Describe product modification decision and product elimination decision.
Describe product modification decision and product elimination decision.
Ans.
Product Modification Decision Product modification is not possible where there is no difference in raw material and chemical etc. For the product modification marketing manager prepares a strategy. Any one strategy can be selected for the product modification.
1. Style Improvement Strategy- In this strategy external beauty is increased. This strategy is helpful in creating new customers of new style products. Following are the advantages of style improvement strategy:
(i) Creation of new customers
(ii) It is the requirement of market.
With the help of this strategy firm can maintain his existence in the market.
2. Quality Improvement Strategy- Its purpose is to make available qualitative and stable goods to consumer. Main material is charged under this strategy. Following are the main advantages of this strategy:
(i) To improve goodwill in the market by improving quality.
(ii) To fulfill marketing objectives.
Product Elimination Decision
Product elimination means abolishion of product. Producer abolishes any product of his product line. Producer takes this decision due to following reasons:
(i) To launch substitute product at the same price having same quality.
(ii) In decreasing the prices,
(iii) Continuous decrease in the sale,
(iv) Excess investment of time in management,
(v) Decrease in profits.
Due to following causes decision of product elimination should not be taken:
(i) Changes in external factors,
(ii) Helpful in the sale of other products,
(iii) Hiding of weaknesses,
(iv) Meeting overhead expenses,
(v) Boosting by-product modification,
(vi) Increase in advertisement budget,
(vii) Modification in marketing programme.
Product Elimination Practice
Any method can be used from the following:
(i) On a piecemeal basis
(ii) Periodic product review method
(iii) On a crisis basis.
Stages of Product Elimination Decision
Following are the stages of product elimination decision:
Stages of Product Elimination Decision:
(a) Creative Stages
(i) Product representation committee
(ii) Procedure decision for product elimination.
(b) Operational Stages
(i) Collection of product data
(ii) Computer Programme
(iii) Rating
(iv) Review of indices
(v) Formulation of plans and polices
(c) Manufacturing of New Product
(i) Search of ideas
(ii) Innovation
(iii) Trade analysis
(iv) Product development
(v) Test marketing
(vi) Commercialisation
