Uw Fom Products Markets
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Transcript of Uw Fom Products Markets
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Products and Markets
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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
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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
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Stars Q??
Cash CowsDogs
Rateof
Marke
tGrowth
Low
High
HighLow
Relative Market Share
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Ansoffs Matrix
Product-Market Scenario
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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