholesaler buys it to type business letter it is and

industrial product.

3oundation goods: they are the manufacturing machines that

make production possible. hey consist installations 3 accessory

e4uipments 3 Printing machine for a press factory building still

mill etc. /estaurant kitchen e4uipment etc.

Accessory equipment: It is used in the production operations of afirm but they are not used in the actual manufacturing process.

6ife of accessory e4uipment is short and the prices to this

e4uipment become comparatively low. (or example type writer

small power tool. 8ash registers delivery trucks calculators etc.


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ntering goods :% /aw materials&: hey are

the goods which are used as the ingredients or

component of product. (or example cottonwheat fruits vegetables etc and (abricating

materials are products which under automobile

tire.

3acilitating goods: %operating supplies& they

are short lived goods and services. hey are

two types like operating supplies and

maintenance and repair items (or example

fuel lubricants. Paper carbon etc.


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Product life cycle:

It is an attempt to recogni#e distinct stages in the sales

and profit history of the product. 1ife cycle isdepending upon the technology changes,

competition and buyer's preferences. Products are

like living beings. -hey are born, live and die. 1very

product has a limited life span. 2ifferent productshave different life span. 0ome die with in a month and

some other live for hundred of years. he P68

analysis is conducted at the level of a product

category such as automobiles computers radios

television etc. so the product life cycle is divided in to

four stages given below.


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Introduction stage:

A period is slow sales growth negative or low profit

Innovator customers few competitors high price high cost

of production distribution promotion technological

problems in this stage product is commercially launched in

the market.

&ymptoms"

Slow growth of sales

Market Pioneers buy the products

Small production level

Technological problems

igher price

!egative profit

!o competition


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* "rowth stage:

;any new products fail during the introduction stage because

they can not gain buyers acceptance.


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+# Maturity stage:

In this stage many firm enter in to the market with a broad

range of products. 0ince the competition on pricepromotion and product is at its highest peak each and

every company as long as possible to try to maintain a

differential advantage such as low price change product

features extended warranty gift giving etc. 0ales and profit increase at decrease rate

Profit starts to decrease.

ough competition

Price cuts ;arket segmentation increased in the faster pace.

.Product speciali#ation in increased in the market.


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$ecline stage:

After maturity period saturation periods continues the

sales of the c company go on decline and there will beleast profit or loss to the firm. As a result it be comes

very difficult for the firms to survive in the market.

;any firm 4uit the market in search of new

opportunities. 2eclining sales 3 Profit

6aggard customers. %6oyal customers continue buying&

2eclining competition

Increased price %loyal customers are willing to pay high

price.&

1ventually all products reach a stage of #ero sales.


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Process of !ew product $evelopment'

/ew product:

=)riginal product or innovative products" Innovative product

like original product it is costly riskier and time consuming. of new products are truly innovative. Although a failure rate

of innovation is also high. Above ?-> of new products fail.

=Improved products or modified products" 1xisting products

are modified and improved. product modification through change4uality function and benefits. @> of 0ony)s new products are

modification of existing products.

=Product imitation #copy$" Imitations are products that are new

to the organi*ation but old to the market. 0unlight soap for

sunlight soap as well as podre for godre. It can be developed in

the organi#ation own laboratories by cross functional teams. @->

of new consumer packaged goods fail in the 90A. hey are

mostly product imitations.


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. "eneration of new product ideas:;arketers have to collect new ideas about the product

from various sources. his can be collected through: 8onsumer complaints. % @-> in 90A &

;arket research 3 executives

Investors 3 ;arket intermediaries

8ompetitors

8ompany personnel % oyota employees generate ,

million ideas annually &

0ales force 9niversities 3 ournals 3 0eminars

Idea people


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%# Idea Screening:

It involves a preliminary elimination process in which a large

number of product ideas are screened in term of the organi#ation)s

obectives policies technical feasibility and financial viability. Ideais screened through a committee formed out of the functional

manager of the organi#ation.

Promising ideas: 8arried out for further testing.

;arginal ideas: stored for future use.

/eected ideas: 2ropped altogether.

Actually the committee meets regularly and evaluated the product

ideas.

Concept $evelopment:

he main tasks of marketers should be to translate product idea intoto a technically feasible and commercially feasible physical product.

;ore especially the marketers develop product design packaging

Branding preference and technical 4uality testing.


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Business analysis:

The main purpose in this stage is to collect information theenales the mar!eters to determine the commercial "iailityof the product# estimates sales# Re"enue and cost# pro$tappraisal product life "s% in"estment reco"ery and analy&edthe ris! in"ol"ed and competitor's analysis%

- Concept testing:

Test mar!eting is to eamine the performance of the product%t is related for identi$cation of consumer's eha"ior with theattriutes of the product% t is as!ing consumers fore"aluation of product's performances% *i+erent techniquesare used to $nd out the customer's reaction%

.%Commerciali/ation'

,nce the purpose of test mar!eting is o"er# The -ompanyis ready to produced products in mass scale for commercialpurpose% t in"ol"es ma.or decisions relating to timing# place#and segments and mar!eting strategy for launching theproduct%


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(ndividual product decisions

#ere key product areas related to a product items. Itincludes decision on product attributes, branding,

packaging, labeling and support services.

'# Product attributes decision:

2esigning the core benefits %values & related to the product

offer to customers:

a. product quality decision%performance durability defect

less customers satisfaction and relationship marketing & C4uality is the totality of features and characteristics of a

products or service that bear on its ability to satisfy sated or

implied needs.$


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-otal quality marketing: D; is a popular

philosophy of the E@-s that emphasi#es that

not only production process but also thepolicies and practices of the organi#ation as a

whole should be committed to continuous

improvement of 4uality. otal 4ualitymarketing emphasi#es that each marketing

activity performed by the firm such as

marketing research sales training advertising.

8ustomer service and others should conform

to the highest possible standards.


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8orrectly identify the customers needs and

re4uirements and communicate customers

expectations appropriately to product designers. ;ake sure that the customers orders are met in

time and see the customers have received proper

instruction training and technical assistance in

the use of the products.

!ather customer complaints on the current

product and customers ideas for product or

serivce improvement and convey them to theproper departments in the firm.


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# Product features decision: his decision involves around theinclusion of product features on a product. (eatures are

differentiation factors that can be used as competitive tool

in marketing. he modern trend is towards product

conversions when a single product like a mobile phone can

function as telephone camera video recorder and player

(; radio audio recorder and data storage

c# Product design decision: It relates to the exterior look of

the product. 5ere adding the beauty value of the product.

(or example 5ero 5ondaFs 7ari#ma bikes appeal to the

young generation due to its fancy design that its

performance. e have consider before designing the

products like current trend or fashion comfort and

performance.


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randing &trategies:

Branding'

Concept: ;ost of the manufacturer)s and sellers use brand

names to identify their product in the market. It is a part of

a product.It is a name, term, symbol, or special design ofproducts. It involves using an identification features on the

product. Branding is very popular in +epal. Branding has

started even in farm product like rice wheat flour cooking

oil and pulses. 6icensed brands are the most selling brand

such as cocaGcola Pepsi sprite ?up fantail fruity real in

soft drinks market. 0uccessful brands are rare nanglo

+20 surya international shikhar khukuri etc.


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Component of (rand

rand /ame: It is that part of the brand that can be

vocali#ed and includes letters words and number. (orexample 8ocaGcola ?up etc are brand name of soft

drink.

rand mark: It is that element of the brand that cannot

be vocali#ed. It often appears in terms of a sign symbolor design the green bottle of ?up is brand mark.

-rade mark: It is a legal designation indicating that the

owner has exclusive right to use the brand name and the

brand mark. Brand name or brand mark can be

converted into a trade mark only when they are

registered with the concern department of government


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Importance of (randing:

Product identification and choice

/eduction in search and evaluation time Promotion

*alue building

Product positioning

Brand loyalty

Duality assurance prestige and status

/esponsiveness to environmental problems


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Reasons for !ot (randing:

. +ature of the product %fruits vegetables etc &

,. /esources for promotion % not available sufficient funds &H. 8ontrol on supply and 4uality % If control or reduce of

supply and 4uality it is better to sell the product unbranded &

Types of (rand:

4. )wnership%)anufacture*s brands like 0ony 6iril etc & and+istributors %for example /ebuk Bata & $icensed brand

% for example gold star television are assembled in +epal by

8haudhary !roup under a licensing contract &

5. Product 1ine % &orporate brand like 5ulas 5onda etc andFamily brand like 2abar Anmol etc and individual like

0hikhar 7hukuri chautari biuli etc&


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ssentials of good brand /ame

1asy to say spell and recall

2istinctiveness /eflecting productFs attributes

6egally protectable

Possibility of product line extension Possibility of use in the foreign markets


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Packaging:

It is an act of designing or producing the package for a

product. It is the process of designing the container for a

product. It includes activities re4uired for designing the

container for a product. 0o a package means wrapper or

container in which a product is enclosed.

)b*ectives:

8ontainment

Identification

Protection

Promotion 8ommunication

Product differentiation


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1evels of Packaging:

heprimary packages %milk container toothpaste &

hesecondary packages % wrapper of toilet soap breador biscuits etc &

he shipping packages cardboard box wooden boxes

etc &

ssentials of a good Package"

. 8onvenient

,. Attractive

H. 8ommunicative. 1conomic

J. 1nvironment friendly


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+abeling:

It may be a tag or symbol or means of recognition directly

attached to the product. A label is that part of the product in

which the brand name brand mark information about the

product its use ingredients date of manufacture

manufacturer)s name and address etc appear.

Types:-rand labels %only brand name are write or stamped or

tagged & rade labels %fruits eggs food grains etc &

+escriptive labels % explanation of use and miss use etc also &

)b*ectives or functions:

Identification

2escription

Promotion


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Product support services:

It is also known as customer services that is part of the

augmented product design. In involves designing support

services according to the needs of the target customers.

his decision involves the issue related to product

installations and training repairs and maintenance and

supply of spares and parts. 0ome companies have adopted

outsourcing strategy to provide support services.

The maor support are given belo!:

. 5andling customer complaints

,. 8redit supportH. echnical support

. /epair and maintenance


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Product +ine and Mi,'

Product 1ine decision:It can be defined as a group of interrelated products

fulfill the needs and wants of the customers. It means a

group of closely related products. ;ost of the

companies) adopt product line strategy. Almost all thecompanies start their businesses with short product line

and with the passes of time product line are added to

expand business operation. Product line analysis

re4uires analysis of total sales and profits contributed byeach item in the line. Product line strategies involve

decision regarding ling length line moderni-ation line

featuring.


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6 Product line length" It includes total items in a product

line. Product lines tend to lengthen over time. It involves

line expansion and contraction.

a& 1ine e(pansion : +ew items are added in the product

line. wo method are followed for this purpose.

i& 1ine stretching %rading up means adding high price

items and rading down means adding a low price items&ii& 1ine filling: ;ore items are added within the current

price range to discourage competition or to make profit.

b&1ine contraction %drop out of any loss item&

= Product 1ine moderni*ation" It is done by thebusinessman as per changing environment.

6 1ine 3eaturing %set high and low price items&


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Trading up:

Adding higher price item It means adding a higher

price product to a product line to attract the broadermarket which can generated better sales better profits

and improve goodwill to the company. he company

thinks that the prestige of a high price product will help

to improve the sale of the existing lower price products. Trading do!n:

It means adding lower price products to a particular

line. ith the hope that the people who cannot afford

high price original products will buy the new low priceproducts and they don)t have to shift to another

preferred products.


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Product Mi, decision:

It indicates a set of interrelated as well as diverse products offered by an

organi#ation. It is the set of all product lines and items that particular seller

offers for sale to buyers. It is the entire collection of product lines and items

offered by and organi#ation. It may have four dimensions like width or

breath length depth and consistency.

.Product width: It refers to the number of product lines. It can be modified

by adding or deleting a product line.

7.Product depth: It refers to the number of product items in a product line. Itcan be modified by adding or deleting a product items in a product line.

8.Product length: It refers to the total number of product items in the product

mix.

4.Product consistencyK It refers to how closely related the various product

lines are. 8onsistency can be increased by adding closely related productlines. It can be decreased by adding unrelated product lines.


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.or e,ample:

(iscuits /lectronic soap services

!lucose elevision 2etergent 5ospital

0alted /adio 8ake 0chool

8oconuts (ree#e Bathing 8ollege

8racker 8omputer !el 5otel

8ream elephone 0hampoo 8inema

1ach in various si#e and price

+epothene group of industries(iscuits $etergent Toothpaste Polythene Plastic wares Tea

8ream !oG!o 1verest 5igh 2ensity A aste

!lucose goGgo GGGGGG 6ow B ........

hin A detergent .......... .............. 8 ..........

8oGconut ........ ......... .............. 2 .......... ............... .......... ......... ........... 1 ...........

otal product product is J %L,LL,LJL&

0ertical is depth closely related items in a product line and width hori-ontal#


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In +epal some of the organi#ation adopting

product mix strategy includes !olchha

organi#ation 8haudhary


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Service product:

It may be defined as an any task performed by the

company another as the provision of any facility or as aproduct. 0ervices may or may not attach with the physical

product. (or example repair and maintenance medical

and health care banking insurance etc. If the main goal of

the company is to provide a physical product and servicesas the supplementary products. hen services become ust

provisions. (or example sale of a television set to a

customer and facility regarding warranty services

becomes the part of the television warranty services areprovided to the customer when the purchases a television

set. 5ere services become supplementary products.


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1ey :2 .eatures34 !atures of services

Intangibility:

0ervices are intangible and they can not be seen felt

heard smelled and tasted before they are ac4uired. he onlyinformation consumer has about the service are the promises of

satisfaction. Buyers look at tangible components such as people

place e4uipment and communication to reduce the uncertainty

factor to an acceptable level.

Inseparability

0ervices are normally inseparable from the service

provider. The place of production and consumption ofservices are notseparate. Because of the inseparability factor

the providerGcustomer interaction is very important in service

marketing.


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1ey :2 .eatures34 !atures of service products

Intangibility:

0ervices are intangible and they can not be seen felt

heard smelled and tasted before they are ac4uired. he onlyinformation consumer has about the service are the promises of

satisfaction. Buyers look at tangible components such as people

place e4uipment and communication to reduce the uncertainty

factor to an acceptable level.

Inseparability

0ervices are normally inseparable from the service

provider. The place of production and consumption ofservices are notseparate. Because of the inseparability factor

the providerGcustomer interaction is very important in service

marketing.


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Perish ability"

0ervices are produced and consumed at the same time.

0ervices can not be stored for future use. 0ome services

providers such as telephone companies airlines hotels vary

their prices according to time or seasons in order to shift the

demand from peak to off peak periods.

9ariability

0ervices provided by different individuals and organi#ations

widely differ in price and 4uality. he price and 4uality of

services are dependent on who provides the services how

they are provided and and where they are providedM 0ome

services providers give at home services to consumers for

higher services.


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/ccording to Philip 0otler C A service is any act ofperformance that one party can offer to another that is

essentially intangible and does not result in the

ownership of anything. Its production may or may notbe tied to a physical product.$

1ature:

. 6ack of customer ownership

,. People based

H. 2ifficult preGpurchase customer evaluation

. ime and place factor

(inancial services tourism services transport services

education service and communication services has

been remarkable.


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/ature of service marketing:

. 6ack of customer ownership

,. 8ustomer involvement in the production

process

H. People based

. 2ifficult preGpurchase customer service

J. ime and place factor

- f i


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-ypes of services

. People based and e4uipment based services

,. Personnel and business servicesH. Presence and absence of the buyers

. (or profit and non profit services


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Service Marketing Strategies:

;arketing strategy for services is not very different from

marketing strategy for goods. 0ervice marketing also operates

under the same environmental variables as marketing forgoods. 0ervice marketing also involves the location of target

markets through market segmentation strategy. It re4uires the

assistance of marketing research activities to plan the service

marketing strategy. 0ervice is developed and planned insimilar manner as goods. 0ervice marketing is also based on

the traditional strategies built over product place price and

promotion.

In service marketing people are the critical variable asmost services are provided through human resources.

herefore the selection training and motivation of employees

are the important activities in service marketing.


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. :elationship strategies:

. n ser"ice mar!eting there are three

ma.or parties in"ol"ed li!e thecompany# customers# andemployees%


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Eternal /ar!eting

nternal mar!eting

nteracti"e mar!eting


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0% P; related strategies:

Product: he service product is the main offer by the

service producer. 0ervice may be different high 4uality or

low 4uality. 5ere post sales services are entertained.

Price: Pricing of services need to be based on the

perceived delivery value and perceive duality of the

services.

Promotion: In this mix the role of personal selling an

direct marketing has become highly relevant in marketing

of services

People Physical evidence

Process % service differentiation etc &

8 & i P fi +h i


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8. &ervice < Profit +hain:


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. Internal service 4uality: rained employed

and high 4uality of work environment etc.

,. 0atisfied and productive employees:motivated loyal and hard working employees

H. !reater service value:

. 0atisfied and loyal customers

J. 5ealthy profit and growth


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5# Service differentiation

;ost services are intangible and customers can not easily

udge the 4uality of service until they buy and use the service.

A service market also faces strong challenge to differentiate

their services from competitor)s services. 8ustomers also find

it very difficult to differentiate the services offered by various

organi#ations. 0ervice differentiation is also achieved through

a difference of service delivery methodology or process.0ervice provider can adopt a variety of delivery processes and

charge different prices for its services. (or example restaurant

may offer 8hinese Indian or +epalese food. 2ifferentiation

implemented over the delivery process can contribute to buildand image for the service organi#ation. he image can also be

used to communicate the 4uality of service to customers.


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&ervice =uality:

It is the key element of customer

satisfaction and relationship. 1ach and everyconsumer evaluate the service 4uality through

three important element of service marketing

as follows:.


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&ervice productivity:

0ervice firms have maor problems in enhancing their

productivity due to the involvement of people who are

influenced by the human elements of tiredness moods leavemotivations and many others. ;any service firms are trying

different strategies to increase their productivity levels. hich are

given below.

. Automation% A; ABB0 etc &7. Assembly lines: 0ome food chains like ;c2onald and 7(8

have adopted the assembly line approach for food production to

enhance the productivity.

8. :eduction to service quality: government hospitals have

increased the service productivity of their doctors by shortening

the time allocated for a patientFs check up and prescription.

4. Atmospherics% color furnishing ;usic * etc &

P d t S i i ! l


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Products Scenario in !epal:

In +epal by the term product most people think about a

visible or tangible product. People are still less conscious

about the services. ;ost marketers are unaware about theproduct life cycle so they do not analy#e product life cycle

while making product related decisions. hey usually follow

imitative product strategies and don)t attempt for creating

innovative product. /ecently both consumers and marketershave become more conscious about branding and product

positioning. In +epal both product line and product line and

product mix strategies are popular among the business

communities. 6ike branding and product positioningpackaging and labeling are also popular in +epal.

Product is considered as the heart of


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Product is considered as the heart of

marketing mi,6 it has greater role in

!epalese market# (ut awareness among the

people regarding service product is lacking

in recent year too# Some of the service

organi-ations have tried to attract the

attention of the people by communicatingthat the product also meant for places6 ideas

and service#

I + l d d i h d


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In +epal goods dominate the product concept.

0ervices are getting important as products. he

concept of organi#ation as a product has been

largely lacking. /ecently !olchha organi#ation has

launched image building efforts through 5ulas

brand. he consumer products dominate +epalese

marketing especially the convenience and shoppingproducts. +epalese organi#ations lack research and

development base. Product modifications are

increasing. Product imitations dominate new product

development. (or example Podre steel products arecopy of !odre etc. he new product development

process is not systematic

t k ti b f i li ti i ll l ki h


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est marketing before commerciali#ation is generally lacking. he

failure rate of new products in +epal is high. he product lines are

expanding in +epal. Big houses like oyti 8olchha and 8haudhary

!roups are constantly adding new lines 8haudhary groups have added

health education and energy lines. 0o product line strategies are not

well planned. 6ine featuring is not emphasi#ed. 0ervice marketing is in

the initial stage. Although star hotels banking sectors in +epal have

been concerned about people and physical environment variables.

;ost manufactured products are branded in +epal. ;ost brands in

+epal are individual brands. (amily brands are catching up. +epalese

marketers have started giving attention to packaging. Imitations of

Indian or 8hinese packages are popular in the market. Plastics

dominate the packaging material especially polythene bags for

consumers to carry products. hey have created serious environmentalproblems. +epalese marketers have been least concerned about

labeling. he implementation of consumer protection Act since April

EE@ has prescribed strict labeling re4uirements.

Product strategies in /epal


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Product strategies in /epal

6arge number of companies still practice the product and selling concept.

;ultinational companies focused in ;arketing concept.

. /ew product development"

. *ery low priority. 6ow budget for research and development

. (oreign licensing and franchising

. (ocused in foreign collaboration.

,.Product life cycle:

. 6ow awareness in product life cycle

H.Product positioning"

. It is weakest area in +epal. ;ost are not aware.

. ;arketers would like to promote for unimportant attributes.

.randing:

. It has become very popular activity in +epal

. Branding has started in farm products like rice wheat cooking oil and pulses.

. 6icenced brand are the most selling brands like cocaGcola Pepsi etc.

0uccessful brands are /ara +anglo 7(8+anglo +epal dairy 0urya etc


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g g p y y

!rowing tendency to use family name like !olchha 5ulas chaudhary etc.

5.Packaging:

+epalese products are found to be ade4uately packaged.

;anufactures have learnt to develop good package from 8hinese hai ;alaysianIndian products.

Paper ;etal and glass are used for packaging.

he use of color on the packages in gradually improving over the years although red

is still found to be the dominant color.

Package designer still donFt have good knowledge.N. 1abeling:

It is mandatory in +epal but not well practiced.

;anufacturers often donFt provide full information on the label as per re4uired of

law.

?.Product line e(tension: 0uccessful companies undertake very rapid line extension in +epal.

8are less line extension

Product lines are extended without market assessment.

Important =uestions


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Important =uestions

. 2efine ProductM 1xplain its classificationM

,. hat is consumer productM 1xplain the characteristics and types

of consumer shopping products.H. 5ow are industrial products classifiedM 2escribe the

characteristics and marketing considerations of materials and

parts.

. 2efine product life cycle with figureMJ. 1xplain the concept and issues related to total 4uality marketing.

N. rite a short note:

. 0ervice marketing

.

Product mix and line. 6abeling and packaging

. /easons for not branding

Unit 5 Product .pptx

Documents

Transcript of Unit 5 Product .pptx