MKTG 504 - Product and Product Management. A product is anything the consumer thinks it is!! Dr. Dennis Pitta University of Baltimore. PRODUCT. A complex bundle of attributes Most important element of the marketing mix.
Une image / un lien ci-dessous est fourni (tel quel) pour télécharger la présentation
Politique de téléchargement : le contenu du site vous est fourni TEL QUEL pour votre information et votre usage personnel ; il ne peut être vendu, concédé sous licence ni partagé sur d’autres sites sans l’accord de son auteur.Le contenu vous est fourni TEL QUEL, pour votre information et votre usage personnel uniquement.Téléchargez la présentation en cliquant sur ce lien.Lors du téléchargement, si vous ne parvenez pas à télécharger une présentation, l’éditeur a peut-être supprimé le fichier de son serveur.Pendant le téléchargement, si vous ne parvenez pas à obtenir une présentation, le fichier a peut-être été supprimé par l’éditeur.
PRODUCT • A complex bundle of attributes • Most important element of the marketing mix. • Charles Revson: “In the factory we make cosmetics, in the store we sell _HOPE” • Elmer Wheeler: “Don’t sell the steak, sell the SIZZLE.”
Product: Not limited to goods - it is goods, ideas, services, people, organizations, places.
Product: = Physical product + other tangible components + intangible components + social impact
Product Component Examples: Physical good: wood, plastic, chemical (shaver) Other tangibles: service, brand name, close shave, package Intangible: Eminem likes it Social Impact: More young men are clean shaven
What is the product? University degree Politician You - Yourself as a job candidate
Examples of what people think • Bubble-Yum Bubble Gum - MADE WITH SPIDER’S EGGS • Kentucky Fried RAT • WORMS in Big Macs
Product Life Cycle A dynamic model of how product changes over time. Importance: different product characteristics at each stage: • Lead to different marketing strategies • Emphasize different combinations of the 4 P’s.....
Sales&profits($) Introduction Growth Maturity Decline Time Sales & Profit Life Cycles
Important Characteristics => PLC • SALES • RATE OF SALES GROWTH • # OF COMPETITORS • PRODUCT • PROMOTIONAL STRATEGY • PRICING • DISTRIBUTION
Tracking the PLC over time: PETRIFICATION SALES __________ RATE OF SALES GROWTH __________ # OF COMPETITORS __________ PRODUCT __________ PROMOTIONAL STRATEGY __________ PRICING __________ DISTRIBUTION __________
Convenience Products Shopping Products Unsought Products Specialty Products Consumer-Goods Classification • Buy frequently & immediately • Low priced • Many purchase locations • Includes: • Staple goods • Impulse goods • Emergency goods • Buy less frequently • Gather product information • Fewer purchase locations • Compare for: • Suitability & Quality • Price & Style • Special purchase efforts • Unique characteristics • Brand identification • Few purchase locations • New innovations • Products consumers don’t want to think about. • Require much advertising & • personal selling
CLASSIFICATION OF CONSUMER GOODS • CONVENIENCE • PURCHASED WITH A MINIMUM OF EFFORT • SHOPPING • HEAVY COMPARISON OF PRICE, QUALITY, AND STYLE • SPECIALITY • VERY STRONG BRAND PREFERENCE: SPECIAL TIME AND EFFORT - PRICE NOT VERY IMPORTANT
CLASSIFICATION OF CONSUMER GOODS • UNSOUGHT • This is a difficult product. Examples: • Life insurance to young unmarried men • Umbrellas to young unmarried men • Vacuum cleaners to young unmarried men….. • Chain Saws to young unmarried women….
Product Mix - all the product lines offered Consistency Product Mix Width - number of different product lines Length - total number of items within the lines Depth - number of versions of each product
Product Mix Strategy Decisions made at three levels: 1 Product ITEM (specific version) - keep or drop. 2 Product LINE (group of related products) - deepen or shorten. 3 Product MIX (composite of all products) - ‘what markets to be in’
Product Mix Strategy 1 WIDTH - How many different product line there are within the company. (Sears - WIDE - Circuit City - NOT AS WIDE; Britches - NARROW)
Product Mix Strategy 2 DEPTH - The average number of items offered by the company within each line. Maxwell House Coffee - DEEP; Sears - NOT SO DEEP The LIMITED STORE - How deep?
Product Mix Strategy 3 CONSISTENCY - Relationship of products to one another - in end use. (i.e., INTERACTION - together) G.E.; XEROX - GOOD CONSISTENCY HUNT-WESSON -Paint, Matches, Food
Product Mix Strategy A continual addition of new products and deletions of old to meet the company’s needs.
PIC Product Benefits • Easy to remove (the one stuck in the blunt end of the ear comes off easily) • Fun at parties - (dodge the flying corn cob) • Saves laundry (less mess, less laundry)
Product Innovation Process - Stage 2 • 2 SCREENING • Critical evaluation • Possible problems: • Rejecting a Good Product (Type 1 Error) • Accepting a Bad Product as a good one (Type II Error) (I would hate to make this type testing Handgrenades)
Product Innovation Process - Stage 3 • 3 ECONOMIC ANALYSIS • Forecast Sales • Return on Investment • Effect on Product Line • Cash Flow • Profit • Breakeven Analysis
The Pitta Improved Cornholder (PIC) Economic Analysis • Breakeven Analysis • The first cornholder cost $27,000 • The second cost $.02 • Probable retail price for two=> $1 • Probable wholesale price for two =>$.50
(PIC) Breakeven Analysis • Calculates # of units to be sold at a price to just breakeven • Fixed Cost = $27,000 • Variable Cost (per unit) = $.20 (2 holders, packaging, overhead) • Price (wholesale) = $.50 per unit
(PIC) Breakeven Analysis • BE = FC/(P-VC) = units • BE (in units) = $27,000/(.50-.20) = 90,000 units • Forget it!
Product Innovation Process 4 DEVELOPMENT Determining Product Benefits Creating the Package, Brand Name 5 TEST MARKETING (Small Scale Introduction) Marketing Plan 6 COMMERCIALIZATION (Roll Out)
COMMERCIALIZATION • A public offering of the product to the marketplace • Two forms • Commercialization - Nationwide • Roll Out – limited geographic areas – one at a time
Connexion au compte
Connectez-vous pour publier votre contenu sur SlideServe.
