Presentation by Narendra Mishra GovindBallabh Dugrakoti

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
Conform-
Fea- Perfor-
Form ance
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. decaying maturity
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
WAYS OF ANALYSING
 Product – Line Analysis
•
 Product line length

Product line length
vLine stretching
• a. Down-market stretch
• b. Up-market stretch
• c. Two-way market stretch
vLine filling
vLine modernization
vLine featuring
vLine pruning
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.

ADOPTION PROCESS
Stages in adoption process
• Adopters of new products move through five
stages.
1.Awareness
2.Interest
3.Evaluation
4.Trial
5.Adoption
6.
Factors influencing the
adoption process
 Readiness to try new products and personal
influence.
 Characteristics of the innovation
 Organization’s readiness to adopt
innovations

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
• Brand(ing): The art of taking something
common and improving on it in ways that
make it more valuable and meaningful
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 equit y
m akes brand and
line ext ensions
easier .
BRAND EQUITY MODELS
Brand asset
valuat or
Differentiation Energized brand
strength
Energy
Relevance
Esteem Brand Stature
knowledge
2. BRANDZ
 Mallward Brown and WPP
 Brand dynamics pyramid
•
Nothing else beats it Bonding

Does it offers something
better than the others? Advantage
Can’t it deliver? Performance
Does it offer me something?
Relevance
Do I know about it Presence
3.AAKKER MODEL, David Aaker
 Brand awareness, brand loyality and brand

association that combined to add or subtracted
from the value provided by product.
4.Brand resonance model
 stages of brand development
relationship
Response
What about you?
Meaning
What are you?
Identity
Who are you?
Resolnan
ce
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
Designing holistic marketing
activities
§Personalization
§Integration
•Internalization
Choose the right moment
Link external and internal marketing
Bring the brand alive for employees
Leveraging secondary
associstion
•To country
•To a person
•To geographical region
•Through a sporting event
Managing Brand Equity
•Brand Reinforcement
•Brand Revitalization
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 kotler, Kelvin

lane keller (12edition,2006)
• Pearson prentice hall
•Marketing management: Philip kotler, Kelvin
lane Keller (13edition,200

Ø Marketing by Zikmund &d”Amico
Ø www.wikipedia.com
•
Any

querries

?
•
•
Thank you
Measuring brand equity
Indirect Approach-it assesses potential source of brand

equity by identifying and tracking knowledge structures
Direct Approach- it assesses the actual impact of brand

knowledge on consumer response to different aspect of the
marketing
Value Stages
sd sd sd
sd
Multipliers
sd sd
sd

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Product

shovel Restaurant’s offering Employment agency service

Good Goods /Service Service

Dura- Relia- Repair-

•3)Secure distribution outlets

 Profits are negative

• IVORY GLEEM IVORY PAMPERS CHARMIN

 Product line length

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

Brand- Brand- Brand- Brand-

Esteem Brand Stature

Nothing else beats it Bonding

 Brand awareness, brand loyality and brand

 Company and brand image

lane Keller (13edition,200

Indirect Approach-it assesses potential source of brand

Direct Approach- it assesses the actual impact of brand

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