Professional Documents
Culture Documents
Product Manager.
1
Product Management System
Portfolio of products
2
General Org. Chart
Head of company /.division / country
New Business
Head Marketing
Development
Marketing research
Category 1
Group Product Manager
Product mgr 1
Product Mgr 2
Product mgr 3
3
Category 2
Group Product Manager
PMS v/s General Marketing
management
Product General Marketing
management Management
6
The Effective Product Manager
7
Responsibilities / KRA
Product Strategy
Product Planning
Financial Returns
8
Product Manager Interface.
Top Management : Objectives & Guidance
Communication Skills
Analytical Abilities.
10
L.2
11
Reasons to develop new products
Market Share.
Diversification.
Spare capacity.
Synergy.
Product width .
Beat Competition.
12
Product Feasibility.
Product Development.
Test Marketing.
Commercial Launch.
13
Developing The Product Plan .
Market Research
a) category attractiveness
b) Customer
c) Competition
14
Marketing Style.
a) Mass Marketing
b) Segment marketing
c) Niche Marketing
d) Local Marketing
e) Individual Marketing
15
Factors of Attractiveness
Category Size
Market Growth
Seasonality
Profitability
16
Product Life Cycle
17
PLC
Introduction Phase
Growth Phase
Decline
19
Marketing Strategies Through PLC
Introduction Stage.
20
Growth Stage.
1) New Products
3) Improve distribution
21
Maturity stage.
4) New uses.
22
Decline Stage
23
Threat of new Entrants
Economies of scale --- Reliance
Distribution Network.
24
Threat OF Substitutes
Petrol Cars v/s Electric Cars
25
Environment Analysis
Economical Factors
Technological Factors
Political Factors
Regulatory Factors
Social Factors
26
Customer Analysis
Who Buys & Who uses the Product
1) Initiator
2) Influencer
3) Decider
4) Purchaser
5) User
27
Adoption process.
Early adopters
Majority
Laggards
28
What does the customer buy & How
they use it?
29
Where customers buy from?
a) Road side
b) Kinnara store
c) On phone
d) Departmental Store / Malls
e) Catalogue Shopping
30
When do customers buy?
31
Why customers prefer one prod over
the other?
a) Functionality
b) Affordability
c) Ego / Affluence.
32
Segmentation-Targeting-Positioning
Segmentation – Identify & Profile the
market you want to cater to & The
Products you want to offer.
33
Procedure for segmentation.
34
Segmentation – Customer based
1) Geographic location
2) Demographic
3) Psychographic Segmentation
4) Behavioral Segmentation
35
Market Targeting.
36
Competitive Analysis L.3
37
Slow Growth of Markets
Short PLC
Pressure on Margins
38
Imp Qs Such As :
Who are the major competitors?
Pure Competition ::
Many players , same product , same service ,
history
current management
financial situation
portfolio
Market Share ::
Profit Motive : :
Consistent Pricing
Consistent Promotional Expense
Rational Behaviour
43
Sources of Information
Secondary:
Annual reports
Trade Journals
Promotional Literature
Trade Associations
Internet 44
Sources Of Information
Primary:
Sales Force
Customers
Employees
Suppliers
Employee Pinching
Reverse engineering
Marketing Strategy
Marketing Mix.
46
Marketing Strategy
share of mind
share of heart. 47
Comparing Value Chains
Strategic Cost Analysis :
Focus On cost of
eg. Designing ,
manufacturing,
marketing ,
Distributing,
After sales service.
2) Primary Activity:
Eg: A/c & Electric Chimney : separate charges for installation & demo
: Installation and demo for washing machine and tv is included in the MRP
49
Secondary & Support Activities
a) Procurement :
b) Technology Development :
c) HRM ::
50
Value chain Analysis
Upstream :
cost and margin of suppliers ,
processes followed,
balance of qlty and cost.
Down Stream :
cost and margin of distribution &
strategic partners and channel allies
51
Differential Advantage Matrix
&
SWOT ANALYIS
52
PORTER 5 FORCE MODEL
53
Competing Sellers
Dealer network
Warranty / Guarantee
Innovation.
54
Potential Entrants
# Seriousness Of Threat Depends On
Barriers to entry
Distribution Channels
Attractively priced.
Few in no.
Few substitutes
58
Strategic Implication of five force
model
# Competitive environment is unattractive when
Rivalry is strong
59
L4
Product Strategy
60
Where are we going to go?
61
Strategy needs to be in place before starting
a) Achieve Co ordination
b) Allocation Of Resources
of advantage to you :
Increase in consumption
Increase in category… 62
Steps to Product Strategy
Vision & Mission of strategy
* largest player in category by ….
* Increase Portfolio size with allied products.
* Offer premium product at a premium price.
* Choice of customers:
Leader Strategies:
• Expand total market demmand-find new users , new uses , increase consumption
• Continuous innovation
65
b) Strategies for Challenger:
66
c) Strategies for Market Follower:
• Geographic speacilist
Based on the strategy - the product has to convince the customer of the value that it
is offering…..
70
Non Price Strategy.
Expected Product
Augmented Product
Potential Product.
Distribution Channel.
Mc. Donalds
BMW
Nestle
72
Marketing Mix:
Product : design , utility . Functionality ,reliability ,
warranty.
73
BCG Analysis.
74
L 5.
BRANDING
PROMOTION AND PR
75
Branding.
76
WHY DO BRANDING WHEN THERE IS
A HUGE COST INVOLVED?
77
Differentiation
Segment Markets
Corporate Image
Price Sensitive
In store Brands.
79
Brand Strategy
Line Extension – Same Product Category
New Variants.
Co. Branding --
80
BRAND REPOSITIONING.
BRAND ASSOCIATION
81
PROMOTION & ADVERTISING.
Taking the product from the factory
to the hand of the consumer.
82
Identifying the Audience.
Demographic & Psychographic Profile
* Literacy / Education
* Life Style
* Geographic Location
Awareness
Interest
Desire
Action
85
Ultimately the Message.
Message Content
86
BUYING MOTIVES
Maslows Theory
Psychological Needs(
Needs coper T, Polio , thermal ware)
87
ADVERTISNG / PUBLICITY
Paid Form of Promotion Not always paid form
Planned Effort to
Planned effort to initiate
initiate & maintain
or maintain relation relation between
between product / brand organization &
customer / consumer. environment
HP printers. 89
Advertising / Sales Promotion
In the present no extra Immediate extra
benefit apart from benefit to consumer by
communicating the way of free gifts or
message & giving discounts.
information to consumer
Non recurring in
Advertising is recurring nature
Competitive method
92
PR. Its. Meaning & Importance.
Full form of PR. ------Public Relations
94
Situations in which PR is Important
96
Common approaches to establish
identity.
1) Logo Type – Cadburrys , Ford , Bata
Pricing ( 99 syndrome )
98
PR. Customer Relation
After Sales Service
Supplement H. R. Practise
Product Recall.
100
L.6
PRICING
101
Price Objectives
Survival
Maximize Sales ( Hll / P&G)
Maximize Profits
Market Skimming ( Cell phone , Dupont)
Prod.Quality Leadership(Merc-
Toyota,siemens)
Non Profit Pricing
102
Elasticity of Demand.
Demmand Inversely Proportionate to
Price.
UNLESS
No Substitutes
Slow Change
Justified Rise ( Quality , inflation)
ILL Informed
Unique Effect
Shared Costs
Inventory
103
Mktg. Mix ------ Price
Average Quality Product
with large advtg. Budget
and good availability === HIGH
PRICE
104
CONCLUSION
Pricing
Uniform Price
Discriminatory price
Cost Based
Dumping ******
106
1) Cost Plus / Mark Up.
Cost per Unit = Variable cost + Fixed Cost
-----------------------------
estimated demand of units
107
2) Target Return Pricing
Return On investment
Unit Cost + ( Desired rate of return x Invested Capital )
-----------------------------------------------
Unit Sales
108
3) Perceived Value – (Heart Surgeon
designer clothes)
4) Going rate in Market
109
Price Discounts.
Cash Discount
Qty.Discount
Seasonal Discount
Cash Rebates
Low interest Financing
Longer Warranty and Service Contracts
Psychological Discounting.
110
Price Changes
Price Cuts :
Price Increase
Customer reaction
Competitor Reaction
111
L. 7
112
Potential : Maximum sales that are attainable
under given set of conditions with in a
specified period of time.
113
Market Potential
Hard to estimate accurately the upper or lower limit
3) Location decisions
114
Sources of information
Past sales data
Govt. sources
Trade Associations
Private companies
Financial & Industrial Analysts
Press
Internet
115
Estimate market & sales Potential
1) Analysis based :
a) Determine Requirment
b) Determine need
c) Determine ability
116
Estimate the purchasing / Usage rate
117
Area Potential
a) Population
b) Retail sales
c) Disposable Income
Done to estimate:
119
4 variables that are important:
a) Customer behaviour
c) Product strategies
a) Naïve exploration
d) Delphi Method
121
Customer Based Methods:
a) Market Survey
122
Sales Extra Polation Method:
approach.
St = st-1 + st + st+1
----------------------
3
123
Regression analysis
124
L8
Logistics &
Channel Management
125
Market logistics involves planning ,
implementing, controlling , the
physical flow of material & final
goods , from points of origin to
points of use to meet a customers
requirement ………. AT A PROFIT.
• Stocking Locations
127
Transportation:
• Speed
• Frequency
• Dependability
• Capability
• Availability
• Traceability
• COST
128
Piggy back
Fishy back
Train ship
Air truck
Private Carrier
130
ABC analysis
JIT style.
131
Channel Management
Channel Selection
• Direct Channel
• Indirect Channel
132
Direct Channel
Better than indirect when:
Sales Force
Mail / catalogue
Phone
Trade Shows.
Internet.
134
Indirect Channels
Better Than Direct when
Availability is important
135
Wholesaler / Distributor
Retailer / Dealer
Agent / Representative
136
Services that channel can provide
Physical Distribution
Promotion
Feed back
137
Channel Management
Contractual Obligations
Self Interest
Human Contact
138
Power Management
Volume of sales
Brand Equity
Backward Integration
Invest in technology
Cut costs
139
L.10
Product Mgr. of a
service Company
140
A service is any act or performance
that one party can offer to another
that is essentially intangible and
does not result in the ownership of
anything, its production may or may
not be tied to a physical product.
141
5 offerings to the customer
Pure tangible goods
Hybrid
142
Characteristics of services
Intangibility
In seperability
Variability
Perishability
143
Differential Pricing
Complimentary services
Reservation Services
144
Services to succeed need:
1) External Marketing
2) Internal Marketing
3) Interactive marketing
145
Essentials for a Service company:
Competitive Differentiation
1) Offer
2) Delivery
3) Image
146
Managing Service Quality
Satisfying Employees.
148
Post Sale Strategy.
149
150
151