1. M.JakkaraiahAsst.professorPBR VITS KAVALI

2. A product is anything that can offered to market for attention, acquisition ,use, consumption that might satisfy a want or need. 3. PRODUCTSTangible Intangibleproducts productsGOODS SEVICES 4. tangibilityAssociated attributesIntangibleFeatures of attributes product Customer Exchange valuesatisfaction 5. Unexpected featuresPotential productLuxury features Augmented product Expected featuresExpected product Basic features Generic productBasic productCore benefit 6. Durable productsConsumer products,Business products 7. Durable Non-durable Services 8. Shopping Specialty Products ProductsConvenienceProducts Unsought Products. . To satisfy information needs & buying motives 9. Convenience goods consumers use minimal effort forfrequently purchased low cost items Staples - Emergency goods Impulse purchases 10. Shoppinggoods - consumers make aconsiderable effort to evaluate Consumers make product comparison(s), They seek information before purchase, they are not impulsive Moderate substitutions are made Products last a considerable time Monetary & social costs may be high 11. Attribute-basedPrice-basedPlasma LCD screenLOW PRICE WARRANTYREMOTE CONTROL PICTURE SIZE Homogeneous products select on price Heterogeneous products select on benefits 12. Materialsand 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. Farm products Natural products 14. 1.installation 2.equiptment 15. 1.mainteinance 2.operating and repair itemssuppliers 16. Product Item 17. Theassortment of products that a companyoffers 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 productline Consistency how closely the product lines arerelated in usage 18. Product Line LAMPSTableCeilingTrackDesk 19. Product Mix Product ProductProductLine 1Line 2 Line 3LAMPS TABLESCHAIRSTableKitchen Dining RoomCeilingDining Room Living RoomTrackEnd BedroomDesk CoffeeOutdoorOutdoor DeskConferenceComputer 20. HomeWIDTHDepot,Lowes Tata MotorsTata Steel Tata Tea Tata DTH D GEMINIBUSBARS TEA E# of lines = 4 PLORRYPLATES# of items = 12TCARS HA wide product mix facilitates one stop shopping 21. Width (# of product lines) HAIRSALTYDENTAL SOFT CARE SNACKS CARE DRINKSShampoo Chips Tooth Brush ColaConditione Nuts Tooth Paste Ginger AlerDental Floss CrackersRoot BeerHair Spray 22. Changes in market demand Cost of production Quantity of production Changes in company desire Competitors actions and reactions 23. Expansion of product mix Contracting or dropping the product mix Alteration of existing product s Trading up/trading down stratagies 24. Planning Forecasting Marketing of products of a company is product management 25. To design product stratagies To spot market opportunities To develop strategies for each stage of product life cycle To generate new product ideas 26. New product : New to the company even it isin the worldTypes of new products1.New to the world2.New to the firm3.Addition to existing product line4.Improved and revised5.Reduction in cost 27. To meet consumer needs and wants To meet competition To increase profits To avoid threats from substitutes 28. New Product Development ProcessStep 1. Idea GenerationSystematic Search for New ProductIdeasInternal sourcesCustomersCompetitorsDistributorsSuppliers 29. Step 2. Idea Screening Process to spot good ideas and drop poorones Technically feasibility Financially viable 30. Step 3. Concept Development & Testing1. Develop Product Ideas into AlternativeProduct Concepts 2. Concept Testing - Test theProduct Concepts with Groups of Target Customers3. Choose the Best One 31. Step 4. Marketing Strategy DevelopmentPart One - Overall:Target Market Planned Product Positioning Sales & Profit GoalsMarket Share Part Two - Short-Term: Products Planned PriceDistributionMarketing BudgetPart Three - Long-Term:Sales & Profit Goals Marketing Mix Strategy 32. Step 5. Business AnalysisStep 6. Product DevelopmentBusiness Analysis Review of Product Sales, Costs, and Profits Projections to See if They Meet Company ObjectivesIf No, EliminateProduct ConceptIf Yes, Move to Product Development 33. Step 7. Test Marketing Standard ControlledTest Market Test MarketFull marketing campaignA few stores that have in a small number of agreed to carry new representative cities.products for a fee. SimulatedTest Market Test in a simulatedshopping environment to a sample of consumers. 34. Introducing the product into the market 35. Sales andProfits ($) SalesProfits TimeProduct Introduction Growth MaturityDeclineDevelop- mentLosses/Investments ($) 36. Sales Low salesCostsHigh cost per customer Profits NegativeCreate product awarenessMarketing Objectives and trialProduct Offer a basic productPrice Use cost-plusDistributionBuild selective distributionAdvertisingBuild product awareness among early adopters and dealers 37. Growth Stage of the PLCSales Rapidly rising salesCosts Average cost per customer Profits Rising profitsMarketing ObjectivesMaximize market share Offer product extensions, service,ProductwarrantyPricePrice to penetrate marketDistributionBuild intensive distributionAdvertisingBuild awareness and interest in the mass market 38. Maturity Stage of the PLCSales Peak salesCosts Low cost per customer Profits High profitsMarketing Objectives Maximize profit while defendingmarket shareProductDiversify brand and modelsPrice Price to match or best competitorsDistribution Build more intensive distributionAdvertisingStress brand differences and benefits 39. Decline Stage of the PLCSales Declining salesCosts Low cost per customer Profits Declining profitsMarketing Objectives Reduce expenditure and milk the brandProductPhase out weak itemsPriceCut priceGo selective: phase out unprofitableDistribution outletsAdvertising Reduce to level needed to retainhard-core loyal customers 40. PRODUCTOffer a basic productPRICECost +profitSALES PROMOTION Heavy expenditure to create trails DistributionBuild selective distributionBuild product awareness among early Advertisingadopters and dealers 41. Growth Stage of the PLCOffer product extensions, service, Productwarranty Pricepenetrate PriceDistributionBuild intensive distributionBuild awareness and interest in theAdvertising mass marketSales promotion Consumer demo 42. Maturity Stage of the PLC Product Diversify brand and models Price Price to match or beat competitorsDistributionBuild more intensive distributionAdvertising Stress brand differences and benefitsSales promotion Encourage to brand switching 43. Decline Stage of the PLC Product Phase out weak items Price Cut priceGo selective: phase out unprofitableDistribution outletsAdvertisingReduce to level needed to retainhard-core loyal customersSales promotion Reduce to minimal level 44. Overestimation of Market Size Product Design Problems Product Incorrectly Positioned, Priced orAdvertised Costs of Product Development Competitive Actions Technical problems Poor planning Inadequate promotion Poor packing Fault pricing 45. Adopt TrailEvaluation InterestAwareness 46. Potential product Augmented product Expected Product Generic productCore Benefit