managing the product. 2 4 ps product price place promotion product : anything that can be...
TRANSCRIPT
MANAGING THE PRODUCT
2
4 Ps
PRODUCT PRICE PLACE PROMOTION
PRODUCT : Anything that can be offered to a market to satisfy a need and want
3
PRODUCT & ITS LEVELS
CORE BENEFIT : The fundamental service customer is buying
BASIC PRODUCT : To turn core benefit into basic product
EXPECTED PRODUCT : Set of attributes & condition buyer expects
AUGMENTED PRODUCT : Exceeds customer expectations
POTENTIAL PRODUCT : Future augmentation & transformation of product
4
HOTEL INDUSTRY
CORE BENEFIT REST & SLEEP
BASIC PRODUCT BED, BATHROOM,
TOWELS EXPECTED PRODUCT
CLEANLINESS, AMBIENCE
AUGMENTED PRODUCT FRESH FLOWERS, FINE
DINING, ROOM SERVICE
POTENTIAL PRODUCT SUITES
5
PRODUCT HIERARCHY
Need family: Core need underlines existence of pdt.
Product family: All pdt. Classes satisfying core need.
Product class: Grp.of pdts within family having certain functional coherence
Product line: Pdts. Closely related as they perform similar functions
Product type: Grp. of items within pdt. Line that share several forms of product.
Brand: Name given to identify the source
6
PRODUCT CLASSIFICATION
Durability & Tangibility Non durable: consumed in one or few uses Durable: tangible goods survive for long Services: Intangible, inseparable, perishable pdt.
Consumer Goods Classification Convenience Goods: purchases frequently, immediately, min.
effort Staples, impulse goods, emergency goods
Shopping Goods: suitability, quality, price, style furniture, clothing
Specialty Goods: unique characteristics or brand specific. cars, cameras
Unsought Goods: smoke detectors
7
INDUSTRIAL GOODS
Materials & Parts Raw Materials Manufactured materials
Capital Items Installations Eqipment
Supplies & Business Services Operating Supplies Maintenance & repair services Business Advisory Services
8
PRODUCT MIX
WIDTH Different product line
LENGTH Total no. of items in the mix
DEPTH Variants offered of each product in the line
CONSISTENCY How closely related are product lines
9
PRODUCT LINE DECISIONS
PRODUCT LINE LENGTH
LONGER LINES : Company seeking high
market share & growth SHORT LINES : Company emphasizes on
profitability
10
LINE STRETCHING
DOWN MARKET STRETCH Strong growth opportunities : Wal-Mart Tie up with lower end competitors Stagnation of middle market
UP MARKET STRETCH Growth, margins Full line manufacturers
TWO WAY STRETCH
MERCEDES
TOYOTA
MARRIOTT HOTEL
11
LINE FILLING
ADDING MORE ITEMS
Incremental profits Satisfied dealers Utilization of excess capacity Leading Full Line Company
12
BRANDING
ATTRIBUTES BENEFITS VALUES CULTURE PERSONALITY
MERCEDES BENZ
13
BRAND EQUITY
BRAND RECOGNITION PERCEIVED QUALITY ASSOCIATIONS PATENTS,TRADEMARKS,CRM
ADVANTAGES REDUCE MARKETING COST POWER TO BARGAIN WITH DISTRIBUTOR CHARGE HIGH PRICE LAUNCH EXTENSIONS DEFEND COMPETITION
14
BRANDING CHALLENGES
BRANDING DECISIONS
BRAND SPONSOR
BRAND NAME BRAND STRATEGY
BRAND MANUFACTURE BRAND
INDIVIDUAL NAME LINE EXTENSION
NO BRAND DISTRIBUTOR BRAND
BLANKET FAMILY BRAND EXTENSION
SEPARATE FAMILY MULTI BRANDS
CO.INDIVIDUAL NAME
NEW BRANDS,CO BRANDS
15
BRANDING DECISION
ADVANTAGES
Easy To Process Orders
Legal Protection To Features
Attract Loyal Customers
Segment Markets
Strong Corporate Image
16
BRAND SPONSOR
Why do Middle men bother to sponsor ?
High profitability Low Cost No differentiation between National & Store brands
But National brands should invest in R&D, New
brands, line extension, quality & partnership with
distributors.
17
BRAND NAME DECISION
INDIVIDUAL NAME - HLL
BLANKET FAMILY- AMUL & JONHSON
SEPARATE FAMILY- DIFFERENT GRADES OF FOOD ITEMS
COMPANY INDIVIDUAL NAME - PHILIPS, CADBURY
QUALITIES PRODUCT BENEFIT QUALITY EASY TO PRONOUNCE DISTINCTIVE NO POOR MEANING
18
BRAND STRATEGY
LINE EXTENSION - DETTOL & LUX
BRAND EXTENSION - HONDA
MULTIPLE BRANDS - HLL DETERGENTS
CO BRANDS - GE WITH HITACHI LIGHTS
NEW BRANDS
19
PACKAGING
Activities of designing & producing thecontainer for product
• Self Service:• Attract attention, Pdt features, Consumer confidence
• Consumer Affluence:• Convenience, Appearance, Prestige
• Company & brand image• Innovation opportunity
potent mktng. tool
20
LABELING
Simple tag attached to the product or elaborately designed graphic
Identifies product Grading Describe pdt:
who, where, when ,what it contains. how to use
Promotion
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