module i- introduction_product management

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MODULE I

Introduction


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Product A product is anything that can be offered to a market for

acquisition, use, or consumption that might satisfy need orwant.

Products that can be marketed are:

Physical Goods

er!ices

"#periences

"!ents

Persons

Places

Properties

$rgani%ations

Information & Ideas


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Product 'e!els

Potential Product

Augmented Product

"#pected Product

(asic Product

)ore (enefit

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Product )lassifications

Products are classified on the basis of +

maor characteristics:

*urability

-angibility

se /)onsumer0Industrial1

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*urability &-angibility

Products are classified into + groups:

2on3*urable Goods -angible goods, normally consumed in one or

few uses. e.g. oap, )old3drink

*urable Goods -angible goods that normally sur!i!e many

uses. e.g. 4efrigerators, )lothing

er!ices Intangible, inseparable, !ariable & perishable

products. e.g. haircut, legal ad!ice

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se /)onsumer0Industrial1 )onsumer Goods )lassification

)on!enience Goods

-hese consumers usually purchases frequently,

immediately & with a minimum of effort. ".g.

newspapers, soaps, chips -hey are further classified as:

a1 taples: Purchased on regular basis. ".g. toothpaste, chips

b1 Impulse Goods: Purchased without planning or search effort.

".g. candies, maga%inesc1 "mergency Goods:Purchased when the need is urgent. ".g.

umbrella in rainstorm

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hopping Goods

Goods which consumers compare on the basis of

suitability, quality, price & style. e.g. furniture,

clothing, electrical appliances

pecialty Goods

-hey ha!e unique characteristics or brand

identification for which buyers make special

purchasing effort. e.g. 5ercedes, photographic

equipments

nsought Goods

-hese consumers usually purchases frequently,immediately & with a minimum of effort

Industrial Goods )lassification

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Industrial Goods )lassification -hey are classified in terms of how they enter the

production process & their relati!e costliness

)lassification is of + types:

5aterial & Parts

/Petroleum, wheat, cotton, fish etc.1

)apital Items

/Installation like factories, offices or hea!y equipment

like lifts1

upplies & (usiness er!ices

/5aintenance & 4epair items1


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Product 5anagement Product 5anagement was created in the

67s at P&G for managing the business of a

specific product.

$!er the years, product managers /and

brand managers1 ha!e ser!ed as8president of the product8 in consumer

goods companies. -hen along came

technology.

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9unctions of Product 5anagement

elps in supporting the channel with

demos and product information

upporting de!elopers with user

requirements and proect scheduling, &

supporting marketing communications

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'imitations of Product 5anagement

2arrow focus on one product rather than

understanding customer needs

5ore ;centrali%ed structure< where product

manager is remo!ed from market

5ore focus on short3term marketing goals

with the help of sales promotion

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)hallenges of Product 5anagement

Internet 3 *ata "#plosion Increased focus on building brands

)hanges in balance of market power = from

the manufacturer to product to consumerbeing king

Increased focus on customer retention

programs and customer life3 time !alue Increased global competition

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)onflicts of Product 5anagement -he maor reasons that leads to conflicts in

product management are:

= 9ailure to understand Internet marketing

"n!ironment

= 9ailure to understand changing businessen!ironment leading to suggested changes in

marketing strategy

=9ailure to understand increased power of retailer i.e. different perspecti!es of manufacturers & retailers

4etailers more interested in category perspecti!e, than

a brand perspecti!e.

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module i- introduction_product management

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