this is ppt presentation on product management . it covers features of product ,product levels ,product classification ,product mix and product life cycle stratagies

1. Welcome
M.Jakkaraiah
Asst.professor
PBR VITS
KAVALI

2. What is a product ?
 A product is anything that can offered to
market for attention, acquisition ,use,
consumption that might satisfy a want or
need.

3.  PRODUCTS
Tangible Intangible
products products
GOODS SEVICES

4. Features of product
tangibility
Associated
attributes
Intangible
Features of attributes
product
Customer
Exchange
value satisfaction

5. Levels of product
Unexpected features Potential product
Luxury features Augmented product
Expected features Expected product
Basic features
Generic product
Basic product Core benefit

6. Classifying Products
Durable products
Consumer products,
Business products

7. Durable products
 Durable
 Non-durable
 Services

8. Consumer Products
Shopping Specialty
Products Products
Convenience
Products
Unsought
Products
. . To satisfy information needs & buying motives

9. CONVENIENCE GOODS
Convenience goods – consumers use minimal effort for
frequently purchased low cost items
 Staples -
 Emergency goods –
 Impulse purchases –

10. Shopping Products
Shopping goods - consumers make a
considerable effort to evaluate …
Consumers make product comparison(s),
They seek information before purchase,
they are not impulsive
Moderate substitutions are made
Product’s last a considerable time
Monetary & social costs may be high

11. TV’s As a Shopping Product
(2007 ---- 1950’s)
Attribute-based Price-based
Plasma –LCD screen
LOW PRICE
WARRANTY
REMOTE CONTROL
PICTURE SIZE
Homogeneous products select on price Heterogeneous products
select on benefits

12. Business products
 Materials and parts
 Raw materials and parts
 Manufactured materials and parts
 Capitals items
 1.installation
 2.equiptment
 Suppliers and business services
 1.maitainance and repair items
 2.operating suppliers

13. Raw materials
 Farm products
 Natural products

14. Manufactured materials and parts

15. Capitals items
 1.installation  2.equiptment

16. Suppliers and business services
 1.mainteinance and  2.operating suppliers
repair items

17. Product Mix & Product Line
• Product Item

18. Product mix

19. Product Mix
 The assortment of products that a company
offers to a market
 Width – how many different product lines?
 Length – the number of items in the product
mix
 Depth – The no. of variants offered in a
product line
 Consistency – how closely the product lines
are related in usage

20. Product Line
& Product Mix
• Product Line
LAMPS
•Table
•Ceiling
•Track
•Desk

21. • Product Mix
Product Product Product
Line 1 Line 2 Line 3
LAMPS TABLES CHAIRS
•Table •Kitchen •Dining Room
•Ceiling •Dining Room •Living Room
•Track •End •Bedroom
•Desk •Coffee •Outdoor
•Outdoor •Desk
•Conference
•Computer

22. CONCEPTUALIZATION OF
PRODUCT MIX
Home WIDTH
Depot,
Lowe’s
Tata Motors Tata Steel Tata Tea Tata DTH
D
GEMINI
BUS BARS
TEA
E
# of lines = 4 P
LORRY PLATES
# of items = 12 T
CARS H
A wide product mix facilitates one stop shopping

23. PRODUCT MIX EXAMPLE
Width (# of product lines)
HAIR SALTY DENTAL SOFT
CARE SNACKS CARE DRINKS
Shampoo Chips Tooth Brush Cola
Conditione Nuts Tooth Paste Ginger Ale
r
Dental Floss
Crackers Root Beer
Hair Spray

24. Factors influencing change in product mix
 Changes in market demand
 Cost of production
 Quantity of production
 Changes in company desire
 Competitors actions and reactions

25. Product mix stratagies
 Expansion of product mix
 Contracting or dropping the product mix
 Alteration of existing product s
 Trading up/trading down stratagies

26. Product management
 Planning
 Forecasting
 Marketing
of products of a company is product
management

27. Objectives of product management
 To design product stratagies
 To spot market opportunities
 To develop strategies for each stage of product life
cycle
 To generate new product ideas

28. New product planning
New product : New to the company even it is in the
world
Types of new products
1.New to the world
2.New to the firm
3.Addition to existing product line
4.Improved and revised
5.Reduction in cost

30. Importance of new product
 To meet consumer needs and wants
 To meet competition
 To increase profits
 To avoid threats from substitutes

31. New Product Development Process
Step 1. Idea Generation
Systematic Search for New Product
Ideas
Internal sources
Customers
Competitors
Distributors
Suppliers

32. Step 2. Idea Screening
 Process to spot good ideas and drop poor
ones
 Technically feasibility
 Financially viable

33. Step 3. Concept Development & Testing
1. Develop Product Ideas into
Alternative
Product Concepts
2. Concept Testing - Test the
Product Concepts with Groups
of Target Customers
3. Choose the Best One

34. Step 4. Marketing Strategy Development
Part One - Overall:
Target Market
Planned Product Positioning
Sales & Profit Goals
Market Share
Part Two - Short-Term:
Product’s Planned Price
Distribution
Marketing Budget
Part Three - Long-Term:
Sales & Profit Goals
Marketing Mix Strategy

35. Step 5. Business Analysis
Step 6. Product Development
Business Analysis
Review of Product Sales, Costs,
and Profits Projections to See if
They Meet Company Objectives
If No, Eliminate
Product Concept
If Yes, Move to
Product Development

36. Step 7. Test Marketing
Standard Controlled
Test Market Test Market
Full marketing campaign A few stores that have
in a small number of agreed to carry new
representative cities. products for a fee.
Simulated
Test Market
Test in a simulated
shopping environment
to a sample of
consumers.

37. Step-8 commercialization
Introducing the product into the market

38. Product Life Cycle
Sales and
Profits ($)
Sales
Profits
Time
Product Introduction Growth Maturity Decline
Develop-
ment
Losses/
Investments ($)

39. Introduction Stage of the PLC
Sales Low sales
Costs High cost per customer
Profits Negative
Create product awareness
Marketing Objectives and trial
Product Offer a basic product
Price Use cost-plus
Distribution Build selective distribution
Advertising Build product awareness among early
adopters and dealers

40. Growth Stage of the PLC
Sales Rapidly rising sales
Costs Average cost per customer
Profits Rising profits
Marketing Objectives Maximize market share
Offer product extensions, service,
Product warranty
Price Price to penetrate market
Distribution Build intensive distribution
Advertising Build awareness and interest in the
mass market

41. Maturity Stage of the PLC
Sales Peak sales
Costs Low cost per customer
Profits High profits
Marketing Objectives Maximize profit while defending
market share
Product Diversify brand and models
Price Price to match or best competitors
Distribution Build more intensive distribution
Advertising Stress brand differences and benefits

42. Decline Stage of the PLC
Sales Declining sales
Costs Low cost per customer
Profits Declining profits
Marketing Objectives Reduce expenditure and milk the brand
Product Phase out weak items
Price Cut price
Go selective: phase out unprofitable
Distribution outlets
Advertising Reduce to level needed to retain
hard-core loyal customers

43. Introduction Stage-Strategies
PRODUCT Offer a basic product
PRICE Cost +profit
SALES PROMOTION Heavy expenditure to create trails
Distribution Build selective distribution
Build product awareness among early
Advertising adopters and dealers

44. Growth Stage of the PLC
Offer product extensions, service,
Product warranty
Price penetrate Price
Distribution Build intensive distribution
Build awareness and interest in the
Advertising mass market
Sales promotion Consumer demo

45. Maturity Stage of the PLC
Product Diversify brand and models
Price Price to match or beat competitors
Distribution Build more intensive distribution
Advertising Stress brand differences and benefits
Sales promotion Encourage to brand switching

46. Decline Stage of the PLC
Product Phase out weak items
Price Cut price
Go selective: phase out unprofitable
Distribution outlets
Advertising Reduce to level needed to retain
hard-core loyal customers
Sales promotion Reduce to minimal level

47. Causes of New Product Failures
 Overestimation of Market Size
 Product Design Problems
 Product Incorrectly Positioned, Priced or
Advertised
 Costs of Product Development
 Competitive Actions
 Technical problems
 Poor planning
 Inadequate promotion
 Poor packing
 Fault pricing

48. CONSUMER ADOPTION PROCESS
Adopt
Trail
Evaluation
Interest
Awareness

49. CONSUMER ADOPTION PROCESS
Potential product
Augmented product
Expected Product
Generic product
Core Benefit