Product and Concept Marketing

Product and Concept Marketing

Product: Anything that can be offered to market that satisfy a want or need Concept of product Benefit it Conveys Attributes Support Service

Product
Eg Nirma
Core

Product: is not physical product cleans the cloth Actual Product : Tangible Washing Powder detergent Augmented Product: Non physical After Sales service Value Addition Feedback Free scrubber

BRAND
Collection of experience in terms of benefits which is important to him Reebock / Adidas : Its Your experience with product which will create impression on your mind space How to Secure a position in coveted space ie, consumers perceptual space

RATING
Amul Nirma LG Idea Nokia

How do you rate these brands

BRAND MANAGEMENT
Brand Management consists of : Positioning Brand Loyality Brand Extention Brand Portfolio

Product Planning and PLC

Product Planning: When should be done? 2. Market Segment, target customer, identification of needs, market positioning 3. Product Innovation : 3M/ Apple/ Sony/ Dell New to the World New Lines Additions to existing product lines Improvement and revision of existing products Repositioning Cost Reduction 4. Product development Process Concept development and testing Marketing Plan and Business analysis Test Marketing Commercializaton
1.

PRODUCT LIFE CYCLE CONCEPT

IMPORTANT POINTS TO BE NOTED Products have a limited life cycle Products sales pass thru different stages Each stage of lifecycles poses different challenges and opportunities Each stage requires different marketing, financial manufacturing and purchasing and resourcing strategies

Introduction stage

Slow/ erratic/ Period of Leaving Volkswagen

Strategy: Offensive (Innovative co. with R&D) Defensive (Wait and Watch) Initiative (Chinese products, lowcost)

Growth stage
Sharpe growth/ entry of competetor/ profit/ BEP TATA Strategy: Market share thru penetration Market Segmentation Incremental Innovation

MATURITY STAGE
Market saturation / market share/ sales/ profit level off MARUTI Strategy: Finding new avenues of growth Improved efficiency for growth Rationilising of product lines/profitability

DECLINE STAYS
Sales/ market show/ profit all decline Maruti 800) Strategy: Exit : Maintain support to existing customers : Reduce investment : Improve short-run profitability

LESSONS FROM PLS

Profit curve may not follow sales curve Innovation not necessarily means high profit

MARKETING MIX

What is marketing mix: Mixer of Ingredients Effective blending of resources

BASIC 4Ps
PRODUCT Tangible good/ service Product has PLC Design Technology Usefulness Convenience Values Quality Package Branding Accessories Warrenties PRICE Strategies Skimming Penetration Psychological Cost Plus loss leader PLACE Distribution Chanel Retail Wholesale Mail Order Internet Direct sales Peer to Peer Multichannel PROMOTION All Communication Advertising Public Relation Personal selling Sales Promotion Endorsements User Trials Direct Mailing Leaflets /Posters Free Gifts Competitions Joint Ventures

EXTENDED MARKETING MIX (4 Ps)

PEOPLE PROCESS PHYSICAL EVIDENCE / ENVIRONMENT Smart Run down Interface Comfort Facilities

Consumer Servive Employees Management Culture Customer Service

Especially relevant to Service Industries How are services consumed Logistic flow of Service

PRODUCT MIX STRATEGIES

For Leaders, Challenges, Follower Designing Competitive strategies depending on SWOT

A: Market Leader
MS/ Volume/Value: GM was the leader cumulative Losses Toyota was leader in terms of profitability Sustainable competitive advantages Product Innovation Leader Technology Leader Cast Leader / Service Leader

Market Leader should have Key Strategic actions: Market expansion thru: New use/ more usage/ Replacement demand Defend share by profit innovation/ Improve service distribution effectiveness/ reduce cost improve value chain Never neglect : Area/ Territory, cost structure, customer Feed back/ After sales service Increase sales when market rise is constant A rising tide raises all the ships in harbour

B. MARKET CHALLENGER
Strong but not in dominant position Targets not only leader but other and male players too. Pepsi targets Coke Identify weakness in targets position and attack and focus all resources at this point

Strategic Options:
Price discount/ cutting Line extention New products Product quality Improve Service Review distribution and service Cost Reduction Intensify promotion Attack Strategies: Frontal, Encircle, Bypass, Guerilla
1) 2) 3) 4) 5) 6) 7) 8)

C. Market follower
Imitation, viable, least resource cost Strategic options: 1. Counterfeiter: Illegal / Unethical 2. Cloner: Copy everything but with slight variation 3. Imitator: Imitate leader but maintain differentiation (Chinese/ Koraen product)

D. Market Nicher
Select target market Niche should be target enough to be profitable and small enough to be ignored by market leader

Successful Niche Player

1. 2.

3.

High value added industry with high margin i.e., Sundarm Clayton Highly focused on specific market segment Market high end product/ service with premium pricing strategy