Product Management

1. Product Management PRODUCT

2. Marketing mix and product management. At the end of this module the learning actuates are. • What is a product? • Various levels of product. • How products are classified? • What is the concept of product life cycle? PRODUCT

3. Marketing mix and product management. Suggested readings. • 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 • Core product • Basic product • Expected product • Augmented product • Potential product PRODUCT

6. Marketing mix and product management. • 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. • Whirlpool • Quick lce making • Samsung • Super x – flow Uniform cooling. • LG • Nutritional value maintained. • ALLWYN • Efficient compressor. • KELVINATOR • Coolest. PRODUCT

13. Marketing mix and product management. PRODUCT CLASSIFICATION • 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. • Durability & Tangibility • 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 Example Coke, 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 • Car • Higher priced than non-durable • Consumer 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 classification Based on shopping habits • Convenience goods Goods 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 Nagar Customers 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 sale Example: 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 • Depth • How many variants are offered of each product in the line Proctor 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. Consistency How 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 •   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 • Introduction • Growth • Maturity • 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. • Introduction • Slow sales growth • Product introduced • Profits less or non-existent • Heavy expenses • Promotion • Distribution PRODUCT

30. Marketing mix and product management. • Growth • Rapid market acceptance • Substantial profit improvement • Maturity • Slowdown in sales growth • Achieved acceptance by most potential buyers • Increasing competition • Profits stabilize or decline • 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 categories • Shorter • Pioneer Newspaper • Dollops Ice-cream • Newspaper, ice-cream sales are rising • Pioneer & 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 . PRODUCT