Management

Management of Management of Products and Services Products and Services Product: its nature Anatomy of a Product Core Offering: value it offers to the customer Tangible Specifications: Physical dimensions, other tangibles Augmentation:support. Image: brand, manufacturer; ease of availability etc. What is a Product' Primary characteristics The total product Auxiliary dimensions Core & Augmented Product Augmented product Core product Primary Characteristics AUXILIARY CHARACTERISTICS Managing of the Product • Handling the issues related to the product the field force to assess the demand • Co ordination with product design to ensure suitability in the marketplace production/ manufacture to ensure availability Thus it is at the hub of the organisation Changing Environment • Environment in a state of Constant flux • Factors responsible: Globalisation Global economy Technological Change • Higher level of earnings • Greater Disposable income Consequences of Change Higher Level of aspirations Availability of much larger variety Availability from many more sources Constant need of tracking the customer preference • Much shorter product life Need of modifications, re launches • Need of co ordination within the company • • • • Strategies to protect Filling in the gaps Strengthen and synergise communication Strengthening and/or extending the network Defining the position more carefully Concentrate on the economy Concentrate on Premium segment • Various forms of augmentation Additional services, Greater Convenience • • • • Position within the Company • As a Functional Operation • As a Line head • Single Product • Product Range • Multiple Product/Range Perspective on New Domestic Competition • Emergence of Rural Markets • Competition for Channels • Regional Brands • Value for Money segments • Niche Players • New Product Variants • Identifying and capturing New segments, sub segments • Improving Distribution& Service • Dealing with new competition Emerging Focus from Global Competition • • • • • • Well known Brands Focus on Quality and Service High end Technology New Product Categories Financial muscle of MNCs Catering to New Segments • Expanding Range • New Product Development • Up gradation; moving to premium segments • Strengthen Distribution • Concentrate on Core competencies • Optimum, creative use of Marketing Resources Types of Products Example Motive Convenience Shopping Specialty Grocery Availabiliy High Minimal Regular Clothing Appliances Choosing to suit Long personal taste deliberation for final selection Prior Knowledge Effort spent Frequency Medium Low Moderate High/V.Hig h Occasional Variable Classifying Consumer Products Convenience Products Shopping Products Specialty Products Effort expended Product Lines & Product Mixes Product item Product line Product class The Product Portfolio Market growth rate High PROBLEM CHILD DOG ' STAR CASH COW Low Low High Market share Brand, What is it' • A Brand is a distinguishing name and/or symbol, logo, trademark or package design) intended to identify the goods or services of a seller, and to differentiate these from those of competitors. A brand thus signals to the customers the source of the product, and protects both sides from the competitors who would attempt to provide products apparently identical. Relevance and Logic of BRANDING • • • • • • Aims to segment the market Starts with a big idea Has an enduring value Tries to protect the innovation Is a living memory Should sustain even though the product may die Successful Brands : criteria • At Product level: Should deliver benefits • Should offer intangibles besides tangible benefits • Benefits on offer should be consistent with the personality • Benefits offered must be relevant to the customer Need for Success: Product Quality • • • • • • • Performance: How well does a washing m/c clean Features: How many channels on TV Conformance with specs: Level of defects Reliability: Will the mixer work early in the morning Durability: How many years will the DVD last Serviceability: Efficient, competent & convenient Fit & finish: Feel of Quality Need for Success: Service Quality • Tangibles: Facilities, equipment & personnel • Reliability : Will the accounting work be done dependably and accurately • Competence: Does the service staff have the required knowledge and skills, do they generate trust and confidence • Responsiveness: Is the staff willing to help • Empathy: Does the bank provide caring ,individualized attention to the customers Predicting Success (Delta Habit Factor) • • • • • • Changing duration of consumption Evolving new occasions for use Changing sharing habits Changing buying habits Doing something new Changing the frequency of the consumption DHF: index based upon the above •