Presentation on theme: "Setting Product Strategy"— Presentation transcript: 1 Setting Product Strategy Show
2 Objectives Identify the various characteristics of products. 3 The Product Product is a key element in the market offering.
4 What is a Product ? The product is any thing that can be offered to market to satisfy a want or a need.
5 What is a Product? A Product can be Information Places Goods 6 According
to Kotler there are 5 levels 7 The Product and Product
Mix 8 According to Armestrock There are 3 levels
9 Product Classification 10 Product
Classification
11 2. Consumer Goods Classifications
12 2. Consumer Goods Classifications 13 2. Consumer Goods Classification
14 2. Consumer Goods Classification 15 Shopping Goods Convenience Goods
16 3. Industrial goods Classifications
17 Industrial goods classification 18 Product Differentiation 19 Product Differentiation 20 Services Differentiation: 21 Services
Differentiation:
22 The Product Hierarchy: 23 Product mix The set
of all products and items that a particular seller offers for sale. A Product mix consists of various product lines. Product mix dimensions:: The Width: Number of product lines. The Length: Total number of items in mix. The Depth: How many variants are offered of each product in the line. Consistency: Degree to which product lines are related. (Production requirements, distribution channels)
24 Product mix Product Line 4 Line 3 Line 2 Line 1 Sweets Snakes 25 Product-Line Decisions 26 Product-Line Analysis
27 Market Profile Product line managers need to look at market profile. 28 Market Profile Product Map for a Paper-product Line
29 Product Line Length A company lengthen its product line in two ways: 1. Line stretching: involves the question of whether a particular line should be extended: Down market: it introduces a lower priced line
for any three reasons: 1- The company may notice strong growth opportunities in the down market. 2- To tie up lower end competitors who might other wise try to move up market. 3- The middle market is declining. 30 - Upward stretch: Enter the high end of market for more growth , higher margins.
31 - Line modernizations: whether the line needs a new look . 32 - Line pruning : How to delete and remove weaker items from the line,
33 Product mix pricing There are six situation involving product mix pricing: 1) Product line pricing: Companies normally develop
product lines rather than single products and introduce price steps. 2) Optional feature pricing: Many companies offer optional products, features and service a long with their main product. 3) Captive product pricing: Some products require the use of ancillary or captive products.
34 4) Two part pricing product: 35 Mixed Bundling The seller offers goods both individually and in bundles. When offering a mixed bundle, the seller
normally charges less for the bundle than if the items were purchased separately. 36 Brand Decision The AMA definition of a brand: 37 Brand Decisions Brands can convey six levels of meaning: Attributes
38 Brand Decision Companies need to develop brand policies for the individual product items in their lines. - They must decide whether to brand at all ,
whether to use family or individual brand names, whether to extend the brand name to new products , and whether to create multiple brands.
39 Brand Decision In developing marketing strategy for individual product, the seller has to confront the branding decision. Branding is a major issue in product strategy. Developing branded product requires a great deal of long term investment spending especially for advertising, promotion, and packaging. Companies need to develop brand polices for individual product items in their lines.
40 Co-Branding & Ingredient Branding
41 Integrated Branding: Is a special case of co-branding. It involves creating brand equity for materials, components or parts that are necessarily contained within other branded products.
42 Packaging and Labeling 43 Packaging includes: The primary package The secondary package 44 The factors that help in increasing using packaging as a marketing tool:
45 3- company and brand Image: Packages contribute to instant recognition of the company or brand. 46 Developing an effective package: 47 After Packaging is designed it must be tested
48 Labeling The label may be a simple tag attached to the product or an elaborately designed graphic that is part of the
package. 49 Legal restrictions impact packaging for many products. 50 Warranties & guarantees 51 Warranties and guarantiees What goods are similar in quality but different enough in price?Homogeneous shopping goods are those that are similar in quality but different enough in other attributes (such as price, brand image, or style) to justify a search process.
Why is it important to compare products based on quality?Product quality is important because it affects the success of the company and helps establish its reputation in customer markets. When companies can create high-quality products that continue to meet customer demands, it can lead to fewer production costs, higher investment returns and increases in revenue.
Is there a relationship between quality and price?At low prices, small changes in price correspond to large changes in quality. At higher prices, small changes in price correspond to smaller changes in quality. In all cases, however, higher prices correspond to higher levels of the quality.
What types of goods are purchased frequently immediately and with minimum effort by consumers?Convenience goods are those that the customer purchases frequently, immediately, and with minimum effort. Soaps and newspapers are considered convenience goods, as are common staples like ketchup or pasta.
|