Product: Dr. Gopal Thapa

1. Product
Dr. Gopal Thapa
Nepal Commerce Campus

2. Branding Challenges in 21st
Century
 Savvy Customers
 Brand Proliferation
 Media Fragmentation
 Increased Competition
 Increased Costs
 Greater Accountability

3. Reasons for New Product Failures
 High product development costs
 Competitors overtake
 Inappropriate market size
 Wrong product positioning
 Over/under priced product
 Inappropriate distribution
 High customer expectation
 Wrongly designed product
 Lack of desired value
 Inability to meet government rules and regulations
 Product based on pushed ideas by top management
 Inappropriate launching

4. New Product Development Process
 Idea generation
 Idea screening
 Concept development and testing
 Marketing strategy and business analysis
 Product development
 Test marketing
 Commercialization

5. Product Differentiation
 Differentiation is the act of designing a set of
meaningful differences to distinguish the
company’s offering from competitor’s offerings.
 - Philip Kotler
 Product differentiation is a strategy which
attempts (through innovative design, packaging,
positioning etc.) to make a clear distinction
between products serving the same market
segments.
 Dictionary of Marketing

6. Product Differentiation Variables
 Physical parameter differentiation
 Service differentiation
 Personnel differentiation
 Channel differentiation
 Promotion differentiation
 Image differentiation

7. Physical Parameter Differentiation
 Form
 Features
 Quality
 Durability
 Reliability
 Design

8. Service Differentiation
 Ordering ease
 Delivery
 Installation
 Customer training
 Repairability

9. Personnel Differentiation
 Competence
 Courtesy
 Credibility
 Reliability
 Responsive
 Communicative

10. Channel Differentiation
 Design
 Coverage
 Expertise
 Performance

11. Promotion Differentiation
 Advertising
 Sales promotion
 Public relations

12. Image Differentiation
 Symbols
 Media
 Atmosphere
 Event sponsorship

13. Criteria for Effective
Differentiation
 Important
 Distinctive
 Communicable
 Superior
 Preemptive
 Affordable
 Profitable
 Consistent

14. Product Life Cycle
 The product life cycle is an attempt to recognize
distinct stages in the sales history of the product.
 Philip Kotler

15. Stages of Product Life Cycle
 Introduction
 Growth
 Maturity
 Decline

16. Product Life Cycle

17. Stages of Product Life Cycle
Features

18. Introduction Stage
 Slow sales growth
 Negative or low profits
 Innovator customers
 Few competitors
 High price

19. Growth Stage
 Rapid sales growth
 Rising profits
 Early adopter customer
 Growing competition
 Slightly lower price

20. Maturity Stage
 Slowdown in sales growth
 Stable profit
 Middle majority customers
 Intense competition
 Minimum price

21. Decline Stage
 Declining sales
 Declining profits
 Laggard customers
 Declining competition
 Increased price

22. Product Life Cycle
Marketing
Strategies

23. Introduction Stage
 High profile strategy
 Low profile strategy
 Preemptive penetration
 Selective penetration

24. Growth Stage
 Product quality improvement
 Adding new features and models
 Entering into new market segments
 Using new distribution channels
 Changing advertising theme

25. Maturity Stage
 Market modification
 Convert non-users users
 Enter into new market segments
 Win competitors customers
 Product modification
Flanking (adding something new)
Change product features
Marketing mix modification

26. Decline Stage
 Product line contraction
 Withdrawal of all promotion
 Adopt single distribution channel
 Abandon the product