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MANAGING THE PRODUCT

MANAGING THE PRODUCT. 4 Ps. PRODUCT PRICE PLACE PROMOTION. PRODUCT : Anything that can be offered to a market to satisfy a need and want. PRODUCT & ITS LEVELS. CORE BENEFIT : The fundamental service customer is buying

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MANAGING THE PRODUCT

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  1. MANAGING THE PRODUCT

  2. 4 Ps • PRODUCT • PRICE • PLACE • PROMOTION PRODUCT : Anything that can be offered to a market to satisfy a need and want

  3. PRODUCT & ITS LEVELS • CORE BENEFIT : The fundamental service customer is buying • BASIC PRODUCT : To turn core benefit into basic product • EXPECTED PRODUCT : Set of attributes & condition buyer expects • AUGMENTED PRODUCT : Exceeds customer expectations • POTENTIAL PRODUCT : Future augmentation & transformation of product

  4. HOTEL INDUSTRY • CORE BENEFIT • REST & SLEEP • BASIC PRODUCT • BED, BATHROOM, TOWELS • EXPECTED PRODUCT • CLEANLINESS, AMBIENCE • AUGMENTED PRODUCT • FRESH FLOWERS, FINE DINING, ROOM SERVICE • POTENTIAL PRODUCT • SUITES

  5. PRODUCT HIERARCHY • Need family: Core need underlines existence of pdt. • Product family: All pdt. Classes satisfying core need. • Product class: Grp.of pdts within family having certain functional coherence • Product line: Pdts. Closely related as they perform similar functions • Product type: Grp. of items within pdt. Line that share several forms of product. • Brand: Name given to identify the source

  6. PRODUCT CLASSIFICATION • Durability & Tangibility • Non durable: consumed in one or few uses • Durable: tangible goods survive for long • Services: Intangible, inseparable, perishable pdt. • Consumer Goods Classification • Convenience Goods: purchases frequently, immediately, min. effort • Staples, impulse goods, emergency goods • Shopping Goods: suitability, quality, price, style • furniture, clothing • Specialty Goods: unique characteristics or brand specific. • cars, cameras • Unsought Goods: smoke detectors

  7. INDUSTRIAL GOODS • Materials & Parts • Raw Materials • Manufactured materials • Capital Items • Installations • Eqipment • Supplies & Business Services • Operating Supplies • Maintenance & repair services • Business Advisory Services

  8. PRODUCT MIX • WIDTH • Different product line • LENGTH • Total no. of items in the mix • DEPTH • Variants offered of each product in the line • CONSISTENCY • How closely related are product lines

  9. PRODUCT LINE DECISIONS PRODUCT LINE LENGTH • LONGER LINES : Company seeking high market share & growth • SHORT LINES : Company emphasizes on profitability

  10. LINE STRETCHING DOWN MARKET STRETCH • Strong growth opportunities : Wal-Mart • Tie up with lower end competitors • Stagnation of middle market UP MARKET STRETCH • Growth, margins • Full line manufacturers TWO WAY STRETCH MERCEDES TOYOTA MARRIOTT HOTEL

  11. LINE FILLING ADDING MORE ITEMS • Incremental profits • Satisfied dealers • Utilization of excess capacity • Leading Full Line Company

  12. BRANDING • ATTRIBUTES • BENEFITS • VALUES • CULTURE • PERSONALITY MERCEDES BENZ

  13. BRAND EQUITY • BRAND RECOGNITION • PERCEIVED QUALITY • ASSOCIATIONS • PATENTS,TRADEMARKS,CRM ADVANTAGES • REDUCE MARKETING COST • POWER TO BARGAIN WITH DISTRIBUTOR • CHARGE HIGH PRICE • LAUNCH EXTENSIONS • DEFEND COMPETITION

  14. BRANDING CHALLENGES

  15. BRANDING DECISION ADVANTAGES • Easy To Process Orders • Legal Protection To Features • Attract Loyal Customers • Segment Markets • Strong Corporate Image

  16. BRAND SPONSOR Why do Middle men bother to sponsor ? • High profitability • Low Cost • No differentiation between National & Store brands But National brands should invest in R&D, New brands, line extension, quality & partnership with distributors.

  17. BRAND NAME DECISION • INDIVIDUAL NAME - HLL • BLANKET FAMILY- AMUL & JONHSON • SEPARATE FAMILY- DIFFERENT GRADES OF FOOD ITEMS • COMPANY INDIVIDUAL NAME -PHILIPS, CADBURY • QUALITIES • PRODUCT BENEFIT • QUALITY • EASY TO PRONOUNCE • DISTINCTIVE • NO POOR MEANING

  18. BRAND STRATEGY • LINE EXTENSION - DETTOL & LUX • BRAND EXTENSION - HONDA • MULTIPLE BRANDS - HLL DETERGENTS • CO BRANDS - GE WITH HITACHI LIGHTS • NEW BRANDS

  19. PACKAGING Activities of designing & producing the container for product • Self Service: • Attract attention, Pdt features, Consumer confidence • Consumer Affluence: • Convenience, Appearance, Prestige • Company & brand image • Innovation opportunity potent mktng. tool

  20. LABELING • Simple tag attached to the product or elaborately designed graphic • Identifies product • Grading • Describe pdt: • who, where, when ,what it contains. how to use • Promotion

  21. THANK YOU

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