Maketing.module 3

PRODUCT Bundle of attributes both tangible and intangible including packaging,colour,price,quality,brand plus the services and reputation of the seller. Anything that can be offered to satisfy a need or want.

Components/ Layers of Product • 1.Core Product- basic tangible and intangible features. • 2.Augmented Layer- additional benefits added by the seller( packaging,advertising,reputation of the seller,financingand delivery arrangements etc.) • 3.Symbolic and Potential Layer- product as perceived by the consumer and the features that can be made available to them.

Classification of Products 1. Consumer Goods: consumed by the person or for his family consumption or reselling but not for processing --a. Durable goods: which stays for a longer period of time say tv,freeze etc --b.Non durable goods: which needs to be consumed in a short span of time say bread,milk etc. 2.Industrial goods: purchased for processing it and then selling like raw materials,,process products,accessories Services: a service is any act or performance that one party can offer to another that is essentially intangible and does not result in ownership of anything

Types of Consumer goods • 1.Convenience goods: least involvement of customer in terms of time devoted and money involved like salt, bread,butter • 2.Shopping goods: moderate involvement in terms of time devoted and money involved like readymade garments, television • 3.Speciality goods: highest involvement of customer in terms of time involved and money value like luxury cars, designer jewellery • 4.Unsought goods: not generally purchased like life saving drugs.

New Product Development Process • • • • • • • •

Idea Generation Idea Screening Concept Development and Testing Market Strategy Development Business Analysis Product Development Test Marketing Commercialisation

Product Mix • Product Mix: total no. of products that a company manufactures. --product mix breadth/ width: different segments in which a company deals with. --product line length: different varieties within a segment.

Product Life Cycle (PLC) • It is a concept developed by Theodore Levitt in 1965 • PLC attempts to describe a product’s sales, profits, customers, competitors, and marketing emphasis from its beginning until it is removed from the market. • PLC refers to stages a product progresses through while on the market.

Stages in PLC • • • •

INTRODUCTION GROWTH MATURITY DECLINE

Characteristics of each Stage • INTRODUCTION: -Slow sales growth -negligible profits because of heavy expenses of product introduction and promotion -little competition -informative promotion -high chances of product failure -limited distribution -innovators purchase products -pricing can be--j. Skimming the cream price policy- charging very high prices k. Penetration Policy- charging low prices

• GROWTH STAGE: -Sales are increasing at an increasing rate -wide distribution -competition has set in -profits are increasing -persuasive promotion -price charged is according to the market trend -affluent mass market purchases the product

• MATURITY: -sales are increasing at a decreasing rate -most products are in the maturity stage -substantial competition -mass market purchases the product -competitive promotion -full line of prices -wide distribution -maintain differential advantage as long as possible -usage rate needs to be increased -quality, style, feature needs to be improved -profits are increasing at decreasing rate

• DECLINE -sales decline -laggards only purchase products (very few) -Cut back, revive or terminate -repackaging and repositioning required -Limited competition -losses or nominal profits