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S5 - B.com BM - Module - 1

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19 views5 pages

S5 - B.com BM - Module - 1

Uploaded by

sam
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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S3 BBA – Marketing Management

Module -1, Chapter -1


Product.
Define Product- A product is anything that can be offered to a market for
attention, acquisition, use or consumption that might satisfy a want or need.

Level of Product.
1. Core Product – most fundamental level where essential
usage/benefit/service/utility is derived from the product – the reason why
customers buy the product. An automobile that help to reach point A from
point B through certain safe operation.
2. Generic OR basic Product- product having only those features that are
necessary for it to function – a manual gear car without A/C, radio, power
windows, steering etc. but capable to offer transportation for few people.
3. Expected Product- certain features that provide benefits, attributes that
serve certain purpose or satisfy certain emotions / wants – A car with A/C,
power features and music player. Meet certain safety and comfort while
operate.
4. Augmented Product- features and attribute that exceed customer
expectation. An automobile that ergonomically designed, give good
mileage, Automatic, entertainment consols,
5. Potential Product- having all possible features that can imagine – An
Automobile, that drive self, powered by renewable energy, give highest
mileage, park self, perhaps air born when required. Offer highest luxury,
safety and operational efficiency.
Classification of Product:
1. Consumer product – products that for self-consumption viz
 Convenience Product- need regularly to meet certain basic
needs and available and buy easily without much difficult
task.
 Shopping Product- products that bought after much
deliberation and comparison- mainly durable products
purchase less frequently – furniture, electronics, jewellery,
smartphones, gadgets etc.
 Speciality Products – Products that buy from speciality
stores – Alcohol.
 Unsought Products-Products that are not interested to buy
but forced to buy due to certain situation- Insurance
policies, Medicine.
 Industrial Products – Products that are used for production
of other products.
o Raw materials
o Parts
o Capital equipment- machinery
o Accessories
o Consumables- things that uses in the process of
making product or rendering service.
o Process materials – to process another product
o Industrial services- consultancy, project management,
labour supply, financial services.

Product and Services difference- refer page # 15 of the text.

Product Development – product development refers to producing a product that


best solve the needs and desire of customer. Product development is not only
manufacturing new product but also modify existing product or finding a new
application for an existing product or finding a new market for an existing
product.

Process of Product development


Product development is a systematic process that can vary depending on the
industry and type of product.
1. Idea Generation:
o Brainstorming new concepts based on market needs, customer
feedback, or technological advancements.
o Involve cross-functional teams to gather diverse perspectives.
2. Market Research:
o Analyze market trends, customer preferences, and competitor
products.
o Identify target demographics and validate the product idea through
surveys or focus groups.
3. Concept Development and Testing:
o Create detailed product concepts, including features, benefits, and
unique selling propositions.
o Test concepts with potential customers to gather feedback and
refine ideas.
4. Business Analysis:
o Assess the financial viability of the product through cost
estimation, pricing strategies, and projected sales.
o Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities,
Threats).
5. Product prototype Development:
o Develop prototypes or initial versions of the product.
o Collaborate with engineering, design, and manufacturing teams to
create workable models.
6. Market Testing:
o Launch the product in a limited market or with a small audience to
collect data on performance.
o Use feedback to make necessary adjustments before a full launch.
7. Commercialization:
o Plan the full-scale production and marketing strategy.
o Prepare distribution channels and promotional campaigns.
8. Launch:
o Officially introduce the product to the market.
o Monitor initial sales and customer feedback closely.
9. Post-Launch Evaluation:
o Assess the product’s performance against sales targets and
customer satisfaction.
o Identify areas for improvement or further development.
10.Iterate and Improve:
o Use customer feedback and market performance data to refine and
enhance the product.
o Consider potential upgrades, additional features, or new versions.
Each of these steps may involve multiple iterations and collaboration across
various teams to ensure the product meets market needs and business objectives.

The product life cycle (PLC) describes the stages a product goes through from
its introduction to the market until it is phased out. Understanding the PLC
helps businesses make strategic decisions regarding marketing, production, and
product development. The typical stages are:
1. Introduction:
o The product is launched into the market.
o Marketing efforts focus on creating awareness and educating
potential customers.
o Sales are typically low as customers are still learning about the
product.
o Costs are high due to development, marketing, and distribution
expenses.
2. Growth:
o Sales begin to increase as more customers become aware of and
adopt the product.
o Profits start to rise, though expenses may still be significant due to
ongoing marketing efforts.
o Competitors may enter the market, prompting businesses to
enhance features or adjust pricing strategies.
3. Maturity:
o Sales growth slows as the product reaches market saturation.
o Competition is fierce, leading to price wars and increased
marketing efforts to maintain market share.
o Companies may focus on differentiating the product, improving
customer service, or exploring new markets.
4. Decline:
o Sales begin to fall due to changing consumer preferences,
technological advancements, or new competitive products.
o Companies may decide to discontinue the product, reduce
marketing budgets, or explore cost-cutting measures.
o Some may try to revitalize the product through updates or
repositioning.
5. Extension (optional):
o In some cases, businesses may attempt to extend the product's life
through modifications, updates, or entering new markets.
o Strategies can include rebranding, changing the target audience, or
adding new features.
Understanding the PLC helps businesses anticipate changes in market
dynamics, optimize resource allocation, and develop appropriate marketing
strategies for each stage

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