MANAGING THE PRODUCT

2 4 Ps  PRODUCT  PRICE  PLACE  PROMOTION PRODUCT : Anything that can be offered to a market to satisfy a need and want

3 PRODUCT & ITS LEVELS  CORE BENEFIT : The fundamental service customer is buying  BASIC PRODUCT : To turn core benefit into basic product  EXPECTED PRODUCT : Set of attributes & condition buyer expects  AUGMENTED PRODUCT : Exceeds customer expectations  POTENTIAL PRODUCT : Future augmentation & transformation of product

4 HOTEL INDUSTRY  CORE BENEFIT  REST & SLEEP  BASIC PRODUCT  BED, BATHROOM, TOWELS  EXPECTED PRODUCT  CLEANLINESS, AMBIENCE  AUGMENTED PRODUCT  FRESH FLOWERS, FINE DINING, ROOM SERVICE  POTENTIAL PRODUCT  SUITES

5 PRODUCT HIERARCHY  Need family: Core need underlines existence of pdt.  Product family: All pdt. Classes satisfying core need.  Product class: Grp.of pdts within family having certain functional coherence  Product line: Pdts. Closely related as they perform similar functions  Product type: Grp. of items within pdt. Line that share several forms of product.  Brand: Name given to identify the source

6 PRODUCT CLASSIFICATION  Durability & Tangibility  Non durable: consumed in one or few uses  Durable: tangible goods survive for long  Services: Intangible, inseparable, perishable pdt.  Consumer Goods Classification  Convenience Goods: purchases frequently, immediately, min. effort  Staples, impulse goods, emergency goods  Shopping Goods: suitability, quality, price, style  furniture, clothing  Specialty Goods: unique characteristics or brand specific.  cars, cameras  Unsought Goods: smoke detectors

7 INDUSTRIAL GOODS  Materials & Parts  Raw Materials  Manufactured materials  Capital Items  Installations  Eqipment  Supplies & Business Services  Operating Supplies  Maintenance & repair services  Business Advisory Services

8 PRODUCT MIX  WIDTH  Different product line  LENGTH  Total no. of items in the mix  DEPTH  Variants offered of each product in the line  CONSISTENCY  How closely related are product lines

9 PRODUCT LINE DECISIONS PRODUCT LINE LENGTH  LONGER LINES : Company seeking high market share & growth  SHORT LINES : Company emphasizes on profitability

10 LINE STRETCHING DOWN MARKET STRETCH  Strong growth opportunities : Wal-Mart  Tie up with lower end competitors  Stagnation of middle market UP MARKET STRETCH  Growth, margins  Full line manufacturers TWO WAY STRETCH MERCEDES TOYOTA MARRIOTT HOTEL

11 LINE FILLING ADDING MORE ITEMS  Incremental profits  Satisfied dealers  Utilization of excess capacity  Leading Full Line Company

12 BRANDING  ATTRIBUTES  BENEFITS  VALUES  CULTURE  PERSONALITY MERCEDES BENZ

13 BRAND EQUITY  BRAND RECOGNITION  PERCEIVED QUALITY  ASSOCIATIONS  PATENTS,TRADEMARKS,CRM ADVANTAGES  REDUCE MARKETING COST  POWER TO BARGAIN WITH DISTRIBUTOR  CHARGE HIGH PRICE  LAUNCH EXTENSIONS  DEFEND COMPETITION

14 BRANDING CHALLENGES BRANDING DECISIONS BRAND SPONSOR BRAND NAMEBRAND STRATEGY BRANDMANUFACTURE BRAND INDIVIDUAL NAMELINE EXTENSION NO BRANDDISTRIBUTOR BRAND BLANKET FAMILYBRAND EXTENSION SEPARATE FAMILYMULTI BRANDS CO.INDIVIDUAL NAME NEW BRANDS,CO BRANDS

15 BRANDING DECISION ADVANTAGES  Easy To Process Orders  Legal Protection To Features  Attract Loyal Customers  Segment Markets  Strong Corporate Image

16 BRAND SPONSOR Why do Middle men bother to sponsor ?  High profitability  Low Cost  No differentiation between National & Store brands But National brands should invest in R&D, New brands, line extension, quality & partnership with distributors.

17 BRAND NAME DECISION  INDIVIDUAL NAME - HLL  BLANKET FAMILY- AMUL & JONHSON  SEPARATE FAMILY- DIFFERENT GRADES OF FOOD ITEMS  COMPANY INDIVIDUAL NAME - PHILIPS, CADBURY  QUALITIES  PRODUCT BENEFIT  QUALITY  EASY TO PRONOUNCE  DISTINCTIVE  NO POOR MEANING

18 BRAND STRATEGY  LINE EXTENSION - DETTOL & LUX  BRAND EXTENSION - HONDA  MULTIPLE BRANDS - HLL DETERGENTS  CO BRANDS - GE WITH HITACHI LIGHTS  NEW BRANDS

19 PACKAGING Activities of designing & producing the container for product Self Service: Attract attention, Pdt features, Consumer confidence Consumer Affluence: Convenience, Appearance, Prestige Company & brand image Innovation opportunity potent mktng. tool

20 LABELING  Simple tag attached to the product or elaborately designed graphic  Identifies product  Grading  Describe pdt:  who, where, when,what it contains. how to use  Promotion

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