Marketing research and intelligence system products
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Marketing research and intelligence system products

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Marketing research and intelligence system products Marketing research and intelligence system products Presentation Transcript

  • Developing a Product strategy
    • Product- riskiest of the marketing mix
    • Effect of increased pace of technology
      • Become obsolete before you recover money
    • We cover
    • Need to understand Product
    • Product strategies over PLC
    • Managing the industrial product line
  • Core & Augmented Product Augmented properties Enhanced properties Core Product Compt
    • Product strategies involve continual change:
    • Any change in the consumer need
    • Change in technology
    • Change in law
    • Change in economics
    • Changes in culture
    • Changes in PLC – any modification at maturity
    • Product strategy also involves
    • Whether changes are required in existing product?
    • Whether products should be added / dropped ?
    • INDUSTRIAL PRODUCT MANAGEMENT
    • Industrial product manager is very vital in this:
      • Forecasts
      • Does market sensing
      • Does customer linking
    • Product and marketing managers
    • When?
    • Series of product & one market
    • One product line several markets
    • What is hybrid
  • Sales & Profit Life Cycles Introduction visionaries Growth Pragmatist Maturity Conservatives Decline laggards Time Sales & profits ($)
  • The Product Life Cycle
  • Offering Development Stage- TECHNOPHILES
    • No sales volume – offering still being developed.
    • Product is not yet completely defined.
    • Profits do not exist.
    • Development at whose insistence?
    • Promotion may be oriented towards publicity about technological developments.
    • Heavy investment to prepare the offering to satisfy customer needs.
  • Offering Introduction Stage- visionaries
    • Low Product sales volume.
    • is somewhat basic – little need for competitive differentiation.
    • Profits are typically negative.
    • Supplier experiments growing pain and customer pains of uncertainty
    • Low learning- OK (electronic calculator)
    • New offering a logical extension of existing- it must be OK with the customer (Int Mktg)
    • High learning- takes time (Elec typewriter)
  • Offering Growth Stage- pragmatist
    • Good news- Product is accepted
    • Bad news- likely to attract competition
    • Improve design
    • Market penetration pricing may be appropriate as competitors bring pressure on high margins.
    • Profits increase - new adopters accept product.
    • Accordingly, product differentiation becomes important to distinguish the offering from competitors (and to help protect margins.)
    • Promotion serves to remind/reinforce decisions.
    • Distribution is often important in the training and education of customers.
  • Offering Maturity Stage- Conservatives
    • Profits have peaked, competition fights over market share.
    • Promotion reinforces buyer decisions and focuses on supplier reputation and value.
    • Distribution strives to serve all market sub-segments.
    • Time to think of new product offerings
    • Price is a major component of the marketing mix.
    • New customers do not replace sales volumes as old customers move to newer products- value migrations
  • Offering Decline Stage laggards
    • Consolidation usually occurs among suppliers
    • Product line is reduced to minimize product variation – efforts are made by remaining competitors to operate at productive rates.
    • Promotion reduced to minimal levels to accommodate existing customers.
    • Price, particularly associate with a long-term contracts, is a major part of the marketing mix.
  • How Can You Determine Where an Offering Is in the PLC?
    • Develop and review trend information for the past cycles.
    • Profit / sales ratio
    • Examine changes in the number and nature of competitors.-
    • South Korea into LA why not I as well
    • Review short-term competitive tactics – are competitors pricing to utilize new capacity or improve short term sales volume?
    • Are new product introductions aimed at segments currently served by existing offerings?
    • Will a competitor innovate your product out of business? It is better to obsolete yourself instead of getting it done by competitors
    • Do unto yourself what you would have done to others
  • Perceptual Map 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 -1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2 1.0 0.8 0.6 0.4 0.2 -0.2 -0.4 -0.6 -0.8
  • Introduction Growth Maturity Decline Laggards 16% Mass Mkt 68 % Conservatives Early adopter 13.5% Pragmatists Innovative 2.5% Visionaries Customers Few . Shakeout of weak Many fight for same pie Growing Nil Competitors Pushes cost up Increased competition reduces profits and cuts into total profits Reaches peak Loss Investment in prodn & mktg Profit Declining Growth rate redn Peak sales Rapid Low Sales
  • Minimal to none. Perhaps negative selective Low enough to permit liquidation of inventory Minimal changes to product. Line reduces to best servers Redn of expenses. Prepare for removal of prod. Squeeze all benefits of the product D More user/ usage. Loyalties Intensive Market prices. Avoid war Differentiate. Full line Find new users keep current satisfied Defend brand. Stop competitors from entry M Persuasive. Loyalties Intensive High Product /design Improvement. Expand line Mkt Penetration. Persuade mass Mkt to prefer your brand G Informative. Perhaps publicity Selective Skim Pen Cost+ Cmp Basic Design low learning products Mkt acceptance. Foster product awareness and trial I Promotion Distribution Price Product Overall strategy
  • Strategies for existing products
    • Do nothing
    • If you have a huge customer base, but is in the process of being replaced, lower OH and cost of production
    • Change the product?
    • If things wont work, drop the product. Why not?
  • Product elimination decisions
    • Customers have no alternatives despite changes in environment- CRDI- do not eliminate
    • Will relationship gets jeopardized
    • Will it hurt the profitability of other products
    • Corporate image-raise doubts on the reliability of the firm