marketing management-product management

Marketing mix and product management.At the end of this module the learning

actuates are.1. What is a product?2. Various levels of product.3. How products are classified?4. Differentiation5. Product and brand relationships6. Packaging

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What is a Product?

A product is anything that can be offered to a market to satisfy a want or need, including physical goods,

services, experiences, events, persons, places, properties,

organizations, information, and ideas.

Components of the Market Offering

Attractiveness of the market

offering

Value-based prices

Product features and quality

Services mix and quality

Five Product Levels

Marketing mix and product management.

1. Core product - Most fundamental benefit customer is

buying.- Heart of the system.

Refrigerator - Basic purpose.

Preservation.- To preserve you need a compressor and

cooling system.- This is core.

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2. Basic product - Do you buy compressor?- You buy a basic product?- Formal

Refrigerator - Compressor is mounted on a

body /cabinet.- There is a door, shelves, trays.- This is basic product.

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EXPECTED PRODUCT - A set of attributes and conditions customers

expect. This depends on the chosen target audience.

- This is expected from a marketer.Refrigerator

- Freezer.- Bulb.- Thermostat.- Quiet not noisy.- Different types of shelves.- Antirust system.This is expected product.

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Marketing mix and product management.AUGMENTED PRODUCT

- Prepare a product that exceeds customer expectation. Is the reason to buy.

- Add further attributes- Each attribute adds cost - Will customer pay enough to cover the

extra cost?Refrigerators

- Easy financing scheme- Four year warranty on compressor- Free rice – cooker with every refrigerator

purchased.9


POTENTIAL PRODUCT - Companies search for new ways to

satisfy customers and distinguish their offer.

Refrigerator - Water dispenser – on the door

Prevent frequent opening of doors.

Faster cooling.

PRODUCT 11

Marketing mix and product management.WHAT DO WE OBSERVE?

- Most competition at augmentation level.

- Constant innovation.- Understand how customers use

their product.- New features add to the cost.- Marketers have to find out that

whether customers are willing to pay extra cost.


REFRIGERATORS.1. Whirlpool

• Quick lce making 2. Samsung

• Super x – flowUniform cooling.

3. LG • Nutritional value maintained.

4. ALLWYN• Efficient compressor.

5. KELVINATOR • Coolest.

The Wedding Market is a MetaMarket

Product Classification Schemes

Durability

Use

Tangibility

Durability and Tangibility

Nondurablegoods

ServicesDurablegoods


A. Durability & Tangibility1. Non-durable goods

- Consumed in one or few uses- Consumed quickly- Frequent purchase- Need to make them available in many

locations- Heavy promotion- Induce trial

ExampleCoke, Modern bread, Lux Soap, Mother Diary Milk


2. Durable goods- Used many times- More personal selling/service- Seller’s assurance about product

longevityExample

- Refrigerators- Mixer- Car

Higher priced than non-durable Consumer involvement is high as they

are high priced


3. Services- Intangible- Inseparable- Variable- Perishable

Example- Beauty parlour- Education Services- A Surgery- Listening to concert- Airlines


Therefore Products which are predominantly

tangible are called goods Products, which are predominantly

intangible, are called services.

Consumer Goods Classification

Convenience

Unsought

Shopping

Specialty

Industrial Goods Classification

Materials and parts

Supplies/ business services

Capital items


B. Consumer – Goods classificationBased on shopping habits

1. Convenience goodsGoods purchased

- Frequently- Immediately- Minimum effort

Example- Newspapers- Bread- Milk

Distributed at shops very near to households


2. Shopping goods- Goods that the customer in the

process of selection and purchase - Characteristically compares on such

basis as suitability, quality, price and style

Examples- Furniture- Clothing- Appliances


3. Speciality goods- Unique characteristics- Unique brand values- Buyers willing to make extra efforts

Example- House- Jewellery

Very few outlets, exclusive- Cars


4. Unsought goods- Goods the consumer does not know

about or does not normally think of buying

- Consumers made aware through promotional efforts of the firm.

Examples- Life insurance- Security equipments- Fire extinguisher


PRODUCT MIX- Set of all products and items that a particular

seller offers for saleExample:BPL

Consumer products- TVs, Washing Machine

Cellular Services- Mobile operations in Mumbai

Telecom- Instruments

PRODUCT 28

PRODUCT 29


Product Mix-concepts1. Width

- How many different product lines are carried by the organization

2. Length Total number of items in the mix

3. Depth

How many variants are offered of each product in the line

PRODUCT 31

HUL

PRODUCT 32

PRODUCT 33

PRODUCT 34


4. ConsistencyHow closely related the various product lines are in end use, production requirements, distribution channels or some other way.

Proctor and Gamble- Very consistent- Why- Products are available through the same

distribution channels


GE• Very inconsistent• Are Refrigerators, Aircraft engines and

Electricity equipment available from same places

• No ?• Refrigerators

- Shops• Aircraft Engine’s

- Direct

Hindustan Lever Limited Product Mix : Width = 4 Length = 13; Total Depth = 76

Average Depth = 76 /13=5.84

Soap (Length = 5)

Detergent (Length = 4)

Shampoo (Length = 2)

Toothpaste (Length = 2)

Lifebuoy (D = 8) Lux (D =6)

Dove (D = 2)Breeze (D = 12)

Pears (D = 2)

Wheel (D = 4) Rin (D = 4)

Surf (D =6)

Surf Excel (D = 2)

Clinic (D =8Sun-Silk (D = 12)

Close-Up

(D = 4)

(Pepsodent (D = 6)

T Depth: 30

T Depth: 16

T Depth: 20

T Depth: 10

Av Depth: 6

Av Depth: 4 Av Depth: 10

Av Depth: 5

PRODUCT 37

Product Differentiation

Product form Features Customization Performance Conformance Durability Reliability Repairability Style

http://www.lego.com/

Service Differentiation

Ordering ease Delivery Installation Customer training Customer

consulting Maintenance and

repair Returns

IHCL

operates in the luxury, upper upscale, upscale and value segments of the market through the following:

Taj is the flagship brand for the world’s most discerning travelers seeking authentic experiences in luxury. Besides luxurious living and fine dining, Taj Hotels also promise a whole new experience of tranquillity and total ‘wellness’ through Jiva Spas, a unique concept that brings together the wisdom and heritage of the Asian and Indian philosophy of wellness and well-being.

Taj Safaris is India's first and only wildlife lodges circuit that allows travelers to experience the unparalleled beauty of the Indian jungle amidst luxurious surroundings

Vivanta by Taj provides the new generation of travelers a contemporary and creative hospitality experience that matches their work-hard, play-hard lifestyles.

The Gateway Hotel chain is a pan-India network of hotels and resorts that offers business and leisure travelers a contemporary hotel experience.

Ginger is IHCL’s revolutionary concept in hospitality for the value segment.

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Taj Trade and Transport operates the chain of Taj Salon and Taj Khazana lifestyle boutiques across selected properties of the Taj group. Taj operated salons are currently operating at 12 locations in the group.

PRODUCT 43

Maintenance and Repair

The Product Hierarchy

Need family

Product family

Product class

Product line

Product type

Item

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7-Levels of Product Hierarchy Product need—to satisfy a need e.g. feet

protection Product class—a family of products having

similar function e.g. all shoes Product line—a group of products with closely

related functions e.g. sports shoes Product type—products within a line having

similar form e.g. basket-ball shoes Brand—a name representing a product or line

e.g. Nike Item (Stock Keeping Unit)—a unit item e.g.

one pair of Nike basket-ball shoe

Line Stretching

Down-Market Stretch : Surf excel- wheel, Lo’real- Garnier, Taj-Ginger

Up-Market Stretch: Toyota's Lexus, Nissan's Infiniti, and Honda's Acura

Two-Way Stretch

Line Filling & Pruning

Product line filling is the addition of further items to the current line of products that a company is dealing in. Eg.Maruti Suzuki had launched Alto in the year 2000 which was a product between two other models of Maruti- Maruti 800 and Maruti Zen. Basically , it was an effort on part of the company to fill the gap that existed in the market segment by introducing this new model ALTO .

On the other hand, product line pruning is the removal of the unprofitable products from the product line. Eg. Toyota Kirloskar phasing out their model Qualis, when it was not adding any value to the product line as such.

Co-branding

Ingredient BrandingRevotron is the new hope of Tata Motors. Tata Motors which once was the number 2 in the Indian car market, is now finding it difficult to be in the top 5 thanks to the nagging quality issues coupled with a negative brand perception. This brand is another example of ingredient branding.

The 1.2 Ltr engine is being promoted heavily by Tata Motors ahead of the launch of the two major new products - Tata Bolt and Zest. The Revotron brand is endorsed by the Indian F1 Racing star Narain Karthikeyan.

The USP of the Revotron engine is the 3 driving modes which is usually seen in high end cars. There is a city mode, Eco mode and a Sports mode. For a value-driven brand like Tata Motors, this proposition is a very powerful differentiation.Platforms and not products are now important to a company's success. For automakers, engines offer the platforms on which many products can be made. Honda has recently demonstrated the power of platform with the diesel IDtec engine.Tata Motors hope that the better engineered Revotron would help build a better image for the cars produced under it.

What is the Fifth P?

Packaging, sometimes called the fifth P, is all the activities of

designing and producing the container for a product.

Factors Contributing to the Emphasis on Packaging

Self-service

Consumer affluence

Company/brand image

Innovation opportunity

Innovations in Packaging

Packaging Objectives

Identify the brand Convey descriptive and persuasive

information Facilitate product transportation and

protection Assist at-home storage Aid product consumption

Functions of Labels

Identifies

Grades

Describes

Promotes

Warranties and Guarantees

marketing management-product management

Economy & Finance