Chapter 5:

Product & Brand

Business and Economics School - Universidad de Piura

Principles of Marketing (MK)
Daniel Dulanto, MSc.
 Content

▪ Definition of product

▪ Decisions about individual product

▪ Decisions about product line and product portfolio

▪ Related concepts to product management

MK – Marketing Daniel Dulanto, MSc.

 PRODUCT

Anything that can be offered to a market for acquisition, use or

consumption and that can satisfy a need.

(Kotler)

MK – Marketing Daniel Dulanto, MSc.

 SERVICE

Identifiable and intangible activities that are the main object

of a transaction designed to satisfy a need.

(Stanton)

MK – Marketing Daniel Dulanto, MSc.

 PRODUCT LEVELS

The need that the

purchased product satisfies

The product in question

CORE
PRODUCT
and all its tangible and
intangible characteristics
ACTUAL PRODUCT

Additional benefits that are

AUGMENTED PRODUCT
sold with the main product

MK – Marketing Daniel Dulanto, MSc.

PRODUCT LEVELS
FREE
INSTALACIÓN

QUALITY
SPECIFICATIONS
FREE BRAND POST-SALE
DELIVERY CORE SUPPORT
BENEFFIT
LABEL
PACKAGING

DESIGN

3 YEAR
CREDIT WARRANTY

MK – Marketing Daniel Dulanto, MSc.

DECISIONS ABOUT…

INDIVIDUAL PRODUCT PRODUCT LINE PRODUCT PORTFOLIO

Characteristics Add Width

Quality Style / Design Delete Length

Packaging / Label Depth

Support Services

MK – Marketing Daniel Dulanto, MSc.

DECISIONS ABOUT INDIVIDUAL PRODUCT
PHYSICAL ATTRIBUTTES

Characteristics
Features are a competitive tool to differentiate products in the market.
Ingredients, supplies, materials, among others.

Style and Design

Whereas style describes the appearance of a product. The design contributes
to its utility and performance.

MK – Marketing Daniel Dulanto, MSc.

DECISIONS ABOUT INDIVIDUAL PRODUCT
PHYSICAL ATTRIBUTTES

Packaging
Product container or wrapper. It must
comply with being: functional and striking.

MK – Marketing Daniel Dulanto, MSc.

DECISIONS ABOUT INDIVIDUAL PRODUCT
PHYSICAL ATTRIBUTTES

Label

Part of the packaging consists of relevant

information on the composition of the product
and instructions for use / consumption, if
necessary.
Today it is more relevant due to the Healthy
Consumption Law.

MK – Marketing Daniel Dulanto, MSc.

DECISIONS ABOUT INDIVIDUAL PRODUCT
QUALITY
It is the ability of a product to fulfill its functions as expected by consumers.
"It is what the consumer perceives, and what they are willing to pay for“

There are 4 quality levels: Low, Medium, High and Premium. Depending on
these factors:
▪ The target segment, and the importance it attaches to quality
▪ The expected profit from the company, higher quality products can be sold at
a higher price
▪ The resources that the company has, the higher the quality, more innovation
and higher manufacturing costs are necessary

MK – Marketing Daniel Dulanto, MSc.

DECISIONS ABOUT INDIVIDUAL PRODUCT
SUPPORT SERVICES

It refers to additional services that the company has decided are

necessary to support the sale of the product.
▪ Call center
▪ After-sales service
▪ Maintenance
▪ Warranty
▪ Consulting

MK – Marketing Daniel Dulanto, MSc.

DECISIONS ABOUT…

INDIVIDUAL PRODUCT PRODUCT LINE PRODUCT PORTFOLIO

Characteristics Add Width

Quality Style / Design Delete Length

Packaging / Label Depth

Support Services

MK – Marketing Daniel Dulanto, MSc.

DECISIONS ABOUT PRODUCT LINE

Product Line

Group of products that are closely related.

This close relationship is based on the products:
▪ They work in a similar way
▪ Sold to the same customer groups
▪ They are marketed through channels and similar means
▪ They are located within the same price ranges

Example: Personal care line that includes shampoo, soap, deodorant, etc.

MK – Marketing Daniel Dulanto, MSc.

DECISIONS ABOUT PRODUCT LINE

Add new products

▪ When there is room to grow in the category line
▪ When the company has the capacity to sustain more expenses in the short
term

Delete old products

▪ When they are no longer profitable
▪ When the company cannot support its costs/ expenses in the short term
▪ When the market segment in which it competes is no longer attractive or
will cease to be so in the future

MK – Marketing Daniel Dulanto, MSc.

DECISIONS ABOUT…

INDIVIDUAL PRODUCT PRODUCT LINE PRODUCT PORTFOLIO

Characteristics Add Width

Quality Style / Design Delete Length

Packaging / Label Depth

Support Services

MK – Marketing Daniel Dulanto, MSc.

DECISIONS ABOUT PRODUCT PORTFOLIO

Product Portfolio

Also called Product Mix.

Set of all product lines
that a particular
company offers for sale.

MK – Marketing Daniel Dulanto, MSc.

DECISIONS ABOUT PRODUCT PORTFOLIO

Width Number of different product lines

the company has

Length Number of brands for each product

line

Number of individual references

Depth
offered in each brand (flavor,
presentation, size, etc.)

MK – Marketing Daniel Dulanto, MSc.

RELATED CONCEPTS

▪ Product Life Cycle

▪ BCG Matrix

▪ Complementary Products

▪ Substitute Products

▪ Planned Obsolescence

MK – Marketing Daniel Dulanto, MSc.

LIFE CYCLE

Stating that a product has a life cycle means 3 things:

1. All products have a limited shelf life

2. Sales vary according to the stage of the life cycle in which the product
is found
3. Products require different marketing strategies at each stage

MK – Marketing Daniel Dulanto, MSc.

 LIFE CYCLE

Sales
Product
Sales

Product
Total Expenses

Introduction Growth Maturity Decline

Time

MK – Marketing Daniel Dulanto, MSc.

BCG MATRIX

+
Created by Boston Consulting
STARS
Group, also known as the
QUESTION MARK
New products: they have Rising stars of the company, Growth-Share Matrix
MARKET GROWTH

an uncertain future they achieve high sales but

DOGS
They are no longer profitable
or can barely keep up with
their operation costs and
break even
-
- MARKTE SHARE
at a high marketing costs
This business tool provides a
framework for analyzing the
performance of the product
CASH COW
Market leaders, the best portfolio and making strategic
products among all four. marketing decisions.
They are very profitable.
+

MK – Marketing Daniel Dulanto, MSc.

SUBSTITUTE PRODUCT

Substitute goods are goods that compete in the same market.

Two goods are substitutes when they satisfy the same need.

MK – Marketing Daniel Dulanto, MSc.

COMPLEMENTARY PRODUCTS

Complementary goods are those that must be used with others to

satisfy a need.

The relationship established between complementary goods is such

that one's consumption is directly linked to the products that
complement it.

MK – Marketing Daniel Dulanto, MSc.

PLANNED OBSOLESCENCE

It is the determination of the useful life of a product, planned by the

producing company.
After “n” uses of the product, it will reach its scheduled useful life,
becoming obsolete.

A normal battery is designed to

retain capacity of 500
complete charge cycles.

MK – Marketing Daniel Dulanto, MSc.

 Chapter 5:
Product & Brand

Business and Economics School - Universidad de Piura

Principles of Marketing (MK)
Daniel Dulanto, MSc.