06. product strategy

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Product strategy by Tharaka Dias

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06. product strategy

  1. 1. THARAKA DIAS MBA(USA), BBA(USA), Dip in Mgt, ACIM(UK),FAEA(Dip in AEA-UK), FinstSMM(UK), CPM(Asia), MSLIM
  2. 2. What are the characteristics of productsand how do marketers classify products?How can companies differentiateproducts?How can a company build and manage itsproduct mix and product lines? AOT - www.tharakadias.com 2
  3. 3. How can companies combine products tocreate strong co-brands or ingredient brands?How can companies use packaging, labeling,warranties, and guarantees as marketingtools? AOT - www.tharakadias.com 3
  4. 4. AOT - www.tharakadias.com 4
  5. 5. A product is anything that can be offered to a market to satisfy a want or need, includingphysical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas. AOT - www.tharakadias.com 5
  6. 6. YouTube - McDonalds FUNNY AD.mp4 3455.wmvAOT - www.tharakadias.com 6
  7. 7. Value-based prices Attractiveness of the market offeringProduct Servicesfeatures mix andand quality quality AOT - www.tharakadias.com 7
  8. 8. AOT - www.tharakadias.com 8
  9. 9. Core product • Transport • Product features, design, quality,Basic product brand and packaging Expected • Level of performance, comforts, product reliability, and thrill, status, prestigeAugmented • After sales support, customer service, product delivery, credit etc. Potential • Better fuel economy, enhanced product design etc. AOT - www.tharakadias.com 9
  10. 10. DurabilityTangibility Use AOT - www.tharakadias.com 10
  11. 11. Nondurable goodsDurable Services goods AOT - www.tharakadias.com 11
  12. 12. Convenience Shopping Specialty Unsought AOT - www.tharakadias.com 12
  13. 13. Convenience products- relatively inexpensive and frequently purchased1. Staple goods- bread, milk, toothpaste2. Impulse goods – chocolates, perfumes, mags3. Emergency products – umbrella, medicine, battery Shopping products – less frequent purchased products ( Appliances, bicycle, cameras, furniture, clothing, airline etc) Specialty products - products with unique characteristics or brand identification ( Cars, watches, designer clothes, medical advisory, legal) Unsought products – normally does not plan to buy ( catalogues, insurance, encyclopedia, blood donation etc) AOT - www.tharakadias.com 13
  14. 14. Materials and parts Supplies/Capital items business services AOT - www.tharakadias.com 14
  15. 15. Product form Features Customization Performance Conformance Durability Reliability Repairability StyleAOT - www.tharakadias.com
  16. 16. Ordering ease Delivery Installation Customer training Customer consulting Maintenance and repair ReturnsAOT - www.tharakadias.com
  17. 17. AOT - www.tharakadias.com 17
  18. 18. AOT - www.tharakadias.com 18
  19. 19. Product system Product mix Product assortment Depth Length Width ConsistencyAOT - www.tharakadias.com
  20. 20. • Width of 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 AOT - www.tharakadias.com 20
  21. 21. AOT - www.tharakadias.com 21
  22. 22. Down-Market Stretch Up-Market Stretch Two-Way StretchAOT - www.tharakadias.com
  23. 23. AOT - www.tharakadias.com 23
  24. 24. Pruning weak brands can strengthen the remaining brands in the lineAOT - www.tharakadias.com
  25. 25. Product-line pricingOptional-feature pricingCaptive-product pricingTwo-part pricingBy-product pricingProduct-bundling pricing AOT - www.tharakadias.com 25
  26. 26. AOT - www.tharakadias.com 26
  27. 27. AOT - www.tharakadias.com 27
  28. 28. AOT - www.tharakadias.com 28
  29. 29. Packaging, sometimes called the fifthP, is all the activities of designing andproducing the container for a product. AOT - www.tharakadias.com 29
  30. 30. Self-service Consumer affluence Company/brand image Innovation opportunityAOT - www.tharakadias.com 30
  31. 31. AOT - www.tharakadias.com 31
  32. 32. Identify the brandConvey descriptive and persuasiveinformationFacilitate product transportation andprotectionAssist at-home storageAid product consumption AOT - www.tharakadias.com 32
  33. 33. Identifies Grades Describes PromotesAOT - www.tharakadias.com 33
  34. 34. AOT - www.tharakadias.com 34
  35. 35. AOT - www.tharakadias.com 35
  36. 36. Awareness Interest Evaluation Trial AdoptionAOT - www.tharakadias.com 36
  37. 37. Adoption Process • Product Adopter Categories 2.5% Innovators AOT - www.tharakadias.com 37
  38. 38. Adoption Process • Product Adopter Categories 2.5% Innovators 13.5% Early Adopters AOT - www.tharakadias.com 38
  39. 39. Adoption Process • Product Adopter Categories 2.5% Innovators 13.5% Early Adopters 34% Early Majority AOT - www.tharakadias.com 39
  40. 40. Adoption Process • Product Adopter Categories 2.5% Innovators 13.5% Early Adopters34% Late Majority 34% Early Majority AOT - www.tharakadias.com 40
  41. 41. Adoption Process • Product Adopter Categories 2.5% Innovators 16% Laggards 13.5% Early Adopters34% Late Majority 34% Early Majority AOT - www.tharakadias.com 41
  42. 42. 1 2 3Idea generation Idea screening Concept testing 4 5 Business Analysis Product Development 6 7 Test marketing Commercialisation AOT - www.tharakadias.com 42
  43. 43. AOT - www.tharakadias.com 43
  44. 44. Thank youAOT - www.tharakadias.com 44

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