Product Planning Dr. Anil Mishra [email_address] 9937635059, 09425452065 Asian School of Business Management
Product Personality <ul><li>Core feature: Basic component of a product. Core benefits offered by the product. </li></ul><u...
Nature of the product <ul><li>Generic product: These are unbranded, plainly packaged products and are less expensive than ...
Product Classification <ul><li>Durability and tangibility: </li></ul><ul><li>Non durables </li></ul><ul><li>Durables </li>...
Usage  <ul><li>Consumer products: </li></ul><ul><li>Convenience product: That are relatively inexpensive and are bought fr...
<ul><li>Shopping products: products for which a buyer is willing to spend time and effort in planning and making purchase ...
Industrial products <ul><li>Raw material: basic material used in producing a product. </li></ul><ul><li>Components: a fini...
Limitations of product classification models <ul><li>A single product can be consumer or industrial. </li></ul><ul><li>Dif...
Product policy <ul><li>Product mix: </li></ul><ul><li>Width </li></ul><ul><li>Length </li></ul><ul><li>Depth  </li></ul><u...
Product mix strategy <ul><li>Expansion of product mix </li></ul><ul><li>Contraction of product line </li></ul><ul><li>Alte...
Managing product line <ul><li>Product line length: </li></ul><ul><li>Line stretching: downwards, upwards or both </li></ul...
Product life cycle <ul><li>Introduction stage:  </li></ul><ul><li>Strategies for introduction stage </li></ul><ul><li>Rapi...
<ul><li>Slow skimming: This strategy calls for launching the new product at a higher price and a low promotional level. Th...
Growth stage <ul><li>They restore to aggressive pricing, including price cuts to attract price sensitive customers. </li><...
Maturity stage <ul><li>Abandon weaker products and concentrate more on profitable products. </li></ul><ul><li>Increase adv...
Decline stage <ul><li>Reducing the number of products (pruning) in a product line offered to the market. </li></ul><ul><li...
Discussion <ul><li>Is it really possible for a company to research customers’ requirements and make products for them? </l...
<ul><li>Do customer really need and value the incessant launches of new products which are not substantially different fro...
<ul><li>Marketers almost believe that products have definite lives and they follow a definite pattern in their lives. But ...
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Product And Product Lines 8

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Transcript of "Product And Product Lines 8"

  1. 1. Product Planning Dr. Anil Mishra [email_address] 9937635059, 09425452065 Asian School of Business Management
  2. 2. Product Personality <ul><li>Core feature: Basic component of a product. Core benefits offered by the product. </li></ul><ul><li>Associated features: Some additional benefits which a marketer offers to their customers. </li></ul>
  3. 3. Nature of the product <ul><li>Generic product: These are unbranded, plainly packaged products and are less expensive than branded products. </li></ul><ul><li>Expected product: The basic requirements a customer finds essential to buy a product. </li></ul><ul><li>Augmented product: Other than customers expectation what marketer gave in addition to customer that is augmented product. </li></ul><ul><li>Potential product: Those include all the possible improvements that are possible under given technological, economic and competitive conditions. </li></ul>
  4. 4. Product Classification <ul><li>Durability and tangibility: </li></ul><ul><li>Non durables </li></ul><ul><li>Durables </li></ul><ul><li>Services </li></ul>
  5. 5. Usage <ul><li>Consumer products: </li></ul><ul><li>Convenience product: That are relatively inexpensive and are bought frequently. These are bought with a minimum of thought and efforts. These may be staple goods (milk, bread news paper) or impulse goods. </li></ul>
  6. 6. <ul><li>Shopping products: products for which a buyer is willing to spend time and effort in planning and making purchase decisions. These product are expected to have longer life and are purchased less frequently. (e.g. mobiles, jewelry, cars) </li></ul><ul><li>Specialty product: That have one or more unique characteristic features. These are available through a few select outlets or through a single outlet. </li></ul><ul><li>Unsought product: when customer faced a sudden problem. (e.g. umbrella, wheel chair,) </li></ul>
  7. 7. Industrial products <ul><li>Raw material: basic material used in producing a product. </li></ul><ul><li>Components: a finished product or a product that needs a little processing before becoming a part of the main product. A component can be easily distinguished from the main product though it acts as a part of that product. </li></ul><ul><li>Process material: these product are not identified as part of the production of final products. Alcohol in perfume. </li></ul><ul><li>Consumable product: they are not part of the product but consumed during production MRO. Pen for office use. </li></ul>
  8. 8. Limitations of product classification models <ul><li>A single product can be consumer or industrial. </li></ul><ul><li>Differentiation due to different perceptions </li></ul><ul><li>Customer do not behave rationally all the time. Change in income level may change the customer behavior. </li></ul>
  9. 9. Product policy <ul><li>Product mix: </li></ul><ul><li>Width </li></ul><ul><li>Length </li></ul><ul><li>Depth </li></ul><ul><li>Consistency </li></ul>
  10. 10. Product mix strategy <ul><li>Expansion of product mix </li></ul><ul><li>Contraction of product line </li></ul><ul><li>Altering existing product </li></ul><ul><li>Positioning the product: competitors, target market, product class, price or quality </li></ul><ul><li>Trading up </li></ul><ul><li>Trading down </li></ul>
  11. 11. Managing product line <ul><li>Product line length: </li></ul><ul><li>Line stretching: downwards, upwards or both </li></ul><ul><li>Line filling </li></ul><ul><li>Line pruning </li></ul>
  12. 12. Product life cycle <ul><li>Introduction stage: </li></ul><ul><li>Strategies for introduction stage </li></ul><ul><li>Rapid skimming: launching product at higher price and higher promotional level to skim market rapidly. this is useful when large part of potential market is unaware of the product. </li></ul>
  13. 13. <ul><li>Slow skimming: This strategy calls for launching the new product at a higher price and a low promotional level. This is feasible when the market is aware of the product, the market size is limited. </li></ul><ul><li>Rapid penetration: Rapid penetration demands the launching of a product at a lower price and with heavy promotion. This is applied when the market is large in size, and competition is strong. </li></ul><ul><li>Slow penetration: launching product at a lower price and low level of promotion. Customer are price sensitive. </li></ul>
  14. 14. Growth stage <ul><li>They restore to aggressive pricing, including price cuts to attract price sensitive customers. </li></ul><ul><li>They emphasize the product’s benefits in order to create a competitive niche in the market. </li></ul><ul><li>They try to improve product quality and add new features and models. </li></ul><ul><li>They may introduce new distribution channels. </li></ul><ul><li>They enters new market. </li></ul>
  15. 15. Maturity stage <ul><li>Abandon weaker products and concentrate more on profitable products. </li></ul><ul><li>Increase advertising and sales promotion. </li></ul><ul><li>Invest more in R&D to bring about improvements in the product and product line extension. </li></ul>
  16. 16. Decline stage <ul><li>Reducing the number of products (pruning) in a product line offered to the market. </li></ul><ul><li>Cutting promotional budgets and prices. </li></ul><ul><li>Cutting down the distribution channels and distributors with poor sales. </li></ul><ul><li>Ultimately withdrawing totally from the market. </li></ul>
  17. 17. Discussion <ul><li>Is it really possible for a company to research customers’ requirements and make products for them? </li></ul>
  18. 18. <ul><li>Do customer really need and value the incessant launches of new products which are not substantially different from the older ones? Are new products launcehs more the result of competitive necessity, rather than being new and better means to serve customers’ needs? </li></ul><ul><li>Customers value a company primarily for the products that they make. Are company’s best people working in areas of product development that their brilliant marketers will be able to sell their mediocre products? </li></ul>
  19. 19. <ul><li>Marketers almost believe that products have definite lives and they follow a definite pattern in their lives. But human beings have been very consistent in terms of their needs and it is reasonable to believe that some human needs will always be there. Can’t companies design products for perpetuity or at least products which will be relevant for a longer time? </li></ul>
  20. 20. Thank U

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