1094872_634456166740426250

7/30/2019 1094872_634456166740426250

http://slidepdf.com/reader/full/1094872634456166740426250 1/29

PRESENTED BY:-

Gagandeep kaur

7/30/2019 1094872_634456166740426250


Product

A product is anything that can be

offered to a market for attention,

acquisition, or use, or something that

can satisfy a need or want

Therefore product can be physical

goods,services,experiences,events,pers

ons,places,properties, organisations,information &ideas.

7/30/2019 1094872_634456166740426250


Product Cont ….

Kotler distinguished three components:

Need : a lack of a basic requirement;

Wan t : a specific requirement for

products or services to match a need;

Demand : a set of wants plus the desire

and ability to pay for the exchange.

7/30/2019 1094872_634456166740426250


Levels of a product

Core product

Basic product

Expected product

Augmented product

Potential product

7/30/2019 1094872_634456166740426250


7/30/2019 1094872_634456166740426250


Product classifications

On the basis of characteristics :-

Durability& tangibility

use

7/30/2019 1094872_634456166740426250


Durability & tangibility

Non –durable goods: consumed in one

or few uses.

Durable goods: normally survive many

uses.

Services: intangible, inseparable,

variable & perishable.

7/30/2019 1094872_634456166740426250


Consumer products

Convenience products: frequently buy

with minimum comparison

Staples

Impulse

Emergency

Shopping products: less frequently

purchase, consumers compare carefully

on suitability, quality, price &style.

7/30/2019 1094872_634456166740426250


Cont…

Speciality products: with unique

characteristics or brand identification for

which a significant group of buyers is

willing to make a special purchase. Unsought products: consumer either

does not know about or does not

normally think of buying. it is unsought,until the customer become aware of it.

7/30/2019 1094872_634456166740426250


Industrial products

Materials & parts: goods that enter themanufacturers product completely

Capital items: that aid in the buyersproduction or operations including installation& accessory equipment.

Suppliers & services: includes operatingsupplies(lubricants,coal,paper…) & repair &maintenance items(paint,nails,brooms…)

Business service includes maintenance &repair service (legal,mgt consulting,advertising..)

7/30/2019 1094872_634456166740426250


Product mix decisions

Width :

Length

Depth

Consistency

These permits the co to expandits business in 4 ways: it can add new

pdt lines, thus widening its pdt mix. itcan lengthen each pdt line. it can addmore pdt variants to each pdt& deepenits pdt mix.

7/30/2019 1094872_634456166740426250


Product Mix Strategies

Product Mix Expansion.

Trading Up and trading down

Alteration of existing products

Product Mix Contraction

7/30/2019 1094872_634456166740426250


Product mix

Factors influencing changes inproduct mix

7/30/2019 1094872_634456166740426250


Product Attributes

Quality

Features

Sizes

Design

7/30/2019 1094872_634456166740426250


Demand forecasting

Market demand

Company demand

7/30/2019 1094872_634456166740426250


Market segmentation

WENDELL SMITH

“MS consists of taking the total

heterogeneous market for a product &

dividing it in to several sub-markets onsegments, each of which tends to be

homogeneous in significant aspects”.-

WILLIAM .J. STANTON

7/30/2019 1094872_634456166740426250


MS LEVELS

Mass marketing

Segment marketing

Niche marketing

Local marketing

Individual marketing

Self marketing

7/30/2019 1094872_634456166740426250


Bases for segmenting

marketsConsumer -oriented

Geographic variable

Demographicvariable

Psychographicvariable

Product-oriented

Occasion of usage

Product benefits

User status & user rates

Buyer- readinessstage

Attitude towardsproducts

7/30/2019 1094872_634456166740426250


Bases for segmenting

Business markets

Demographicvariables

Operatingvariables

Purchasingapproaches

Situationalfactors

Personalcharacteristics

7/30/2019 1094872_634456166740426250


Product planning

“The act of marking out & supervising

the search; screening, development &

commercialization of new products, the

modification of existing lines & thediscontinuance of marginal or

unprofitable items”.

7/30/2019 1094872_634456166740426250


Advantages of product

planning Products tailored to customers needs

Improved product resolution process

Reduced product configuration

overhead

Up-to-date product information for the

customer.

7/30/2019 1094872_634456166740426250


Components of a product

plan Executive summary & Table of contents

Current marketing situations

Opportunity & issue analysis

Objectives

Marketing strategy

Action programmes

Projected profit & loss statement

Control

7/30/2019 1094872_634456166740426250


Product differentiation

“Is the act of designing a set of

meaningful difference to distinguish the

company’s offering from competitor’s

offerings”. Examples are different flavored ice

creams, customized automobiles (e. g.

Mercedes)

7/30/2019 1094872_634456166740426250


Differentiation variables

Form

Features

Performance

Conformance Durability

Reliability

Repairability Style

Design

7/30/2019 1094872_634456166740426250


Characteristics of

Differentiation strategies Generate customer value

Provide perceived values

Be difficult to copy.

7/30/2019 1094872_634456166740426250


Product Line

Product line is a collection of products,

offered by a firm, that satisfy similar

needs for different target audiences.

Thus all products within a product line are related, but may vary in terms of

size, color, quality etc.

7/30/2019 1094872_634456166740426250


Product Line Additions

New items or variants are added to the

same product category.

E. g. various pack sizes or fragrances

for soaps, fuzzy logic and automaticwashing machines etc.

7/30/2019 1094872_634456166740426250


Product deletion

Declining sales

When companies merge

Declining prices

Declining product profitability When a product’s profitability continuously

declines & cannot be reviewed

Increasing effective alternatives or substitutes

Devotion of excessive attention to otherwise

weak-link product due to emotional influences.

7/30/2019 1094872_634456166740426250


Product deletion stages

Recognize weak products

Analysis of weak products

Cause & effect evaluation

Implementation of deletion decision

Documents

1094872_634456166740426250