Product Man

• A tangible, A service, an idea, or a combination, that through exchange
• satisfies consumers needs

• CAT PP
• Core
• Augemented
• Tangible
• Potential
• Product Image

• DNS
• Durable
• Non-durable
• Services

• I VIP
• Intangibility
• Variability
• Inseprability
• Perishability

• CONS
• Convenience Products
• - Staple
• - Impulse
• - Emergency
• Shopping Products
• Speciality Products

• PIS
• Production Goods
• - Raw Materials
• - Manufactured Mals & Component parts
• - Process Materials

Installations & Accessories

• Supplies & Services

• F***Qu***S
• Features
• Quality
• Style & Design

• Market Route - improved Quality raises value prod in consumers eyes
• Cost Route - defect free outputs reduce operating cost per unit

• Quality - ability of prod to perform its functions
• Quality Consistency - Zero Defects

CRAP F*** uPS

• Conformance
• Reliability
• Aesthetics
• Performance
• Features
• Perceived Quality
• Serviceability

• DREaM Pistol Defence Club
• Distribution
• Reuseability
• Enclosure & Protection
• Market Segmentation
• Product Development
• Differentiation
• Communication

• F**K MaRriageS
• Family / Individual
• Kaleidoscopic
• Multiple
• Reusable
• Special

• GIT
• Grading Labels
• Informative Labels
• Trademark Labels

to provide help to customer with purchase / use of product.

• Determine - services that target customers values
• - Relative importance of these services

• Line Extension
• Brand Leverage
• Line Pruning
• Line Retrenchment

• Def - Complete set of product lines & items a company offers for sale.
• eg - Woolworth prod mis = food & clothing

• Generalisations
• 1. Consists of all product lines org offers
• 2. Consists of multiple prod lines - made up of sub-lines
• 3. Sub-line consists of various prod items
• 4. Different strategy required for each prod item
• 5. Stategy components can be shared between prod lines and complete prod mixes

• Star - High Market Share - High Market Growth (top left quad)
• - Fundamental to Orgs growth
• - Produce lots of Cash

• Problem Child - Low Market Share - High Market Growth (top right quad)
• - stars of tomorrow
• - inject huge sums of cash to keep up with growin market & retain / grow share

• Cash Cow - High Market Share - Low Market Growth (bottom left quad)
• - Cash generators
• - continuous & constant contribution to revenue stream

• Dog - Low Market Share - Low Market Growth (bottom right quad)
• - unprofitable - incur losses

• BUILD
• HOLD
• HARVEST
• DIVEST

• Model tends to be arbitrary & theoretical
• Insufficient Evidence to placement of prod and not enough knowledge.
• Fails to delineate the synergies between 2 or more strat bus units
• Market growth rate inadequately depics overal attractived of market
• Relative Market Share inadequately describes overall competitve strength

PLC - a planning tool that describes the stages a product will pass through from its introduction to its decline

• 1. Tool used in planning and analysing products
• 2. Explains changes in sales and profits over certain period
• 3. Provides guidelines for implementing strategies
• 4. Requires management of strategies through phases
• 5. Applicable to all products / services

• INTRODUCTION
• GROWTH
• MATURITY
• DECLINE

• 1. Low initial sales
• 2. Customer resistance to new products
• 3. High marketing costs
• 4. Few distribution channels
• 5. High manufacturing costs and production problems
• 6. Very few competitors
• 7. Low profit levels
• 8. Price determined by nature of product

• 1. Strong growth in sales
• 2. Increase in number of competitors
• 3. Product improvements
• 4. Increase in number of intermediaries
• 5. A rapid incread in profits
• 6. Lowering of prices

• 1. Levelling off of sales growth
• 2. Increased level of competition
• 3. Lowering of prices
• 4. Increased markeing cost to maintain position
• 5. Declining profits
• 6. Product differentiation and modification

• 1. Rapid and permanent decline in sales
• 2. Decline in market size
• 3. Decline in profits
• 4. Decrease in competitor numbers
• 5. Decisions by management to withdraw or harvest
• 6. Reduction and elimination of product promotion

Objective - Create awareness and promote trial.

• Product Decisions - Minor modifications / unchanged
• Distribution - Decide on number and kind of middlemen
• Price & Marketing Comms - Used to create primary demand - Rapid / Low Skimming or Rapid / Slow Penetration

Objective -Build brand preference & loyalty & increase no of outlets

• Product Decisions - production sufficient quantites & design of a service strategy to enhance long term relationships with customer
• Distribution - How to expand the availability of product through additional intermediaries.
• Pricing - Reduce selleing price as result of increased competition
• Marketing Comms - Create secondary demand & remind & persuade customer to buy product

Objectives - to retain

• Retain existing marketing strategy
• Retain current product and revise other marketing instruments
• Change all the marketing instruments
• Introduce product differentiation
• Extend product range
• Modify marketing instruments

Objective - Reduce costs & brand expenditure & milk product

• Continue with existing marketing strategy
• Revise the existing marketing strategy
• Withdraw products

• TRADITIONAL
• CLASSIC
• FASHION FAD
• EXTENDED FASHION FAD
• SEASON OF FASHION
• REVIVAL

• NeweR LINes
• New to the world
• Repositioned products
• Line Extensions
• Improved Producs
• New to the marketer

• Continuous Invention
• Dynamically continuous Invention

Discontinuous Invention

• Capability and systems to id customer needs
• Optimal usage of existing strengths & resources
• Screening and Testing before investin money
• Coordination between R&D & Marketing
• Atmosphere promoting Entrepreneurship & Risk Taking
• Link to vision, mission and goal

• Not Unique product benefits
• Underestimate competiton
• Cost of Production higher than anticipated
• Marketing Plan not thorough - rushed

• Organisational levels - corp / divisional
• Organisational structures - must support dev initiative

• Product Manager
• New Product Manager
• New Product Committees
• New Product Departments
• New Product Venture Teams

• Financial Management - investment, capital
• HR - new personnel / department
• Information Management - R&D dep for new ideas
• Purchasing Department - adjust buying patterns
• Marketing Department -product mix, communicate to markets, lead to loyalty

PLANNED OBSOLESCENCE

PHYSICAL OBSOLESCENCE

PSYCHOLOGICAL OBSOLESCENCE

PRODUCT STANDARDISATION

1. IDEA GENERATION

2. IDEA SCREENING

3. CONCEPT TESTING

4. BUSINESS ANALYSIS

5. PRODUCT DEVELOPMENT

6. TEST MARKETING

7. COMMERCIALISATION

• Customers
• Competitors
• Employees & R&D
• Top Management

• Mistakes - dismiss good idea
• - procede with bad idea

• Core Ideas - short gen statements xplaining what prod can do
• Positioning Statments - Outline main & secondary benefits

• Funtional - safe & effective
• Consumer - brand id, package, label

• Limited geographical area
• If feasible or not

• Immediate National Launch
• Rolling Launch

• All I Ever Tried was Amazing
• AWARENESS
• INTEREST
• EVALUATION
• TRIAL
• ADOPTION

• Difference in peoples readiness to try
• - Innovators
• - Early Adopters
• - Early Majority
• - Late Majority
• - Laggards
• Personal influence on adoption of new products

• Relative Advantage
• Compatability
• Complexity
• Divisibility
• Communcatability