Managing Product 1markets

Powerpoint Templates
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Product strategy begins with a strategic vision that states where a company wants to go, how it will get there, and why it will be successful. Product strategy is like a roadmap, and like a roadmap its useful only when you know where you are and where you want to go.
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Product Platforms
Product 3 Segment A Product 1B Product 1 Product 1A Product 2 Product 5 Segment B Product 1C
Unique product elements and common channel elements of product line
Segment C
Element A Element B Element C
Common Platform Elements Powerpoint Templates Page 3
5 product levels
Core benefit Basic product Expected product Augmented product Potential product
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Core benefits fundamental level of customer expectations Basic product turning the product into basic product Expected product with a set of attributes, and condition buyers normally the consumer expects when they want to purchase Augmented product- exceeds customer expectations. Branding and positioning at this level Potential product which encompasses all possible augmentations and transformations for future undergo.
Powerpoint Templates Page 5
The Product and Product Mix
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Product Classification
Durability
1. Non durable goods Repeatedly purchasing goods. Available in most of the locations Charge less 2. Durable goodsAre tangible goods normally survive many uses, refrigerators, machine tools clothing.
Services
Consumer goods classification

Convenience goods frequently, immediately and with minimum effort . Staples consumers purchase on a regular basis or routine basis. Eg. Milk, bread,toothpastes, soaps , biscuits. Impulse- purchased without any planning or search effort. Eg. Chips, chocolates, candy bars Emergency- purchased when a need is urgent . Eg. Umbrellas, raincoats. .

Specialty goods unique characteristics or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort. Eg cars, stereos, photographic instruments. Unsought goods those the consumer does not normally think of buying such as detectors, life insurance, encyclopedias and reference books
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Shopping goods that are consumer characteristically compares on such bases as suitability , quality, price, and style.
Homogeneous- Products that vie with each other

in a market but which (from the consumers viewpoint) have little or no differentiation in terms of features, benefits, or quality and are, therefore, forced to compete in price or availability. Eg - Vegetables, fruits, home appliances, cameras. Heterogeneous differ in product features and services that may be more important than price.
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Industrial -Goods Classification

Materials and parts Natural products Farm products Manufactured materials and parts(process materials) Component materials & parts
Capital items
Installations Equipment
Materials and parts
Raw materials Farm products Natural products Wheat ,cotton, livestock, fruits Fish, lumber, crude petroleum, iron ore
Process materials
Component materials 1. Pig iron made into used for processing the iron finished product 2. Yarn to cloth 3. Alcohol to perfumes Component partswhich needs little or no finishing. Readily sold to the industries. Ready to use. 1. 2. 3. 4. 5. 6. Engine Carburetor Wheels Seats Glass panes Small motors
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Capital equipment
Accessory equipments
1. 2. 3. 4.
Mechanical tools Computers Calculators Furniture
Installations
1. Factories 2. Offices 3. Heavy equipment like generators, drill presses, elevators 1. Paper 2. Pencil 3. Oils 4. Paints 5. Brooms 6. Handy tools 7. Replacement tools 8. Office stationary 9. Electricity 10. water Page 13
Consumable suppliesthey often referred as the MRO items
Services differentiation
Ordering case Delivery Installation Customer training Maintenance and repair Returns
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Product Hierarchy
Each product is related to obtain other products. Product hierarchy lists out levels to identify product from basic needs to particular items that satisfy those needs.
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Need Family:
Core need that underlines the existing of a product family
Product Family:
All product classes that satisfy a core need with reasonable effectiveness.
Product Class:
Group of products within product family recognized to have certain functional coherence Group of items within a product line that share one of several possible forms of product
Product Type
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Product hierarchy Defined as an organizational chart that depicts the array of products offered in a given market. Product the automobile Product class- cars, bikes Product form again cars can be divided into sports and utility cars even the trucks too Variations in the form cars with 2 doors, cars with 4 doors, etc., Powerpoint Templates Page 19 Next level into brands
Product line
The products are closely related to each other Under different categories Sold to same customer groups For example, all the courses a university offers constitute its product mix; courses in the marketing department constitute a product line; and the basic marketing course is a product item.
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Product mix
The set of all products that an organization offers to its customers consist of different product lines and categories
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Product width
The different product lines with product categories
Product Length
The length of the product mix is the total number of items in that mix The average length is calculated by Total number of items(total length) -------------------------------------------------numberTemplates Powerpoint of lines Page 22
Product consistency
Consistency refers to the closeness exhibited by the products lines and production requirements, distribution end usage etc.,
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Product line analysis

Sales profit analysis Market profit
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Product line analysis through sales profit analysis

The company will do the analysis on the margin it get through the different product lines sales and profit.
Core product Staples Specialties Convenience items ETC.,
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Product line length

Companies seeking high market share & market growth will generally carry high product line But companies seeking high profitability will carry shorter lines consisting of carefully chosen items. Sales force & distributors pressure on complete products as the customers seeks.
Product lengths types

Line stretching
1. Down market stretch 2. Up market stretch 3. Two way stretch
Line filling Line modernization, featuring and pruning
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Line stretching
A company indulge in line stretching when it stretches its products line beyond the current range of products. Line stretching provide a wide variety of products or goods under the same umbrella Adding new products to the same product line needs less time and cost as compared to introducing a new product or brand & forecasting the demand & sales is much easier for these products.
Multiproduct branding strategy whereby a firm markets one or more new products under an already established and well known brand name. The objective is to serve different customers needs or market segments while taking advantage of the widespread name recognition of the original brand.
Down stretching
For value priced goods As the retailers look forward for so many sales promotional activities Counter attack strategy to the competitors company
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Up market stretches
Wish to enter the high end market to achieve more growth or simply to position themselves in the high market
Two way stretch

Companies serving middle market might stretch their line in both directions both upward and downward.
Is carried out by adding more products to the existing range of the product line. They opt for line filling when To reach incremental profit To satisfy sales & distribution people who complain missing items in the line To utilize the excess production capacity of manufacturing unit To keep the competitors at bay
Line Filling
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LIMITATIONS
Weaker lines some times extension of the product lines to the point of super saturation, where it happens to be like it cannot be explained by the sales personnel the benefits of the products neither the difference Lower brand loyalty when marketers increase the number of products mindless under the same brand umbrella, it often leads to reduction in brand loyalty. It risks disruption of well set buying patters and habits.
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Under exploitation of ideas while concentrating on line extension, marketers often overlook the fact that the idea may warrant a new brand rather than a new product under the same brand. It can dilute the brand image Stagnant demand- line extension rarely increase the demand of the total category. Profits gained by the extending products are short lived: competitors can quickly and easily match the companys new products. Leads to logistics, R & D and other department's complexity in work if there is an error in forecasting
Line modernization& Featuring

More advanced versions of products Timing improvements Better featuring
Line pruning
The product lines that yield no profits
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Product mix pricing

The types of product mix pricing Product line pricing Optional feature pricing Captive product pricing Two part pricing By product pricing Product bundling pricing
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Managing Product 1markets

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Managing Product 1markets

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Powerpoint Templates

Unique product elements and common channel elements of product line

Element A Element B Element C

Common Platform Elements Powerpoint Templates Page 3

The Product and Product Mix

Consumer goods classification

Consumer goods classification

Consumer goods classification

Homogeneous- Products that vie with each other

Industrial -Goods Classification

Materials and parts

Mechanical tools Computers Calculators Furniture

Consumable suppliesthey often referred as the MRO items

Core need that underlines the existing of a product family

Product line analysis

Product line analysis through sales profit analysis

Product line length

Product lengths types

Line filling Line modernization, featuring and pruning

Two way stretch

Line modernization& Featuring

Product mix pricing

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