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Product management


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this is ppt presentation on product management . it covers features of product ,product levels ,product classification ,product mix and product life cycle stratagies

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Product management

  1. 1. Welcome M.Jakkaraiah Asst.professor PBR VITS KAVALI
  2. 2. What is a product ? A product is anything that can offered to market for attention, acquisition ,use, consumption that might satisfy a want or need.
  3. 3.  PRODUCTS Tangible Intangible products products GOODS SEVICES
  4. 4. Features of product tangibility Associated attributes Intangible Features of attributes product Customer Exchange value satisfaction
  5. 5. Levels of productUnexpected features Potential product Luxury features Augmented product Expected features Expected product Basic features Generic productBasic product Core benefit
  6. 6. Classifying ProductsDurable productsConsumer products,Business products
  7. 7. Durable products Durable Non-durable Services
  8. 8. Consumer Products Shopping Specialty Products ProductsConvenience Products Unsought Products . . To satisfy information needs & buying motives
  9. 9. CONVENIENCE GOODSConvenience goods – consumers use minimal effort forfrequently purchased low cost items Staples - Emergency goods – Impulse purchases –
  10. 10. Shopping ProductsShopping goods - consumers make aconsiderable effort to evaluate … Consumers make product comparison(s), They seek information before purchase, they are not impulsive Moderate substitutions are made Product’s last a considerable time Monetary & social costs may be high
  11. 11. TV’s As a Shopping Product(2007 ---- 1950’s)Attribute-based Price-basedPlasma –LCD screen LOW PRICE WARRANTY REMOTE CONTROL PICTURE SIZE Homogeneous products select on price Heterogeneous products select on benefits
  12. 12. Business products  Materials and parts  Raw materials and parts  Manufactured materials and parts  Capitals items  1.installation  2.equiptment  Suppliers and business services  1.maitainance and repair items  2.operating suppliers
  13. 13. Raw materials Farm products Natural products
  14. 14. Manufactured materials and parts
  15. 15. Capitals items  1.installation  2.equiptment
  16. 16. Suppliers and business services  1.mainteinance and  2.operating suppliers repair items
  17. 17. Product Mix & Product Line • Product Item
  18. 18. Product mix
  19. 19. Product Mix The assortment of products that a company offers to a market Width – how many different product lines? Length – the number of items in the product mix Depth – The no. of variants offered in a product line Consistency – how closely the product lines are related in usage
  20. 20. Product Line& Product Mix • Product Line LAMPS •Table •Ceiling •Track •Desk
  21. 21. • Product Mix Product Product Product Line 1 Line 2 Line 3LAMPS TABLES CHAIRS•Table •Kitchen •Dining Room•Ceiling •Dining Room •Living Room•Track •End •Bedroom•Desk •Coffee •Outdoor •Outdoor •Desk •Conference •Computer
  22. 22. CONCEPTUALIZATION OF PRODUCT MIX Home WIDTH Depot, Lowe’s Tata Motors Tata Steel Tata Tea Tata DTH D GEMINI BUS BARS TEA E# of lines = 4 P LORRY PLATES# of items = 12 T CARS H A wide product mix facilitates one stop shopping
  23. 23. PRODUCT MIX EXAMPLE Width (# of product lines) HAIR SALTY DENTAL SOFT CARE SNACKS CARE DRINKSShampoo Chips Tooth Brush ColaConditione Nuts Tooth Paste Ginger Aler Dental Floss Crackers Root BeerHair Spray
  24. 24. Factors influencing change in product mix  Changes in market demand  Cost of production  Quantity of production  Changes in company desire  Competitors actions and reactions
  25. 25. Product mix stratagies Expansion of product mix Contracting or dropping the product mix Alteration of existing product s Trading up/trading down stratagies
  26. 26. Product management Planning Forecasting Marketing of products of a company is product management
  27. 27. Objectives of product management To design product stratagies To spot market opportunities To develop strategies for each stage of product life cycle To generate new product ideas
  28. 28. New product planningNew product : New to the company even it is in the worldTypes of new products1.New to the world2.New to the firm3.Addition to existing product line4.Improved and revised5.Reduction in cost
  29. 29. Importance of new product To meet consumer needs and wants To meet competition To increase profits To avoid threats from substitutes
  30. 30. New Product Development Process Step 1. Idea Generation Systematic Search for New Product IdeasInternal sourcesCustomersCompetitorsDistributorsSuppliers
  31. 31. Step 2. Idea Screening Process to spot good ideas and drop poor ones Technically feasibility Financially viable
  32. 32. Step 3. Concept Development & Testing 1. Develop Product Ideas into Alternative Product Concepts 2. Concept Testing - Test the Product Concepts with Groups of Target Customers 3. Choose the Best One
  33. 33. Step 4. Marketing Strategy Development Part One - Overall: Target Market Planned Product Positioning Sales & Profit Goals Market Share Part Two - Short-Term: Product’s Planned Price Distribution Marketing Budget Part Three - Long-Term: Sales & Profit Goals Marketing Mix Strategy
  34. 34. Step 5. Business AnalysisStep 6. Product Development Business Analysis Review of Product Sales, Costs, and Profits Projections to See if They Meet Company Objectives If No, Eliminate Product Concept If Yes, Move to Product Development
  35. 35. Step 7. Test Marketing Standard Controlled Test Market Test Market Full marketing campaign A few stores that have in a small number of agreed to carry new representative cities. products for a fee. Simulated Test Market Test in a simulated shopping environment to a sample of consumers.
  36. 36. Step-8 commercialization Introducing the product into the market
  37. 37. Product Life CycleSales andProfits ($) Sales Profits Time Product Introduction Growth Maturity Decline Develop- mentLosses/Investments ($)
  38. 38. Introduction Stage of the PLC Sales Low sales Costs High cost per customer Profits Negative Create product awareness Marketing Objectives and trial Product Offer a basic product Price Use cost-plus Distribution Build selective distribution Advertising Build product awareness among early adopters and dealers
  39. 39. Growth Stage of the PLC Sales Rapidly rising sales Costs Average cost per customer Profits Rising profitsMarketing Objectives Maximize market share Offer product extensions, service, Product warranty Price Price to penetrate market Distribution Build intensive distribution Advertising Build awareness and interest in the mass market
  40. 40. Maturity Stage of the PLC Sales Peak sales Costs Low cost per customer Profits High profitsMarketing Objectives Maximize profit while defending market share Product Diversify brand and models Price Price to match or best competitors Distribution Build more intensive distribution Advertising Stress brand differences and benefits
  41. 41. Decline Stage of the PLC Sales Declining sales Costs Low cost per customer Profits Declining profitsMarketing Objectives Reduce expenditure and milk the brand Product Phase out weak items Price Cut price Go selective: phase out unprofitable Distribution outlets Advertising Reduce to level needed to retain hard-core loyal customers
  42. 42. Introduction Stage-Strategies PRODUCT Offer a basic product PRICE Cost +profit SALES PROMOTION Heavy expenditure to create trails Distribution Build selective distribution Build product awareness among early Advertising adopters and dealers
  43. 43. Growth Stage of the PLC Offer product extensions, service, Product warranty Price penetrate Price Distribution Build intensive distribution Build awareness and interest in the Advertising mass marketSales promotion Consumer demo
  44. 44. Maturity Stage of the PLC Product Diversify brand and models Price Price to match or beat competitors Distribution Build more intensive distribution Advertising Stress brand differences and benefitsSales promotion Encourage to brand switching
  45. 45. Decline Stage of the PLC Product Phase out weak items Price Cut price Go selective: phase out unprofitable Distribution outlets Advertising Reduce to level needed to retain hard-core loyal customersSales promotion Reduce to minimal level
  46. 46. Causes of New Product Failures  Overestimation of Market Size  Product Design Problems  Product Incorrectly Positioned, Priced or Advertised  Costs of Product Development  Competitive Actions  Technical problems  Poor planning  Inadequate promotion  Poor packing  Fault pricing
  47. 47. CONSUMER ADOPTION PROCESS Adopt Trail Evaluation InterestAwareness
  48. 48. CONSUMER ADOPTION PROCESS Potential product Augmented product Expected Product Generic product Core Benefit