Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need

Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership in anything

Core Benefit

Actual Product

Brand Name

Quality Level

Packaging

Design

Features

Augmented Product

Delivery and

Credit

After – sale

service

Installation Warranty

CONSUMER GOODS

- Convenience Product

- Shopping Product

- Specialty Product

- Unwholesome or Unsought Product

INDUSTRIAL GOODS

- Installation

- Accessory Equipment

- Component parts and materials

- Raw Materials

- Supplies

- MRO Item

CONSUMERS PRODUCTS

CONVENIENCE GOODS

Candy, soda, Newspaper, Milk, Disposable Camera Gasoline

SHOPPING GOODS

Car, Furniture, Home Appliances, Computers, Electrical and Electronic

Goods

Rolex Watches, Ferrari Cars, Lexus and all Luxury Cars

SPECIALITY GOODS

Blood Donation, Cemetery Plots,

Insurance, Long term health care

UNSOUGHT GOODS

CONVENIENCE PRODUCTS

• Convenience Goods– Bought

frequently and immediately

– Low priced– Mass advertising– Many purchase

locations

SHOPPING PRODUCTS

• Shopping Goods– Bought less

frequently– Higher price– Fewer

purchase locations

– Comparison shop

SPECIALTY PRODUCTS

• Specialty Products– Special purchase

efforts– High price– Unique

characteristics– Brand

identification– Few purchase

locations

• Unsought Products– New innovations– Are often

products consumers do not want to think about

– Require a lot of advertising and personal selling

UNSOUGHT PRODUCTS

BUSINESSPRODUCTS

INSTALLATIONS

Oil Rig, Boeing 7E7, Regional Shopping

CenterCOMPONENTS

Computer chips, truck bed, jet engines, lawn

equipment

ACCESSORY EQUIPMENT

Canon copiers, T-mobile cell

phones, Blackberry hand held computers

RAW MATERIALS

Soya, Milk, Poultry, Bauxite,

Cotton

MRO SUPPLIES

Xerox, Scotch tape, copy paper, staples, Post-its

BUSINESS SERVICES

Wackhenhut, Ryder,

Pinkerton

INSTALLATIONS

Major capital investment by a business buyer that typically involves expensive and relatively long-lived products, such as a new factory or piece of heavy machinery

ACCESSORY EQUIPMENT

Capital product, usually less expensive and shorter-lived that insulation, such as a laptop computer

COMPONENTS PARTS AND MATERIALS

Finished business products that become parts of buying firms’ final products, such as spark plugs for new cars

RAW MATERIALS

Business product, such as a farm product (wheat, cotton, soybeans) or natural product (coal, lumber, iron ore) that become part of a final product

BUSINESS SERVICES

Intangible product purchased to facilitate a firm’s production and operating processes such as financial services, leasing of vehicles, legal advice and consulting

MRO ITEMS

Part of business supplies categorized as maintenance items, repair items, or operating supplies such as light bulbs, nuts and bolts used in repairing equipment, or pencils

Product Attributes Branding

ProductSupportServices

Packaging

Labeling

PRODUCT & SERVICE ATTRIBUTES

• Product quality– Performance

quality– Conformance

quality• Features

– Value to consumer– Cost to company

• Style and design– Influences

experience

BRANDING

• A brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.

PACKAGING

•Designing and producing the container or wrapper for a product.

LABELING

•Printed information appearing on or with the package.

PRODUCT SUPPORT SERVICES

• Assess the value of current services and obtain ideas for new services.

• Assess the cost of providing the services.

• Put together a package of services that delights the customers and yields profits for the company.

Scion website

A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

PRODUCT LINE

Product Mix (or Product Portfolio) consists of all product lines and items that a particular seller that offers for sale. Example P & G’s product mix consists of three major product lines: Detergent, Soaps, Shampoos………

WidthWidth

Detergent ShampooSoap

Leng

thLe

ngth

DepthDepth

PRODUCT MIX DECISION P&G

Product Width refers to the number of different product lines the company carries. For example : P&G’s Width – Detergents, Soaps, Shampoos.Product Length refers to the total number of items the company carries within its product lines. For Example: P&G’s Detergent product length – Tide, Ivory, Cheer, Bold.Product Depth refers to the number of versions offered of each product in the line. For example: P&G’s Tide product depth – Febreze, Cold water, Downy.Product Consistency refers to how closely related to various products lines are in end use, production requirements, distribution channels or some other way.

PRODUCT MIX DECISION

BRAND POSITIONING

AttributesBenefits

Beliefs and Values

BRAND DEVELOPMENT BRAND SPONSORSHIP

BRAND NAME SELECTION

Line ExtensionsBrand Extension

Multi brandsNew Brands

SelectionProtection

Manufacturer’s BrandPrivate brand

LicensingCo-branding

BRANDING STRATEGY

BRAND POSITIONING

• Position brands at any of three levels:– Product attributes

• Least desirable; easily copied.

– Product benefits– Beliefs and values

• Hits consumers on a deeper level, touching universal emotions.

BRAND NAME SELECTION

• Desirable qualities for a brand name include:1. It should suggest product’s benefits and

qualities.2. It should be easy to pronounce, recognize,

and remember.3. It should be distinctive.4. It should be extendable.5. It should translate easily into foreign

languages.6. It should be capable of registration and legal

protection.

BRAND SPONSORSHIP

• Manufacturer’s brands– Operated by

Manufacturer itself• Private brands

– A brand created and owned by reseller

• Co-branding– Collaboration between

two companies’ department

BRAND DEVELOPMENT

LineExtension

Brandextension

NewBrandsMulti brands

Existing

Existing

New

New

Bran

d N

ame

Product Category

LINE EXTENSION

Existing brand names are extended to new forms, sizes, and flavors of an existing product category. Example: Fair & Lovely Fairness Cream-1978

Fair & Lovely Ayurvedic Fairness Cream-2001

Fair & Lovely Fairness Cream with extra brightness -2003

Fair & Lovely Menz Active-2006

BRAND EXTENSION

Existing brand names are extended to new or modified product categories. Example:

Virgin Atlantic

Virgin Mobile

Virgin Cosmetics

Virgin Trains

Virgin Money

MULTI BRANDS

New brand names are introduced in the same product category.HUL: Lux, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears, Rexona

NEW BRANDSNew brand names in new categories are introduced. Example:

Nescafè (Coffee)KitKat (Confectionery)Buxton (Water)Buitoni (Pasta)Sveltesse (Chilled Diary)Shredded Wheat (Cereals)

IdeaGeneration

IdeaScreening

ConceptDevelopmentand testing

MarketingStrategy

development

Businessanalysis

Product Development

TestMarketing

Commercialization

NEW PRODUCT DEVELOPMENT STRATEGY

IDEA GENERATION: The systematic search for new-product

ideas.

IDEA SCREENING:Screening new-products ideas in order to

spot good ideas and drop poor ones as soon as possible.

PRODUCT CONCEPT:A detailed version of the product of the new-product idea stated in meaningful consumer terms.

PRODUCT TESTING:Testing new-product concepts with a group

of target consumers to find out if the concepts have strong consumer appeal

MARKETING STRATEGY DEVELOPMENT: Designing an initial marketing strategy for a

new product based on the product concept.

BUSINESS ANALYSIS:A review of the sales, costs, and profit projections for a new product to find out

whether these factors satisfy the company’s objectives.

PRODUCT DEVELOPMENT:Developing the product concept into a

physical product in order to ensure that the product idea can be turned into a workable product.

TEST MARKETING: The stage of new-product development in

which the product and marketing program are tested in more realistic market settings.

COMMERCIALIZATION:Introducing a new-product into the market.

• Introduction stage

• Growth stage

• Maturity stage

• Decline stage

STAGES OF PRODUCT LIFE CYCLE

GRAPHICAL REPRESENTATION OF PRODUCT LIFE CYCLE

CHARACTERSTICS OF PRODUCT LIFE CYCLE

INTRODUCTION STAGE

• Product - one or few products, relatively undifferentiated

• Price – use cost plus basis to set a price

• Distribution - Distribution is selective and scattered as the firm commences implementation of the distribution plan.

• Promotion - Promotion is aimed at building brand awareness. Samples or trial incentives may be directed toward the customers. The introductory promotion also is intended to convince potential resellers to carry the product.

• Advertising –Advertising is aimed to be high to build product awareness

GROWTH STAGE

• Product - New product features and packaging options; improvement of product quality.

• Price – Price to penetrate the market

• Distribution - Distribution becomes more intensive.

• Promotion- Reduce to take advantage of heavy consumer demand.

• Advertising- Build brand awareness in the mass market

MATURITY STAGE

• Product –Either modifying the product or diversify the brand.

• Price - Possible price reductions in response to competition while avoiding a price war.

• Distribution –Build more intensive distribution.

• Promotion - Incentives to get competitors' customers to switch.

DECLINE STAGE• Product - The number of products in the

product line may be reduced.

• Price - Prices may be lowered to liquidate inventory of discontinued products.

• Distribution - Distribution becomes more selective. Channels that no longer are profitable are phased out.

• Promotion - Expenditures are lower and aimed at reinforcing the brand image for continued products.

LUX

Lux is a brand of Hindustan Unilever India Ltd. It has four modified soaps which are:

Orchid touch Almond delight Energising fruit Aqua sparkle

Lets us see its product life cycle

INTRODUCTION STAGE

MARKETING OBJETIVESThe Lux marketing objectives in the initial stage was to create the product awareness and to attract the customers towards the product.MARKETING STRATEGIESThe Lux marketing mix strategies in the initial stages of the product were based on:ProductThey offer only on product in the market. They did not come up with the differentiated product.

Price In the initial stages of the product, they offer the relatively higher price than their competitor (LIFEBUOY). Because, they want to recover their cost which incurred initially in making the product. Or another reason was that they have segmented the niche market.

AdvertisingIn the initial stages, they allocate more advertising budget to advertise the product. So that more and more customers could be attracted towards the product. In ads they targeted the early adopters, who were readiest to buy the product.

INTRODUCTION STAGE

GROWTH STAGE

MARKETING OBJECTIVESIn the growth stage, the marketing objectives of the Lux were to expand their market to the other cities of India. Another objective was to maximize more market share.MARKETING STRATEGIESIn the growth stage, company had the following marketing mix strategies:ProductIn the growth stage, the company had offered the same product in the market.

GROWTH STAGE

PriceIn this stage, the company had changed their price to some extent because of maximizing the market share.Advertising In the growth stage, they had increased their advertising budget as in the initial stages because of attracting the new customers or to retain the existing customers.

MATURITY STAGE

MARKETING OBJECTIVESThe marketing objective of Lux is to maximize more profit while defending the market share. And to expand the market to all the cities of India.MARKETING STRATEGIESIn this stage, Lux marketing mix strategies are based on:ProductThe Lux has made the modification in the product by introducing:Orchid touch Almond delight Energising fruit Aqua sparkle

MATURITY STAGE

PriceThe Lux products are now available at higher prices in the market, the reason behind is that the company’s marketing objectives is to maximize more profit.Advertising In this stage Lux advertising has been reduced to some extent because of the more brand awareness in the minds of customers. Recently, they show the ad in which the India leading television and film actress were shown.