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Product Decisions.pptx

  2. PRODUCT CONCEPT - Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.  It can consist of pure tangible goods e.g. soap, toothpaste, food, etc. - A product is a combination of physical attributes say, size and shape; and subjective attributes say image or "quality". A customer purchases on both dimensions.
  3. SERVICE - Service is a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in ownership • The other extremes are pure services which are non- tangible e.g. • banking, medical, insurance, telephone • Doctor’s exam • Legal advice and etc.
  5. Consumer products -Consumer Products are products and services for personal consumption. -These are classified as : a) Convenience products b) Shopping products c) Specialty products d) Unsought products
  6. INDUSTRIAL/BUSINESS PRODUCTS - Industrial Products are products purchased for further processing or for use in conducting a business. -These are classified as : a) Materials and parts b) Capital items c) Supplies and services
  7. PRODUCT LEVELS 1. Core customer value: stands at the center of the total product. It represents what the buyer is actually buying? 2. Actual product : build around the core product: as many as five characteristics. e.g. quality level, features, design, brand name, packaging, that delivers the core benefit to the customer.
  8. 3. Augmented product: build around the core and actual products by offering additional consumer services and benefits.
  9. Individual Product Decisions Product Attributes Branding Packaging Labelling Product support services
  10. Product Attributes - A product attribute is one of the characteristics that define a particular product and will affect a consumer's purchase decision. Product attributes can be tangible (physical in nature) or intangible (not physical in nature). 1. Tangible Attributes: Size, Colour, Weight, Volume, Smell, Taste, Touch, Quantity, Material, composition. 2. Intangible Attributes: Price, Quality, Reliability , Beauty/aesthetics.
  11. BRANDING - Branding is the marketing practice of creating a name, symbol or design that identifies and differentiates a product from other products. - Branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem.
  12. PACKAGING - The purpose of product packaging is to protect the product from damage. - Product packaging not only protects the product during transit from the manufacturer to the retailer, but it also prevents damage while the product sits on retail shelves. - Most products have some form of packaging. For example, soups must have a container and package while apples may have packaging for transport but not to sell the product from the produce department of the local grocery store.
  13. LABELING - Display of information about a product on its container, packaging, or the product itself. - Your product’s label delivers your sales message. You can explain what benefits you offer that competitors don’t, for example, or promote a prize or discount. - You also can develop brand goodwill by showing customers you share their values. For instance, images of happy families, healthy athletes and green pastures each speak to different types of consumers.
  14. PRODUCT SUPPORT SERVICE - Activity or function required for successful completion of a process, program, or project. - A product-service system (PSS), also known as a function-oriented business model, is a business model, developed in academia, that is aimed at providing sustainability of both consumption and production.
  15. BRAND MANAGEMENT - A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
  16. Brand Loyalty - “The degree of consumer attachment to a brand. Recognition Preference Insistence Awareness of name, benefit and package Is useful, consumer will buy if available Will search for
  17. PRODUCT LIFE CYCLE -The course of a product’s sale and profit over it’s lifetime. It involves five distinct stages: 1. Product development, 2. introduction, 3. growth, 4. maturity and 5. decline.
  18. Introduction stage - The product life-cycle stage in which the new product is first distributed and made available for purchase. Growth stage - The product life-cycle stage in which a product’s sales start climbing quickly.
  19. Maturity stage - The stage in the product life cycle in which sales growth slows or levels off. - Modify the market, the product and the marketing mix. Decline Stage - The product life cycle stage in which a product’s sales decline.
  20. NEW PRODUCT DEVELOPMENNT PROCESS - New product development (NPD) is the complete process of bringing a new product to the market. It may be a Consumable product, service or idea. - This type of development is considered the preliminary step in product or service development and involves a number of steps that must be completed before the product can be introduced to the market.  Fair & lovely.  Bajaj Pulsar.  Samsung Mobile
  21. Why New Products? -New product development is essential to any business that must keep up with market trends and changes. -Approximately one-third of the revenue a business generates is coming from products they did not sell five years ago. -Changing environment creates new demands and needs.
  22. Product Development Process
  24. Idea Generation At Affordable Price
  25.  To create safe, affordable, all weather form of transport for a family  To create an option for people who want to move from 2 wheeler to 4 wheeler in affordable price (As little as 2 Wheelers)
  26. Idea Screening  A scooter with 2 extra wheels at the back for extra stability?  An Auto-Rikshaw with 4 wheels?  4 Wheeler car made of Engineering Plastics?  4 wheeled rural car?  But Market Wanted a Car and It should be like a Car  Not something that people will say, “Ah! That’s just a Scooter with 4 wheels and not really a car!”
  27. Business Analysis  Cost: What makes the Nano so cheap?
  28. Prototype Development  First Prototype: Vehicle which had bars instead of doors and plastic flaps to keep out the monsoon rains. It was closer to a “Quadricycle” than a car, and the first prototype  Foot pedal had to be realigned to create more legroom  The body had to be changed because Ratan Tata, over six feet tall himself, wanted it to be easy for tall people to get in and out of the car  "Imagine the pain of the body designer -- he went through hundreds of iterations, then at the last minute the car length was increased by 100 millimeters!"
  29. Testing Crash testing
  30. Testing On Torture Tracks
  31. Commercialization  Launch the product  Produce and place advertisements and other promotions  Fill the distribution pipeline with product
  32. Marketing of Tata Nano
  33. “The TATA NANO innovation was not just in technology ;It was in mindset change.”
  34. Step 1: Generating - Utilizing basic internal and external SWOT analyses, as well as current marketing trends, one can distance themselves from the competition by generating ideologies which take affordability, ROI, and widespread distribution costs into account. Step 2: Screening The Idea - Set specific criteria for ideas that should be continued or dropped. Stick to the agreed upon criteria so poor projects can be sent back to the idea-hopper early on.
  35. Step 3: Business Analytics - During the New Product Development process, build a system of metrics to monitor progress. - Include input metrics, such as average time in each stage, as well as output metrics that measure the value of launched products, percentage of new product sales and other figures that provide valuable feedback
  36. Step 4: Product Development -If the new product is approved, it will be passed to the technical and marketing development stage. This is when a prototype or a limited production model will be created. -This means you can investigate exact design & specifications and any manufacturing methods, but also gives something tangible for consumer testing, for feedback on specifics like look, feel and packaging for example.
  37. Step 5: Test Marketing - Test marketing (or market testing) is different to concept or consumer testing, in that it introduces the prototype product following the proposed marketing plan as whole rather than individual elements. - This process is required to validate the whole concept and is used for further refinement of all elements, from product to marketing message.
  38. Step 6: Commercialisation - When the concept has been developed and tested, final decisions need to be made to move the product to its launch into the market. - Pricing and marketing plans need to be finalised and the sales teams and distribution briefed, so that the product and company is ready for the final stage.
  39. Step 7: Launch - A detailed launch plan is needed for this stage to run smoothly and to have maximum impact. It should include decisions surrounding when and where to launch to target your primary consumer group. - Finally in order to learn from any mistakes made, a review of the market performance is needed to access the success of the project.