Mechanical Marketing related to the students which follows the Manufacturing Engineering Stream

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Product Strategies
G.D Samarasinghe
Department of Management of Technology
ME5121 – Industrial Management
MEng/PG Diploma in Manufacturing Systems Engineering

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Product Strategy
• Product—bundle of physical, service,
and symbolic attributes designed to
enhance buyers’ want satisfaction.
– Included in this broad definition are
considerations of package design,
brand names, warranties, and
product image
– People don’t buy things (e.g., ¼” drill
bits), they purchase what those
things will provide them with (e.g. ¼”
holes)

3. Levels of Product
Core
benefit
or
service
Augmented product
Installation
After-
Sale
service
Delivery
and
credit
Warranty
Brand
name
Quality
level Design
Features
Packaging
Core product
Actual product

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Product Life Cycle
• Product Life Cycle—four basic stages
through which a successful product
progresses.
– Introduction
– Growth
– Maturity
– Decline

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• Stages in the Product Life Cycle

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Product Life-Cycle
Characteristics
Characteristics Introduction Growth Maturity Decline
Sales Low Rapidly rising Peak Declining
Costs High per customer Average per
customer
Low per customer Low per
customer
Profits Negative Rising High Declining
Customers Innovators Early adopters Middle majority Laggards
Competitors Few Growing number Stable number
beginning to
decline
Declining number
Marketing
Objectives
Create product
awareness and trial
Maximize market
share
Maximize profit
while defending
market share
Reduce
expenditures and
milk the brand

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Product Life-Cycle
Strategies
Strategies Introduction Growth Maturity Decline
Product Offer basic product Offer product
extensions, service,
warranty
Diversify brand and
models
Phase out weak items
Price Use cost-plus Price to penetrate
market
Price to match or best
competitors
Cut price
Distribution Build selective Build intensive Build more intensive Go selective, phase out
unprofitable outlets
Advertising Build product
awareness among early
adopters and dealers
Build awareness and
interest in the mass
market
Stress brand
differences and
benefits
Reduce to level needed
to retain hard-core
loyals
Sales
Promotion
Use heavy sales
promotion to entice
trial
Reduce to take
advantage of heavy
consumer demand
Increase to encourage
brand switching
Reduce to minimal
level

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New Product Development
• Stages in New-
Product
Development
– New products are
the lifeblood of
any organization
– Firms must
periodically add
new products to
assure continued
prosperity

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Product Identification
• Brand—name, term sign, symbol,
design, or some combination that
identifies the products of a firm and
distinguishes them from competitive
offerings.
• Brand name—the part of a brand
consisting of words or letters that form
a name that identifies and distinguishes
an offering from those of competitors
• Trademark—brand with legal
protection against another company’s
use (can include pictorial designs,
slogans, packaging elements, and
product features)

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Product Identification
• Selecting an Effective Brand Name
– Should communicate appropriate
product images
– Must be easy to pronounce, recognize,
and remember
– Best if Short
– Should Attract Attention

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Product Identification
• Brand Categories
– Manufacturer’s (or national)
brands— brand offered and
promoted by a manufacturer or
producer
– Private (or store) brand—identifies
a product that is not linked to the
manufacturer, but instead carries the
label of a retailer or wholesaler

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Product Identification
• Brand Categories
– Family Brand—single brand name that
identifies several related products
– Individual Brands—giving a different
brand name to each product within a
product line

13. Product Attributes:
Quality
• The ability of a product to
perform its functions
including:
– overall durability
– reliability
– precision
– ease of operation/repair
– other valued attributes

14. Product Attributes:
Features and Design
• Features as a tool for differentiation
• Value of features versus cost to company
• Style based solely on visual impact
– Does not make product perform better
• Design contributes to usefulness
• Two together = attention, improved
performance, cut costs, competitive
advantage