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Copy Of Product Decision
 

Copy Of Product Decision

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    Copy Of Product Decision Copy Of Product Decision Presentation Transcript

    • PRODUCT DECISIONS
    • CONCEPT OF PRODUCT DECISIONS:
      • Product Decision – Acc. To Peter Drucker – “So long as pdt is not bought and consumed, it remains a raw material. The pdt is almost always a combination of tangible and intangible benefits.
    • PRODUCT HIERARCHY: Six Levels:
      • Need Family: the core need that underlies the existence of a product family. Ex: security
      • Product Family: all the pdt classes that can satisfy a core need with reasonable effectiveness. Ex: Savings and Income
      • Product Class: A group within the pdt family recognized as having a certain functional coherence. Ex: financial instrument.
    • PRODUCT HIERARCHY: Six Levels: CONT…
      • Product Line: a group of pdt within a product class that are closely related because they perform a similar function, are sold to the same customer group, are marketed through the same channels, or fall with given price range. Ex: Insurance
      • Product type: A group of item within pdt line that share one of several possible forms pf the pdt. Ex: term life.
      • Item: A distinct unit a brand or product line distinguishable by size, price, appearance or some other attributes.
    • NEW PRODUCT DEVELOPMENT PROCESS:
      • 1. IDEA GENERATION: The new pdt development starts with search of new ideas-customer needs, competitors, employees, company sales people, dealers and top management.
      • - High cash flow, market share domination.
      • - Brainstorming, Problem analysis.
    • NEW PRODUCT DEVELOPMENT PROCESS:
      • 2. IDEA SCREENING:
      • Drop Error – Permitting a poor idea to move into development and commercialization or dropping a good idea - Idea rating.
    • NEW PRODUCT DEVELOPMENT PROCESS:
      • 3. CONCEPT DEVELOPMENT AND TESTING: is an elaborated version of idea expressed in meaningful consumer terms. The concept has to be tested with appropriate group of target customers.
    • NEW PRODUCT DEVELOPMENT PROCESS:
      • 4. MARKETING STRATEGY DEVELOPMENT: Preliminary marketing strategy statement for introducing this new pdt into the market, problem new pdts with different concept.
    • NEW PRODUCT DEVELOPMENT PROCESS:
      • 5. BUSINESS ANALYSIS: review sales, profit projections, new info for further revision, repeat and replacement sales.
      • 6. PRODUCT DEVELOPMENT: after above, R&D, engg dept to be developed in to a physical pdt.
    • NEW PRODUCT DEVELOPMENT PROCESS:
      • 7. TEST MARKETING: brand name, packing, and a preliminary marketing prog. to be tested in an authentic consumer settings – customers and dealer reaction, using, repurchasing for how long.
      • 8. COMMERCIALIZATION: when, where, whom, how.
    • Product Mix Strategy:
      • Core Benefits - Basic Product - Expected Product - Augmented Product - Potential Product.
    • PRODUCT LIFE CYCLE
      • A pdt’s sales potential and profitability change over time. The pdt’s life cycle is the course of a pdt’s sales and profit over its life time.
      • Corresponding to the stages are distinct opportunities and problems with respect to marketing strategy and profit potential. By identifying the stages that a pdt is in, or may be headed towards, companies can formulate better marketing plans.
    • PDC
    •  
    •  
    • Marketing Objectives
      • Introduction and Growth
    • Marketing Objectives
      • Maturity and Decline
    • Strategies
      • Introduction Growth
    • Strategies
      • Maturity Decline
    • Strategies
      • Introduction Growth
    • Strategies
      • Maturity Decline
    • BRAND:
      • American Marketing Association defines a Brand as: a name, term, sign, symbol or design, or a combination of them, intended to identify the goods and services of one seller or a group of sellers and to differential them from those of competitors. Thus a brand identifies a seller or market.
    • Concept of branding:
      • Branding is a major issue in pdt strategy well known brands like Sony, Coca cola, Pepsi, Maruti, levis. Developing a branded pdt requires a great deal of long term investment, advertising, promotion, packaging.
    • Brand can convey six levels of meaning:
      • Attributes: Mercedes( expensive, well built, durable)
      • Benefits: car of Mercedes can be used in several ways.
      • Values: Performance, safety, prestige
    • Brand can convey six levels of meaning: cont…
      • Culture: German culture – organized, efficient, high quality.
      • Personality: Mercedes suggests a no-nonsense boss
      • User: Executives who purchase the pdt and use it several years.
    • Brand Equity:
      • Brand equity is highly related to how many customers will pay more attention to a brand: brand awareness, brand acceptability, brand preference, brand loyalty.
    • Value of Brand Equity:
      • is the positive differential effect that knowing the brand name has on customer’s response to the pdt or services. (Disney, Ford, Toyota, Reliance)
    • Managing Brand Equity:
      • equity does not depreciate – maintaining and improving brand awareness, perceived quality, functions and positive associations – R&D, skillful advertising, excellent trade and consumer services. (Gillette, Coca cola, Heinz, Campbell soup)
    • Brand Perception:
      • One of the desired associations a firm seeks for its brand is the customer’s perception of high quality
      • Customers ready to pay premium for it
      • The firm will have greater trade leverage and channel members would have greater interest in dealing in such brands.
      • Perceived quality is not necessarily the same as manufacturing quality.- Perceived quality is how customers evaluate different brands
    • PACKAGING:
      • all activities of designing and producing the container for a product. The container is the package, and it might include up to three levels: primary package; secondary package; shipping package.
    • Packaging as a Marketing Tool:
      • Self Service:
      • Consumer Affluence: consumer willingness to pay a little more for the convenience, appearance, dependability and prestige of better package
      • Company and Brand Image: instant recognition of the brand or company.
      • Innovation Opportunity:
    • Requirement of Good Packaging:
      • Establish the packaging concept: defining what the package should basically be or do for the particular pdt.
      • Decision on additional elements: shape, size, material, text and brand mark.
      • Color: must be carefully chosen: blue – cool, red – active and lively.
      • Amount of text, cellophane paper or other transparent films.
      • Tamperproof devices:
    • Labeling:
      • is simple tag attached to the pdt or an elaborately designed graphics that is the part of the package. Label may carry only the brand name or a great deal of information. Seller prefers simple label, law may require addition info.
    • Role of Labeling in packaging:
      • Identifies the pdt or brand:
      • Grade the pdt:
      • Describe the pdt:
      • Promote the pdt: