Post on 15-Apr-2017
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Marketing mix and product management.At the end of this module the learning
actuates are.1. What is a product?2. Various levels of product.3. How products are classified?4. Differentiation5. Product and brand relationships6. Packaging
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What is a Product?
A product is anything that can be offered to a market to satisfy a want or need, including physical goods,
services, experiences, events, persons, places, properties,
organizations, information, and ideas.
Components of the Market Offering
Attractiveness of the market
offering
Value-based prices
Product features and quality
Services mix and quality
Five Product Levels
Marketing mix and product management.
1. Core product - Most fundamental benefit customer is
buying.- Heart of the system.
Refrigerator - Basic purpose.
Preservation.- To preserve you need a compressor and
cooling system.- This is core.
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Marketing mix and product management.
2. Basic product - Do you buy compressor?- You buy a basic product?- Formal
Refrigerator - Compressor is mounted on a
body /cabinet.- There is a door, shelves, trays.- This is basic product.
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Marketing mix and product management.
EXPECTED PRODUCT - A set of attributes and conditions customers
expect. This depends on the chosen target audience.
- This is expected from a marketer.Refrigerator
- Freezer.- Bulb.- Thermostat.- Quiet not noisy.- Different types of shelves.- Antirust system.This is expected product.
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Marketing mix and product management.AUGMENTED PRODUCT
- Prepare a product that exceeds customer expectation. Is the reason to buy.
- Add further attributes- Each attribute adds cost - Will customer pay enough to cover the
extra cost?Refrigerators
- Easy financing scheme- Four year warranty on compressor- Free rice – cooker with every refrigerator
purchased.9
Marketing mix and product management.
POTENTIAL PRODUCT - Companies search for new ways to
satisfy customers and distinguish their offer.
Refrigerator - Water dispenser – on the door
Prevent frequent opening of doors.
Faster cooling.
PRODUCT 11
Marketing mix and product management.WHAT DO WE OBSERVE?
- Most competition at augmentation level.
- Constant innovation.- Understand how customers use
their product.- New features add to the cost.- Marketers have to find out that
whether customers are willing to pay extra cost.
Marketing mix and product management.
REFRIGERATORS.1. Whirlpool
• Quick lce making 2. Samsung
• Super x – flowUniform cooling.
3. LG • Nutritional value maintained.
4. ALLWYN• Efficient compressor.
5. KELVINATOR • Coolest.
The Wedding Market is a MetaMarket
Product Classification Schemes
Durability
Use
Tangibility
Durability and Tangibility
Nondurablegoods
ServicesDurablegoods
Marketing mix and product management.
A. Durability & Tangibility1. Non-durable goods
- Consumed in one or few uses- Consumed quickly- Frequent purchase- Need to make them available in many
locations- Heavy promotion- Induce trial
ExampleCoke, Modern bread, Lux Soap, Mother Diary Milk
Marketing mix and product management.
2. Durable goods- Used many times- More personal selling/service- Seller’s assurance about product
longevityExample
- Refrigerators- Mixer- Car
Higher priced than non-durable Consumer involvement is high as they
are high priced
Marketing mix and product management.
3. Services- Intangible- Inseparable- Variable- Perishable
Example- Beauty parlour- Education Services- A Surgery- Listening to concert- Airlines
Marketing mix and product management.
Therefore Products which are predominantly
tangible are called goods Products, which are predominantly
intangible, are called services.
Consumer Goods Classification
Convenience
Unsought
Shopping
Specialty
Industrial Goods Classification
Materials and parts
Supplies/ business services
Capital items
Marketing mix and product management.
B. Consumer – Goods classificationBased on shopping habits
1. Convenience goodsGoods purchased
- Frequently- Immediately- Minimum effort
Example- Newspapers- Bread- Milk
Distributed at shops very near to households
Marketing mix and product management.
2. Shopping goods- Goods that the customer in the
process of selection and purchase - Characteristically compares on such
basis as suitability, quality, price and style
Examples- Furniture- Clothing- Appliances
Marketing mix and product management.
3. Speciality goods- Unique characteristics- Unique brand values- Buyers willing to make extra efforts
Example- House- Jewellery
Very few outlets, exclusive- Cars
Marketing mix and product management.
4. Unsought goods- Goods the consumer does not know
about or does not normally think of buying
- Consumers made aware through promotional efforts of the firm.
Examples- Life insurance- Security equipments- Fire extinguisher
Marketing mix and product management.
PRODUCT MIX- Set of all products and items that a particular
seller offers for saleExample:BPL
Consumer products- TVs, Washing Machine
Cellular Services- Mobile operations in Mumbai
Telecom- Instruments
PRODUCT 28
PRODUCT 29
Marketing mix and product management.
Product Mix-concepts1. Width
- How many different product lines are carried by the organization
2. Length Total number of items in the mix
3. Depth
How many variants are offered of each product in the line
PRODUCT 31
HUL
PRODUCT 32
PRODUCT 33
PRODUCT 34
Marketing mix and product management.
4. ConsistencyHow closely related the various product lines are in end use, production requirements, distribution channels or some other way.
Proctor and Gamble- Very consistent- Why- Products are available through the same
distribution channels
Marketing mix and product management.
GE• Very inconsistent• Are Refrigerators, Aircraft engines and
Electricity equipment available from same places
• No ?• Refrigerators
- Shops• Aircraft Engine’s
- Direct
Hindustan Lever Limited Product Mix : Width = 4 Length = 13; Total Depth = 76
Average Depth = 76 /13=5.84
Soap (Length = 5)
Detergent (Length = 4)
Shampoo (Length = 2)
Toothpaste (Length = 2)
Lifebuoy (D = 8) Lux (D =6)
Dove (D = 2)Breeze (D = 12)
Pears (D = 2)
Wheel (D = 4) Rin (D = 4)
Surf (D =6)
Surf Excel (D = 2)
Clinic (D =8Sun-Silk (D = 12)
Close-Up
(D = 4)
(Pepsodent (D = 6)
T Depth: 30
T Depth: 16
T Depth: 20
T Depth: 10
Av Depth: 6
Av Depth: 4 Av Depth: 10
Av Depth: 5
PRODUCT 37
Product Differentiation
Product form Features Customization Performance Conformance Durability Reliability Repairability Style
Service Differentiation
Ordering ease Delivery Installation Customer training Customer
consulting Maintenance and
repair Returns
IHCL
operates in the luxury, upper upscale, upscale and value segments of the market through the following:
Taj is the flagship brand for the world’s most discerning travelers seeking authentic experiences in luxury. Besides luxurious living and fine dining, Taj Hotels also promise a whole new experience of tranquillity and total ‘wellness’ through Jiva Spas, a unique concept that brings together the wisdom and heritage of the Asian and Indian philosophy of wellness and well-being.
Taj Safaris is India's first and only wildlife lodges circuit that allows travelers to experience the unparalleled beauty of the Indian jungle amidst luxurious surroundings
Vivanta by Taj provides the new generation of travelers a contemporary and creative hospitality experience that matches their work-hard, play-hard lifestyles.
The Gateway Hotel chain is a pan-India network of hotels and resorts that offers business and leisure travelers a contemporary hotel experience.
Ginger is IHCL’s revolutionary concept in hospitality for the value segment.
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Taj Trade and Transport operates the chain of Taj Salon and Taj Khazana lifestyle boutiques across selected properties of the Taj group. Taj operated salons are currently operating at 12 locations in the group.
PRODUCT 43
Maintenance and Repair
The Product Hierarchy
Need family
Product family
Product class
Product line
Product type
Item
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7-Levels of Product Hierarchy Product need—to satisfy a need e.g. feet
protection Product class—a family of products having
similar function e.g. all shoes Product line—a group of products with closely
related functions e.g. sports shoes Product type—products within a line having
similar form e.g. basket-ball shoes Brand—a name representing a product or line
e.g. Nike Item (Stock Keeping Unit)—a unit item e.g.
one pair of Nike basket-ball shoe
Line Stretching
Down-Market Stretch : Surf excel- wheel, Lo’real- Garnier, Taj-Ginger
Up-Market Stretch: Toyota's Lexus, Nissan's Infiniti, and Honda's Acura
Two-Way Stretch
Line Filling & Pruning
Product line filling is the addition of further items to the current line of products that a company is dealing in. Eg.Maruti Suzuki had launched Alto in the year 2000 which was a product between two other models of Maruti- Maruti 800 and Maruti Zen. Basically , it was an effort on part of the company to fill the gap that existed in the market segment by introducing this new model ALTO .
On the other hand, product line pruning is the removal of the unprofitable products from the product line. Eg. Toyota Kirloskar phasing out their model Qualis, when it was not adding any value to the product line as such.
Co-branding
Ingredient BrandingRevotron is the new hope of Tata Motors. Tata Motors which once was the number 2 in the Indian car market, is now finding it difficult to be in the top 5 thanks to the nagging quality issues coupled with a negative brand perception. This brand is another example of ingredient branding.
The 1.2 Ltr engine is being promoted heavily by Tata Motors ahead of the launch of the two major new products - Tata Bolt and Zest. The Revotron brand is endorsed by the Indian F1 Racing star Narain Karthikeyan.
The USP of the Revotron engine is the 3 driving modes which is usually seen in high end cars. There is a city mode, Eco mode and a Sports mode. For a value-driven brand like Tata Motors, this proposition is a very powerful differentiation.Platforms and not products are now important to a company's success. For automakers, engines offer the platforms on which many products can be made. Honda has recently demonstrated the power of platform with the diesel IDtec engine.Tata Motors hope that the better engineered Revotron would help build a better image for the cars produced under it.
What is the Fifth P?
Packaging, sometimes called the fifth P, is all the activities of
designing and producing the container for a product.
Factors Contributing to the Emphasis on Packaging
Self-service
Consumer affluence
Company/brand image
Innovation opportunity
Innovations in Packaging
Packaging Objectives
Identify the brand Convey descriptive and persuasive
information Facilitate product transportation and
protection Assist at-home storage Aid product consumption
Functions of Labels
Identifies
Grades
Describes
Promotes
Warranties and Guarantees