Page 35 - MARKETING & PUBLIC RELATIONS EBOOK IC88

claimants. For example, the Overseas Medical Insurance scheme, (which assures free medical
care for Indians travelling abroad), becomes non-functional, if

 the appropriate endorsements or evidences are not carried by the traveller
 the appropriate endorsements or evidences are not properly authenticated
 the updated list of authorised doctors and hospitals at the overseas centres are not available
 the persons to be contacted in case of need, are not known or are not available at the given
addresses or telephone numbers
 the necessary authorisations are not forthcoming.

3. Earlier in this book, reference has been made to the need to ensure 100% non-failure. While the
target has to be no failure, failures may still occur. An unexpected circumstance can happen.
 Apologies for the failure
 explain the reason for the failure to the customer

(f) Product Image

A product must be positioned in relation to other products in the producer's own package of offers as
well as offers by the competitors. Every product can have several alternatives and options in the eyes of
the consumer and every alternative is a competitor.

Organizations, which have a big range of products in depth, may find that their own products are in
competition with each other. Such ranges are noticed in soaps or cigarettes or even in cars, when the
same organization wants its presence in all segments of the market. It is important to establish the
distinct images of these products. Otherwise, they might eat into each other's market.

(g) Product Obsolescence

1. When obsolescence sets in, the product gets into the declining stage. There are two main
reasons.

 Loss of Utility: This happens because new products have become available, which are more
convenient in terms of ease of use, cost effectiveness, speedier processing. Technological
advancement is the main reason. Changes in tastes and life styles are brought about as a result.
Xerox machines had eliminated the cyclostyling machines. Xerox is no more popular because of
computer scanners and printers. Word processors had replaced the typewriters Electric rood
processors have replaced the grinding stones in the kitchen s

 Planned Obsolescence: This happens in fashion wear autornobiles, etc., because of the
introduction of new designs and models. Planned obsolescence happens in insurance also.
Certain plans like the Anticipated Endowment policy and the deferred annuity, were replaced
by new plans like the Money Back and Jeevan Dhara policies by the L.I.C of India

D. THE BOSTON MATRIX

1. The product portfolio must be reviewed from time to time. The purpose of such review would
be to determine whether any of the products need to be taken out of the offer or need to be

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