PRODUCT

What is Product ?
Product
A product is a good, service, or idea
consisting of a bundle of tangible and
intangible attributes that satisfies
consumers and is received in exchange
for money or some other unit of value.
What is a Product?
Goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information
Ideas

Inside the Product !!
Delivery
After-sales
Features
Style
Design
Packaging
Branding
Tangible & Intangible Products

Tourism



Service Classifications

Mobile ATM

Toyota Vehicles
White Goods


Air Cargo stuffing
Service available 24/7 , call at + 91 55 55555 555

Maruti Suzuki Service Station

Customer service for Air
Passengers

Dimensions of Service Quality
RELIABILITY: consistency, error-free dependability
RESPONSIVENESS: willingness to help the customer
TANGIBLES: environment for the service presented
COMPETENCE: the right skills and knowledge required
COURTESY: suppliers behavior
SECURITY: freedom from danger or risk
ACCESS: ease of making contact
COMMUNICATION: understandable to the customer
EMPATHY: adopting the customers viewpoint
8 Dimensions of a Product Quality





Performance
Features
Conformance
Aesthetics
Reliability
Durability
Serviceability
Perceived
Quality
Product Life Cycle

A product passes through certain distinct stages
during its life, and this is called the Product Life
Cycle (PLC). This concept was
Given by THEODORE LEVITT

It can be divided into several stages characterized
by the revenue generated by the product. If a
curve is drawn showing product revenue over time,
it may take one of many different shape.

Product Life
Cycles
Sales
Time
Development Introduction Growth Maturity Saturation Decline
Volvos YCC
How are new-product ideas generated?
INTRODUCTION STAGE
Build up Product awareness, mass appeal.
Selective customers & Distributions
Personal letters, email, smss
Heavy sales promotions to boost volume
Free trials, more demos
e.g. Maruti 800 dual, Nokia N 96, Minute made,
Vivel, e paper , matrix sim card , Miranda Apple
flavor, Palre LMN , Dettol fresh etc etc.

GROWTH STAGE
Improve quality, services
Target more segments with new distribution
Sales start growing at particular speed.
Product conviction & purchase
Maximum sales growth is achieved.
e.g. Dove , Eco times in gujarati ma, HDFC bank,
Swift Car, ICICI bank, DNA papers, Bolero, Jet
Airways , Kingfisher, Innova,Fiama , Mumbai Mirror
, Kinely , Ulta perk
MATURITY STAGE
Product is well established & stable
Product needs modifications, extensions, revivals
Brand extensions
Win competitors customers by brand switching
Personal selling if required.
Aggressive Marketing Promotions. (Selectively)
eg. Air India, LIC, Dettol, Lifebuoy, Coke, Colgate,
Cinthol, Close ups, Vicco, Surf, Rin, Ayurvedic soap,
Cadbury, Frooti.

Washing machine changing
technology

DECLINE STAGE
Reorganize Product Basket
Drop out weak products
Selective selling (till stock lasts)
eg. 14 BW TV, Fiat, Ambassador, typewriter,
Pager, outdated mobile models, Maruti 800 ,
Omni etc etc.

New & Latest Model of Radio


The PLC concept can be of help in
different ways:-

In pre planning the new product launch.
In prolonging the profitable life phase of an
existing product.
In reacting to competition in a planned way.
In deciding the long term investments in
products.

New Product Development Process


Business Analysis

Review of Product Sales, Costs,
and Profits Projections to See if
They Meet Company Objectives

If Yes, Move to
Product Development
If No, Eliminate
Product Concept
Stages in the new-product process
Product Development
Product development is the incubation stage of
the product life cycle. There are no sales and the
firm prepares to introduce the product.
As the product progresses through its life cycle,
changes in the marketing mix usually are
required in order to adjust to the evolving
challenges and opportunities.
New Product under development

PRODUCT DEVELOPMENT STAGE
Idea generation,
Product Utility , Usage , Benefits & USP
Market Analysis , impact on prevailed products
Product Features, Design , Specifications, Model & Safety.
Bye products
Grading & Standardization , Branding
Guarantee & Warrantee , Before / After sales services
Test Marketing , sampling.
Packing & packaging
Required Sales Equipments & maintenance of the same
Training to Sales Team
Price Tag with credit policy
Target on niche market
Product display / demo
Advertising, publicity, promotions.
Plan for initial distribution , home delivery , installation etc
Product launch

Mattels Barbie
Why should laboratory and safety tests be done?
1. Increase frequency of use
by present customers
2. Add new users
3. Find new uses
4. Change product quality or
packaging

Extending the Product Life Cycle
Market
Modification
Product
Modification
Purpose: to sell more product and cover original investment
Product Life Cycles
Sales
Time
Effects of Extension
Strategies
Cinthol product modification



PLC overall marketing strategy
A ) PLC
Product has a limited life
Product sales passes through various stages
Each stage Product is facing different challenge to the seller
Product profit rises & falls at different stages of PLC
Product requires different marketing, financial , manufacturing ,
purchase & personal strategies in different stages of PLC
.
B) Companies competitive position in the market

Leaders, Challengers, followers or Niches

C ) The Economic climate
Shortage , recessions , inflation etc


Why Product / Services Fails ?
Product limitations itself.
Wrong Time
The wrong group is targeted.
A weak positioning strategy is used.
A questionable pricing strategy is implemented.
The advertising campaign generates an insufficient level of new
product/new service awareness.
The marketing plan for the new product or service is not well
implemented in the real world.
The marketer believes that the new product and its marketing plan has
died and cannot be revived, when, in fact there is the potential for
resurrection
Insufficient marketing analysis
Lack of marketing infrastructures
High competitions
Wrong Marketing Strategies.

To create successful new
products
Company must study &
understand its customers,
market & competitors
Develop product / services
that delivers superior value to
the customers.

Quality of a Product
"Quality is never an accident; it is always the
result of high intension, sincere effort,
intelligent direction and skillful execution; it
represents the wide choice of many
alternatives."