Brief description about product & service line and decisions, branding strategies, new product development and product life cycle.

1. Product, Services, Brands and
New Product Development
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3. A Product is anything that can be offered in a market
for attention, acquisition, use, or consumption
that might satisfy a need or want.
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4. Level of Product
Augmented
Product
Actual
Product
Core
Customer
Value
 After sale
Service
 Delivery
&Credit
 Product
Support
 Warranty
 Brand
name
 Quality
Level
 Features
 Design
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5. Types of Product
Consumer
Product
Industrial
Product
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6. Classification of Consumer Product
Convenience
Products
Buy frequently
& immediately
• Low price
• Many
purchase
location
Unsought Products
New innovations
• Products
consumer don’t
want to think
about
• Require more
advertising and
personal selling
Shopping Products
Buy less
frequently
• Gather product
information
• Fewer purchase
location
Specialty Products
Special
purchase effort
• Unique
characteristics
• Band
identification
• Few purchase
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7. Classification of Industrial Product
Capital Item
• Aid to the
buyers
production
• Installation
Material &
Parts
• Raw materials
• Manufactured
materials
Supplies &
Services
• Operating
supplies
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8. Level of Product Decision
Individual Product
Decision
Product line
Decision
Product Mix
Decision
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9. Individual Product Decision
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10. Product Line ?
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11. A product line is a group of products
that are closely related to function,
customer group, market
or price range.
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12. Product line length is the number of items
in the product line.
• Line stretching
• Line filling
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14. Product mix decision
Product
Mix
Decision
Length
Width
Depth
Consistency
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15. Branding Strategy:
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16. A name, term, sign, symbol, design, or a combination
of these that identifies the product or services
of one seller or a group of sellers
which differentiates them
from competitors.
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17. Building Strong Brand Strategies
Brand
positioning
Brand name
selection
Brand
sponsorship
Brand
development
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18. Brand Positioning
• Product attributes
• Product benefits
• Product beliefs and values
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19. Brand Name Selection
• Easy to pronounce, recognize, and remember
• Distinctive
• Capable of registration and legal protection
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20. Brand Sponsorship
• Manufacturer’s brand
• Private brand
• Licensed brand
• Co-brand
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21. Brand Development
Line extension
Brand
extension
Multibrands New brands
Existing
New
Existing New
Brandname
Product category
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22. Line Extension
• Same brand name
• Existing product categories
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23. Brand Extension
• Same brand name
• New product categories of same brand
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24. Multibrands
• New brand name
• Existing product categories
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25. New Brands
• New brand name
• New product categories
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26. New Product Development
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27. Reasons for new product failure
Overestimation of market size
Poor design
Incorrect positioning
Wrong timing
Priced too high
Ineffective promotion
Management influence
High development costs
Competition
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28. Process of New-Product Development
Idea
generation
Idea screening
Concept
development &
testing
Marketing
strategy
development
Product
development
Test
marketing
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29. Idea Generation
Idea generation is the systematic search for
new-product ideas.
Sources of new-product ideas:
• Internal inside company
• External outside company
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30. Idea Screening
• Identify good ideas and drop poor ideas
• R-W-W Screening Framework:
– Is it real?
– Can we win?
– Is it worth doing?
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31. Concept Development and Testing
Concept development
• Product idea
• Product concept
• Product image
Concept testing refers to testing new-product concepts
with groups of target consumers
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32. Marketing Strategy Development
Marketing strategy development refers to the initial marketing
strategy for introducing the product to the market.
Marketing strategy includes:
– Description of the target market
– Value proposition
– Sales and profit goals
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33. Product Development
Product development involves the creation and testing
of one or more physical versions by the R&D.
• Requires an increase in investment
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34. Test Marketing
Test marketing is the stage at which the product
and marketing program are introduced into
more realistic marketing settings.
Types of test markets:
 Standard test markets
 Controlled test markets
 Simulated test markets
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35. Product Life-Cycle Strategies
Product Life Cycle
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36. • Product development
– Sales are zero and investment costs mount
• Introduction
– Slow sales growth and profits are nonexistent
• Growth
– Rapid market acceptance and increasing profits.
• Maturity
– Slowdown in sales growth and profits level off or decline
• Decline
– Sales fall off and profits drop
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