MCOM 2nd Year Contents Of Product Planning Study Notes

MEANING OF LABELLING

Labelling means putting identification marks on the package. Labelling is very important for a product. Labelling is important because it gives information about product. A label is the part which is attached to the product. A label works to relate the brand, grade and other information about product. Labelling and branding are important tools of product development and planning. Labelling is the compact form of all informations. Labelling gives information about product to customer. It provides information that what is the product which is customer using? What is the use of product and what are the qualities of product. A label may include retail price, unit price, brand, class, precaution, measure, etc. The objective of labelling is to provide customers up-to-date or latest information about product. It tells the contents of product. The labelling provides information about functions of product and how to use this.

The product should be environnent friendly. Those products do not harm the environment are liked by customers at the most. Because people are aware about the environment. They have understood the damage of environment will be their damage. To encourage the environment friendliness, many countries have awarded ‘eco-label’ on the basis of a product environmental friendliness. Not only one country but every country of this world should have determined to apt green marketing in 21 century. Green marketing should be developed world wide. Another characteristic of a labelling is that it must fulfill legal requirements of a country. A label must not adversely affect the legal requirements.

If a label has said characteristic and properly conceived it can be an important tool of increasing sales. Because if a customer using a product first time or newly introduced product. A customer for a label may be a source of information about new product from labelling. Custome produs herause he has no premeditation. This rule is useful in super m and departmental stores where customers enjoy self-service.

Label helps a customer to take a decision about a product which have to be purchased. Because label provides relevant and correct information about product. Apart from above said information, label also provides followin intormation:

(1) A label must have correct picture of product and size. The colour and appearance of the product must also include in this. 

(ii) The raw material which have used in making of final product. What are the methods of processing label should give answer of this question 

(iii) A product which is used by customers for first time, label must have direction of use and what are the precautions. 

(iv) If product is not used in proper way what will be adverse effects. 

(v) The brand name which is decided by producer. 

(vi) Label must include date of manufacturing and expiry. (vii) Statutory warning about product should include in this.

AFTER SALES SERVICES

When a product have completed or ready to sale it comes to the seller and sellers receives the product to earn a profit by sale of maximum products. A seller sales the product to buyer, buyer purchases the product for his own use. Customer purchases a product on the advice of doctor, teacher (service’s) etc. When doctor, teacher, etc. suggest to purchase a product it is not compulsory that product will work according to the customer expectation. A custorner purchases a product for maximum satisfaction somctimes 100 per cent satisfaction does not enjoy by customer. This condition arises because of some mechanical or technical or other defect.

For example : Hewlett-Packard has brought HPDT 2000 into Indian market. This company gave the guarantee of satisfaction oi consumer. The company said if a product is unable to do the satisfactory print (colour printer) or printer has failed, it will be replaced by company. The cor any tried to save the big name of Hewlett-Packard by this. The company we losing its image this condition applied to make it better.

This is the responsibility of a company to hear the complai ts of customer and to take a proper action. If a company does not take a correct step, it will be harmful for the image of a company and consumer will not beiieve that company’s product. As a doctor prescribed medicines for the patient. Patient should strictly

barescription and take medicines in time. Doctor prescribed a medicine 30 days. Patient bought all the medicines. It is the responsibility of a doctor to clear the side effects of medicine. If the doctor does not fulfill his duty the impression of the patient about the doctor could not well.

OBJECTIVES OF AFTER SALES SERVICE

After sales services are very important aspect in the sales of product. These eervices help a seller to increase the sales and to increase the capacity of earning

Sofit. It is also useful for customer. Other objectives of after sales service are follows:

1. Repairing of Product. Continuous use of the product is cause of preciation and damages. Most damages can be repaired and a customer can use that vary product. Every product needs repair after a definite time gap. any companies provide this facility to their customers. When a product need pair customer inform the company. Than company provides a mechanic to pair the product.

For example : Hero Honda has established its service center in all cities take care the customer convenience.

2. Warranty of the Product. Warranty means a commitment which Icludes the manufacturer and customer. Warranty is given for a specific period. in between this specific period, product does not work as the expectations of Istomer or product has been disfunctional, the company provides a new product place of damaged product or customers do not have sufficient knowledge to aintain the product. The company providing after sales services, would help le producer to sort out the problems regarding maintenance of product.

For example : Philips sends its mechanic to clear any damage or defect yout the product during warranty period.

3. Service Warranty Execution. Auto vehicle needs servicing after, a finite time limit or it requires servicing every 3-6 months. Company tablishes service stations for the servicing of autovehicles. These service ations help customer to gain technical knowledge about vehicles and how to aintain them? Customer obtain technical information about many vehicles

motor cycle, scooter, cars, buses, etc. Customer receives coupon during arranty period for servicing on concessional rate. A coupon holder customer to authorised service stations to carry the service warranty.

4. Control and Dissonance of Customer. Every manufacturer, asinessman establishes a business unit to earn profit and stability in ups and wns. It is possible by satisfaction of consumer. Consumer satisfaction is ssible by study of their fashion, taste and choice if a producer do so he will be accessful to take a product in a long way. 1 A buyer purchases a product and enter into commitment after a purchase I product buyer have one alternative.

5. Net Profit is Favourable. A company should provide to a customer yalty, favourable word of mouth and accurate and important information about roduct. All those things help in development of product. Developed product mould have better quality. So maximum customer try to use this. Apart from mat, customer wants good service system. So the service system should be Etractive; it is useful for both customer and producer. It is useful for producer ecause it minimises supporting costs, liability claims. A good service system so very useful in reducing sales. Maximum sales means higher profit ratio or e can say net profit is in the favour of seller or producer.

MEANING OF PRICING

Pricing is that value in which producer, manufacturer or businessman sale heir products in foreign markets or in home country. Pricing is a particularly

tical and complex variable in global marketing. Pricing helps to develop home -untry market with foreign market. Many aspects affect the decision of pricing nce uncertainties of cost, competition cost and competition are not predictable.

Competition is increasing day-by-day. International pricing is very useful global marketing. Pricing should be perfect for both home and foreign mark A good pricing helps to make a place in international marketing. On the oth ter hand, wrong pricing cause of exit from market. Pricing should be different various countries. Various prices in various countries help to make continrage the process of marketing. Pricing provides the information about all offering ttra a firm. Offerings of a firm are brand name, package, after sales service, deliver and credit etc. Consumers enjoy the offerings of firm. Consumers also pay com for those offerings. A product or service provides satisfaction by taking cosy op This cost of product or money value is price.

Pricing decisions are very difficult to be taken. The marketing managelle should do a lot of exercise to decide the price.

Thus, pricing is the process to determine a price of product or service Without pricing a producer or seller can not sale his products. Pricing determinante a cost value or money value for a product in home or foreign market. A consum uses a product by giving a definite cost which is pre-determined for every produ or service. A price is that cost of product which is payable by a consumer fi using a product.

Pricing is a fix price of a product Marketing manager decides pricing afthma enough research to determine a perfect pricing.

Hence, it is clear that pricing is a process of determining fix price for everof product and service.

IMPORTANCE OF PRICING

Pricing is very important in international marketing. Pricing determine the money value of every product in which a product can be exchanged. A hon consumer or foreign consumer purchases or consumes a product by giving pr determined money value of that product. Without pricing a producer cann decide what amount should be taken and customer cannot take a decision wh amount he should pay. Pricings have vital importance for both customer al a seller in the market. Customer and seller should agree on same price. In the modern price should be determined on the demand and supply bases. 

A perfect pricing strategy of a firm plays a vital role in its success. Perfe, pricing means the pricing should not be very high nor too low. A perfect pricit, helps producer to earn expected revenue. If a price is perfect, more customers every class try to use that product. A marketer should choose the beri combination of production level and price for maximum revenue and not profit

The other determinants of market also affect by pricing. If the pricingo perfect the revenue will increase and when profit increase a firm try to see the customers in best possible way. A firm has to develop, improve the quali of product and spend more on promotion and distribution. Pricing decision shou be taken very carefully because it directly affect the profit of firm or business customer decides to buy a product by attracting pricing strategy. Prich determines the buying power of customer.

Pricing is also very helpful in making an econoniy of a country strengthe A good pricing improves various factors of economy as wages, interest rate, a profit. Pricing controls the production because pricing helps to use the limi resources in a proper way. Sufficient use of resource increases the amount of

wages and high wages attract the efficient labours, and high interest tract capital. A good pricing helps a product to survive in market.

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