Unit 3
Product
Q1) What is the concept of Product?
A1) Product collection is the complete number of product offerings that an organization offers to its clients. The product offerings may go from one to numerous and the organization may have numerous products under a similar product offering also. These product offerings when gathered structure the product mix of the organization. The product mix is a subset of the marketing mix and is a significant piece of the plan of action of an organization. The product mix has the accompanying measurements.
Width: The width of the mix alludes to the quantity of product offerings the organization has to bring to the table.
For example – If an organization creates just soda pops and squeezes, this implies its mix is two products wide. Coca-Cola bargains in juices, sodas, and mineral water, and henceforth the product mix of Coca-Cola is three products wide.
Length: The length of the product mix alludes to the all-out number of products in the mix. That is if an organization has 5 product offerings and 10 products each under those product offerings, the length of the mix will be 50 [5 x 10].
Depth: The profundity of the product mix alludes to the all-out number of products inside a product offering. There can be varieties in the results of a similar product offering. For example – Colgate has various variations under a similar product offering like Colgate progressed, Colgate dynamic salt, and so forth
Consistency: Product mix consistency alludes to how intently products are connected to one another. Less the variety among products more is the consistency. For example, an organization managing in dairy products has more consistency than an organization managing in a wide range of gadgets.
Q2) Define Consumer and Industrial goods.
A2) One way of classifying a product is in terms of who the intended consumer or customer is. You can greatly distinguish between goods and services for use by individuals and households (consumer products) and those for use by other companies (industrial products).
Consumer goods: The three main sorts of consumer products are summarized below alongside elements of the marketing mix that tend to be emphasized: industrial products
Those for direct consumption or products that do not require further processing, are known as consumer goods. These goods are offered to households and final consumers for example, shirts, cars, watches etc. It is further classified by consumer products
Industrial products are probably less exciting than consumer products, but the market for industrial products is often important in terms of market size. For example, all producers of consumer products have to buy industrial products to operate.
The three main types of industrial products are:
Industrial Product Marketing Mick":
Q3) What do you mean by Product Planning?
A3) As indicated by William J.Stanton Product arranging grasps those exercises which empower makers and agents to figure out what ought to establish а organization's line of products. In a perfect world, product arranging will guarantee that the full supplement of а company's products are consistently related, exclusively legitimate things intended to fortify the organization's competitive and benefit position.
Based on scientific investigation of above definitions, it very well may be inferred that product arranging includes taking choices with respect to:
Which products must be created or conveyed by the endeavor? Which new product should be created? What sort of upgrades and improvements needed in the product? What sort of extension or withdrawal must be made in the product mix of the endeavor? What must be the amount of creation? What must be the cost of the products?
Q4) Write short note on Product Development
A4) Product Development:
The new product improvement measure begins with thought age. Thought age alludes to the efficient quest for new-product thoughts. Ordinarily, an organization creates several thoughts, perhaps thousands, to locate a modest bunch of good ones eventually. Two wellsprings of groundbreaking thoughts can be recognized:
Internal Idea Sources: the organization finds novel thoughts inside. That implies R&D, yet in addition commitments from representatives.
External Idea sources: the organization finds novel thoughts remotely. This alludes to a wide range of outer sources, for example merchants and providers, yet in addition contenders. The main outer source is clients, on the grounds that the new product promotion cycle should zero in on making client esteem.
2. Idea screening - The New Product Development Process
The subsequent stage in the new product improvement measure is thought screening. Thought screening amounts to nothing else than sifting the plans to look over great ones. As such, all thoughts produced are screened to place great ones and drop helpless ones at the earliest opportunity.
3. Concept Development and Testing -The New Product Development Process
To go on in the new product improvement measure, appealing thoughts must be formed into a product idea. A product idea is a definite variant of the new-product thought expressed in important purchaser terms. You ought to recognize Q5) How do we explore the two pieces of Development and Testing?A5) To go on in the new product improvement measure, appealing thoughts must be formed into a product idea. A product idea is a definite variant of the new-product thought expressed in important purchaser terms. You ought to recognize a product thought à a thought for a potential product A product idea à a definite adaptation of the thought expressed in important shopper terms.A product picture à the manner in which buyers sees a genuine or likely product. Concept Development: Envision a vehicle maker that has built up an all-electric vehicle. The thought has passed the thought screening and should now be formed into an idea. The advertiser's undertaking is to form this new product into elective product ideas. At that point, the organization can discover how appealing every idea is to clients and pick the best one. Conceivable product ideas for this electric vehicle could be:Concept 1: A moderately priced medium size vehicle planned as a second family vehicle to be utilized in and out of town for visiting companions and doing shopping. Concept 2: A mid-evaluated lively minimized vehicle speaking to youthful singles and couples. Concept 3: A very good quality medium size utility vehicle speaking to the individuals who like the space SUVs give yet additionally need an efficient vehicle. As should be obvious, these ideas should be very exact to be important. In the following sub-stage, every idea is tried.
Q6) What are the Basic uses of Packing & Packaging includes?
A6) The Basic use of Packing & Packaging includes:
Q7) Define Brand name.
A7) A brand is a name, term, plan, image, or whatever other component that recognizes one vender's acceptable or administration as particular from those of different dealers. You can consider a brand as the thought or picture individuals have at the top of the priority list when pondering explicit products, administrations and exercises of an organization, both in a pragmatic (for example "the shoe is light-weight") and passionate way (for example "the shoe causes me to feel amazing").
It is thusly not simply the actual highlights that make a brand yet in addition the emotions that shoppers create towards the organization or its product. This mix of physical and enthusiastic signs is set off when presented to the name, the logo, the visual personality, or even the message imparted.
A product can be effectively duplicated by different parts in a market, yet a brand will consistently be extraordinary. For example, Pepsi and Coca-Cola taste fundamentally the same as, anyway for reasons unknown, a few people feel more associated with Coca-Cola, others to Pepsi.
Q8) What is the Roles& Importance of Branding?
A8) Roles & Importance of Branding:
1) The Role of Branding in Business Marketing
2) With any new business, building up your foot on the lookout and to your intended interest group is vital.
3) With this early issue, you should actualize exhaustive and well-strategized branding for your business.
4) Building your image around your products or administrations is effortlessly done on the off chance that you have foundation information and examination.
5) It tends to be an enormous issue in the event that you don't have any data on the best way to do it.
6) In this sort of occurrence, it is ideal to employ specialists who are knowledgeable about the part of branding to assist you with working out the methodology.
7) Branding isn't generally the most basic factor to make your business a triumph; however a solid brand personality can make numerous favorable circumstances for your business.
8) Branding is a marketing practice that an organization displays in making its name, image or logo, and by and large plan that is promptly recognizable as the organization itself.
9) It gives your business its attributes and persona.
10) It likewise assists with speaking to what you offer as a business, what you sell, and how unique you are from different products or administrations.
11) Your image resembles the public face and character of your organization.
12) Branding isn't restricted to logos, plans, and friends shading palette.
13) It likewise incorporates each part that finishes your business – from shading mixes and typography styles to the packaging of your products and the general introduction of the organization when in a pitch introduction.
14) It covers all that you present as a business.
15) Branding is the actual picture and character of who you are as a business and how you focus to be perceived.
Q9) Write notes on Brand name.
A9) A brand is a logo or symbol that remains in the customer's mind and is used for advertising or product service.
Brand name:
Manufacturers, private and generic brands have repeatedly engaged in brand battles, each striving to gain greater customer share and customer loyalty. There are multiple products with a single name for home branding.
Like the "Tata" brand or the" Boeing" brand. Family branding is applied to both manufacturers and private brands and to domestic and international brands. Brand extensions get quick acceptance and are usually used for family branding, and trademark gives the company exclusive use of words, names, symbols etc. It identifies the goods and services of the company and distinguishes it from other manufacturers.
Trademarks of goods and service marks of services are registered with the Patent and Trademark Office in accordance with the trademark law.
A global company is required to register a trademark in every country in which it operates. Wally Olins has launched branding companies including Prudential, Forte Hotels, Coca-Cola, Renault, Volks wagon and Tata. Also brand Poland, Rio de Janeiro, Northern Ireland Tourism Board, Lithuania, cat Baregion Vietnam.
In addition, the 2012 Olympics in London positioning, the branding of a product (like a mobile phone) is based on its rational characteristics, emotional value, and contribution to profitability, strength of market share, etc.
On the other hand, branding a place or province (like Best Bengal) or country is not so simple. Factors to be considered for branding a place or region are its audience, culture, law and order, tourist or heritage characteristics, and others.
Q10) Explain the meaning and importance of After Sale service.
A10) After sales service show the customer's treatment in the aftermath of sales. For example, after the bike is sold after sales service may include free bike maintenance for a number of weeks.
After-sales service is an important part of non-price competition often found in oligopolies. After sales service can be a way to encourage people to buy products in the first place; although it justifies a higher price for a good, it can also influence a company's long-term reputation and influence future sales. But it also imposes costs on companies.
Examples of After-Sales Service
1) Warranty. A common example of after sale service is offering a guarantee for a good. The warranty allows you to repair or replace the product if it breaks down within a certain period of time after purchase.
2) Free service after six months (Car/Bike etc).
3) Advice on how to use the product(Apple Care).
4) Companies follow up with phone calls to customers asking how their products are working. Importance of After-Sales Service.
Importance of after sale Service
1) Good after-sales service helps to improve the company's long-term brand image and win Brand Trust.
2) The provision of sales services is convinced of the consumer's trust in the company's services.
3) Sales affected by word of mouth recommendations. Good after-sales service. In the age of social media-after sales services can damage bad corporate reviews and reputation.
4) After the sales service imposes additional costs on the company. Companies need to balance their customers happy with the burden of expensive maintenance. For example, companies offer free services, and then clearly defined prices for future services.
5) Offer after sale service varies in importance depending on the type of good. For example, after sale service and extended warranty are important for goods such as electric goods and new vehicles. For example
Q11) Explain the process of Product line Life Cycle.
A11) Product line Life Cycle
2. Growth Stage:
Focus on developing piece of the overall industry.Increase brand inclination: center around product highlights, points of interest and advantages.Product quality must be acceptable. Attention to quality center must be a correspondence message. As product request develops, balance out estimating and guarantee that the cost/price relationship is substantial AND likewise upheld by the market. At this stage (for new products explicitly) you will have a preferred position over your opposition and cost won't be as touchy as in later stages.Enter extra business sectors. Your product, and its image, will pick up acknowledgment and will get simpler acknowledgment. Request will increment. Promotional materials are centered on the more extensive, more extended market (and crowd).
3. Mature Stage:
Small business deals development begins to back off. Zero in on clutching piece of the pie and making however much benefit as could be expected. Competitors have gotten up to speed to you and your product.Define and refine what is remarkable about your product: novel incentive and solid product separation and product situating (or re-situating). On the off chance that conceivable, as well as essential, add new, extraordinary and novel highlights and advantages to your product.Pricing might be affected by competitive action. Create elective competitive technique to reducing cost for to the extent that this would be possible.Distance to market may start to cost as expected and cash. Search for choices: open a branch nearer to the enormous business sectors, or the more modest less competitive business sectors; can the product be sold on the web? Grow your market reach. Promotional materials are centered on the interesting incentive, new highlights and benefits and other product separation.
4. Declining Stage:
Your product has become aware. Normally at this stage, rivalry is wild and you can possibly keep on winning on the off chance that you are the most reduced cost supplier.Consider cautiously in the event that you wish to proceed with this product if can't contend viably.Look at approaches to decrease product costs.Look at approaches to improve or change the product.Understand your clients and your opposition very well during this stage: Develop your promoting research plan. Is market request passing on? Do your competitive insight and break down your opposition in business. Will your rivals be more effective at delivering the product than you? Try not to cling to the product for enthusiastic reasons yet additionally don't relinquish the product too early.
Q12) What is the Importance of price?
A12) Importance of price-
1. Achieving a Target Return on Investments: This is the main target which each worry needs to accomplish. The goal is to accomplish a specific pace of profit for ventures and edge the estimating strategy to accomplish that rate. For instance, the worry may have a set objective of 20% degree of profitability and 10% profit for ventures after charges. The objectives might be a present moment (ordinarily for a year) or a long haul. It is prudent to have a drawn-out objective. Now and again, it is seen that the genuine benefit rates might be more than the objective return. This is on the grounds that the objectives previously fixed are low and new chances and request of the product surpassing the return rate previously fixed.
2. Price Stability: This is another significant target of an endeavor. Dependability of costs over a period mirrors the effectiveness of a worry. However, practically speaking, because of changing expenses every now and then, price security can't be accomplished. In the market where there are not many merchants, each vender needs to keep up steadiness in costs. Cost is set by one maker and others follow him. He goes about as a pioneer in price obsession.
3. Achieving Market Share: Piece of the pie alludes to the portion of the organization in the absolute deals of the product on the lookout. A portion of the worries when present their product in the competitive market needs to accomplish a specific offer in the market in the underlying stages. Over the long haul the worry may target accomplishing a sizeable bit of the market by selling its products at lower costs. The fundamental target of accomplishing bigger offer in the market is to appreciate more standing and altruism among the individuals. The other thought of augmenting the business sectors by bringing costs is down to dispense with contenders from the market. It has been seen that organizations dislike expanding the size of their offer because of dread of Government, mediation and control. General Motors, America, catching about half of the vehicle market, gone through this circumstance. A few organizations like General Electric and Johns-Mauville liked to have moderately little market say 20% instead of half.
4. Prevention of Competition: Current mechanical set up is defied with merciless rivalry. Evaluating can be utilized as one of the successful way to battle against the opposition and business contentions. Lesser costs are charged by certain organizations to keep their rivals out of the market. In any case, a firm can't bear to charge less costs throughout an extensive stretch of time.
5. Increased Profits: Boost of benefits is one of the primary goals of a business venture. A firm can embrace such a price strategy which guarantees bigger benefits. Be that as it may, such undertakings are likewise expected to release certain social commitments moreover.
Q13) Explain the Factor Influencing Pricing Policy and Pricing Strategy.
A13) Factor Influencing Pricing Policy and Pricing Strategy
Pricing Policy:
1. Internal Factors:
Internal factors are those components that work from inside the association.
Such factors include:
1. Organizational Factors: In the association evaluating choice occurs at two levels. At the more significant level administration, choices like price range and the estimating approaches are chosen. The genuine cost is then dictated by the lower-level administration. It must be noted, notwithstanding, that such genuine price choices must keep into thought singular product systems and the evaluating arrangements chooses by the high-level market.
2. Marketing Mix: Estimating is just a single component of marketingmix. All different components hold equivalent significance to the accomplishment of advertising systems of the firm. Any move in any of the components affects different components of the advertising mix. A firm should roll out reasonable improvements to all the components of marketingmix to prevail with an adjustment in any component, for example an expansion in cost will get satisfactory just on the off chance that it is combined with sufficient up gradation in the product includes also.
3. Product Differentiation: Cost of the product particularly relies on the nature and qualities of the product. A separated product with esteem added highlights like quality, size, shading, alluring bundling, various employments of the product, utility and so on consistently powers the clients to address more cost when contrasted with some other product.
4. Cost of the Product: Cost and cost of a product are firmly related and are free. The firm should choose a reasonable cost dependent on current interest, rivalry, purchasing capacity, and so forth the firm should likewise keep into thought its expense of creation as it would not have any desire to sell underneath the expense of creation on a drawn-out premise.
5. Objectives of Firm: Evaluating contributes its offer in fulfillment of the targets of the firm. The firm may have an assortment of targets including – deals income expansion, benefit amplification, piece of the overall industry augmentation, boost of client esteem, keeping up picture and position, keeping up stable costs and so on Valuing strategy must be set up simply after targets of the firm have been chosen and perceived.
2. External Factors
Outer components are those elements which influence all the organizations of a given industry consistently and are as a rule outside the ability to control of the firm.
1. Demand: Market interest of a product clearly has a significant effect over its estimating strategy. On the off chance that the interest is inelastic, at that point more exorbitant cost might be fixed yet in the event that the interest is flexible, at that point costs must be competitive. Request is influenced by factors like, number and size of contenders, purchasing capacity and eagerness of planned purchasers, their inclinations and so forth.
2. Competition: In a market with numerous contenders, costs must be competitive without settling on the quality. However, in a monopolistic sort of market, costs can be controlled by the market chief, regardless of the valuing methodology of its rivals.
3. Supplies: In the event that costs of crude material go up, at that point the cost of completed merchandise will undoubtedly go up. Additionally providers evaluating strategy directly affects the costs. Shortage or bounty of crude material will likewise decide its costs' along these lines influencing the general cost.
4. Economic Conditions: By and large monetary conditions have a significant task to carry out in the evaluating choice. During downturn costs must be decreased extensively to support. Then again, during blast time, costs can be expanded to receive the rewards of improved economy.
5. Buyers: The nature and conduct of purchasers will likewise affect the evaluating choices. Their purchasing capacity and readiness to follow through on a specific cost can't be disregarded by the advertiser.
6. Government: Government may practice some proportion of price control through authorization of specific enactments and so forth Such measures are taken to secure the interest of individuals on the loose.
Pricing Strategy
Marketing four Ps – product, price, promotion and arrangement – are the essential parts of any advertising mix. The choices you make with respect to these components can mean the contrast among progress and disappointment. There are numerous variables that will affect how you set the cost for your product or administration, with some of them inward and some outer, and the vast majority of them will vary over the long haul
Impact of Competition: A competitive estimating technique, where costs for a product or administration are set dependent on the costs of the opposition, is most appropriate at a cost touchy and profoundly competitive market. If you utilize this kind of procedure, you ought to consistently consider your opposition's valuing when setting your own estimating, except if you hold an imposing business model. On the off chance that customers see your product and your opposition's as having equivalent worth, you could miss out incredibly if your rival's cost is lower than yours is.
Q13) How does a price rebate work?
A13) The price rebate works after the full payment of the invoice by the customer. To be eligible for price rebates, the seller expects the buyer to meet certain conditions that are predefined before the transaction of the sale takes place.
There are many varieties of rebates that are implemented by companies. The following is an example that you can use to illustrate the functionality of price rebates:
Consider that a packet of M&m costs$10. Buyers have a 10% price rebate on 10m&m's purchases.
In this case, customers are expected to buy ten packets of m & M's and pathy$100. After payment of $ 100, the customer is eligible to receive a rebate of 10% of the overall amount that will be$10.
In some stores, there may be a scheme in which an additional$10 is offered as a discount during the next shopping.
In this case, the price rebate depends on the repeated purchase of the customer.
In some cases, the shopper buys something, but crosses the limits set by the seller and rebates in terms of goods or on subsequent transactions in this case, the price repetition depends on the total value of the invoice.
Generally price rebates at Domino's and Pizza Hut. After the order is made and the invoice is generated, there is a link or URL or QR code at the bottom of the printed invoice, asking customers to fill out a questionnaire about their experience in the shop and receive a discount during subsequent visits.
This way, the company can offer price rebates and also collect direct user experience and customer feedback.
Recently, digital payment methods have begun to use this concept on a large scale. Payment gateways such as Paytm and telephone have been using price rebates for a long time now.
The offer is offered with multiple payment options to buy. For example, 15% of the cash back is purchased through the movie ticket booking app. Cash back is also a form Price rebate.
Q14) Explain the best strategies for price rebates.
A14) Best strategies for price rebates
Price rebates
The implementation of different strategies depends entirely on the nature of the product nature of the business and on the nature of the customer's capabilities, though different products implement price repeat strategies successfully. Below are some of the strategies used for price rebates:
In the case of a volume-based price rebate, the customer is asked to purchase a specific specified quantity of the product, after which the customer is eligible for the specified price rebate. In this case, the customer is not eligible to purchase any other product other than the specified product in the specified quantity.
If the customer decides to buy a quantity that is much larger than the minimum requirement that is subject to the price rebate, the customer can negotiate a higher price rebate.
Domino's pizza, for example, has offers like the purchase of any three medium pizzas; there are rebates in terms of free side orders and cold drinks.
2. Value-Based Strategies:
In the value-based price stage, point reduction is seen in most shopping centers and convenience stores. Major leaders like Walmart and Costco were Value-Based, where customers can get specific price rebates and are then expected to cross that amount.
In this case, unlike volume-based price rebate strategies, customers can purchase any product in any quantity to qualify for price rebates. The idea is just to cross the value of the entire bill amount
In some cases, the price report is provided after crossing the value of the entire invoice with taxes, or in some cases without taxes.
At Walmart, for example, if a customer buys an item worth more than $ 100, a 10% discount will be applied. In this case, there are no restrictions on the type of goods purchased, but only the total amount must exceed the amount of$100.
3. Period-based strategies:
In some cases, price rebates are offered only if the payment terms are met within the specified time limit. This applies to bulk purchases made by resellers. For example, a reseller buys an arrow 500 shirt from the manufacturer, and the price rebate offered to the reseller is 90% on the amount if the entire payment is made within 10 days.
4. New customer strategies:
This strategy is used in online payment mode when a new customer signs up and on the first purchase–whether there is a price limit or not–gets a rebate for the new customer. This is to ensure that customers make repeated purchases. New customer rebates ensure customer loyalty.
Q15) Explain the difference between price rebates and discounts.
A15) The difference between price rebates and discounts:
As long as the terms discount and rebate appear to be used instead, both of them are different in many ways. Following the difference between some discounts and rebates the discount is a reduction that is given at a price for various reasons why rebates are the amount to be refunded by the seller to the buyer after the specified conditions. In terms of strategy, the discount is considered as a marketing strategy, and the rebate is considered as a sales promotion strategy for the organization.
The discount will be offered before the payment is made, and the rebate will only be offered after the full payment has been made, and will only be available to a select few customers, whereas the discount will be applied to all customers.
