1. PRODUCT Building Customer ValuePresented By:Jatin Vaid

2. What is a Product? A product is anythingthat can be offered toa market for attention,acquisition, use orconsumption thatmight satisfy a needor want. 3. Products 4. Levels of products Core customer value Actual Augmented Potential 5. Product classificationPRODUCTS CONSUMERINDUSTRIAL PRODUCTS PRODUCTS CONVENIENCEMATERIALS & PARTSSHOPPINGCAPITAL ITEMSSPECIALITYSUPPLIES & SERVICESUNSOUGHT 6. I. Consumer Goods Products and servicesbought by finalconsumers forpersonal consumption 7. i) Convenience Products Goods that customersbuy frequently Minimum of comparison Minimum buying efforts Readily available E.g. detergents, softdrinks, cigarettes,chocolates, candy 8. ii) Shopping Products Less frequently purchased Carefully compared onsuitability, quality, price andstyle Time and effort spend byconsumers Distributed through feweroutlets E.g. furniture, clothing, cars,jewellery, airline services 9. iii) Specialty Goods Goods & services withunique characteristics orbrand identification. Buyers make a specialpurchase effort More expensive Not purchased frequently E.g. Sports cars, highpriced photographicequipment, designerclothes. 10. iv) Unsought Products Products that theconsumer either doesntknows about or doesntnormally think of buying Require lot of advertising,and personal selling E.g. Life insurance,funeral services,donations for charity,blood donations 11. II. Industrial Goods Goods purchased forfurther processing orfor use in conductinga business 12. i) Materials and partsi. Raw materials, mfg materials & parts.ii.Sold directly to industrial usersiii. Price & Service are important marketing factorsiv.Branding & advertisement are less important 13. ii) Capital items Aid the buyersproduction oroperations E.g. factory, offices,gen-sets, drill press,elevators, lift trucks, 14. iii) Supplies and Services Supplies are convenienceproducts of industrialfield.E.g. lubricants, coal,papers, pencils, nails,broom Services are suppliedunder contractE.g. maintenance,repairs, consulting, legal. 15. Product Decisions Marketers make product decisions at three levels:2. Individual product decisions3. Product line decisions4. Product Mix decisions 16. 1. Individual Product Decisions Product attributes : The characteristics of a product thatbear on its ability to satisfy stated or implied customer needs. Quality Features Style & Design Branding: A name, term, sign symbol, design or a combinationof these that identifies the product or service of one seller or groupof sellers and differentiate them from those of competitors. Packaging: The activities of designing and producing thecontainer or wrapper for a product. Labeling: Labels are simple tags attached to products. Theidentify the brand, origin, contents and use instructions. 17. 2. Product Line DecisionsA product line is a group of products that areclosely related because they function in asimilar manner, are sold to the same customergroups, are marketed through similar outlets,or fall within given price range. Product Line Length: No. of items in aproduct line. 18. 3. Product Mix Decisions Product Mix is set of all product lines and items that a particular seller offers for sale.2) Product Mix Width: No. of different product lines, a Co. carries.3) Product mix Length: Total No. of items the Co. carries within its product lines4) Product Mix Depth: No. of versions offered of each product in the line.5) Product Mix Consistency: How closely related are various product lines are in end use.` 19. The New Product DevelopmentProcess The development of originalproducts, product improvements,modifications and new brandsthrough the firms own product development efforts. Steps:3.Idea generation4.Idea screening5.Concept development and testing6.Marketing strategy development7.Business analysis8.Product development9.Test marketing10. commercialization 20. Steps of New Product Development Process Idea generation: The systematic search for new product ideas. Internalsources (brainstorming) External sources ( distributors, suppliers) Idea Screening: Screening new ideas to spot good ones and drop poorones. Review Committee (real, win, worth it) Concept development: An attractive idea developed in to a productconcept, stated in consumer terms. Marketing strategy development: Designing an initial marketingstrategy for a new product. Target market, market share, planned price,distribution, budget, sales, profit goals. Business analysis: A review of sales, costs and profits according to Coobjectives. Product development: Developing the product concept into a physicalproduct. Test marketing: Products are tested in realistic market settings. Commercialization: introducing a new product into the market. 21. Product life cycle The course that a products sale and profitstake over its lifetime. Products have limited life Product sales pass through distinct stages Profits rise and fall at different stages Organizations require to pursue differentstrategies 22. Stages of PLC Stage 1:Introduction Stage 2:Growth Stage 3:Maturity Stage 4:Decline 23. 1. Introduction Stage A period of slow sales growth as productis introduced in the market. Profits are non existent because ofheavy expenses Highest ratio of promotion expenses tosales. 24. 2. Growth Stage A period of rapid market acceptance andsubstantial profit improvement 25. 3. Maturity Stages A slowdown in sales as product hasachieved acceptance by most potentialbuyers. Profits stabilize or decline because ofincreased competition 26. 4. Decline Stage Sales show a downward drift and profitserode. 27. PLC StrategiesINTROGROWTHMATURITY DECLINEINFORM IMPROVE PRDTDIVERSIFYPHASE OUTPOTENTIAL CM QUALITY BRANDS WEAK PRDTSINDUCE PRDTADD NEW PRICE MATCHCUT PRICESTRIALS MODELSBEST COMPTTSECURE ENTERS NEWSTRESS ONGO SELECTIVE:DISTRIBUTION SEGMENTSBRANDPHASE OUT DIFFERENCESUNPROFITABLEFOCUS ON SHIFT FROMINCREASE SALESINNOVATORS PRDTSALESPROMOTION AWARENESS PROMOTION TO REDUCED ADVT TO PRDTENCOURAGE PREF ADVT BRAND SWITCHING LOWERS PRICE TO ATTRACT PRICE SENSITIVE CMS