MM2(Product).pptx MM2(Product) MM2(Product)

PRODUCT

1. PRODUCT Dr. Akankshya Patnaik

2. Product 2 Everything, both favorable and unfavorable , that a person receives in an exchange. 1

3. What is a Product? 3 Promotion Product is the “heart” of Marketing Mix Place (Distribution) Price 1

4. 4 2 Product Classification.

5. Product Classifications 6 Business Product Consumer Product A product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other consumers. Product bought to satisfy an individual’s personal wants 2

6. Types of Consumer Products 7 Unsought Products Specialty Products Shopping Products Convenience Products Consumer Products Business Products PRODUCTS 2

7. Types of Consumer Products 8 2 Convenience Product Shopping Product Specialty Product Unsought Product A relatively inexpensive item that merits little shopping effort. A product that requires comparison shopping, because it is usually more expensive and found in fewer stores. A particular item that consumers search extensively for and are reluctant to accept substitutes. A product unknown to the potential buyer or a known product that the buyer does not actively seek.

8. Types of Consumer Products 9 Specialty Products Convenience Products Shopping Products Unsought Products 2

9. 10 Define the terms product item, product line, and product mix . 3

10. 11 Product Items, Lines, and Mixes Product Item Product Line Product Mix A specific version of a product that can be designated as a distinct offering among an organization’s products. A group of closely-related product items. All products that an organization sells. 3

11. 12 Gillette’s Product Lines and Mix 3 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 Width of the product mix Depth of the product lines

12. 13 Benefits of Product Lines Equivalent Quality Efficient Sales and Distribution Standardized Components Package Uniformity A Advertising Economies Why Form Product Lines? 3

13. Product Life Cycle Time Product Develop- ment Introduction Profits Sales Growth Maturity Decline Losses/ Investments ($) Sales and Profits ($)

14. Introduction Stage of the PLC Sales Costs Profits Marketing Objectives Product Price Low sales High cost per customer Negative Create product awareness and trial Offer a basic product Use cost-plus Distribution Build selective distribution Advertising Build product awareness among early adopters and dealers

15. Growth Stage of the PLC Sales Costs Profits Marketing Objectives Product Price Rapidly rising sales Average cost per customer Rising profits Maximize market share Offer product extensions, service, warranty Price to penetrate market Distribution Build intensive distribution Advertising Build awareness and interest in the mass market

16. Maturity Stage of the PLC Sales Costs Profits Marketing Objectives Product Price Peak sales Low cost per customer High profits Maximize profit while defending market share Diversify brand and models Price to match or best competitors Distribution Build more intensive distribution Advertising Stress brand differences and benefits

17. Decline Stage of the PLC Sales Costs Profits Marketing Objectives Product Price Declining sales Low cost per customer Declining profits Reduce expenditure and milk the brand Phase out weak items Cut price Distribution Go selective: phase out unprofitable outlets Advertising Reduce to level needed to retain hard-core loyal customers

18. Thank you