PROD

UCT

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.

Product

Classifying

Products

• On the basis of Type of User

Consumer goods

Industrial/business goods

• On the basis of Degree of Tangibility

Non-Durable Goods

Durable Goods

Service

On the basis of Users

On the basis of Degree of

Tangibility

Product Line

Product Line

A product line is a group of those

products associated by functions, by

consumer group, by distribution

channel or by price range.WholeMilk

SkimMilk

2%Milk

Product Mix

The total group of products that an organization makes available to customers

A company’s product mix has certain:

Width:

How many different product lines the company carries?

Product line length:

Total no. of brands within special product line.

Product Mix

Product Line Stretching

Increasing the number

of products within an

existing product range with similar

products that have additional or

different features.

Product Line Stretching

Types of Line Stretching

Down-Market-Stretching

Moving from upper market to segment below.

Reasons :

• Growth is slow at higher end.

• Initial highly priced product stability.

• Quality image & stretch decreases brings in volume.

• To counter competition.

Toyota

Down-Market-Stretching

Upward Stretch:

Moving from low priced product to upper end/ premium products.

Reasons :

• Higher margins at premium Product levels.

• Increased growth rate.

• Positioning as full line manufacturers.

Types of Line Stretching

Line Filling

A business strategy that involves increasing the

number of products in an existing product to

take advantage of marketplace gaps and

reduce competition.

Line Filling

BRAND

Band is a “Name, term, sign, symbol or design or a

combination of them intended to identify the goods

and services of one seller or group of seller and to

differentiate them from those of other sellers.”

- American Marketing Association (AMA)

New Product

New products are goods and services that differ

significantly in their characteristics or intended

uses from products previously produced by the

firm.

What it takes to launch one commercially

successful new product?

Reasons for New Product Failures

• Too Little Market Attractiveness

• Poor Execution of the Marketing Mix:

Name, Price, Promotion, and Distribution

• Insignificant Point of Difference

• No Access to Buyers

• Bad Timing

• Poor Product Quality

Stages in the New Development Process

THE NEW-PRODUCT PROCESS-

Idea Generation

Customer and Supplier Suggestions

Employee and Co-Worker Suggestions

Research and Development Breakthroughs

Competitive Products

THE NEW-PRODUCT PROCESS-

Screening and Evaluation

The first filter in the product

development process, which

eliminates ideas that are

inconsistent with the organization’s

new-product strategy or are

inappropriate for some other reason.

THE NEW-PRODUCT PROCESS-

Business Analysis

• if positive, build a prototype

Considerations in

Business Analysis Stage

Demand

Cost

Sales

Profitability

THE NEW-PRODUCT PROCESS-

Development

“Failure Analysis”

Marketing strategy

Packaging, branding, labeling

Manufacturing feasibility

Final government approvals if

needed

THE NEW-PRODUCT PROCESS-

Test Marketing

The limited introduction of a product

and a marketing program to determine

the reactions of potential customers

in a market situation.

THE NEW-PRODUCT PROCESS-

Commercialization

Most expensive stage

• It is The process of introducing a new product into the market

• It may involve heavy promotion and filling the distribution networks with the product.

• Speed as a Factor in New-Product Success

QUIZEE

1. PANTENE, GILLETTE, ORAL-B, VICKS ARE PRODUCT OF WHICH COMPANY

1. Uniliver

2. P&G

3. Dabur Nepal

4. PepsiCo

5. Parle

2. You come first

1. Buddha Airlines

2. Tara Airlines

3. cosmic air

4. Guna air

5. Yeti Airlines

3. To which company does the logo belongs to….

1. WAL MART2. PepsiCo 3. PAYPAL4. AT&T5. KFC

4. Parash khadka, Bike

1. Bajaj

2. Honda

3. Hero

4. Kawasaki

5.Yahama

5. IDENTIFY THE PICTURE

1. Ursul M. Burns (Xerox)

2. Indra Nooyi (PepsiCo)

3. Meg Whitman (Hewleet packard)

6. Who is the Founder of Chaudhary Group….

1. Lunkaran Das Chaudhary

2. Binod Chaudhary

3. Basanta Chaudhary

4. Nirvan Chaudhary

7. Fair & lovely is the product of which company

1. Procter & Gamble

2. Unilever

3. Emami

4. Godrej

1.NIKE 2.ADDIDAS3.PUMA4.KAPPA

8. TO WHICH COMPANY DOES THE LOGO BELONGS TO…

9. NISHA ADHIKARI, DAYAHANG RAI & PAINTS…

1. Pashupati Paints

2. Asian Paints

3. G7 Paints

4. Reliance Paints

10. Tasty-Tasty biscuit is a product of….

1. kwality diet

2. Goodlife Biscuit

3. Pashupati Biscuit