product portfolio
DESCRIPTION
productTRANSCRIPT
PRODUCT 1
Product Management
PRODUCT 2
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. What is the concept of product life cycle?
PRODUCT 3
Marketing mix and product management.
Suggested readings.
1. Marketing management, Millennium edition by Kotler chapter10 and 13 .
PRODUCT 4
Marketing mix and product management.
What is product?
Product is anything that can be offered to a market to satisfy a want or need.
PRODUCT 5
Marketing mix and product management.
PRODUCT LEVELS
1. Core product
2. Basic product
3. Expected product
4. Augmented product
5. Potential product
PRODUCT 6
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.
PRODUCT 7
Marketing mix and product management.
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.
PRODUCT 8
Marketing mix and product management.
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.
PRODUCT 9
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.
PRODUCT 10
Marketing mix and product management.
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.
PRODUCT 12
Marketing mix and product management.
REFRIGERATORS.1. Whirlpool
• Quick lce making 2. Samsung
• Super x – flowUniform cooling.
3. LG • Nutritional value maintained.
4. ALLWYN• Efficient compressor.
5. KELVINATOR • Coolest.
PRODUCT 13
Marketing mix and product management.
PRODUCT CLASSIFICATION
A. Durability and tangibility- Nondurable goods.- Durable goods - Services.
B. Consumer –goods classification - Convenience good.- Shopping goods - Speciality goods - Unsought goods.
PRODUCT 14
Marketing mix and product management.
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
PRODUCT 15
Marketing mix and product management.
2. Durable goods- Used many times- More personal selling/service- Seller’s assurance about product longevity
Example- Refrigerators- Mixer- CarHigher priced than non-durableConsumer involvement is high as they are high priced
PRODUCT 16
Marketing mix and product management.
3. Services- Intangible- Inseparable- Variable- Perishable
Example- Beauty parlour- Education Services- A Surgery- Listening to concert- Airlines
PRODUCT 17
Marketing mix and product management.
Therefore
Products which are predominantly tangible are called goods
Products, which are predominantly intangible, are called services.
PRODUCT 18
Marketing mix and product management.
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
PRODUCT 19
Marketing mix and product management.
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
PRODUCT 20
Marketing mix and product management.
3. Speciality goods- Unique characteristics- Unique brand values- Buyers willing to make extra efforts
Example- Arrow shirts
Very few outlets, exclusive- Honda showrooms
One in Badarpur, Udyog NagarCustomers willing to travel that far to buy
their choice of goods
PRODUCT 21
Marketing mix and product management.
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- Fitness equipment
PRODUCT 22
Marketing mix and product management.
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 23
Marketing mix and product management.
Product Mix-concepts
1. Width- How many different product lines are
carried by the organization
P & G Five lines
- Detergents, Toothpaste, Bar soap, diapers, paper tissue
PRODUCT 24
Marketing mix and product management.
2. Length Total number of items in the mix Total items 25 Average length of a line is 25/5 = 5
3. Depth How many variants are offered of each
product in the lineProctor and Gamble
Crest Toothpaste- Comes in five sizes- Two formulations
Mint Regular
Total Depth = 5 * 2 = 10
PRODUCT 25
Marketing mix and product management.
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 channelsGE
- Products Refrigerators Aircraft Engine’s Electricity equipments
PRODUCT 26
Marketing mix and product management.
GE• Very inconsistent• Are Refrigerators, Aircraft engines and
Electricity equipment available from same places
• No ?• Refrigerators
- Shops• Aircraft Engine’s
- Direct
PRODUCT 27
Marketing mix and product management.
PRODUCT LIFE CYCLE
Four stages
1. Introduction
2. Growth
3. Maturity
4. Decline
PRODUCT 28
Marketing mix and product management.
PRODUCT LIFE CYCLE Products have limited life Products pass through distinct stages Each stage
- Different challenges- Different opportunities- Problems to the seller
Profits and sales vary in different stages Different strategies
- Marketing- Human resources- Purchasing
PRODUCT 29
Marketing mix and product management.
1. Introduction- Slow sales growth- Product introduced- Profits less or non-existent- Heavy expenses
Promotion
Distribution
PRODUCT 30
Marketing mix and product management.
2. Growth - Rapid market acceptance- Substantial profit improvement
3. Maturity- Slowdown in sales growth- Achieved acceptance by most potential buyers- Increasing competition - Profits stabilize or decline
4. Decline- Sales show decline- Profits also decline
PRODUCT 31
Marketing mix and product management.
Product life cycle- Product categories
Longest- Newspaper- Sugar- Ice-cream
- Branded categoriesShorter- Pioneer Newspaper- Dollops Ice-cream
Newspaper, ice-cream sales are risingPioneer & dollops sales have declined
PRODUCT 32
Marketing mix and product management.
Why four stages in Product lifecycle
Marketers deploy different marketing strategies in different stages of product life-cycle .