product elaborate 1hul
DESCRIPTION
hulTRANSCRIPT
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The learning objectivesProductProduct classificationProduct life-cycle strategiesNew-product DevelopmentProduct-line decisionBrands decisions
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1. What is product?Anything that can be offered to a market for attention,acquisition,use,or consumption that might satisfy a want or need.
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Components of theMarket OfferingAttractiveness ofthe market offering
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2. Product classificationsConsumer productsIndustrial products
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Consumer productConvenience productsShopping productsSpecialty productsUnsought products
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Buy less frequently Gather product information Fewer purchase locations Compare for: Suitability & Quality Price & Style Special purchase efforts Unique characteristics Brand identification Few purchase locations Products consumers dont demand normally. Require much advertising &personal sellingBuy frequently & immediately Low priced Many purchase locations Includes: Staple goods Impulse goods Emergency goodsConsumer-Goods Classification
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Industrial ProductMaterial and partsCapital itemsSupplies and services
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6.Product-line decisionProduct mixProduct-line analysisProduct line length
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Product mix(assortment)The set of all products and items that a particular seller offers for sale.A companys product mix has a certain width,length,depth, and consistency.
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Product Mix Concepts:Width:how many different product lines.
Length:the total number of items.
Depth:how many variants are offered of each product in the line.
Consistency:how closely related the various product lines are in end use,production requirement,distribution channels, or some other way.
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Product Mix & Product Line- HUL
Personal wash Personal wash : Lux , lifebuoy , Liril , Hamam , Breeze , Dove , Pears , Laundry Laundry : Surf Excel , Rin , Wheel Skin Care Skin Care : Fair and Lovely , Ponds Hair Care Hair Care: Sunsilk , Clinic PlusOral care Oral care : Pepsodent , Close Up Color Cosmetic Color Cosmetic : Lakme Beverage Tea : Broke Bond , Lipton Coffee: Bru Foods Foods: Kissan , Knorr Annapurna Ice-Cream Quality Walls
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Product MixWidth - number of different product linesLength - total number of itemswithin the linesDepth - number of versions of each product
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Product-line analysisSales and profitMarket profile
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Product-Line LengthLine StretchingDownmarket (TATA Nano)Upmarket (Maruti 800 to Maruti SX4)Two-wayLine FillingLine ModernizationLine Featuring & Line Pruning
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Trading Up and Trading DownTrading up: Adding a higher-priced product to a line to attract a higher-income market and improve the sales of existing lower-priced products.Trading down: Adding a lower-priced item to a line of prestige products to encourage purchases from people who cannot afford the higher-priced product, but want the status.
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3.Product Life Cycles (PLC)The course of a products sale and profit over it lifetime.It involves five distinct stages:product development,introduction,growth,maturity,and decline.
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Sales & Profit Life Cycles
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Product Life Cycle StagesIntroductionmost risky and expensive.
Growthboth sales and profits rise, often rapidly.
Maturitysales increase at a decreasing rate and profits decline.
Declinedemand drops, often because of another product development.
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Strategic Implications of the Stagesintroductory stage: developing the market, creating awareness, reaching the innovators
growth stage: competition begins, sales grow quickly, profits peak, market penetration
maturity stage: competition is intense, sales slow down, differentiated product offerings, customers are brand loyal, few new entrants
decline stage: customers move to other options, competitors leave, profits are low, consider exit
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Characteristics of Introduction StageLow sales High cost per customer Zero or Negative profits Create product awareness and trial Offer a basic product Use cost-plus Build selective distribution Awareness building advertising
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Four IntroductoryPrice-Promotion StrategiesRapid-skimmingstrategyRapid-penetrationstrategySlow-penetrationstrategySlow-skimmingstrategy
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Characteristics of the Growth StageRapidly rising sales
Average cost per customer Rising profits Offer product extensions
Target new market segments
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Characteristics of Maturity stagePeak sales and profits Increased advertising and trade and consumer promotion.
Frequent markdowns
Market nicher develops.
Market Modification Strategy
Marketing Mix Modification Strategy
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Characteristics of Declining StageDeclining sales & Profits Phase out unprofitable outlets
Cut on promotional expenditure
Liquidating, Divesting and Harvesting the business
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Special categories of PLC (Style, Fashion, Fad)Style is a basic/distinctive mode of expression appearing in a field of human endeavors.-Once a style is invented, it can last for generations.
Fashion is a currently accepted/popular style in a given field.
Fads are fashion that comes quickly into the public eye, are adopted with great zeal, peak easily and decline fast
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5.new-product developmentWhat is new product?Major stages in new product development
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What is new product?Original productsProduct improvementsProduct modificationsNew brands that the firm develops through its own research and development efforts
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Major stages in new product developmentIdea generationIdea screeningConcept development and testingMarketing strategiesBusiness analysisProduct developmentTest marketingCommercialization
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New Product Development ProcessIdeaGeneration
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Probability of SuccessProbabilityof technicalcompletion
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Concept Development & Testing1. Develop Product Ideas into Alternative Product Concepts
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Product & Brand Positioning(a) Product-positioningmap(breakfast market)b) Brand-positioningmap(instant breakfast market)
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Conjoint Analysis
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Consumer-Goods Market TestingSales-WaveResearch
Test offering trail toa sample of consumers insuccessiveperiods.SimulatedTest Market
Test in a simulated shopping environmentto a sample of consumers.
StandardTest Market
Full marketing campaignin a small number of representative cities.
Controlled Test Market
A few stores that have agreed to carry newproducts for a fee.
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Time of adoption innovationsAdopter Categorization of the Basis of Relative Time of Adoption of Innovations
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6.Brand DecisionWhat is brand?Band decision
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What is brand?Brand 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 and differentiate them from those of competitors.
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What is a Brand?AttributesBenefitsValuesCultureUserPersonality
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An Overview ofBranding Decisions
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Good Brand Names:SuggestProductBenefitsDistinctiveLack PoorForeignLanguageMeaningsSuggestProductQualitiesEasy to:PronounceRecognizeRemember
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Brand StrategiesNewBrands
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Why Package Crucial as a Marketing ToolSelf-serviceConsumer affluenceCompany & brand imageOpportunity for innovation
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LabelsIdentifyDescribe
Promote
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