this is ppt presentation on product management . it covers features of product ,product levels ,product classification ,product mix and product life cycle stratagies
2. What is a product ?
A product is anything that can offered to
market for attention, acquisition ,use,
consumption that might satisfy a want or
need.
4. Features of product
tangibility
Associated
attributes
Intangible
Features of attributes
product
Customer
Exchange
value satisfaction
5. Levels of product
Unexpected features Potential product
Luxury features Augmented product
Expected features Expected product
Basic features
Generic product
Basic product Core benefit
10. Shopping Products
Shopping goods - consumers make a
considerable effort to evaluate …
Consumers make product comparison(s),
They seek information before purchase,
they are not impulsive
Moderate substitutions are made
Product’s last a considerable time
Monetary & social costs may be high
11. TV’s As a Shopping Product
(2007 ---- 1950’s)
Attribute-based Price-based
Plasma –LCD screen
LOW PRICE
WARRANTY
REMOTE CONTROL
PICTURE SIZE
Homogeneous products select on price Heterogeneous products
select on benefits
12. Business products
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
19. Product Mix
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
22. CONCEPTUALIZATION OF
PRODUCT MIX
Home WIDTH
Depot,
Lowe’s
Tata Motors Tata Steel Tata Tea Tata DTH
D
GEMINI
BUS BARS
TEA
E
# of lines = 4 P
LORRY PLATES
# of items = 12 T
CARS H
A wide product mix facilitates one stop shopping
23. PRODUCT MIX EXAMPLE
Width (# of product lines)
HAIR SALTY DENTAL SOFT
CARE SNACKS CARE DRINKS
Shampoo Chips Tooth Brush Cola
Conditione Nuts Tooth Paste Ginger Ale
r
Dental Floss
Crackers Root Beer
Hair Spray
24. Factors influencing change in product mix
Changes in market demand
Cost of production
Quantity of production
Changes in company desire
Competitors actions and reactions
25. Product mix stratagies
Expansion of product mix
Contracting or dropping the product mix
Alteration of existing product s
Trading up/trading down stratagies
27. Objectives of 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
28. New product planning
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
29.
30. Importance of new product
To meet consumer needs and wants
To meet competition
To increase profits
To avoid threats from substitutes
31. New Product Development Process
Step 1. Idea Generation
Systematic Search for New Product
Ideas
Internal sources
Customers
Competitors
Distributors
Suppliers
32. Step 2. Idea Screening
Process to spot good ideas and drop poor
ones
Technically feasibility
Financially viable
33. Step 3. Concept Development & Testing
1. Develop Product Ideas into
Alternative
Product Concepts
2. Concept Testing - Test the
Product Concepts with Groups
of Target Customers
3. Choose the Best One
34. Step 4. Marketing Strategy Development
Part One - Overall:
Target Market
Planned Product Positioning
Sales & Profit Goals
Market Share
Part Two - Short-Term:
Product’s Planned Price
Distribution
Marketing Budget
Part Three - Long-Term:
Sales & Profit Goals
Marketing Mix Strategy
35. Step 5. Business Analysis
Step 6. Product Development
Business 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
36. Step 7. Test Marketing
Standard Controlled
Test Market Test Market
Full marketing campaign A few stores that have
in a small number of agreed to carry new
representative cities. products for a fee.
Simulated
Test Market
Test in a simulated
shopping environment
to a sample of
consumers.
38. Product Life Cycle
Sales and
Profits ($)
Sales
Profits
Time
Product Introduction Growth Maturity Decline
Develop-
ment
Losses/
Investments ($)
39. Introduction Stage of the PLC
Sales Low sales
Costs High cost per customer
Profits Negative
Create product awareness
Marketing Objectives and trial
Product Offer a basic product
Price Use cost-plus
Distribution Build selective distribution
Advertising Build product awareness among early
adopters and dealers
40. Growth Stage of the PLC
Sales Rapidly rising sales
Costs Average cost per customer
Profits Rising profits
Marketing Objectives Maximize market share
Offer product extensions, service,
Product warranty
Price Price to penetrate market
Distribution Build intensive distribution
Advertising Build awareness and interest in the
mass market
41. Maturity Stage of the PLC
Sales Peak sales
Costs Low cost per customer
Profits High profits
Marketing Objectives Maximize profit while defending
market share
Product Diversify brand and models
Price Price to match or best competitors
Distribution Build more intensive distribution
Advertising Stress brand differences and benefits
42. Decline Stage of the PLC
Sales Declining sales
Costs Low cost per customer
Profits Declining profits
Marketing Objectives Reduce expenditure and milk the brand
Product Phase out weak items
Price Cut price
Go selective: phase out unprofitable
Distribution outlets
Advertising Reduce to level needed to retain
hard-core loyal customers
43. Introduction Stage-Strategies
PRODUCT Offer a basic product
PRICE Cost +profit
SALES PROMOTION Heavy expenditure to create trails
Distribution Build selective distribution
Build product awareness among early
Advertising adopters and dealers
44. Growth Stage of the PLC
Offer product extensions, service,
Product warranty
Price penetrate Price
Distribution Build intensive distribution
Build awareness and interest in the
Advertising mass market
Sales promotion Consumer demo
45. Maturity Stage of the PLC
Product Diversify brand and models
Price Price to match or beat competitors
Distribution Build more intensive distribution
Advertising Stress brand differences and benefits
Sales promotion Encourage to brand switching
46. Decline Stage of the PLC
Product Phase out weak items
Price Cut price
Go selective: phase out unprofitable
Distribution outlets
Advertising Reduce to level needed to retain
hard-core loyal customers
Sales promotion Reduce to minimal level
47. Causes of New Product Failures
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