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PRODUCT DECISIONS
CONCEPT OF PRODUCT DECISIONS: <ul><li>Product Decision – Acc. To Peter Drucker – “So long as pdt is not bought and consume...
PRODUCT HIERARCHY: Six Levels: <ul><li>Need Family: the core need that underlies the existence of a product family. Ex: se...
PRODUCT HIERARCHY: Six Levels: CONT… <ul><li>Product Line: a group of pdt within a product class that are closely related ...
NEW PRODUCT DEVELOPMENT PROCESS: <ul><li>1. IDEA GENERATION: The new pdt development starts with search of new ideas-custo...
NEW PRODUCT DEVELOPMENT PROCESS: <ul><li>2. IDEA SCREENING:  </li></ul><ul><li>Drop Error – Permitting a poor idea to move...
NEW PRODUCT DEVELOPMENT PROCESS: <ul><li>3. CONCEPT DEVELOPMENT AND TESTING: is an elaborated version of idea expressed in...
NEW PRODUCT DEVELOPMENT PROCESS: <ul><li>4. MARKETING STRATEGY DEVELOPMENT: Preliminary marketing strategy statement for i...
NEW PRODUCT DEVELOPMENT PROCESS: <ul><li>5. BUSINESS ANALYSIS: review sales, profit projections, new info for further revi...
NEW PRODUCT DEVELOPMENT PROCESS: <ul><li>7. TEST MARKETING: brand name, packing, and a preliminary marketing prog. to be t...
Product Mix Strategy:  <ul><li>Core Benefits - Basic Product - Expected Product - Augmented Product - Potential Product. <...
PRODUCT LIFE CYCLE <ul><li>A pdt’s sales potential and profitability change over time. The pdt’s life cycle is the course ...
PDC
 
 
Marketing Objectives <ul><li>Introduction  and  Growth </li></ul>
Marketing Objectives <ul><li>Maturity  and  Decline </li></ul>
Strategies <ul><li>Introduction  Growth </li></ul>
Strategies <ul><li>Maturity  Decline  </li></ul>
Strategies <ul><li>Introduction  Growth </li></ul>
Strategies <ul><li>Maturity  Decline </li></ul>
BRAND: <ul><li>American Marketing Association defines a Brand as: a name, term, sign, symbol or design, or a combination o...
Concept of branding: <ul><li>Branding is a major issue in pdt strategy well known brands like Sony, Coca cola, Pepsi, Maru...
Brand can convey six levels of meaning: <ul><li>Attributes: Mercedes( expensive, well built, durable) </li></ul><ul><li>Be...
Brand can convey six levels of meaning: cont… <ul><li>Culture: German culture – organized, efficient, high quality. </li><...
Brand Equity: <ul><li>Brand equity is highly related to how many customers will pay more attention to a brand: brand aware...
Value of Brand Equity: <ul><li>is the positive differential effect that knowing the brand name has on customer’s response ...
Managing Brand Equity: <ul><li>equity does not depreciate – maintaining and improving brand awareness, perceived quality, ...
Brand Perception: <ul><li>One of the desired associations a firm seeks for its brand is the customer’s perception of high ...
PACKAGING: <ul><li>all activities of designing and producing the container for a product. The container is the package, an...
Packaging as a Marketing Tool: <ul><li>Self Service:  </li></ul><ul><li>Consumer Affluence: consumer willingness to pay a ...
Requirement of Good Packaging: <ul><li>Establish the packaging concept: defining what the package should basically be or d...
Labeling: <ul><li>is simple tag attached to the pdt or an elaborately designed graphics that is the part of the package. L...
Role of Labeling in packaging: <ul><li>Identifies the pdt or brand: </li></ul><ul><li>Grade the pdt: </li></ul><ul><li>Des...
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Copy Of Product Decision

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Copy Of Product Decision

  1. 1. PRODUCT DECISIONS
  2. 2. CONCEPT OF PRODUCT DECISIONS: <ul><li>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. </li></ul>
  3. 3. PRODUCT HIERARCHY: Six Levels: <ul><li>Need Family: the core need that underlies the existence of a product family. Ex: security </li></ul><ul><li>Product Family: all the pdt classes that can satisfy a core need with reasonable effectiveness. Ex: Savings and Income </li></ul><ul><li>Product Class: A group within the pdt family recognized as having a certain functional coherence. Ex: financial instrument. </li></ul>
  4. 4. PRODUCT HIERARCHY: Six Levels: CONT… <ul><li>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 </li></ul><ul><li>Product type: A group of item within pdt line that share one of several possible forms pf the pdt. Ex: term life. </li></ul><ul><li>Item: A distinct unit a brand or product line distinguishable by size, price, appearance or some other attributes. </li></ul>
  5. 5. NEW PRODUCT DEVELOPMENT PROCESS: <ul><li>1. IDEA GENERATION: The new pdt development starts with search of new ideas-customer needs, competitors, employees, company sales people, dealers and top management. </li></ul><ul><li>- High cash flow, market share domination. </li></ul><ul><li>- Brainstorming, Problem analysis. </li></ul>
  6. 6. NEW PRODUCT DEVELOPMENT PROCESS: <ul><li>2. IDEA SCREENING: </li></ul><ul><li>Drop Error – Permitting a poor idea to move into development and commercialization or dropping a good idea - Idea rating. </li></ul>
  7. 7. NEW PRODUCT DEVELOPMENT PROCESS: <ul><li>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. </li></ul>
  8. 8. NEW PRODUCT DEVELOPMENT PROCESS: <ul><li>4. MARKETING STRATEGY DEVELOPMENT: Preliminary marketing strategy statement for introducing this new pdt into the market, problem new pdts with different concept. </li></ul>
  9. 9. NEW PRODUCT DEVELOPMENT PROCESS: <ul><li>5. BUSINESS ANALYSIS: review sales, profit projections, new info for further revision, repeat and replacement sales. </li></ul><ul><li>6. PRODUCT DEVELOPMENT: after above, R&D, engg dept to be developed in to a physical pdt. </li></ul>
  10. 10. NEW PRODUCT DEVELOPMENT PROCESS: <ul><li>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. </li></ul><ul><li>8. COMMERCIALIZATION: when, where, whom, how. </li></ul>
  11. 11. Product Mix Strategy: <ul><li>Core Benefits - Basic Product - Expected Product - Augmented Product - Potential Product. </li></ul>
  12. 12. PRODUCT LIFE CYCLE <ul><li>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. </li></ul><ul><li>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. </li></ul>
  13. 13. PDC
  14. 16. Marketing Objectives <ul><li>Introduction and Growth </li></ul>
  15. 17. Marketing Objectives <ul><li>Maturity and Decline </li></ul>
  16. 18. Strategies <ul><li>Introduction Growth </li></ul>
  17. 19. Strategies <ul><li>Maturity Decline </li></ul>
  18. 20. Strategies <ul><li>Introduction Growth </li></ul>
  19. 21. Strategies <ul><li>Maturity Decline </li></ul>
  20. 22. BRAND: <ul><li>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. </li></ul>
  21. 23. Concept of branding: <ul><li>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. </li></ul>
  22. 24. Brand can convey six levels of meaning: <ul><li>Attributes: Mercedes( expensive, well built, durable) </li></ul><ul><li>Benefits: car of Mercedes can be used in several ways. </li></ul><ul><li>Values: Performance, safety, prestige </li></ul>
  23. 25. Brand can convey six levels of meaning: cont… <ul><li>Culture: German culture – organized, efficient, high quality. </li></ul><ul><li>Personality: Mercedes suggests a no-nonsense boss </li></ul><ul><li>User: Executives who purchase the pdt and use it several years. </li></ul>
  24. 26. Brand Equity: <ul><li>Brand equity is highly related to how many customers will pay more attention to a brand: brand awareness, brand acceptability, brand preference, brand loyalty. </li></ul>
  25. 27. Value of Brand Equity: <ul><li>is the positive differential effect that knowing the brand name has on customer’s response to the pdt or services. (Disney, Ford, Toyota, Reliance) </li></ul>
  26. 28. Managing Brand Equity: <ul><li>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) </li></ul>
  27. 29. Brand Perception: <ul><li>One of the desired associations a firm seeks for its brand is the customer’s perception of high quality </li></ul><ul><li>Customers ready to pay premium for it </li></ul><ul><li>The firm will have greater trade leverage and channel members would have greater interest in dealing in such brands. </li></ul><ul><li>Perceived quality is not necessarily the same as manufacturing quality.- Perceived quality is how customers evaluate different brands </li></ul>
  28. 30. PACKAGING: <ul><li>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. </li></ul>
  29. 31. Packaging as a Marketing Tool: <ul><li>Self Service: </li></ul><ul><li>Consumer Affluence: consumer willingness to pay a little more for the convenience, appearance, dependability and prestige of better package </li></ul><ul><li>Company and Brand Image: instant recognition of the brand or company. </li></ul><ul><li>Innovation Opportunity: </li></ul>
  30. 32. Requirement of Good Packaging: <ul><li>Establish the packaging concept: defining what the package should basically be or do for the particular pdt. </li></ul><ul><li>Decision on additional elements: shape, size, material, text and brand mark. </li></ul><ul><li>Color: must be carefully chosen: blue – cool, red – active and lively. </li></ul><ul><li>Amount of text, cellophane paper or other transparent films. </li></ul><ul><li>Tamperproof devices: </li></ul>
  31. 33. Labeling: <ul><li>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. </li></ul>
  32. 34. Role of Labeling in packaging: <ul><li>Identifies the pdt or brand: </li></ul><ul><li>Grade the pdt: </li></ul><ul><li>Describe the pdt: </li></ul><ul><li>Promote the pdt: </li></ul>

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