This document summarizes key considerations for product mix decisions at both the individual product and product line levels. At the individual product level, decisions include attributes, quality, design, branding, packaging, and support services. Branding strategies can include individual, family, or corporate names. Packaging serves functions like protection, promotion, and convenience. Product line decisions involve grouping related products for similar functions, markets, outlets, or price ranges. Strategies include line extensions, filling, stretching, modernization, and pruning. The product life cycle framework outlines stages from development to decline. Pricing considerations involve costs, customer perceived value, competition, and strategies like market penetration, skimming, and adjustments.
7. INDIVIDUAL PRODUCT DECISIONS
Includes decisions related to –
PRODUCT
ATTRIBUTES
QUALITY
FEATURES
STYLE
DESIGN
BRANDING
PACKAGING
LABELING
PRODUCT
SUPPORT
SERVICES
8.
Brand: a name, term, sign, symbol, or design,
or a combination of these, intended to identify
the goods or services of one seller or group of
sellers and to differentiate them from those of
competitor
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Some desirable qualities of a brand name:
It should suggest something about the product’s benefits.
It should suggest product qualities.
It should be easy to pronounce, recognize, and remember.
It should be distinctive.
It should not carry poor meaning in other countries and
languages.
BRAND
9.
Individual Names : e.g P&G - Vicks ( health
Care) , Ariel and Tide (Fabric care ) Pantene ,
Head and Shoulders , Rejoice ( Shampoo) , and
Pampers ( Baby care )
Blanket Family names : Policy followed by Tata Salt , Tea , Automobile ,and Steel
Separate Family names for all products– Aditya
Birla group follows this policy to a great extent
like Hindalco Aluminium , Ultra Tech Cement ,
Grasim Suiting and Graviera suiting
Corporate names combines with Individual
product names : by Kellogg's – Kellogg's Rice
Krispy's , Kellogg’s Raisin Bran , and Kellogg’s
Cornflakes
14.
Contain and protect the product
Promote the product
Facilitate storage, use, and convenience
◦ Physical protection
◦ Identify the brand, list the ingredients, specify
features, give directions, differentiate from
competition,
◦ influence consumer perceptions and buying behavior.
◦ Easy to ship, store, and stock, prevent spoilage or
breakage, extend a product’s shelf life.
◦ Easy to handle, open and reclose,
◦ tamperproof/childproof, reusable, disposable.
Functions of Packaging
15.
16.
17.
18. PRODUCT LINE DECISIONS
A GROUP OF PRODUCTS
THAT ARE CLOSELY RELATED
they function in a
similar manner
they are marketed
through the
same type of outlets
they are sold to
the same
customer group
they fall within
given price ranges
26. Test Marketing
Idea Generation
Product
Development
Idea screening
Business Analysis
Concept
Development &
Testing
• Standard
• Controlled
• Simulated
Marketing
Strategy
Development
Commercialization
New Product development
27. Customer Centered
Team based Product Development
Systematic New Product Development
Managing New Product development
32. Design a
product
Determine
cost
Set price
based on
product
Access
Customer needs
& Value
perception
Set target price
to match
perception
Determine the
costs that can
be incurred
Convince
buyers of
products
value
Design the
product to
deliver desired
value at target
price
33. Customer perception of
Value
Company & Product costs
Other internal & External
considerations
Value based pricing
Types of Costs
Overall marketing
strategy, objective &
mix
Good value Pricing
Costs at different
levels of Production
The market &
demand
Value added Pricing
Cost as a function of
Experience curve
Competitors
Strategy & Pricing
Cost plus Pricing
Other External
Factors
Break Even Analysis
& Target Profit
pricing
Factors to be considered when setting
prices
34.
Mark Up Pricing
Target Return Pricing
Perceived value pricing
Value pricing
Going rate Pricing
Auction Type Pricing
Pricing Methods
35. Market
Skimming
Market
Penetration
•Products quality & image must support its high price & enough
buyers must want the product at that price
•Cost of producing a smaller volume cannot be so high that
they cancel the advantage of charging more
•Competitors should not be able to enter the market easily &
undercut the high price
•Market must be highly price sensitive so that low price
produces more market growth
•Production & distribution costs must fall as sales volume
increases.
•Low price must help keep out competition
•Maintain the low price
New Product Pricing Strategy
36. Discount &
allowance pricing
•Reducing prices to reward customer responses such as
paying early or promoting the product
Segmented
pricing
•Adjusting prices to allow for differences in customers,
products or locations
Psychological
Pricing
•It considers the psychology of prices & not simply the
economics
•Reference pricing
Promotional
Pricing
•Temporarily pricing products below the list price and
sometimes even below cost, to increase short-run sales.
Geographical
Pricing
•Setting prices for customers located in different parts of
the country or world
•FOB-Origin Pricing
•Uniform delivered pricing
•Zone pricing
•Basing point pricing
•Freight absorption pricing
Dynamic Pricing
•Adjusting the prices continually to meet the characteristics
& needs of individual customers & situations
International
Pricing
Price Adjustment Strategies
39. Has competitor cut
price?
N
O
Hold current
price,
continue to
monitor
competitors
price
YES
YES
Will lower price
negatively affect our
market share & profits?
NO
NO
Can/should effective
action be taken?
Reduce price
Raise
perceived
value
Improve
quality &
increase price
Launch lowprice “fighting
brand
Responding to Price changes