SETTING PRODUCT STRATEGY AND NEW MARKET OFFERINGS

BY -MANEESH GUNJAL MT11IND001

SETTING PRODUCT STRATEGY

What is Product?? A product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

COMPONENTS OF MARKET OFFERING

Value-based prices

Attractiveness of the market offering

Product features and quality

Services mix and quality

FIVE PRODUCT LEVELS

PRODUCT CLASSIFICATION

Schemes

Durability Tangibility Use

DURABILITY AND TANGIBILITY

Nondurable goods Durable goods

Services

CONSUMER GOODS CLASSIFICATION

Convenience

Shopping

Specialty

Unsought

INDUSTRIAL GOODS CLASSIFICATION

Materials and parts

Capital items

Supplies/ business services

PRODUCT DIFFERENTIATION

Product form Features Customization Performance Conformance Durability Reliability Repairability Style

SERVICES DIFFERENTIATION

Ordering ease Delivery Installation Customer training Customer consulting Maintenance and repair Returns

THE PRODUCT HIERARCHY

Item Product type Product line Product class Product family Need family

PRODUCT-MIX PRICING

Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing

CO-BRANDING

FIFTH P = PACKAGING

Factors Contributing to the Emphasis on Packaging

Self-service
Consumer affluence

Company n brand image Innovation opportunity

PACKAGING OBJECTIVES

Identify the brand Convey descriptive and persuasive information Facilitate product transportation and protection Assist at-home storage Aid product consumption

FUNCTIONS OF LABELING

Identifies

Grades
Describes Promotes

WARRANTIES AND GUARANTEES

INTRODUCING NEW MARKET OFFERINGS

CATEGORIES OF NEW PRODUCT

New-to-the-world
New product lines

Additions
Improvements Repositionings Cost reductions

THE WORLDS MOST INNOVATIVE COMPANIES

Apple Google Toyota General Electric Microsoft Procter & Gamble 3M Walt Disney

IBM Sony Wal-Mart Honda Starbucks Target BMW Samsung

SEVEN NOTIONS OF INNOVATION

See the future through the eyes of your customer Intellectual property and brand power are key assets Use digital technology to create tools for customers Build a championship team Innovation is a state of mind Speed is critical, so push your organization Partner up if youre not the best

NEW PRODUCT FAILURE

Shortage of important ideas in certain areas Fragmented markets Social and governmental constraints Cost of development Capital shortages Shorter required development time Shorter product life cycles

NEW PRODUCT DEVELOPMENT PROCESS

IDEA GENERATION: CREATIVITY TECHNIQUES

Attribute listing Forced relationships Morphological analysis Reverse assumption analysis New contexts Mind mapping

LATERAL MARKETING

Gas stations + food= Gas station stores Cafeteria + Internet= Cyber cafes Cereal + snacking= Cereal bars Candy + toy= Kinder Surprise Audio + portable= Sony Walkman

CONCEPT DEVELOPMENT

Product idea Product concept Category concept Brand concept Concept testing

Communicability and believability Need level Gap level Perceived value Purchase intention User targets, purchase occasions, purchasing frequency

MARKETING STRATEGY

Target markets size, structure, and behavior Planned price, distribution, and promotion for Year One Long-run sales and profit goals and marketing-mix strategy over time

BUSINESS ANALYSIS

PRODUCT DEVELOPMENT

Quality function deployment (QFD)

Customer attributes Engineering attributes

MARKET TESTING
Consumer Goods Market Testing

Sales-Wave Research Simulated Test Marketing Controlled Test Marketing Test Markets

Test Market Decisions

How many test cities? Which cities? Length of test? What information to collect? What action to take?

COMMERCIALIZATION
Timing of Market Entry

First entry Parallel entry Late entry

ADOPTION
Adoption is an individuals decision to become a regular user of a product.

STAGES IN ADOPTION PROCESS

Awareness
Interest Evaluation

Trial
Adoption

CHARACTERISTICS OF AN INNOVATION

Relative advantage Compatibility Complexity Divisibility Communicability