Product

decision
Presentation By
Narendra Mishra
GovindBallabh Dugrakoti
CONCEPT OF PRODUCT
• In marketing, a product is anything that
can be offered to a market that might
satisfy a want or need.
• A product is a physical good, service, idea,
person or place that is capable of offering
tangible and intangible attributes that
individuals or organisations regard as so
necessary, worthwhile, or satisfying that they
are prepared to exchange money, patronage or
some other unit of value in order to acquire it.

Customer value hierarchy
PRODUCT CLASSIFICATION
§ ON THE BASIS OF
CHARACTERSTICS OF PRODUCT
•Durable products
•Non-durable products
•Service products

Goods and services

shovel Restaurant’s offering Employment agency service

Good Goods /Service Service

 consumer behaviour based
classifications; Melvin T. Copeland
•Convenience goods
•Shopping goods
•Speciality goods
•Unsought goods
ON THE BASIS OF CONSUMER
BEHAVIOUR
CLASSIFICATION OF
ORGANIZATIONAL PRODUCT
• Raw material
• Manufactured materials and component parts.
• process materials.
• Installation.
• Accessory equipment.
• Operating services and Supplies

 PRODUCT
DIFFERENTIATION
Confor-
Fea- Perfor-
Form mance
tures mance
Quality

Dura- Relia- Repair-

Style Design
bility bility ability
The Product Life
Cycle
Four stages
 Introduction
q
 Growth
•

 Maturity

 Decline
Growth slump-maturity
pattern
x axis-time, y axis-sales
introduction stage
 Rollout
takes time
 Promotional expenditure /sales
is highest 1)inform potential
customer
•2)Induce product trial

•3)Secure distribution outlets

 Profits are negative

•PIONEER ADVANTAGE


•
Marketing strategies

qProduct
qPrice
qDistribution – selective
q
qPromotion - brand awareness.
early adopters
q
Growth stage
 Rapid climb in sales
• Marketing strategies
 Product

 Price

 Distribution

 Promotion
•
•
Maturity stage
qExists for longer period
• three stages
• 1. growth
• 2. stability
• 3. decline
q competition
 Decline stage
qTechnological
advancement
•

qConsumer taste
•

qCompetition
•
Marketing strategies
 Weed out weak products

 Focus on potential products

 Research and development

 Investments

PRODUCT MIX
 The sum of all the products and variants offered
by an organisation.
 The product mix can be split into the following:
• Product lines.
• Product mix width.
• Product line length
• Product line depth.
• Product consistency
•
Product-Mix Width
• DETERGENTS TOOTHPASTE BAR SOAP DISPOSABLE
PAPER
• DIAPERS
PRODUCT
•

• IVORY GLEEM IVORY PAMPERS CHARMIN

• DREFT CREST CAMAY LUVS PUFFS
• TIDE ZEST BOUNTY
• CHEER SAFEGUARD
• BOLD OIL OF OLAY
• GAIN
• ERA
• DASH
NEW PRODUCT
DEVELOPMENT
PROCESS
BENEFITS FROM DEVELOPING
NEW PRODUCTS
=make a company look innovative
=increase profits because they are
generally priced 10 to 15 percent
above older items
=become a major part of a product line

STEPS REQUIRED FOR
DEVELOPING NEW PRODUCTS
• 1. Generating ideas
• 2. Screening ideas
• 3. Developing a business proposal
• 4. Developing the product
• 5. Testing the product
• 6. Introducing the product
• 7. Evaluation customer acceptance
•
GENERATING IDEAS
◦ New product ideas come from a variety of
sources:
=customers
=competitors
=channel members
=company employees
=research and development departments

SCREENING IDEAS
 Ideas for new products are screened and
evaluated, and matched against the company's
overall objectives to see if they fit.
•
DEVELOPING A BUSINESS
PROPOSAL
 A product idea must be considered in regard to its
potential for profit. A business proposal is
developed to evaluate the size of the market,
sales, production requirements, costs,
technological trends, and risk
DEVELOPING THE PRODUCT
 During product development, a prototype (a model
of the product) is made, and marketers develop a
marketing strategy. The prototype is tested, and
adjustments are made to improve the final
product.
TESTING THE PRODUCT
◦ Newly developed products are usually
tested to obtain customers' responses. Common
strategies are:
=evaluation by a focus group

INTRODUCING THE
PRODUCT
◦ If customer response is favorable, the product is introduced
into the marketplace. This stage is called
commercialization. The costs of introducing a new
product often are quite high. At this stage, the company
will need to:
=advertise the product
=train its sales force

EVALUATING CUSTOMER
ACCEPTANCE
 After the product has been introduced, marketers
track new product performance to evaluate
customer acceptance of the product and the
marketing strategies used to introduce the
product.

 Branding,
packaging, and
labeling
Branding
 BRAND
It is any nam e, t erm , sym bol, sign design
or unifying com binat ion of t hese t hat
ident ifies and dist inguishes one product
from com pet it ors product
 Branding terms

•Trade mark - brand name, symbol, or logo which

is registered and protected for the owner’s sole
use.
•Brand mark - the element of the visual brand
identity that does not consist of words but
design and symbols.
•Brand name - word or illustration that
distinguishes one seller’s goods from another.
 An Overview of
Branding Decisions

Brand- Brand- Brand- Brand-

Brandin Sponsor Name Strategy Reposition
g Decision Decision Decision
•Brand ing
Decision •Individu Decision
•Manu- al extensio
facturer brand n
brand names Line
•Blanket •Reposi-
•Brand •Distribu family extensio tioning
- name n
•No tor •Separate •No
brand (private) family •Multi- reposi-
brand names brands tioning
•Compan
•License y- •New
d brands
brand individual
names •Cobran
ds
 Brand Equity
 A brand has value, called brand equity.
Brand equity is based on brand loyalty,
name awareness, perceived quality, strong
associations, patents, etc.

•

vBrand equity makes

brand and line
extensions easier.
Good brand name
 Easy to remember
 Easy to pronounce
 Positive connotation
 Reinforces and communicates
product benefits

Good Brand Names:

Lack
Poor
Distinct Foreign
ive Langua
ge
Meanin
gs Easy
to:
Sugges Sugges Pronou
t t nce
Product Product Recogn
Qualitie Benefit ize
s s Remem
ber
packaging
 All
activities that are aimed at
designing and producing
container for products
objectives
 Identify the brand

 Convey information

 Transportation and protection

 Aid product consumption
As marketing tool
 Self service

 Customer affluence
•

 Company and brand image


 Innovation opportunity
LABELING
 A simple tag attach to the product or an
elaborately designed graphic that is part of
the package

 legal obligations

 Huge information is to be provided
Labels
Warranty and guarentee
 Obligation of seller about performance of
product
•


 a formal assurance that certain conditions
will be fulfilled, especially that a product
will be of a specified quality

refrences
Marketing management: Philip kotlar, kelvin

lane keller (12edition,2006)
• Pearson prentice hall
Ø Marketing by Zikmund &d”Amico
Ø www.wikipedia.com
•
 Any

querries


?
•

•
Thank you