Description
describes about the product strategy and how it can value to the customer.
Product and Product Policy ….Creating Value?
A Product Manager’s Potential Interactions
Suppliers Trade Suppliers Research and development Manufacturing and distribution Advertising agency Agency media department Company media department Media sales reps Media
Promotion services
Premium suppliers Premium screening Store testing Sampling Couponing
Legal
Product manager
Packagin g Designers Researchers
Fiscal
Purchasin g Market research Publicity Sales Trade
Suppliers
Research suppliers
Changes Affecting Product Management • • • • • The Web Data explosion Increased emphasis of brands Changes in the balance of market power Increased importance of customer retention programs • Increased global competition
Product
Anything that can be offered to a market to satisfy a want or need.
Five Product Levels
Classification / Characteristic
Products Services
Durability
Tangibility Use
Intangibility Inseparability
Variability
Perishability
Differentiators
Product
• • • • • • • • • • • • Product form Features Performance Conformance Durability Reliability Reparability Style Design Ordering ease Delivery Installation
Service
Place
People
Equipment Communication material Symbols Price
Categories of Product - Service Mix
Pure tangible good Good w/ accompanying services
Edible oils, bulbs, books etc Durables
Hybrid
Service w/ accompanying goods Pure service
Hotels, Spa, Schools
Airlines Travel Agencies, VISA
Product
Service • Product mix & assortment • Width • Length • Depth • Consistency • Line Stretching • Line filling
Product Systems and Mixes
Lets talk about Amul
Product
Service
• Packaging • Labels • Warranties & Guarantees • After Sales Service
Levels of Competition
Beers Ice cream Tea Regular colas
Diet lemon limes
Wine Diet Pepsi Fast food
Fruit flavore d colas
Diet Coke
Product form competition: Diet colas Juices
Bottled water
Lemon limes
Product category competition: Soft drinks
Video rentals
Baseball cards
Coffee
Generic competition: Beverages Budget competition: Food and entertainment
Levels of Competition: Implications for Product Strategy
Competitive Level Product Form Product Category Product Management Task
Convince Customers that the Brand is Better than Others Convince Customers that the Product Form is Best in the Category Convince Customers that the Product Category is the Best Way to Satisfy Needs
Generic
Budget
Convince Customers that the Generic Benefits are the Most Appropriate Way to Spend their Money
Product Life Cycle
Product Life Cycle – Marketing Implications
Introduction Characteristics
Sales Costs/ cust. Profits Customers Competitors Low High -ve Innovators Few Rising Avg Rising Early Adopters Growing Peak Low High Middle Majority Declining Low Declining Laggards Declining
Growth
Maturity
Decline
Stable but declining
Marketing Objectives Strategies
Product Price Distribution Advertising Sales Promotion
Product awareness & trials
Max. mkt share
Max. profits & defend mkt share
Reduce expenditures
Basic Cost + Selective Awareness in Segment Induce trials
Prod. Extns Penetration Intensive Mass awareness Reduce - heavy demand
Diversify Match competitor Intensive Brand difference Increase - brand switching
Phase out weak prods. Cut price Selective Aim at hard core loyalists Minimal
Other PLC Patterns
Long-Range Product Market Expansion Strategy
PRODUCT – SUMMING UP
•Product Levels •Classification of Products and Services •Differentiators and Service mix •Product Mix, Line, Width, Depth etc •Services – 5gap model, determinants of Service quality • PLC and its implication to marketers •Market entry and market expansion strategy
doc_846576905.pptx
describes about the product strategy and how it can value to the customer.
Product and Product Policy ….Creating Value?
A Product Manager’s Potential Interactions
Suppliers Trade Suppliers Research and development Manufacturing and distribution Advertising agency Agency media department Company media department Media sales reps Media
Promotion services
Premium suppliers Premium screening Store testing Sampling Couponing
Legal
Product manager
Packagin g Designers Researchers
Fiscal
Purchasin g Market research Publicity Sales Trade
Suppliers
Research suppliers
Changes Affecting Product Management • • • • • The Web Data explosion Increased emphasis of brands Changes in the balance of market power Increased importance of customer retention programs • Increased global competition
Product
Anything that can be offered to a market to satisfy a want or need.
Five Product Levels
Classification / Characteristic
Products Services
Durability
Tangibility Use
Intangibility Inseparability
Variability
Perishability
Differentiators
Product
• • • • • • • • • • • • Product form Features Performance Conformance Durability Reliability Reparability Style Design Ordering ease Delivery Installation
Service
Place
People
Equipment Communication material Symbols Price
Categories of Product - Service Mix
Pure tangible good Good w/ accompanying services
Edible oils, bulbs, books etc Durables
Hybrid
Service w/ accompanying goods Pure service
Hotels, Spa, Schools
Airlines Travel Agencies, VISA
Product
Service • Product mix & assortment • Width • Length • Depth • Consistency • Line Stretching • Line filling
Product Systems and Mixes
Lets talk about Amul
Product
Service
• Packaging • Labels • Warranties & Guarantees • After Sales Service
Levels of Competition
Beers Ice cream Tea Regular colas
Diet lemon limes
Wine Diet Pepsi Fast food
Fruit flavore d colas
Diet Coke
Product form competition: Diet colas Juices
Bottled water
Lemon limes
Product category competition: Soft drinks
Video rentals
Baseball cards
Coffee
Generic competition: Beverages Budget competition: Food and entertainment
Levels of Competition: Implications for Product Strategy
Competitive Level Product Form Product Category Product Management Task
Convince Customers that the Brand is Better than Others Convince Customers that the Product Form is Best in the Category Convince Customers that the Product Category is the Best Way to Satisfy Needs
Generic
Budget
Convince Customers that the Generic Benefits are the Most Appropriate Way to Spend their Money
Product Life Cycle
Product Life Cycle – Marketing Implications
Introduction Characteristics
Sales Costs/ cust. Profits Customers Competitors Low High -ve Innovators Few Rising Avg Rising Early Adopters Growing Peak Low High Middle Majority Declining Low Declining Laggards Declining
Growth
Maturity
Decline
Stable but declining
Marketing Objectives Strategies
Product Price Distribution Advertising Sales Promotion
Product awareness & trials
Max. mkt share
Max. profits & defend mkt share
Reduce expenditures
Basic Cost + Selective Awareness in Segment Induce trials
Prod. Extns Penetration Intensive Mass awareness Reduce - heavy demand
Diversify Match competitor Intensive Brand difference Increase - brand switching
Phase out weak prods. Cut price Selective Aim at hard core loyalists Minimal
Other PLC Patterns
Long-Range Product Market Expansion Strategy
PRODUCT – SUMMING UP
•Product Levels •Classification of Products and Services •Differentiators and Service mix •Product Mix, Line, Width, Depth etc •Services – 5gap model, determinants of Service quality • PLC and its implication to marketers •Market entry and market expansion strategy
doc_846576905.pptx