2. PRODUCT
“It is anything that can be offered to the market
for attention, acquisition, use or consumption
that might satisfy a want or need”
A product can be in goods or in service.
5. Convienence Product
These are the products which consumer
frequently buys.
Shopping Products
These are those products that a customer
buys less frequently.
6. Specialty product
These are the products with unique
characteristics or brand identification for which
a significant group of buyers is willing to make
a special effort.
7. Industrial Product
These are those goods/services that are
bought by organizations or individuals for
further processing or for use in conducting a
business.
These are classified in 3 types.
1. Materials and parts
2. Capital items
3. Supplies and services.
9. New product Development
The development of original products, product
improvement, product modifications and new brand
through the firms own R & D efforts.
A company obtains new products in 2 ways.
1. By acquisition by buying a whole company, patent, license
2. By coming out with new product.
10. Reasons for bad response to a
product
Idea could be good but company might have over looked the market size.
The product may be poorly designed.
It might not be properly positioned.
It could have been launched at a wrong time.
It might have been highly priced.
It might be poorly advertised.
The competitors might fight back harder.
12. Idea Generation
It is a systematic search for new product ideas.
Sources of idea generating are:
1.Internal source
2.External Source
Idea screening
Companies ask executives to write new product
ideas on a form. It should describe the product, the proposed
customer value preposition, the target market and the
competition.
13. Concept Development & Testing
A detail Version of new product idea stated in
meaningful consumer terms.
Marketing Strategy Development
It involves 3 things
1.Description of target market.
2.Product positioning.
3.Expected sales, Market shares& profit goals.
14. • Business Analysis
It is a review of sales, costs, and profit projections for a
new product to find out whether these factors satisfy the
company objectives.
• Product Development
Engg Dept& R&D develops this concept into physical
product.
• Test Market
1.Standard Test Markets.
2.Controlled Test Markets.
3.Simulated Test Markets.
