Professional Documents
Culture Documents
and Branding
Strategies
Chapter 8 & 9
1
What is a Product?
Goods, Services, and Experiences
Market offerings, pure tangible goods, pure services,
experiences
Levels of Product
and Services
Core benefit, actual
product, and
augmented product
Product Classifications
Typical products are of two types:
* Consumer products * Industrial products
And we will concentrate mostly on consumer products here.
Heterogeneity
Difficult to standardize, harder to control
Design, Production and Delivery
Perishability
Services cant be inventoried for later sale
New-Product
Development & Product
Life-Cycle Strategies
14
Strategic Reason for Product Development
In a competitive market where businesses have easy access
and profits are worth while pursuing, the market will be lively &
active
but at the end of the day the profit will decline and the market
will be less attractive
also consumers have different and ever-changing tastes &
habits that can quickly change the demand for a product
to overcome these businesses need to continuously develop
products, through either of the ways:
adding new products to the range
modifying or extending existing products
recombining and repackaging products
some combination of the above
New Product Development
Development of original products, product
improvements, product modifications, and new
brands through the firms own R&D efforts.
Stage 8: Commercialization
Product Life-Cycle Strategies
The Typical Product Life Cycle (PLC) Has Five Stages
Sales and
Profits (Tk.)
Sales
Profits
Time
Product Introduction Growth Maturity Decline
Develop-
ment
Losses/
Investments (Tk.)
PLC Stages
Declining sales
Product development
Low cost per customer
Introduction
Growth Declining profits
Maturity Laggards are targeted
Decline
Declining competition
Marketing Strategies:
Decline Stage