c h p t r11revised
DESCRIPTION
marketing ppt chapter11TRANSCRIPT
PRODUCT & PRODUCT LINES
PRODUCT PLANNING
• Is the systematic decision-making related to all aspects of the development and management of a firm’s products including branding & packaging
PRODUCT PERSONALITY
CORE FEATURESBasic component of a product.
ASSOCIATED FEATURESShape, capacity, power steering, colorBrand name
Packaging
branding
NATURE OF PRODUCT
Theodore Levitt1980The concept
Generic product
Expected product
Augmented product
Potential product
Generic productUnbranded,plainly packaged, less expensive
Expected productCustomer required attributes & conditions
Augmented productDifferenciation+adding values
Potential productAll improvements that are possible under given technological, economic and competitive conditions.
PRODUCT CLASSIFICATION
DURABILITY AND TANGIBILITYNon durablesDurablesservices
USAGE
Consumer productsConvinienceShoppingSpecialityunsought
Industrial productsRaw materialComponentsCapital equipmentsConsumable suppliesBusiness services
PRODUCT POLICY
Color cosmetics
Hair care
Skin care
Oral care
deodorants
Soaps and detergents
Toilet soaps
beverages
food
• PRODUCT MIX• Set of all the products that an organization offers to customers
• WIDTH- total no of product lines
• LENGTH- total number of items in a mix
• DEPTH- variations, sizes, colors
• CONSISTENCY- closeness exhibited by product lines
PRODUCT MIX STATEGIES
Expansion of product mixContraction of product mixAltering existing productsPositioning the product
Trading upTrading down
• Line stretching• Beyond current range of products
• Line filling• Adding more products to existing range of product lines
• Line pruning
PRODUCT LIFE CYCLE
IntroductionGrowthMaturitySaturationdecline
Introduction
Rapid skimming-HP, HPrms Slow skimming-HP, Low proms Rapid penetration-LP,H promos Slow penetration – LP,LPromos
RS55000
3.39 LAKHS
Growth
• Aggressive pricing• Product benefits-niche• Improve quality• Introduce distribution channels• Enter new markets
Maturity
• Abandon weaker products & concentrate on profitable pdts.
• Increase sales promos• Packaging• R&D
decline
Strengthen competitive position Drop unprofitable customer group Divest the business. Harvest the firm’s investment.