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8/7/2019 Session 1 - Introduction to Product Management
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Product Management
Defining Product
Components of Market Offering
Product LevelsProduct Classifications
Product Differentiation
Services Differentiation
Product System & Mixes
Packaging
Labeling
Warrantees & Guarantees
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Product Management
Product
A product is anything that can be offered
to a market for a transaction to satisfy awant or need, including physical goods,
services, experiences, events, persons,
places, properties, organizations,
information, and ideas.
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Product Management
Components of Market Offering
Attractiveness
of the Market
Offering
Value-based Prices
Product Features
& Quality
Services Mix
& Quality
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Product Management
Five Product Levels
�Core benefit: It is the fundamental level. It is the
benefit the customer is really buying.
�Basic product: The marketer has to turn the corebenefit in to the basic product.
�Expected product: A set of attributes and
conditions buyers normally expect when they
purchase this product.
�Augmented product: The product that exceeds
customer expectations.
�Potential product: It encompasses all the
possible augmentations and transformations the
product or offering might undergo in the future.
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Product Management
Products Classification
Products can be classified on the basis of the
following parameters.
Durability and Tangibility
Non-durable goods
Durable goods
Services
Type of Usage
Convenience goods
Shopping goods
Specialty goods
Unsought goods
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Product Management
Services Differentiation
Ordering ease: It refers to how easy it is for the customer to place anorder with company.
Delivery: It refers to how well the product or service is delivered to the
customer. It included speed, accuracy, and care attending the deliveryprocess.
Installation: It refers to the work done to make a product operation inits planned location.
Customer training: It refers to training the customer¶s employees to usethe vendor¶s equipment properly and efficiently.
Customer consulting: It refers to data, information systems, and adviceservices that the seller offers to buyers.
Maintenance and repair: It describes the service program for helpingthe customers keep purchased products in good working order.
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Product Management
Portfolio Decisions
Product Mix/Portfolio
Depth
Length
Width
Consistency
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HUL Product Mix/Portfolio
Food Fabri c Wash Fabri c Softner Household C leaners Dish Wash Beauty Water Hai r Care Persona l Wash Ora l Care
Brooke Bond Wheel Comfort Cif Vim Aviance Pureit Clear Dove Close Up
Annapurna Rin Domex Axe Clinic Plus Hamam Pepsodent
Taaza Surf Fair & Lovely Sunsilk Lifebuoy
Taj Mahal Surf Excel Lakme Ayush Liril
Bru Surf Excelmatic Ponds Lux
Kissan Sunlight Vaseline Pears
Knorr Rexona
Kwality Wall's Breeze
Lipton
Modern
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Product Management
A product mix/portfolio is the set of all products and items a
particular seller offers for sale. A company¶s product mix has
a certain width, length, depth, and consistency.
The depth of a product mix refers to the total number of items
in the mix.
The width of a product mix refers to how many different
product lines the company carries.
The length of a product mix refers to how many variants areoffered in each product line.
The consistency of the product mix refers to how closely
related the various product lines are in end use, production
requirements, distribution channels, or some other way.
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Product Management
Product-Line Length
Companies seeking high market share and market growth will
generally carry longer product lines. Companies thatemphasize high profitability will carry shorter lines consisting
of carefully chosen items. Product lines tend to lengthen over
time. Excess manufacturing capacity puts pressure on the
product-line manager to develop new items. The sales force
and distributors also pressure the company for a more
complete product line to satisfy customer. A company
lengthens its product line in two ways: by line stretching andline filling.
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Product Management
Line Stretching
It occurs when company lengthens its product line beyond its currentrange.
Down-Market Stretch: A company positioned in the middle market maywant to introduce a lower-priced line for any reasons.
Up-Market Stretch: Companies may wish to enter the high end of themarket for more growth, higher margins, or simply to positionthemselves as full-line manufacturers.
Two-Way Stretch: Companies serving the middle market might decideto stretch their line in both directions.
Line Filling
A product line can also be lengthened by adding more items within thepresent range. There are several motives for line filling: reaching for incremental profits, trying to satisfy dealers who complain about lostsales because of missing items in the line, trying to utilize excesscapacity, trying to be the leading full-line company, and trying to plugholes to keep out competitors.
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Product Management
Line Modernization, Featuring and Pruning
Product lines need to do be modernized. The issue iswhether to overhaul the line piecemeal or all at once.
In rapidly changing product markets, modernization iscontinuous.
Product line managers must periodically review theline for deadwood that is depressing profits. The weakitems can be identified through sales and cost
analysis.Pruning is also done when the company is short of
production capacity. Companies typically shorten their product lines in periods of tight demand and lengthentheir lines in periods of slow demand.
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Product Management
Advantages of a Large Product Portfolio
Although offering a large product portfoliocall for a lot of coordination in terms of marketing activities, it also has a number of benefits such as:
Economies of Scale
Package Uniformity Standardization
Sales and Distribution Efficiency
Equivalent Quality Benefits
