Presentation on Product Policy

8/8/2019 Presentation on Product Policy

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Product Policy

Presented By

Rockstones

Zaara

Shruti

Sangeeta

Sridevi

Rajani


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What is a product?

It is a bundle of satisfaction, that a customer buys.

It represents solution to customers problems.

Anything that can be offered to market for attention,

acquisition, use or consumption that might satisfy a want orneed.


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Core

Benefit Or

Service

BrandName

Packaging

Features

Quality

Styling

Installation

Delivery

&

Credit

Warranty

After

Sales

Service

Levels Of A Product

AugmentedProduct

Formal

Product

Core

Product


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Levels of a Product

It means to differentiate the product from all others in terms ofpackaging, brand name, features, quality and styling.

Core Product

It answers the question, What is the buyer really buying?

It is the benefit that the customer obtains when he buys a

product.

Formal Product


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Augmented product

The tangible component of the product along with the formal

and core components is an augmented product.

It offers additional consumer services and benefits

(installation, warranty, quick repair services, toll-free

telephone numbers). Example: handy cam


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Classification of Product

Types Of Products

Consumer Product Business Product

Consumer Product

A Product purchased to satisfy personal and family needs.

Business Product

Those bought to use in a firms operation to re-sell or to make other products.


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What is Product Mix?

reinforce their presence in the market

increase market share

increase the turnover for more profitability.

Product mix is a combination of products manufactured or traded

by the same business house to:-


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Product Mix Of Proctor & Gamble


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Product Mix Of Proctor & Gamble

Laundrydetergents Toothpastes Bar soaps Deodorants Shampoos Tissue/Towel

Ivory Snow 1930 Gleem 1952 Ivory 1879 Old Spice 1948 Pantene 1947 Charmin 1928

Dreft 1933 Crest 1955 Camay 1926 Secret 1956

Head &Shoulders1961 Puffs 1960

Tide 1946 Zest 1952 Sure 1972

Vidal Sassoon

1974 Bounty 1965

Cheer 1950 Safeguard 1963 Pert Plus 1979

Kids' FreshWipes1998

Bold 1965Oil Of Olay

1993 Ivory 1983

Gain 1966 Physique 2000

Era 1972

Febreze CleanWash 2000

Width

D

e

p

t

h


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Product Mix Decisions

Firms often decide to change their product mix. Some of the

reasons for these decisions are as follows:-

Anticipated as well as actual changes in the market

Competition

Diffuse risk across different product groups.

Enables the firm to appeal to a much larger group of

customers or to different needs of the same customer group


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What is a Product Line?

Product lining is the marketing strategy of offering for sale

several related products.

A line can comprise of related products of various sizes, types,

colors, qualities, or prices Line depth refers to the number of product variants in a line

Line consistency refers to how closely related the products that

make up the line are

Line vulnerability refers to the percentage of sales or profits thatare derived from only a few products in the line.


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The number of different product lines sold by a company is

referred to as width of product mix.

The total number of products sold in all lines is referred to as

length of product mix. If a line of products is sold with the same brand name, this is

referred to as family branding.

When you add a new product to a line, it is referred to as a line

extension.

What is a Product Line?


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Development Of New Product

What is a new product?

A new product is any product perceived by the customer as being new. This

involves

repositioning of existing products

offering the existing products at low prices

making improvements in the existing products

adding new product items to the existing product lines

taking up a totally new product line by the organisation


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Factors Contributing To New Product Development

Changing Customer Preferences

Technological Changes

Government Policy

Changing customer lifestyles, leading towards a change in

customers preferences & expectations

Technological developments in the industry. E.g. development

of the Blue Tooth technology has made it possible to send

multimedia messages.

E.g. A government policy encouraging competition and

entrepreneurship.


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Idea Generation Screening

Business AnalysisProductDevelopment

Concept Testing

Test Marketing

Commercialisation

Phases Of New Product Development


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Idea Generation


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Screening

Ideas with the greatest potential are selected for further review.

Product ideas are analysed to determine whether they match the

organisations objectives and resources. The companys overall abilities to produce and market the product are also

analysed.


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Concept Testing

A small sample of potential buyers is presented with a product idea through

a written or oral description to determine their attitude regarding the

product.


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Business Analysis

The product idea is evaluated to determine its potential contribution to the

firms sales, costs, and profit.

The firm seeks market information. The results of consumer polls, along

with secondary data, supply the specifics needed.


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Product Development

The phase in which the organisation determines if it is technically feasible

to produce the product.

The idea or concept is converted into a prototype, or working model.

The overall functioning, i.e., performance, safety, convenience, etc., are

tested.

If the product appears to be sufficiently successful at this stage, then the

marketers start making decisions around branding, packaging, labeling,

pricing, and promotion, for use in the next stage.


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Test Marketing

This is a limited introduction of a product, in geographic areas chosen to

represent the intended market.

The aim is to determine the extent to which potential customers will buy

the product.

It is to be conducted only after the product has gone through development

and initial plans regarding the other marketing mix variables have been

made.


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Commercialisation

Plans for full scale manufacturing and marketing are refined and settled,

and budgets for the project prepared.

The product enters the market during this stage.


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Thank You

Presentation on Product Policy

Documents

Transcript of Presentation on Product Policy