Description
This ppt is about product amnagement and it explain the product based on three characteristics durability, tangibility and consumer's use. It also explains the consumer adoption process.
PRODUCT MANAGEMENT
A product is anything that can be offered to a market to satisfy a need or want.
Core Benefit Basic Product Expected Product Augmented Product Potential Product
Product Levels
Categories of New Products
New-To-The-World New Product Lines
Six Categories of New Products
Product Line Additions Improvements/Revisions Repositioned Products Lower-Priced Products
Product Classifications
Products are classified on the basis of 3 major characteristics:
?Durability ?Tangibility ?Use (Consumer/Industrial)
Durability &Tangibility
Products are classified into 3 groups: i. Non-Durable Goods Tangible goods, normally consumed in one or few uses. e.g. Soap, Cold-drink i. Durable Goods Tangible goods that normally survive many uses. e.g. Refrigerators, Clothing i. Services Intangible, inseparable, variable & perishable products. e.g. haircut, legal advice
Use (Consumer/Industrial)
? ?
?
? a) b) c)
Consumer Goods Classification Convenience Goods These consumers usually purchases frequently, immediately & with a minimum of effort. E.g. newspapers, soaps, chips They are further classified as: Staples: Purchased on regular basis. E.g. toothpaste, chips Impulse Goods: Purchased without planning or search effort. E.g. candies, magazines Emergency Goods: Purchased when the need is urgent. E.g. umbrella in rainstorm
? Shopping Goods
Goods which consumers compare on the basis of suitability, quality, price & style. e.g. furniture, clothing, electrical appliances ? Specialty Goods They have unique characteristics or brand identification for which buyers make special purchasing effort. e.g. Mercedes, photographic equipments ? Unsought Goods These consumers usually purchases frequently, immediately & with a minimum of effort
Industrial Goods Classification
• They are classified in terms of how they enter the
production process & their relative costliness • Classification is of 3 types: ? Material & Parts (Petroleum, wheat, cotton, fish etc.) ? Capital Items (Installation like factories, offices or heavy equipments like lifts) ? Supplies & Business Services (Maintenance & Repair items)
THE CONSUMER-ADOPTION PROCESS
? Adoption is an individual’s decision to become a regular
user of a product
• Consumer becomes aware of innovation but lacks information about it
Interest
• Consumer is stimulated to seek information about the innovation
• Consumer considers whether to try innovation
Trial
• Consumer tries innovation to improve his or her estimated value
• Consumer decides to make full & regular use of innovation
Awareness
Evaluation
Adoption
ADAPTOR GROUPS
? Innovators
Technology enthusiasts, venturesome ? Early Adapters Opinion leaders, less price sensitive, willing to adopt good products, with good service support ? Early Majority Adopt new technology when benefits proven, comprise of mainstream market ? Late Majority Conservatives, averse to risks, technology shy, price sensitive ? Laggards Tradition-bound, resist innovation till last attempt
PRODUCT MIX & PRODUCT LINE
They both denote the range & variety of the products of a firm ? PRODUCT MIX ? Denotes complete set of all products offered for sale by company ? It is composed of several product lines ? PRODUCT LINE ? Group of closely related products with similar functions, sold to same customer groups, with similar price range & marketed through same channels
? Width of product Mix
Denotes the no. of product lines it carries
? Length of Product Line
It is decided by the no. of items/brands in the line
? Depth of Product Line
Denotes total no. of items under each brand in the line, in terms of variants, shades, models, pack sizes etc.
HUL PRODUCT MIX
PRODUCT MIX WIDTH
PRODUCT LINE-1
PRODUCT LINE-2
PRODUCT LINE-3
Bath Soaps
PRODUCT LINE LENGTH
Fabric Wash
Surf Wheel Ala Rin
Beverages
Bru Taaza Taj Mahal Lipton Broke Bond
Dove Liril Rexona Lifebuoy Pears Moti Breeze
BRAND
? It is a name, term, sign, symbol, or design, or a
combination of them, intended to identify the goods or services of one seller or group of sellers & to differentiate them from those of competitors
? Brand = Product + Package + Added Values
Added Values includes: Quality, Image, Price, Functions
BRAND CONVEYS
? Attributes
? Benefits
? Values ? Culture
? Personality
? User
BRAND EQUITY: ? It is defined as the ‘stored value built up in a brand for achieving competitive advantage’.
BRAND LOYALTY: ? It is proposed as consisting of repeated purchases prompted by a strong internal disposition ? It is the heart of equity & is an important basis of equity creation
doc_947656344.pptx
This ppt is about product amnagement and it explain the product based on three characteristics durability, tangibility and consumer's use. It also explains the consumer adoption process.
PRODUCT MANAGEMENT
A product is anything that can be offered to a market to satisfy a need or want.
Core Benefit Basic Product Expected Product Augmented Product Potential Product
Product Levels
Categories of New Products
New-To-The-World New Product Lines
Six Categories of New Products
Product Line Additions Improvements/Revisions Repositioned Products Lower-Priced Products
Product Classifications
Products are classified on the basis of 3 major characteristics:
?Durability ?Tangibility ?Use (Consumer/Industrial)
Durability &Tangibility
Products are classified into 3 groups: i. Non-Durable Goods Tangible goods, normally consumed in one or few uses. e.g. Soap, Cold-drink i. Durable Goods Tangible goods that normally survive many uses. e.g. Refrigerators, Clothing i. Services Intangible, inseparable, variable & perishable products. e.g. haircut, legal advice
Use (Consumer/Industrial)
? ?
?
? a) b) c)
Consumer Goods Classification Convenience Goods These consumers usually purchases frequently, immediately & with a minimum of effort. E.g. newspapers, soaps, chips They are further classified as: Staples: Purchased on regular basis. E.g. toothpaste, chips Impulse Goods: Purchased without planning or search effort. E.g. candies, magazines Emergency Goods: Purchased when the need is urgent. E.g. umbrella in rainstorm
? Shopping Goods
Goods which consumers compare on the basis of suitability, quality, price & style. e.g. furniture, clothing, electrical appliances ? Specialty Goods They have unique characteristics or brand identification for which buyers make special purchasing effort. e.g. Mercedes, photographic equipments ? Unsought Goods These consumers usually purchases frequently, immediately & with a minimum of effort
Industrial Goods Classification
• They are classified in terms of how they enter the
production process & their relative costliness • Classification is of 3 types: ? Material & Parts (Petroleum, wheat, cotton, fish etc.) ? Capital Items (Installation like factories, offices or heavy equipments like lifts) ? Supplies & Business Services (Maintenance & Repair items)
THE CONSUMER-ADOPTION PROCESS
? Adoption is an individual’s decision to become a regular
user of a product
• Consumer becomes aware of innovation but lacks information about it
Interest
• Consumer is stimulated to seek information about the innovation
• Consumer considers whether to try innovation
Trial
• Consumer tries innovation to improve his or her estimated value
• Consumer decides to make full & regular use of innovation
Awareness
Evaluation
Adoption
ADAPTOR GROUPS
? Innovators
Technology enthusiasts, venturesome ? Early Adapters Opinion leaders, less price sensitive, willing to adopt good products, with good service support ? Early Majority Adopt new technology when benefits proven, comprise of mainstream market ? Late Majority Conservatives, averse to risks, technology shy, price sensitive ? Laggards Tradition-bound, resist innovation till last attempt
PRODUCT MIX & PRODUCT LINE
They both denote the range & variety of the products of a firm ? PRODUCT MIX ? Denotes complete set of all products offered for sale by company ? It is composed of several product lines ? PRODUCT LINE ? Group of closely related products with similar functions, sold to same customer groups, with similar price range & marketed through same channels
? Width of product Mix
Denotes the no. of product lines it carries
? Length of Product Line
It is decided by the no. of items/brands in the line
? Depth of Product Line
Denotes total no. of items under each brand in the line, in terms of variants, shades, models, pack sizes etc.
HUL PRODUCT MIX
PRODUCT MIX WIDTH
PRODUCT LINE-1
PRODUCT LINE-2
PRODUCT LINE-3
Bath Soaps
PRODUCT LINE LENGTH
Fabric Wash
Surf Wheel Ala Rin
Beverages
Bru Taaza Taj Mahal Lipton Broke Bond
Dove Liril Rexona Lifebuoy Pears Moti Breeze
BRAND
? It is a name, term, sign, symbol, or design, or a
combination of them, intended to identify the goods or services of one seller or group of sellers & to differentiate them from those of competitors
? Brand = Product + Package + Added Values
Added Values includes: Quality, Image, Price, Functions
BRAND CONVEYS
? Attributes
? Benefits
? Values ? Culture
? Personality
? User
BRAND EQUITY: ? It is defined as the ‘stored value built up in a brand for achieving competitive advantage’.
BRAND LOYALTY: ? It is proposed as consisting of repeated purchases prompted by a strong internal disposition ? It is the heart of equity & is an important basis of equity creation
doc_947656344.pptx