Uw Fom Products Markets

8/23/2019 Uw Fom Products Markets

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Products and Markets

4/5/2013 RVS/ FoM/ Products and Markets
http://www.unitedworld.in/index.php


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Products and Markets

Objectives

To Understand

Market and Ways in which Market can be defined

Segmentation and approaches to market

Segmentation

Product Kotlers 5 levels of product benefit

Copelandss product typology

PLC

Concvept of Portfolio

Strategies: BCG Matrix, GEC Matrix, Ansoffs Matrix



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Market

Market- Demand and Supply sides Market Share- By volume/ by value

Need

Want

Utility

Served Market

Market Segmentation

Product

Portfolio



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Market

Demand side- a group of actual or potential customers with similarneeds or wants

Supply side- industry

Market share- Measure of an organizations performance with

regard to its ability to win and retain customers



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Define Markets

Definition based on product Need satisfaction or function performed

Customer identity



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Product market

Product produced or sold

Disadvantage different products may satisfy the same need or

want; may miss identifying the threats

Advantage: Economies of Scale

Example: Mobile phone, electronic organizer



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Need Satisfaction of function performed

Relies on concept of utility -ve: very broad view, does not allow a practical approach to

decision-making

+ve: mass markets are possible

Example: products that satisfy thirst water, soft drinks, juice



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Customer Identity

Based on common requirements of customers +ve: targeting of customers, may allow economies of scale

-ve: Different technnologies may need to be employed, not

economical to produce

People who play cricket

Example: Udipi restaurants, IPL, HBO, INOX



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Market Segmentation

Undifferentiated marketing Demand is homogeneous

Example: Coca- Cola

Differentiated marketing

The total market has different segments, each to be treated

separately

Example: Commercial vehicles

Concentrated marketing Focus on one market segment

+ve: Specialization to satisfy the segment

-ve: All eggs in one basket



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Product Positioning

How is a product or brand perceived in relation to the preferences ofsegments of the market, and in relation to competitive products

Example: Positioning for

Beer


strongWeak

Bitter

Sweet

xx

xxx

xxxx

xxx

xx

x

Marketgap


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Bases for Segmentation

Distinguish one customer type from another Criteria before segmentation is done:

Market size- identifiability of the segment-measurability of the

segment- accessibility to the segment-buying behaviour of the

segment

Bases

Demographic: age, stage of family life-cycle, gender, income,

education

Geographic: country, region

Behavioural variables: brand loyalty, frequency of use, consumption

occasion



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Products

Anything offered for sale



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How value is added

Kotlers 5 levels of Product benefit

Core benefits

Basic benefits

Expected benefits

Augmented benefits

Potential benefits

Discussion: Mobile phones

At what product benefit level does competition occur?



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Copelands Product Classification

How to bring bring products to the market?

Convenience goods

Frequently purchased, low prices, low risk in purchase

Shopping goods

More expensive, of more interest to the customer, some risk in

purchase , customers will shop around, promo material should

have high info content

Specialty goods

Very differentiated, high levels of prestige, customers may insistonly on one brand, high levels of service required, high prices,

restricted distribution

Discussion: Examples?



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Product Life Cycle (PLC)

The Stages of the Product Life Cycle: Development

Introduction/Launch

Growth

Maturity

Saturation

Decline

Withdrawal



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Sales

Time

Development Introduction Growth Maturity Saturation Decline

Product Life Cycle

PPProduct Life Cycle


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Product Life CyclesSales

Time

Effects of ExtensionStrategies


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Product Life Cycles

Sales/Profits

Time

PLC and Profits

PLC

Losses

Break Even

Profits


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Product Life Cycle

Product Life Cycle (PLC): Each product may have a different life cycle

PLC determines revenue earned

Contributes to strategic marketing planning

May help the firm to identify whena product needs support, redesign, reinvigorating,withdrawal, etc.

May help in new product development planning

May help in forecasting and managing cash flow

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BCG Matrix


Stars Q??

Cash CowsDogs

Rateof

Marke

tGrowth

Low

High

HighLow

Relative Market Share


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Ansoffs Matrix

Product-Market Scenario


Market Penetration

New Product

Product Development

Market Development

New Market

Existing

Market

Current Product

Diversification


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Ansoffs Matrix

Market Penetration: increasing sales of an existing product andpenetrating the market further.

Product Development: develop new products for the existing market.

Market Development: sell existing products to new markets.

Diversification: Moving away from what you are selling (your core

activities) to providing something new e.g. Moving over from selling foods to

selling cars.

Consolidation: Withdrawing from particular markets, scaling back on

operations and concentrating on its existing products in existing markets.



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GEC Matrix

Uw Fom Products Markets

Documents

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