Product Policy & Marketing Mix

Module 3

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What is a Product?

A product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.
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Product Mix

Total sum of all products and variants offered by an organization

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Components of the Market Offering

Value-based prices

Attractiveness of the market offering Product features and quality Services mix and quality

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Five Product Levels

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Example:
Core product: rest and sleep Basic product: room includes bed, bathroom, towels, desk, dresser, closet Expected product: clean bed, fresh towels, working electrical utilities Augmented product: exceeds customer expectations Potential product: which includes all possible augmentations and transformations www.profmanishparihar.blogspot.c
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Product Classification Schemes

Durability Tangibility Use

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Durability and Tangibility

Nondurable goods Durable goods

Services

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Product Differentiation
Product form Features Customization Performance Conformance Durability Reliability Repairability Style
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Service Differentiation
Ordering ease Delivery Installation Customer training Customer consulting Maintenance and repair

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Product Life Cycle

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Case-study: Apple iPod

http://www.scribd.com/doc/61902379/Apple-Case-Study
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A glimpse.

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New product planning & development

Identify demand, Idea generation

Build a prototype

Market Testing

Preliminary Market, Technical, Business & Financial Assesment

Document that defines the product and provides the rationale for developing it

Business Analysis

Commercialization

Source: http://www.melodiesinmarketing.com/2008/02/25/the-stage-gate-model-of-product-development/ www.profmanishparihar.blogspot.c

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What is a new product?

A new product in context to this article means new to the world type products i.e., such a product is being introduced for the first time: First time for the company or first time to the market. Examples of such new products include: Google Chrome:- A new type of browser and the first one for Google. SMART Car iTunes:- iTunes was first of its kind in music store/distribution system. Motorolas Iridium Satellite Phone 3Ms Post It Blackberry Pager

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Requirements:
There are certain pre-requisites or requirements that need to be documented before developing a new product. New product requirement gathering starts with identifying needs of various stakeholders: Customers & Users needs and wants Promoters (investors) business models Developers (engineers) project constraints (technology, money)
www.profmanishparihar.blogspot.c Source: http://arunkottolli.blogspot.com/2008/09/requirements-gathering-for-new-product.html om

For example, let us take an example of developing a personal video/MP3 player. The customer requirements for a personal video player are:

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1. Large screen size but small enough to carry around in a pocket. 2. Battery life to last at least for 10-12 hours. 3. Removable battery for replacement 4. External battery charger & internal battery charger i.e., user should be able to charge the battery while the battery is inside the device. 5. Universal power adaptor should work on both 110V & 220 V systems. 6. Easy/intuitive user interface. 7. Ergonomic design for comfortable handling. Anti-Slip hand holding areas. 8. Splash proof & water resistance 9. Connect to PC via USB & WiFi, connect to TV via HDMI or S-video 10. USB host interface so that user can connect other data storage devices. 11. Ability to read data from other data storage devices ( Pen drives, portable hard drives, video cameras, etc.) 12. Connect to headsets via Bluetooth. 13. FM player, MPEG3, & MPEG4 decoder i.e., multi format audio/video decoder 14. Digital Video Recorder ability to record TV programs. 15. Rugged construction so that the product does not get damaged when accidentally dropped. 16. Stylish design with interchangeable colored cases & Hip carrying case
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Screening Considerations
Alignment with your Product Innovation Strategy Degree of compatibility with the companys values & principles (ex: moral, health, environmental) Market attractiveness / opportunity Project feasibility Degree of product advantage over other options Ability to leverage existing company resources
www.profmanishparihar.blogspot.c Source: http://www.melodiesinmarketing.com/2007/08/20/idea-screening/ om

Risks Involved
There is always a RISK of product failure due to: Failure of conventional marketing research Failure to gauge consumer tastes Outsmarted by competition Improper selection of product developers and suppliers Timing of launch Wrong pricing strategy
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Some New Products That Failed..

www.profmanishparihar.blogspot.c Source: http://lilomag.com/2011/01/31/top-10-failed-products/ om

People tend to pamper their pets, so its not far-fetched to believe consumers might serve bottled water to their cats and dogs. But despite the fact that the water came in such delicious flavors as Crispy Beef and Tangy Fish, it never seemed to catch on..

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The idea behind Kelloggs Breakfast Mates was fairly simple pack a box of cereal with milk and a spoon, and you have a tasty meal on the go! Unfortunately, Kelloggs failed to take two things into account. First of all, though the milk included in the Cereal Mate did not require refrigeration, no one likes the idea of warm milk. And second, the ads showed parents sleeping while children helped themselves to Cereal Mates but the packaging was not childfriendly. The confusion associated with Breakfast Mates led to its ultimate failure.
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 In what must be one of the most bizarre brand extensions ever Colgate decided to use its name on a range of food products called Colgates Kitchen Entrees. Needless to say, the products did not take off and never left U.S. soil.

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 Hockey Puck Mouse (19982000) by Apple This design debacle came in an array of Jellies colors, but the cutesiness couldn't compensate for the awkward round shape. The mouse was difficult to maneuver and the push button frustratingly evasive The 2-foot cord only barely reached around from the leftside USB port of most App

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 After watching their share of the soft drink market shrivel for decades, in 1985 the Coca-Cola bottling company decided to do something about it: They introduced the New Coke with a change in their secret formula of more than a 100 yrs. Consumers revolted and ultimately the product failed.

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New Product Testing

It means that before the full-scale commercialization of new products, launching them into test markets to test its viability.

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Test Markets
A test market is a geographic region or demographic group used to gauge the viability of a product or service in the mass market prior to a wide scale roll-out. The criteria used to judge the acceptability of a test market region or group include: a population that is demographically similar to the proposed target market; and relative isolation from densely populated media markets so that advertising to the test audience can be efficient and economical.

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 Coke is test marketing some really cool looking aluminum bottles for Coke Classic, Diet Coke, and Coke Zero at nightclubs and special vending machines.

www.profmanishparihar.blogspot.c Source: http://www.vendingmarketwatch.com/news/10282919/coca-cola-co-to-test-market-machines-that-utilize-the-google-wallet om

Vending machines being tested with Google Wallet smart phones

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In short: Every product needs to be tested before commercialization

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Product Packaging.

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Product Packaging Factors

Protection Visibility Added Value Distributor Acceptance Cost Environmental Issues Proper Labeling
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Some innovative packaging ideas:

1. 2. 3. 4. Create a Reusable Package Add a Little Extra to Your Packaging Make Design the Focus of Your Packaging Create Fun Packaging

5. Look to Nature for Inspiration

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Bizarre but Creative Packaging Design Examples

www.profmanishparihar.blogspot.c Source: http://www.youthedesigner.com/2010/11/01/30-bizarre-and-creative-packaging-design-examples/ om

www.profmanishparihar.blogspot.c Source: http://www.youthedesigner.com/2010/11/01/30-bizarre-and-creative-packaging-design-examples/ om

www.profmanishparihar.blogspot.c Source: http://www.youthedesigner.com/2010/11/01/30-bizarre-and-creative-packaging-design-examples/ om

www.profmanishparihar.blogspot.c Source: http://www.youthedesigner.com/2010/11/01/30-bizarre-and-creative-packaging-design-examples/ om

www.profmanishparihar.blogspot.c Source: http://www.youthedesigner.com/2010/11/01/30-bizarre-and-creative-packaging-design-examples/ om

www.profmanishparihar.blogspot.c Source: http://www.youthedesigner.com/2010/11/01/30-bizarre-and-creative-packaging-design-examples/ om

www.profmanishparihar.blogspot.c Source: http://www.youthedesigner.com/2010/11/01/30-bizarre-and-creative-packaging-design-examples/ om

www.profmanishparihar.blogspot.c Source: http://www.youthedesigner.com/2010/11/01/30-bizarre-and-creative-packaging-design-examples/ om

www.profmanishparihar.blogspot.c Source: http://www.youthedesigner.com/2010/11/01/30-bizarre-and-creative-packaging-design-examples/ om

www.profmanishparihar.blogspot.c Source: http://www.youthedesigner.com/2010/11/01/30-bizarre-and-creative-packaging-design-examples/ om