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MM 2 (Product)

Kotler chapter on Branding

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Kanav Gupta
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34 views24 pages

MM 2 (Product)

Kotler chapter on Branding

Uploaded by

Kanav Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Marketing mix Products

Porters Generic Strategies

Overall Cost Leadership

Differentiation

Focus

SANMARG?
What is a Product?
Product: bundle of physical, service, and symbolic
attributes designed to enhance buyers want
satisfaction
What are Goods and Services?
Service: intangible task that satisfies consumer or
business user needs
Goods-services continuum: device that helps
marketers to visualize the differences and
similarities between goods and services
Product Levels: The Customer-Value Hierarchy
Types of Consumer Products
Types of Business Products
Product Differentiation
Form Reliability
Features Reparability
Performance quality Style
Conformance quality Customization
Durability
The Product Hierarchy

6. Item

5. Product
type
4. Product
line
3. Product
class
2. Product
family
1. Need
family
Gillettes Product Lines and Mix

Width of the product mix


Length of the product lines

Blades and Writing


razors Toiletries instruments Lighters

Mach 3 Series Paper Mate Cricket


Sensor Adorn Flair S.T. Dupont
Trac II Toni
Atra Right Guard
Swivel Silkience
Double-Edge Soft and Dri
Lady Gillette Foamy
Super Speed Dry Look
Twin Injector Dry Idea
Techmatic Brush Plus
BCG MATRIX
20% -
Market Growth Rate

High

Stars Question Marks


10% -

Low

2% - Cash Cows
Dogs

0.1 -
10 -

High Low

Relative Market Share


The Product Life Cycle
Introduction stage
Firm works to stimulate demand for the new market entry

Promotional campaigns stress features

Additional promotions to intermediaries attempt to induce


them to carry the product

Although prices are typically high, financial losses are


common due to heavy promotional and research-and-
development costs
Growth stage

Sales volume rises rapidly

Firm usually begins to realize substantial profits

Success attracts competitors

Firm may need to make improvements to the product

Additional spending on promotion and distribution may


be necessary
Maturity stage

Industry sales continue to grow, but eventually


reach a plateau

Many competitors have entered the market, and


profits began to decline

Differences between competing products


diminish

Available supplies exceed industry demand for


the first time
Decline stage

Innovations or shifts in consumer preferences


cause an absolute decline in industry sales

Industry profits fall -- sometimes become losses

Firms cut prices in a bid for the dwindling market

Manufacturers gradually drop the declining items


from their product lines
Extending the Product Life Cycle
Marketers usually try to expand each stage of the life
cycle for their products as long as possible

Product life cycles can stretch indefinitely as a result of


decisions designed to:
Increase the frequency of use by current customers
Increase the number of users for the product
Find new uses
Change package sizes, labels, or product quality
Product Deletion Decisions

Product lines must sometimes be pruned and


marginal products eliminated

This decision is typically faced during the late


maturity and early declined stages of the product
life cycle

An unprofitable item may be continued in order


to provide a complete line for customers
www.axcesscapon.com www.wileyindia.com Key Issues
Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.

Cost of Failure/Financial Commitment Type 1


Financial Commitment / Cost of Failure

Idea Preliminary Concept Business Development Product Market Test Commercial-


Screen Development Case Testing Factor Marketing ization
Analysis Testing

Stage of New Product Development


www.axcesscapon.com www.wileyindia.com Preliminary Screening
Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.

Assessment Consistent with Fit with


environmental business unit
goals strategy

Likely to meet
Complements
profitability
existing products
targets

Likely to meet Meets needs


revenue growth of existing
targets customers

Uses firms core Meets needs of


competencies potential customers
www.axcesscapon.com www.wileyindia.com Product Adoption
Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.

Adopter Groups

Late Majority
34%
Sales

Early Majority Laggards


34% 16%

Early Adopters
13.5%

Innovators
2.5%
Time
www.axcesscapon.com www.wileyindia.com Product Adoption
Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.

Crossing the Chasm


Chasm
aka Valley of Death
Sales

Early Majority

Early Adopters

Innovators
Time
www.axcesscapon.com www.wileyindia.com Product Adoption
Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.

ACCORD Factors Affecting Adoption Speed (direction of effect)


Advantage (+)

Compatibility (+)

Complexity ()

Observability/Communicability (+)

Risk ()

Divisibility/Reversibility (+)
www.axcesscapon.com www.wileyindia.com Product Adoption
Noel Capon and Siddharth Shekhar Singh, 2014. All rights reserved.

ACCORD: Illustration EZ Pass


Advantage (+)

Compatibility (+)

Complexity ()

Observability/Communicability (+)

Risk ()

Divisibility/Reversibility (+)

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