PRODUCT

MODULE 3
MARKETING MANAGEMENT
MEANING
• A product is any good, service, or idea that can
be offered to a market to satisfy a want or need.
• Products can be goods, services, or ideas, such as
intellectual property.
• Products can be tangible or intangible.
DEFINITION
• Philip Kotler: “A product is anything that can
be offered to a market for attention, acquisition,
use or consumption. It includes physical objects,
services, personalities, place, organizations and
ideas.”
CLASSIFICATION OF PRODUCTS
CONSUMER PRODUCTS
• Consumer products are products and services
bought by final consumers for personal
consumption. Consumer products are mainly
use in personal consumption.
A. Convenience products
• Convenience products are consumer’s products and services that
customers usually buy frequently, immediately and with minimum of
comparison and buying effort. There are various types of convenience
products are:
• Staple products: Staple products are products that are bought often,
routinely, and without much thought. Such as; Rice, Sault, etc.
• Impulse products: Impulse products are products that are bought
quickly as unplanned purchases because of a strongly felt need. Such as;
Ice-cream, toys, magazines, etc.
• Emergency products: Emergency products are products that are
purchased immediately when the need is great. Parts of car, medicine
service for emergency patient, raincoat for rainy season, etc.
• Home delivery products: These products are mainly delivered to
customer’s home.
B. Shopping Products:
• The products which are purchased by customers on the basis
of pre planning is called shopping product. Shopping
products are less frequently purchased consumer products
and services that customers compare carefully on suitability,
quality, price and style. Shopping products are:
• Fashion products: Fashion products are shopping goods
that are purchased for their appearance, distinctiveness or
style. Such as; garments, gift etc.
• Service products: Service goods are durably shopping
goods that represent relatively large outlays to the consumer
and that usually require repair or other servicing. Such as;
TV, Air conditioner etc.
C. Specialty Products D. Unsought products

• These products are charming • These are consumer products

and technology based. These that the consumer either does
are consumer products and not know about or know about
services with unique but does not normally think of
characteristics or brand buying. Such as; Life insurance
identification for which a policy, grave stone, etc.
significant group of buyers is Unsought products are:
willing to make a special • New unsought products
purchase effort. Such as;
• Regular unsought products
Mercedes Car, High priced
watch, etc.
Industrial Products:
• Industrial products are mainly used for further
production. According to Philip Koter
“Industrial products are products bought by
individuals and organizations for further
processing or for use in conducting a business”.
There are various types of industrial products 
A. Materials and parts: Materials and parts are industrial
products that enter the manufacturer’s product completely. It
has two types:-
a). Raw materials
b). Manufactured materials and parts
B. Capital item: Capital items are industrials products that aid
in the buyer’s production or operations, including installations
and accessory equipment. It has two types:
a). Accessory equipment
b). Installations
C. Supplies and services: These are industrial products that do
not enter the finished product at all. These are:
a). Supplies
b). Business services
PRODUCT MIX DECISION
• Product mix, also known as product assortment
or product portfolio, refers to the complete set of
products and/or services offered by a firm.
What is a Product Line?

• A product line is a group of related products all

marketed under a single brand name that is sold
by the same company. Companies sell multiple
product lines under their various brand names,
seeking to distinguish them from each other for
better usability for consumers.
DIMENSIONS OF PRODUCT MIX
• #1 Width
Width, also known as breadth, refers to the number of product lines
offered by a company. For example, Kellogg’s product lines consist
of: (1) Ready-to-eat cereal, (2) Pastries and breakfast snacks, (3)
Crackers and cookies, and (4) Frozen/Organic/Natural goods.
 
• #2 Length
Length refers to the total number of products in a firm’s product
mix. For example, consider a car company with two car product
lines (3-series and 5-series). Within each product line series are
three types of cars. In this example, the product length of the
company would be 6.
DIMENSIONS OF PRODUCT MIX
•  #3 Depth

Depth refers to the number of variations within a product line. For example,
continuing with the car company example above, a 3-series product line may
offer several variations such as coupe, sedan, truck, and convertible. In such a
case, the depth of the 3-series product line would be 4.
 
• #4 Consistency

Consistency refers to how closely related product lines are to each other. It is in
reference to their use, production, and distribution channels. The consistency
of a product mix is advantageous for firms attempting to position themselves as
a niche producer or distributor. In addition, consistency aids with ensuring a
firm’s brand image is synonymous with the product or service itself.
PRODUCT ADDITION
• If a firm has excess capacity in terms of
resources, it can produce a new product this may
be done to maximize profits, to adjust to changes
in the environment and also when a new
opportunity is identified.
• ITC launches new hand sanitizer under Savlon
brand to take on Covid-19 
PRODUCT DELETION
Deletion is the process of removing products that
perform below market expectations or fail to meet
company objectives. Deletion results in either
product replacement or product elimination.
PRODUCT POSITIONING
• "Product positioning" is a marketing technique
intended to present products in the best possible
light to different target audiences. 
• A product’s position is the place the product
occupies in consumers’ minds relative to
competing products.
• Positioning is where your product or service fits in
the marketplace. It is a strategic exercise that
defines what makes your product unique and why
it is better than alternative solutions.
PRODUCT LIFECYLCE
PRODUCT PLANNING
• Product planning is the process of searching ideas for new
products, screening them systematically, converting them into
tangible products and introducing the new product in the market.
• Product planning includes improvements in existing products as
well as deletion of unprofitable or marginal products.
• It also encompasses product design and engineering which is also
called product development.
• Product planning comprises all activities starting with the
conception of product idea and ending up with full scale
introduction of the product in the market.
 NEW PRODUCT DEVELOPMENT
There’s a lot that goes into a product before it is
introduced into the market.
It starts with a market opportunity which forms the base
of the product idea, and converting this market
opportunity into a successful product is what new
product development is all about.

The importance of new product development

• Company growth
• Higher profit margins
• Business plans
• Utilization of excess capacity
• Recycling of waste product
STEPS IN NEW PRODUCT DEVELOPMENT

SCREENING PRODUCT
IDEA BUSINESS TEST
NEW PRODUCT DEVELOPMEN
GENERATION ANALYSIS MARKETING
IDEAS T
SOURCES OF NEW IDEAS
INTERNAL SOURCES EXTERNAL SOURCES
• BASIC RESEARCH • SECONDARY SOURCES OF
• MANUFACTURING INFORMATION
• SALES PEOPLE • COMPETITORS
• TOP MANAGEMENT • CUSTOMERS
• RESELLERS
• FOREIGN MARKETS
• INVENTORS
SCREENING PROCESS
• PRODUCT IDEA COMPATIBILITY WITH
COMPANY OBJECTIVES
• PRODUCT IDEA COMPATIBILITY WITH
COMPANY RESOURCES
• DROP ERROR-DISMISSAL OF A GOOD IDEA
• GO ERRORS – ACCEPTANCE OF A POOR
IDEA
 ASPECTS OF PRODUCT
STEPS IN BUSINESS ANALYSIS
DEVELOPMENT
• TECHNICAL DEVLPT
ASPECT
1. Applied Engineering
Research
2. Manufacturing methods
• DEMAND ANALYSIS research
• COST ANALYSIS • MARKET DEVLPT ASPECT
• PROFITABILITY ANALYSIS 1. Product concept testing
2. Developing other elements of
marketing mix
TEST MARKETING
WHY? PROBLEMS
• To improve the knowledge of • Inaccurate results
potential product sales • Expensive
• To pretest marketing plans • Time consuming
• To predict product faults
• To know reactions of
competitors
PRODUCT RELATED STRATEGIES
There are four strategies generally used for
products:
• the market leader strategy - new and innovative
• the challenger strategy - distinguished, R&D
• the follower strategy - derivative
• the niche strategy-developing a product for a
smaller segment
 BRAND & BRANDING

• A brand is an identifying symbol, mark, logo,

name, word, and/or sentence that companies
use to distinguish their product from others.
•  Legal protection given to a brand name is called
a trademark.
• ROLE OF BRANDING

Weapon to Means of
Promotional Middleman’s
Massive asset protect identification
tool survival
market of customer
Characteristics of a good Brand
• Must be easy to pronounce and remember
• Should be short and sweet
• Should point out producer
• Legally protected
• Original
• Should reflect product dimension
MERITS OF BRANDING
MANUFACTURERS WHOLESALERS CUSTOMERS
AND RETAILERS
• Individuality • Quicker sales • Quality
• Price control • Advtg and display • Consumer
• Increased is easy protection against
Bargaining power • Increased Market cheating
• Reduces share and control • Reflect lifestyle
advertising song • Intro of new • Steady and regular
• Ever increased product is easy product supply
• Stabilized prices • Stable price
demand
• Intro of new • Economical
product is easy
• Product
differentiation
PACKAGING
• Packaging is aimed at attaining two basic
functions, the first to protect the product and
the second to promote the product.
• According to Philip Kotler “protection,
convenience and economy were the three
traditional purposes attached to package.” 
OBJECTIVES OF PACKAGING FUNCTIONS

• PRODUCT PROTECTION • Protects the contents

• PRODUCT IDENTIFICATION • Provides product density
• PRODUCT CONVENIENCE • Promotional tool
• PRODUCT PROMOTION • User convenience
• PROFIT GENERATION • Product identification
• Easy product mix
• Extends product life-cycle
Essentials of good packaging
• Should protect the contents
• Should be attractive
• Should bestow convenience
• Should guarantee economy
• Should assure adjustability
• Should be pollution free
• Should be informative
Types of packages
• Primary packaging
• Secondary packaging
LABELLING
• The term ‘label’ may refer to a small piece
of fabric, paper, or plastic that is attached
to a product. Labelling is the display of label in
a product.
• Labels may be used for any combination of
identification, information, warning,
instructions for use, environmental advice or
advertising
PURPOSE OF LABELLING
• To bring home the product features
• To facilitate the exchange process
• To encourage self service