1 / 38

Setting product strategy

Setting product strategy. Product characteristics and Classifications. Product Levels: Marketers need to address the 5 product levels. The 5 levels constitute customer –value hierarchy. Product classification. Products classification on the basis of. Consumer Use Convenience goods

johnnyamin
Download Presentation

Setting product strategy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Setting product strategy

  2. Product characteristics and Classifications • Product Levels: Marketers need to address the 5 product levels. • The 5 levels constitute customer –value hierarchy

  3. Product classification • Products classification on the basis of ... • Consumer Use • Convenience goods • Shopping goods • Speciality goods • Unsought goods • Non durable goods • Durable goods • Services • Industrial Use • Materials and parts • Capital Items • Supplies and business service Durability & Tangibility Usage (Consumer or Industrial)

  4. Identify .... Based on durability & Tangibility

  5. Identify....

  6. Identify...

  7. Consumer use - Convenience Goods • Staples • Impulse • Emergency

  8. Consumer use- Shopping Goods • Homogeneous shopping goods • Heterogeneous shopping goods

  9. Consumer Use- Speciality goods • It has unique characteristics or brand identification.

  10. Consumer use-Unsought goods • Consumers does not know about the product.

  11. Product & Services differentiation • Product Differentiation: • Form • Features • Customization • Performance quality • Conformance Quality • Durability • Reliability • Reparability • Style

  12. Cont... • Service Differentiation: • Ordering Ease • Delivery • Installation • Customer Training Customer consulting • Maintenance and Repair • Returns

  13. Product & Brand Relationship • Product Hierarchy • Need family • Product family • Product class • Product line • Product type • Item

  14. Cont... • Product System & Mixes: • Product System- It is a group of diverse but related items that function in a compatible manner. • Product Mixes- It is set of all products and items a particular sellers offers for sale.

  15. Cont... • Identify...

  16. Cont... • Identify....

  17. Cont.... • Product mix - Depth Width and length

  18. Cont... • Product mix width: How many different product mix line the company carries. • Product length: Total number of items in a mix • Product mix depth: How many variant are offered of each product in the line. • Product mix consistency: How closely the various product lines are related in end use.

  19. Cont... • Product mix dimensions gives ......???????? • Company can add new product line(widening product mix) • It can lengthen each product line • It can add more product variant • It can pursue more product line consistency. • Eg: wipro.... • Assignment 3

  20. Cont... • Product line analysis.... • Sales & Profit • Market profile

  21. Cont... • Sales & Profit

  22. Cont... • Market profile

  23. Cont.... • Product line length: Objectives of product line length • To induce up-selling • To facilitate cross-selling • To protects against economic ups & downs

  24. Cont... • A company can lengthens its product line in two ways: • Line stretching • Down –Market stretch • Up-Market stretch • Two way stretch • Line filling • A firm can also lengthen its product line by adding more items within the present range

  25. Packaging • Its includes all activities of designing and producing the container for a product. • Three layers of packaging • Primary packaging • Secondary packaging • Shipping packaging

  26. Identify....

  27. Cont.... • Various factors of packaging as a marketing tool: • SELF SERVICE • CONSUMER AFFLUENCE • COMPANY AND BRAND IMAGE • INNOVATION OPPORTUNITY

  28. CONT... • Objectives of packaging: • Identify the brand • Convey descriptive and persuasive information • Facilitate product transportation and protection • Assist at-home storage • Aid product consumption

  29. Labelling, Design & Delivery • Label can be a simple attached tag or an elaborately designed graphic that is part of the package. • Functions..... • Identifies the product or brand • To grade the product • Describe the product • Promote product • Design – How a product looks and functions to a customer. • Delivery - How well the product or service is brought to the customer Product Strategy

  30. Cont...

  31. Warranties & Guarantees • Warranties are formal statements of expected product performance by manufacturer. • Guarantees- • General or specific guarantees

  32. Pricing • A changing pricing environment: • By this buyer can ... • Get instance price comparisons from thousands of vendors • Name their price and have it met • Get products free • Seller can • Monitor customer behaviour and tailor offers to individuals • Give certain customer access to special price • Both buyers & sellers can

  33. Cont... • How companies price: • Consumer Psychology and pricing • Reference prices • Price –Quality inferences • Price Endings

  34. Cont... • Reference price: • Fair price • Typical price • Last price paid • Upper –Bound price • Lower –Bound price • Historical competitors price • Expected future price • Usual Discounted price

  35. Cont... • Price – Quality price

  36. Cont... • Price Ending

  37. Product Mix Pricing • Product Line Pricing • Optional-feature Pricing • Captive-product Pricing • Two-part Pricing • By-product Pricing • Product-bundling Pricing

  38. Reference: • Philip Kotler –Marketing Management-A south Asian Perspective

More Related