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Product management
The document provides an overview of products, including definitions, types, features, and classifications such as durable, non-durable, and consumer goods. It discusses product mix strategies, the new product development process, and the product life cycle stages, emphasizing the importance of market analysis and consumer needs. Additionally, it outlines common causes of new product failures and the consumer adoption process.
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Product management
- 1. Welcome M.Jakkaraiah Asst.professor PBR VITS KAVALI
- 2. What is aproduct ? A product is anything that can offered to market for attention, acquisition ,use, consumption that might satisfy a want or need.
- 3. PRODUCTS Tangible Intangible products products GOODS SEVICES
- 4. Features of product tangibility Associated attributes Intangible Features of attributes product Customer Exchange value satisfaction
- 5. Levels of product Unexpectedfeatures Potential product Luxury features Augmented product Expected features Expected product Basic features Generic product Basic product Core benefit
- 6. Classifying Products Durable products Consumerproducts, Business products
- 7. Durable products Durable Non-durable Services
- 8. Consumer Products Shopping Specialty Products Products Convenience Products Unsought Products . . To satisfy information needs & buying motives
- 9. CONVENIENCE GOODS Convenience goods– consumers use minimal effort for frequently purchased low cost items Staples - Emergency goods – Impulse purchases –
- 10. Shopping Products Shopping goods - consumers make a considerable 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. TV’s As aShopping Product (2007 ---- 1950’s) Attribute-based Price-based Plasma –LCD screen LOW PRICE WARRANTY REMOTE CONTROL PICTURE SIZE Homogeneous products select on price Heterogeneous products select on benefits
- 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. Raw materials Farmproducts Natural products
- 14.
- 15. Capitals items 1.installation 2.equiptment
- 16. Suppliers and businessservices 1.mainteinance and 2.operating suppliers repair items
- 17. Product Mix &Product Line • Product Item
- 18.
- 19. Product Mix Theassortment 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. Product Line & ProductMix • Product Line LAMPS •Table •Ceiling •Track •Desk
- 21. • Product Mix Product Product Product Line 1 Line 2 Line 3 LAMPS TABLES CHAIRS •Table •Kitchen •Dining Room •Ceiling •Dining Room •Living Room •Track •End •Bedroom •Desk •Coffee •Outdoor •Outdoor •Desk •Conference •Computer
- 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. PRODUCT MIX EXAMPLE Width (# of product lines) HAIR SALTY DENTAL SOFT CARE SNACKS CARE DRINKS Shampoo Chips Tooth Brush Cola Conditione Nuts Tooth Paste Ginger Ale r Dental Floss Crackers Root Beer Hair Spray
- 24. Factors influencing changein product mix Changes in market demand Cost of production Quantity of production Changes in company desire Competitors actions and reactions
- 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. Product management Planning Forecasting Marketing of products of a company is product management
- 27. Objectives of productmanagement To design product stratagies To spot market opportunities To develop strategies for each stage of product life cycle To generate new product ideas
- 28. New product planning Newproduct : New to the company even it is in the world Types of new products 1.New to the world 2.New to the firm 3.Addition to existing product line 4.Improved and revised 5.Reduction in cost
- 30. Importance of newproduct To meet consumer needs and wants To meet competition To increase profits To avoid threats from substitutes
- 31. New Product DevelopmentProcess Step 1. Idea Generation Systematic Search for New Product Ideas Internal sources Customers Competitors Distributors Suppliers
- 32. Step 2. IdeaScreening Process to spot good ideas and drop poor ones Technically feasibility Financially viable
- 33. Step 3. ConceptDevelopment & 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
- 34. Step 4. MarketingStrategy 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
- 35. Step 5. BusinessAnalysis Step 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
- 36. Step 7. TestMarketing 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.
- 37. Step-8 commercialization Introducing the product into the market
- 38. Product Life Cycle Salesand Profits ($) Sales Profits Time Product Introduction Growth Maturity Decline Develop- ment Losses/ Investments ($)
- 39. Introduction Stage ofthe 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
- 40. Growth Stage ofthe PLC Sales Rapidly rising sales Costs Average cost per customer Profits Rising profits Marketing 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
- 41. Maturity Stage ofthe PLC Sales Peak sales Costs Low cost per customer Profits High profits Marketing 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
- 42. Decline Stage ofthe PLC Sales Declining sales Costs Low cost per customer Profits Declining profits Marketing 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
- 43. 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
- 44. Growth Stage ofthe PLC Offer product extensions, service, Product warranty Price penetrate Price Distribution Build intensive distribution Build awareness and interest in the Advertising mass market Sales promotion Consumer demo
- 45. Maturity Stage ofthe PLC Product Diversify brand and models Price Price to match or beat competitors Distribution Build more intensive distribution Advertising Stress brand differences and benefits Sales promotion Encourage to brand switching
- 46. Decline Stage ofthe 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 customers Sales promotion Reduce to minimal level
- 47. Causes of NewProduct 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
- 48. CONSUMER ADOPTION PROCESS Adopt Trail Evaluation Interest Awareness
- 49. CONSUMER ADOPTION PROCESS Potential product Augmented product Expected Product Generic product Core Benefit