Date post: | 08-Apr-2018 |
Category: |
Documents |
Upload: | yo-yo-moyal-raj |
View: | 222 times |
Download: | 0 times |
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 1/31
Marketing Management
12
Setting Product Strategy
PROF. JITENDRA SHARMA
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 2/31
Ashok
Leyland
is knownfor its
products
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 3/31
7-3
What Is a Product?
Anything that can be offered to a market
for attention, acquisition, use, or
consumption and that might satisfy a want
or need.
Includes: physical objects, services, events,
persons, places, organizations, ideas, or some combination thereof.
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 4/31
7-4
What Is a Service?
A form of product that consists of activities,
benefits, or satisfactions offered for sale
that are essentially intangible and do not
result in the ownership of anything.
Examples: banking, hotel, airline, retail, tax
preparation, home repairs.
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 5/31
Market Offerings Continuum ranges from pure tangible
goods (with no services) to pure services
(with no good component) with manycombinations in between.
Pure good: Camay soap.
Pure service: Legal representation.
Combination: Restaurant meal.
Creating and managing customer experiences differentiates offers.
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 6/31
Figure 12.1 Components of the
Market Offering
Attractiveness
of the market
offering
Value-based prices
Product
features
and quality
Services
mix and
quality
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 7/31
Figure 12.2 Five Product Levels
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 8/31
Product attributes
PROF. JITENDRA SHARMA
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 9/31
Product mix
PROF. JITENDRA SHARMA
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 10/31
� Breadth or width
± Wide product mix containing many differentproduct lines.� Unilever producing cooking oil, toilet soap, cosmetics
etc.
� Length± Total number of products in the product lines
� Depth± Different versions, such as size of packaging and
different formulations.
� Consistency ± How closely related the various product lines are
in end use, production requirements, distributionchannels etc.
PROF. JITENDRA SHARMA
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 11/31
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 12/31
Product mix strategies� Company can add new product lines, thus
widening the product mix.
� Company can lengthen the existing product linesto become a more full line company.
� It can add more product versions of each productand deepen its product mix.
� The company can pursue more product line
consistency, or less, depending upon whether itwants to have a strong reputation in a single fieldor in several fields.
PROF. JITENDRA SHARMA
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 13/31
Product Classification SchemesDurability
Use
Tangibility
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 14/31
Durability and Tangibility
Nondurable
goods
Services
Durable
goods
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 15/31
Consumer Goods Classification
Convenience
Unsought
Shopping
Specialty
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 16/31
Industrial Goods Classification
Materials and parts
Supplies/
business servicesCapital items
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 17/31
Developing products for rural markets
Products should be designed keeping in mindthe rural conditions
Packaging is one of the key drivers of
success in rural areasIssue of transfer and storage: Rugged
packing
The issue of affordability: small-unit packs Brand elements should be decided keeping in
mind rural consumers
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 18/31
Product Line AnalysisSales and Profits
Every company¶s product portfolio contains products with
different margins.A) A company can classify its products into four types
that yield different gross margins, depending on sales
volume and promotion.
Core products
Staples
Specialties
Convenience items
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 19/31
Line Stretching
Down-Market StretchDown-Market Stretch
Up-Market StretchUp-Market Stretch
Two-Way StretchTwo-Way Stretch
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 20/31
PROF. JITENDRA SHARMA
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 21/31
Line Filling
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 22/31
Pruning
Pruning weak
brands can
strengthen the
remaining brands inthe line
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 23/31
What is the Fifth P?Packaging, sometimes called the
fifth P, is all the activities of
designing and producing the
container for a product.
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 24/31
Factors Contributing to the
Emphasis on PackagingSelf -serviceSelf -service
Consumer affluenceConsumer affluence
Company/brand imageCompany/brand image
Innovation opportunityInnovation opportunity
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 25/31
Innovations in Packaging
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 26/31
Packaging Objectives Identify the brand
Convey descriptive and persuasive
information
Facilitate product transportation and
protection
Assist at-home storage
Aid product consumption
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 27/31
After packaging is designed, it must be tested
Engineering tests are conducted to ensure that the
package stands up under normal conditions.
Visual tests are used to ensure that the script is legible
and the colors harmonious.
Dealer tests are performed to ensure that dealers find
the packages attractive and easy to handle.
Consumer tests ensure favorable consumer response
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 28/31
Functions of LabelsIdentifies
Grades
Describes
Promotes
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 29/31
Labels eventually become outmoded and need freshening up
Companies with labels that have become icons need to tread very
carefully when initiating a redesign. The Fair Packaging and Labeling Act of 1967, set mandatory
labeling requirements, and allows federal agencies to set packaging
regulations in specific industries.
The Food and Drug Administration (FDA) sets other labeling
requirements.
Consumerists have lobbied for additional labeling laws to require:
Open dating
Unit pricing
Grade labeling
Percentage labeling
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 30/31
Warranties and Guarantees
8/7/2019 Setting Product strategy ch12
http://slidepdf.com/reader/full/setting-product-strategy-ch12 31/31
Warranties are formal statements of expected product
performance by the manufacturer. Warranties, whether expressed or implied are legally enforceable.
Many sellers offer either general guarantees or specific
guarantees.
Guarantees reduce the buyer¶s perceived risk.
Guarantees are most effective in two situations:
Where the company or the product is not well-known.
Where the product¶s quality is superior to the competition.