MARKETING MANAGEMENT
PRESENTED BY
NEERAJ BHANDARI
BINIT PANT
KUNAL GURUNG
NIVESH SHRESTHA
SAILENDRA SHRESTHA
AVISHEKH BUDH...
TOPICS
• Product classification
• Product mix
• New product development,
• Product life cycle
• Brand decisions
PRODUCT: BUNCH OF BENEFITS
• anything that is offered to a market for attention, acquisition, use or
consumption and satis...
BASIC 3 LEVELS OF A PRODUCT
• Core Product: The problem-solving services or core
benefits that consumers are buying when t...
Core Benefit
Or service
Installation
Delivery
and
Credit
Warranty
After
Sales
service
Packaging
Brand
name
Quality
Staling...
PRODUCT ATTRIBUTES
• Product quality: the ability of a product to perform its functions; it includes the
product’s overall...
commercialization
Concept
Development
And testing
Test
marketing
Product
development
Business
analysis
Marketing
strategy
...
ORGANIZING FOR NEW PRODUCT
DEVELOPMENT
Special organizational arrangements are to be made for
NPD which can answer three i...
GENERATING, SCREENING & DEVELOPMENT OF NEW
PRODUCT IDEAS (NPI)
• Generating New Product Ideas.
• NPI generating sources .
...
METHODS OF GENERATING NEW
IDEAS
• Direct Methods.
Individual Techniques- Morphological analysis, Consumer Surveys
Group Te...
CONCEPT GENERATION
• Generating concept is a creative process and there is
mechanism in concept generation which is catego...
PHYSICAL DEVELOPMENT OF
PRODUCT.
• Product architecture.
• Industrial Designing in Product
Development.
• Product prototyp...
PRETEST MARKETING & TEST
MARKETING
• Test Marketing is Penultimate step in NPD but as its
costly ,time consuming and expos...
THE PRODUCT LIFE CYCLE
Product
development
Introduction
Growth
Maturity
Decline
SALES
PROFITS
PRODUCT LIFE CYCLE: SALES AN...
PLC STAGES-PROFITS
• The product life cycle is the course of a product’s sales and
profits over its lifetime. It involves ...
WHY PLC ?
• Products have a limited life,
• Product sales pass through distinct stages, each
posing different challenges, ...
STAGES OF PLC
• Product Development- When the new idea is being
converted into a product
• Introduction- When developed pr...
PLC STAGES-SALES
• Growth: the product life cycle stage at which a product’s
sales start climbing quickly. Here we have hi...
SUCCESS RATE OF NEW PRODUCTS
• The success rate of new products is very low – less than
5%. ‘You have to kiss a lot of fro...
COMMERCIALIZATION
• When? (Timing)
• Where? (Which geographical markets)
• To whom? (Target markets)
• How? (Introductory ...
PRODUCT HIERARCHY
• Need
• Product family
• Product class
• Product Line
• Product type
• Brand
• Item
THE IMPORTANCE OF BRANDS
• “Consumers are starved for time and
overwhelmed by the choices available to them.
They want str...
BRAND
• A name becomes a brand when consumers
associate it with a set of tangible and
intangible benefits that they obtain...
Defines the differential features of a
product or service:
• Real or Imaginary
• Rational or Irrational
• Tangible or Inta...
(2) Constitutes an image that creates a personal experience:
• Own
• Third party
• Imaginary
DEFINITION OF A BRAND CONTD...
(3) With conscious and unconscious contents that the consumer projects
and deposits on it;
(4) Constitutes part of and bui...
In a highly competitive world, where
manufacturers are losing their pricing power,
branding is seen as a way of clawing ba...
BRAND IDENTITY
• Mind share (cognitive level)
• Heart Share (Emotional relationship)
• Buying intention share
• Self share...
BRAND EQUITY
• When a commodity becomes a brand, it is said to
have equity.
• The premium a brand can command in the
marke...
BRAND POWER
• Customer will change brands for price reasons
• Customer is satisfied. No reason to change.
• Customer is sa...
ADVANTAGES OF BRANDING
• Easy for the seller to track down problems and process
orders
• Provide legal protection of uniqu...
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Product Mix and Product Classification by Neeraj Bhandari ( Surkhet.Nepal )

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Product Mix and Product Classification by Neeraj Bhandari ( Surkhet.Nepal )

  1. 1. MARKETING MANAGEMENT PRESENTED BY NEERAJ BHANDARI BINIT PANT KUNAL GURUNG NIVESH SHRESTHA SAILENDRA SHRESTHA AVISHEKH BUDHATHOKI SUNIL SHAH
  2. 2. TOPICS • Product classification • Product mix • New product development, • Product life cycle • Brand decisions
  3. 3. PRODUCT: BUNCH OF BENEFITS • anything that is offered to a market for attention, acquisition, use or consumption and satisfies a want or need. It includes physical objects, services, persons, places, organizations and ideas.
  4. 4. BASIC 3 LEVELS OF A PRODUCT • Core Product: The problem-solving services or core benefits that consumers are buying when they obtain the product. (Mobile phone) • Actual Product: a product’s parts, quality, features, design, brand name, packaging, staling etc., that combine to deliver core product benefits. Mobile Charger, Head Phones • Augmented product: additional consumer services and benefits built around the core and actual products (installation, delivery etc. – for example , the Sony Camcorder, one year warranty on mobile)
  5. 5. Core Benefit Or service Installation Delivery and Credit Warranty After Sales service Packaging Brand name Quality Staling Features AUGMENTED RPODUCT ACTUAL PRODUCT CORE PRODUCT The three levels of a product
  6. 6. PRODUCT ATTRIBUTES • Product quality: the ability of a product to perform its functions; it includes the product’s overall durability, precision, ease of operation and repair, and other valued attributes. • Total quality management (TQM) (Improve all product/process quality in every phase of production) • Conformance quality • Freedom from defects/consistency in delivering a targeted level of performance. • Product features: features are a competitive tool for differentiating the company’s product from competitors’ products. Being the first producer to introduce a valued new feature is one of the most effective ways to compete. • Product style and design: how a product is designed and how it appears. Companies may have many designs for a product (i.e., Nike shoes – 500 footwear designs each year)
  7. 7. commercialization Concept Development And testing Test marketing Product development Business analysis Marketing strategy New Product Strategy Idea generation Idea screening THE NEW PRODUCT DEVELOPMENT PROCESS
  8. 8. ORGANIZING FOR NEW PRODUCT DEVELOPMENT Special organizational arrangements are to be made for NPD which can answer three important questions- 1) Who is to be responsible for NPD. 2) What are the tasks to be accomplished. 3) How the tasks will be accomplished. The Brooks, Allen and Hamilton Study of NPD suggests that “the organizations which encounter the greatest success in NPD are the ones that have given the greatest care to organizing NPD”
  9. 9. GENERATING, SCREENING & DEVELOPMENT OF NEW PRODUCT IDEAS (NPI) • Generating New Product Ideas. • NPI generating sources . • Internal Recourses- Sales Personnel,Marketing personnel, R&D, top Management Executives, Production Departments, Purchase Department, Customer service division, employee suggestion systems. • External Recourses- customers, competitive products, foreign products, consultants, advertising agencies, researchers/investors,distribution channels,
  10. 10. METHODS OF GENERATING NEW IDEAS • Direct Methods. Individual Techniques- Morphological analysis, Consumer Surveys Group Techniques- Brain Storming, focus groups, interviews, • Indirect Methods- Consumer, engineering magnitude, estimations ,Quadrant Analysis.
  11. 11. CONCEPT GENERATION • Generating concept is a creative process and there is mechanism in concept generation which is categorized in two segments- • Problem based ideation. • This is the most simple method of progress, where someone has found a problem and as a result, solves it. • Attribute based ideation. • As we know that product is a bundle of attributes and to alter a attribute in an analytical method is attribute based ideation.
  12. 12. PHYSICAL DEVELOPMENT OF PRODUCT. • Product architecture. • Industrial Designing in Product Development. • Product prototyping • Concurrent engineering
  13. 13. PRETEST MARKETING & TEST MARKETING • Test Marketing is Penultimate step in NPD but as its costly ,time consuming and exposes product to competitors hence pre test marketing is the solution. Wide PTM we simulate market conditions under a controlled environment which helps in understanding the key market impacts and forces. • Various Models Of PTM- • Assessors Model. • Preference Model. • Trail repeat Model.
  14. 14. THE PRODUCT LIFE CYCLE Product development Introduction Growth Maturity Decline SALES PROFITS PRODUCT LIFE CYCLE: SALES AND PROFITS
  15. 15. PLC STAGES-PROFITS • The product life cycle is the course of a product’s sales and profits over its lifetime. It involves the 5 stages below: • Product development: the company finds and develops a new product idea – costs mount, • Introduction: the product is being introduced in the market – profits are absent • Growth: a period of rapid market acceptance – increased profits • Maturity: the product has achieved acceptance – profits start to decline • Decline: the period when sales fall off and profits drop.
  16. 16. WHY PLC ? • Products have a limited life, • Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller, • Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage.
  17. 17. STAGES OF PLC • Product Development- When the new idea is being converted into a product • Introduction- When developed product is introduced in markets.
  18. 18. PLC STAGES-SALES • Growth: the product life cycle stage at which a product’s sales start climbing quickly. Here we have high market share or high current profit. • Maturity: the stage where sales growth slows or levels off. (market development, product development or innovation)
  19. 19. SUCCESS RATE OF NEW PRODUCTS • The success rate of new products is very low – less than 5%. ‘You have to kiss a lot of frogs to find a prince.” • Product obsolescence is rapid with improvements in technology • Shorter PLCs
  20. 20. COMMERCIALIZATION • When? (Timing) • Where? (Which geographical markets) • To whom? (Target markets) • How? (Introductory Marketing strategy)
  21. 21. PRODUCT HIERARCHY • Need • Product family • Product class • Product Line • Product type • Brand • Item
  22. 22. THE IMPORTANCE OF BRANDS • “Consumers are starved for time and overwhelmed by the choices available to them. They want strong brands that simplify their decision making and reduce their risks” • Are there other good reasons?
  23. 23. BRAND • A name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service • It is the seller’s promise to deliver the same bundle of benefits/services consistently to buyers
  24. 24. Defines the differential features of a product or service: • Real or Imaginary • Rational or Irrational • Tangible or Intangible DEFINITION OF A BRAND
  25. 25. (2) Constitutes an image that creates a personal experience: • Own • Third party • Imaginary DEFINITION OF A BRAND CONTD...
  26. 26. (3) With conscious and unconscious contents that the consumer projects and deposits on it; (4) Constitutes part of and builds up his/her identity; (5) Generates certain perceptions, attitudes and behaviors and enables fulfillment in their lives DEFINITION OF A BRAND CONTD...
  27. 27. In a highly competitive world, where manufacturers are losing their pricing power, branding is seen as a way of clawing back some of the lost influence. ROLE OF BRANDS: FOR THE COMPANY
  28. 28. BRAND IDENTITY • Mind share (cognitive level) • Heart Share (Emotional relationship) • Buying intention share • Self share (self-expression and self-design) • Legend Share (cultural-sociological proposition; legendary; mythological)
  29. 29. BRAND EQUITY • When a commodity becomes a brand, it is said to have equity. • The premium a brand can command in the market • The difference between the perceived value and the intrinsic value
  30. 30. BRAND POWER • Customer will change brands for price reasons • Customer is satisfied. No reason to change. • Customer is satisfied and would take pains to get the brand • Customer values the brand and sees it as a friend • Customer is devoted to the brand
  31. 31. ADVANTAGES OF BRANDING • Easy for the seller to track down problems and process orders • Provide legal protection of unique product features • Branding gives an opportunity to attract loyal and profitable set of customers • It helps to give a product category at different segments, having separate bundle of benefits • It helps build corporate image • It minimises harm to company reputation if the brand fails

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