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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

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Setting product strategy

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  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

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