Presentation Prepared By : 1)Fayez Rayyan …… 2) Mohammed Nub3a …… For :D. Maher Arafat

Product strategies When an organization introduces a product into a market they must ask themselves a number of questions. What is the product aimed at? What benefit will they expect? How do they plan to position the product within the market? What differential advantage will the product offer over their competitors?

Product definition Product definition is a critical starting point in the development of any new product. Product (business), an item( product/service) that ideally satisfies a market's want or need Product (business)

Major product-mix strategies: Positioning, expansion ( توسع ), alteration ( تعديل ), contraction( ( انكماش,. trading up and trading down( إرتِفاع وإنخِفاض في سوق التعاملات ) Product Mix and Product Line product mix The product mix is the set of all products offered for sale by a company. A product mix has two dimensions: Breadth Breadth - the number of product lines carried. Depth. Depth - the variety of sizes, colors, and models offered within each product line. product line A product line is a broad group of products, intended for( تهدف ) similar uses and having similar characteristics.

Product Mix Strategies Positioning the Product Positioning the Product In Relation to a Competitor In Relation to a Product Class or Attribute In Relation to a Target Market By Price and Quality Product-Mix Expansion Product-Mix Expansion Line Extension Mix Extension

Trading Up and Trading Down Trading up: Trading up: Adding a higher-priced product to a line to attract a higher-income market and improve the sales of existing lower-priced products. Trading down: Trading down: Adding a lower-priced item to a line of prestige products to encourage purchases from people who cannot afford the higher-priced product, but want the status.

Other Product Mix Strategies Alteration of Existing Products: Alteration of Existing Products: Improve an established product with new design, new package, new uses. Product-Mix Contraction( انكماش ): Product-Mix Contraction( انكماش ): Eliminate an entire line or reduce assortment ( تشكيله )within it. Pruning to reduce similar brands. Dump unprofitable or indistinct brands ( تخلّصْ من الأصنافِ الغير مربحةِ أَو الغامضةِ.).

The Product Life Cycle different products will have differently-shaped life cycle curves; will diffuse( تشتهر ) at different rates a product is normally perceived to pass through four stages over its life cycle; introduction, growth, maturity, and decline each stage requires different marketing strategies

Product Life Cycle Stages Introduction Introduction—most risky and expensive. Growth Growth—both sales and profits rise, often rapidly( كلتا المبيعات والأرباح تَرتفعانِ، في أغلب الأحيان بسرعة.). Maturity( النضج ) Maturity( النضج )—sales increase at a decreasing rate and profits decline( زيادة المبيعات بنسبه متناقصه, مع هبوط للارباح ). Decline( هبوط ) Decline( هبوط )— often because of another product development.

Product Life Cycle Curve Dollars Time in years Loss 0 Profit Sales Volume INTRODUCTIONGROWTHMATURITYDECLINE

Strategic Implications of the Stages introductory stage: introductory stage: developing the market, creating awareness( الوعي ), reaching the innovators growth stage: growth stage: competition begins, sales grow quickly, profits peak( الذروة ), market penetration( يخترق ) maturity stage: maturity stage: competition is intense( حادة ), sales slow down, differentiated product offerings, customers are brand loyal( تصنيف الزبائن موالي وغير موالي ), few new entrants( بضاعة ) decline stage: decline stage: customers move to other options, competitors leave, profits are low ز

Characteristics of Life Cycles length of the life cycle will vary across markets( تختلف من سوق لأخر ); some are quite short and may be getting shorter Some products have very short life cycles, while other products stay at maturity for years in high-tech markets, life cycles are very short some products do not make it through all four stages; they may fail in introduction the life cycle must be considered in relation to a specific market; stage may vary across markets

Part a - Extended introduction stage Part b - Fad Part c - Indefinite maturity stage Time in years Aggregate sales Aggregate sales Different Life Cycles

References Product - Wikipedia, the free encyclopedia Karen A. Blotnicky Product-Mix Strategies- Karen A. Blotnicky (Mount Saint Vincent University, Halifax, NS) (Mount Saint Vincent University, Halifax, NS)