Unit 6 Product Decisions

Lecturer B.B.
Kathayat 1
Learning Objectives
After completing this chapter, students should be able to:

1. Understand the meaning & concept of product.
2. Define the key features or characteristics of product.
3. Discuss the various types or classification of products.
4. Know the meaning and concept of service or service product.
5. Identify the features, types and strategies of service products.
6. Know about individual product decisions and product mix decisions.
7. Describe the new product development process.
8. Know about product lifecycle and its strategies.
9. Understand the meaning, types and importance of branding.
10. Recognize the meaning, key components and strategies of packaging.
11. Define the meaning, types and key components of labeling.
Lecturer B.B.Kathayat 2
1. Meaning & Concept of Product
 In general sense, a product is the item or service offered for sale to serve a
customer's need or want.
 In marketing, a product is an object or system made available for consumer

use; it is anything that can be offered to a market to satisfy the desire or
need of a customer.
According to Stanton, Etzel and Walker - “A product is a set of tangible and

intangible attributes, including packaging, color, price, quality and brand plus the services
and reputation of the seller. A product may be a tangible goods, services, place, person or
idea.”
According to Philip Kotler - “A product is a bundle of physical services and symbolic

particulars excepted to the yield satisfactions or benefits to the Buyer.”
Cont……
The core concepts of product can be identified are as……………………….
Physical 2.Service Concept: It is called intangible

Concept concept of product. In this concept,
product can be defined as an effort of
one party to satisfy the needs and
Total demand of another party.
Product Concept
Concept 3.Augmented Concept: It is called new
of or wide concept of product. In this
Product Service
concept, both physical and service must
Concept be identified. If consumer purchase
tangible goods, they also get additional
facilities like warrantee, repair,
Augmented maintenance, deliveries etc. is called
augmented concept of product.
Concept
4.Total Product Concept: If marketer
offered highly feature-able tangible and
1.Physical Concept: It is called tangible or traditional or intangible product to the customer to
narrow concept of product. In this concept, product can satisfy their needs is called total
be defined as the things which have physical existence product concept. It consists all the
things associated with goods and
with form, color, name, size, types, weights, quality and services like installation, repairing,
quantity etc. delivering, etc.
Cont……
The key dimensions of product concept are as……………………………………
1. Managerial Dimension: According to management, a product is viewed
as the total product. It includes all those tangible and non-tangible
aspects that management wants to offer.
2. Customer/Consumer Dimension: According to Customer/consumer, a

product is a bundle of expectations. They view product as a source of
expectations or satisfaction.
3. Social Dimension: According to Society, a product as a source of long-

term welfare of people. Society expects high standard of living, safety,
protection of environment, and peace in society.
2. Key Features or Characteristics of Product
→ Product is the core component of Marketing Mix.
→ Different people perceive product differently.
→ Product is a base for entire marketing program.
→ Product includes both tangible and intangible features or benefits.
→ Product means a complete item or offering that can be sold to customers.
→ Product includes total offers, qualities, features, and services as whole.
→ Product is a vehicle/medium to offer benefits and satisfaction to

consumers.
→ Marketer can actualize its goals by producing, selling, improving, and

modifying the product.
Cont……
The Key Levels of Product……………
Core Product
Basic Product
Expected Product
Augmented Product
Potential Product
Cont……
1. Core Product: It is the deep-seated dimension of a product as it
represents a bundle of benefits to its user such as eyeliner for woman
beauty.
2. Basic Product: It is the composite of all the actual products which are
used for development such as chemical and physical elements of eyeliner.
3. Expected Product: It is a set of attributes and conditions that consumer

normally expected when they buy the products such as quality, quantity,
price, color, brand, packaging etc.
4. Augmented Product: It is the aggregate satisfaction of user through

additional facilitations on products such as delivery, guarantee,
installation, service and maintenance.
5. Potential Product: It is the unexpected change in technology, product

attributes, styles, color, quality, quantity etc.
3. Types or Classification of Products
 There are so many ways to identify the types of products but more
specifically products can be classified into two parts in terms of
consumption or use such as (i) consumer product and (ii) industrial
product.
Types of Products
Consumer Products Industrial Products

1. Convenience Product 1. Raw Materials
2. Shopping Product 2. Fabricating Material/Parts
3. Specialty Product 3. Equipments
4. Unsought Product 4. Installations
5. Operating Supplies
Cont……
[1] Consumer Product: It is mainly concern with ultimate uses or
consumption. The purchase quantity of those kind of goods are small
because of final consumption of individual or households.
“Consumer products are those destined for used by ultimate consumer
or household and in such form that can be used without commercial processing.” –
American Marketing Association
(i) Convenience Product: The goods which are bought frequently, immediately and with
minimum shopping efforts are called convenience products such as candy, ice-cream, cold
drinks, cigarettes, magazines, medicines etc. It can be classified into three sub-groups such
as staple product, impulse product and emergency product.
(ii) Shopping Product: The goods which are brought by the consumer on the basis of price, types,
quality, quantity, design, color, style, durability, modernity comparison are called shopping
product such as clothes, furniture, electronics, bike, automobile etc. It can be classified into
two parts like homogeneous product and heterogeneous product.
(iii) Specialty Product: The products with unique characteristics or brand identification and
typically high priced, and buyers do not use much time to compare against other products
such as luxury cars like BMW Car, Mercedes Car, Diamond, Armani’s watches etc.
(iv) Unsought Product: Unsought products typically are products that the consumers are not
aware and don’t have any knowledge about it. Consumers have no desire and intention to
buy unsought goods under normal circumstances such as dishwasher, frozen food,
encyclopedias, reference books etc.
Cont……
[2] Industrial Product: It is mainly concern with production, resale, carry on
some business/institutional activities. Thus, industrial product is a good
used by a company for business consumption.
“Industrial products are those destined to be sold primarily for use in
producing other goods or rendering services.” - American Marketing Association
(i) Raw Materials: The industrial goods that will become a part of another tangible products is
called raw materials. It consists with natural raw materials and produced or agricultural raw
materials. Examples of raw materials include steel, oil, plastic, natural gas, coal, and minerals.
(ii) Fabricating Material/Parts: The industrial goods those which become the actual parts of
finished industrial products and these goods are processed in some degree. For example, steel
is obtained from pig iron, cloth from yarn, bread from flour, etc.
(iii) Equipments: It means machinery and equipment used by a manufacturer in a manufacturing

establishment. Equipment is any big furniture or mechanical or electronic device designed and
used to perform some function and to produce a certain effect or result such as table, chairs,
computer, vehicles etc.
(iv) Installations: It is a place that contains for durability of big equipment and machinery which are
being used for a particular purpose such as equipments for air service.
(v) Operating Supplies: Operating supplies are "consumed" by the company during operations such
as production, distribution and transmission. Usually operating supplies include stationery, oil,
lubricant, petrol, grease, tools, Mobil etc.
4. Meaning and Concept of Service or Service Product
 Services include all those economic activities that are intangible and imply
interaction to be realized between a service provider and the consumer.
According to Philip Kotler - “A service is any activity or benefit that are

being an offer to another that is essentially intangible and does not result in the
ownership of anything.”
According to American Marketing Association - “Services are activities,

benefits, or satisfactions which are offered for sale, or provided in connection of sale of
goods”.
Services
 Intangible product.
 Variable inputs and outputs (people!).
 Production and consumption at same place and time.
 No inventories.
 High customer interaction.
Cont……
 Before designing and delivering service product, we needs to understand
the following aspects:
Performed = Not
Produced
Cannot Be Intangible = Not

Owned = Nobody Tangible
Can Take
Services Home
Cannot Be
Difficult To Stored = No
Measure =
Inventory
Qualitative
Production and
More Interactions
Consumption =
= More Motivation
Single Time
5. Features, Types and Strategies of Service Products
Intangibility
Free From Inseparability

Ownership
Features of
Service
Product
Heterogeneity Perishability
Variability
Legal Services
Call Center Services Teaching Services Health Services
Cont……
→ Intangibility: Service product can not be seen, touchable, tasted, heard, smelled
before purchase.
→ Inseparability: Service product can not be separated from producer and

consumers.
→ Perishability: Service product can not be stored in warehouse for further sale or
use.
→ Variability: Service product can not be similar i.e. it depends on the service
providers.
→ Heterogeneity: Different people have different level of understanding on services.
→ Free From Ownership: There is no transfer of ownership form service provider to

consumer as a tangible goods.
Cont……
Basically, service product can be categorized into four parts such as……..
People based and

equipment based services
Personal and business

services
Types of
Service Product
Presence and absence
services of the buyers
Profit and non-profit

services
Cont……
(i) People and Equipment Based Services
→ People base service: Services of teacher, lawyer, doctor etc.
→ Equipment based services: operating of computer, vehicles etc.
(ii) Personal and Business Services
→ Personal services: Service provides to the individual or households customers like
health services, hotel services, insurance services etc.
→ Business services: Services provides to the business or industrial customers like
advertisement, market research, consultation and orientation etc.
(iii) Presence and Absence Services of the Buyer
→ Presence service: If service is provided in the presence of buyer is called presence
services such as health treatment, hair cutting etc.
→ Absence Service: If service is provided in the absence of buyer is called absence service
such as vehicle repairs, washing clothes etc.
(iv) Profit and Non-Profit Services
→ Profit service: If service is provides to make or earn profit is called profit service such as
private school education, private hospital, insurance company etc.
→ Non-profit service: If service is provides to upgrade the level of citizen, community and
society is called nor-profit services such as government organizations schools, hospital,
administrative organization like arms and police forces etc.
Cont……
Typically, marketing strategies for service product as follows………………
Product
Mix
Strategies
Process Pricing
Mix Mix
Strategies Strategies
Service
Physical Product
Evidence Strategies Place Mix
Mix Strategies
Strategies
People Promotion
Mix Mix
Strategies Strategies
Cont……
1) Product Mix Strategies: These strategies are mainly concerns to increase quality of
service product in relation to before sales service, during sales service and after sales
service.
2) Pricing Mix Strategies: The primary concerns of this strategies are to formulate and
implement one price strategy, flexible price strategy, high price through brand promotion
strategy and price competition strategy.
3) Place Mix Strategies: These strategies are primarily concerns to facilitates services
through quick or shorter distribution channels, use service agents and so on.
4) Promotion Mix Strategies: Mostly these strategies are attempts to setup and implement
strategies related to advertisement, sales promotion, publicity, public relation etc.
5) People Mix Strategies: The primary concerns of these strategies are to upgrade the level
of service providers through motivation, training and development etc.
6) Physical Evidence Mix Strategies: These strategies are mainly concerns to improve
facilities, infrastructure and service deliveries.
7) Process Mix Strategies: These strategies are essentially focuses to maintain uniformity in
offerings, delivering and satisfaction.
6. Individual Product Decisions and Product Mix Decisions
→ Individual Product Decisions: It involve the development of a product and

related decisions regarding marketing. It includes the decisions regarding
product attributes, branding, packaging, labeling, product support services
etc.
→ Product Mix Decisions: It refers to the decisions regarding adding a new or

eliminating any existing product from the product mix, adding a new
product line, lengthening an existing line, or bringing new variants of a
brand to expand the business and to increase the profitability. It includes
product line breadth, depth, length and consistency.
Product Line Product Line Product line

Product line breadth
depth length consistency
7. New Product Development Process
 A product is anything that can be offered to a market to satisfy needs and

wants.
 Besides that, the new product is anything which is perceived by the
customers as being new.
 New product development (NPD) is the complete process of bringing a new
goods, services, and ideas to the market till its consumption and feedback
from the end use of the business chain through the systematic procedure
and parameters.
According to Philip Kotler – “New product for our purposes will include
original products, improved products, modified products and new brands that the firm
develops through its own research and development efforts.”
Societies reward those who produce and supply new products that reflect their needs (Truth).
 For Example:- ‘’Think Different’’ -was an advertising slogan for Apple Incorporation (1997).
 For Example:- ‘’To save people money so they can live better’’-was a corporate mission of Wal-Mart
Incorporation (Feb. 13, 2019 Founder Sam Walton)
Cont……
 Every goods and services have certain period of time to survive ad then
they must be weeded out and replaced.
 Furthermore, every firms generate most of their revenue and profit from
creativity, innovation, modification and differentiation in goods and
services.
World real life changes in different products………..

→ TV to HDTV
→ Radio to Satellite radio or cell Phone Radio
→ Landlines to Cell Phones
→ Walkman to iPod
→ Coffee Shops to Starbucks Lifestyle Coffee
Cont……
Basically, new product can be categorized into three parts such as………..
Replacement (2) Replacement Product: Existing

Product products replace by new one in
order to fulfill the needs and
demands of target markets is called
Innovative Imitative replacement product. For Example;
Product product Radio to Cell Phone Radio,
Typewriter to Computer etc.
New
Product (3) Imitative Product: To produce
similar products by imitating the
products of other companies or
(1) Innovative Product: First time introduce in business organizations is called
the market, design and development through imitative product. For example;
market research and no competition. For Sony company invented Walkman
example; Corona vaccine, 4G/5G services etc. but other company imitated it.
Cont……
 New Product Development (NPD) process requires that organization build
strong structure internally such as:
→ Open communication with owners, personnel and customers
→ Create innovative product development culture
→ Aggressive market research and development
→ Build up strong organizational leadership
→ Provides training and development to the employees
→ Find out appropriate suppliers
 Marketing managers must be aware and able to anticipate changes in new

product development opportunities such as:
→ Understanding the potential markets or customers
→ Recognize the economic changes
→ Ascertain the sociological and demographic changes
→ Find out the technological changes
→ Discover the political and legal changes
→ Acknowledge the market practices and professional standards
→ Analyze the potential suppliers and distributors
Cont……
 New Product Development (NPD) is the development of original products,
product improvements, product modifications and new brand through the
firm’s own research and development efforts. The NPD process consist of
following steps:
Source: Philip Kotler (1931)
Cont……
(1) Idea Generation: It consists with sources of idea generation such as managers,
employees, customers, suppliers, intermediaries, competitors, research and
development.
(2) Idea Screening: It concerns with identification of promising ideas, marginal

ideas and reject less valued ideas for new product development effectively.
(3) Concept Development & Testing: After idea screening , needs to develop and
test new concept. It provides detailed versions of new product ideas and
potential consumers evaluate ideas in concept tests.
(4) Marketing Strategy: It mainly concerns with formulating marketing mix

strategies such as product, price, place, promotion, people, physical evidence,
and process based strategies.
Cont……
(5) Business Analysis: After formulating marketing strategies, needs to analyze
the demand, cost and profitability of business or business units through new
product development.
(6) Product Development: According to the business analysis-needs to conduct
feature determination activities, scientific and engineering activities, functional
test, test of consumer’s priority and determination of marketing mix finally.
(7) Test Marketing: It is a tool used by the companies to check the viability of their
new product or a marketing campaign before it is being launched in the market
on a large scale. It is generally carried out to ascertain the probable market
success in terms of new product’s performance, the level of acceptance of the
product, customer satisfaction, and the efficiency of the marketing campaign.
(8) Commercialization: It is the process of introducing a new product into
commerce-making it available o the market. The broader act of
commercialization entails production, distribution, marketing, sales, customer
support, and other key functions critical to achieving the commercial success of
the new product or service.
8. Product Lifecycle and Its Strategies
 Product life cycle (PLC) can be understood as the period of time over
which an item (product) is developed, brought to market and eventually
removed from the market.
According to Philip Kotler – “The product life cycle is an attempts to

recognize distinct stages in the sales history of the product. The sales histories has
passed through four stages known as introduction, growth, maturity and decline.”
 As a result, PLC is the cycle through which every product goes through
from introduction to growth, growth to maturity, maturity to decline or
withdrawal or eventual demise in the market.
Cont……
Cont……
Stages based features of product life cycle are as………………………………..
1) Introduction Stage: There are varieties of features some of them - slow
sales turnover, low profit, new customers, no competition, high price/cost, use
informative advertizing, need of market research and so on.
2) Growth Stage: This stage involves number of features such as - rapid sales
growth, rising profit, easy excess of customers, growing competition,
decreasing price of product, increasing advertizing cost and so on.
3) Maturity Stage: There are varieties of features some of them - decrease in

sales turnover, stable/constant profit, focus on customer attraction,
intense/keen competition, need to decline price of the product and so on.
4) Decline Stage: This stage consists number of features such as - declining

sales, declining profit, declining number of customers, declining competition,
rising price due to less production and consumption, chance to withdrawal
form market.
Cont……
Stages based marketing strategies of product life cycle are as……………..
1) Marketing Strategy in Introduction Stage: In this stage, marketing strategy
mainly concerns with - high profile strategy, low profile strategy, selective
penetration strategy and preemptive penetration strategy.
2) Marketing Strategy in Growth Stage: In this stage, marketing strategy

mainly concerns with - improve quality of product, add new features and
models, searching new market segments, change advertizing theme, use
new/effective distribution channels and so on.
3) Marketing Strategy in Maturity Stage: In this stage, marketing manager

can formulate and apply those strategies such as - market modification
strategy, product modification strategy and even the marketing mix strategies
like pricing, placing, and promotion strategies.
4) Marketing Strategy in Decline Stage: In the stage, marketing managers

can apply - contraction strategy where continuity in potential products and
terminating weak product, withdrawal of all promotions activities, use single
distribution channel, abandon or remove product from market.
9. Meaning, Types and Importance of Branding
 Typically, the word brand is derived from the ancient North Germanic
language Old Norse (350 AD) “Brandr” meaning “to burn” - which refers to
practice of producers burning their mark onto their products.
According to American Marketing Association – “A brand is – name,
term, sign, symbol, design, a combination of them intended to identify the goods and
services of one seller or group of sellers and to differentiate them from those of
competition.”
 Brand is a combination of name, term, design, symbol that identifies a

product and distinguishes it from its competitor.
 Branding is endowing products with the power of the brand. Thus, it is one
kind of promise given to the customer- a promise that needs to be fulfill
every single time.
Cont……
According to Philip Kotler – “A brand is essentially a seller’s promise to
consistently deliver a specific set of features, benefits and services to the buyers.”
Words Associated with Brand…………………………….
→ Brand Name/Identity: It is the a of brand that
consists of words, letters and numbers that can be
vocalized like……
→ Brand Mark: It is a part of brand that can be
recognized but is not utter-able or vocalized like......
→ Trademark: It is a part of brand that is given legal
protection because it is capable of exclusive
appropriation like......
→ Patents: It a right granted to an inventor that allows them to exclude all others
from making, using, or selling their invention for limited period of time.
→ Trade Secret: It is a key component of IP portfolios helping businesses protect
their secret formulas, know-how and other key information that gives them a
competitive edge.
Cont……
Basically, importance of brand can be defined as follows……..................
Importance of Brand
Importance To Customer Importance To Organization Importance To Society

Product Identification Promotion Consumer’s Welfare
Price Stability Legal Protection Social Activities
Quality Stability Market Control Environmental Protection
Image or Prestige Competitive Advantage
sss
Customers Organization Society
Cont……
Basically, the brands can be classified into three parts such as…………...
Types of Brands
Based on Ownership Based on Market Area Based on Product Line

Manufacturer's Brand International Brand Family Brand
Middlemen’s Brand National Brand Individual Brand
Regional Brand Separate Family Brand
Provincial Brand Combination Brand
Local Brand
10. Meaning, Components and Strategies of Packaging
 Before the creation of pure packaging people use many of the natural
things to make a basket for packaging to protect products such as woven
grasses, animal organs, bamboo's puts etc.
 Besides that, these days people or business organizations are using paper,
glass, metal and plastic products for good packaging.
According to W.J. Stanton – “Packaging may be defined s the general
group of activities in product planning which in value designing and producing to
container or wrapper for a product.”
According to Philip Kotler – “Packaging is the activity of designing and
producing the container or wrapper for products.”
 Thus, packaging is the science, art and technology of enclosing and protecting
products for distribution, storage, sales and use. It involves designing and
producing the wrapper for product.
Cont……
 Packaging is a very important marketing strategy to glamorize products in
order to attract the consumer’s attraction.
 Packaging promotes and reinforces the purchase decision not only at the
point of purchase, but also every time the product is used.
 The functions and importance of packaging can be pointed as follows:

→ It helps to protect and make product durable.
→ It supports to attract consumer’s attention.
→ It helps to identify products easily.
→ It support to minimize wastages.
→ It helps in utilization or consumption.
→ It uses for track and trace purposes.
Cont……
The types or classification of packaging are as……………………………….
→ Paper and Carton Packaging: It consists wrapping paper,
inflated paper, sheets, carton boxes- use for foods and
other products.
→ Film Packaging: It consists polyethylene, polypropylene,

polyolefin- use for bags tubes etc.
→ Form Packaging: It is used thickness or broken products like

flat glasses as roll sheets.
→ Textile Packaging: Some goods that are best protected by

textiles package- use for spares and parts of automobiles etc.
→ Plastic Boxes and Container Packaging: Some goods that are

best wrapping by textiles package- use for milk, juices, etc.
Cont…...
The Key components or requirements of packaging………………………….
Suitable/Proper
Requirements of
Protective/Safety
Packaging
Identity/Recognition
Cost Effective
Consumer Attraction
Size and Shape
Durability/Robustness
Cont……
The strategies of packaging are as……………………………………………………….
→Multi-Product Packaging Strategy: Different
packages products are enclosing or wrapping in a
Multi- single package is called multi-product strategy. For
Product example; toothpaste and brash.
Package
Strategy →Package Alteration Strategy: After identifying the
weaknesses of existing packaging, needs to change
Family Package existing to new once is called alteration strategy.
Package Alternation
Strategy Strategy →Re-use Package Strategy: After consuming the
main product, the package of main product uses
Strategies for same or different products is called re-use
of package strategy. Like coke, horlicks bottles etc.
Packaging →Consistent Package Strategy: If marketers always
Innovative Re-use uses same package for their products is called
Package Package consistent package strategy like Honey in glass
Strategy Strategy bottle.
Consistent →Innovative Package Strategy: If marketer design

and uses new product package is called innovative
Package package strategy.
Strategy
→Family Package Strategy: If marketer uses similar
kinds of package in their products line is called
family package strategy.
11. Meaning, Types and Components of Labeling
 Level is the information or notice about product, producers and its seller
written or pasted on the product or its pack.
 In other words, after packaging any product, meaningful and short

description should be written is called label.
According to Pride and Ferrel – “Labeling is used on package to

provide instruction, contents, certification and manufacture’s identification. Labels can
perform both informative and promotional functions.”
According to W.J. Stanton – “Label is the part of a product that carries

verbal information about the producer or seller.”
 Labeling is also an important part of the brand of the product and the
company. It helps the product stand out in the market, and identifies it as a
part of a particular brand.
Cont……
Cont……
The types or classification of labels are as…………………………………………..
1) Brand Label: It is a label which provide details about the

brand to which a product belongs. Brand label denotes
the name of brand of product and do not mentions any
other details except its brand name.
2) Grade Label: Grade label are the one which denotes the
quality or grade level of a product. These labels denote
the features of product and used by the organization for
classifying their products on the basis of their quality.
3) Descriptive Label: Descriptive label are the one which

denotes important information about the product. The
details provided on such labels are product ingredients,
its distinct uses, instruction about usage, precaution
needed while using, manufacturer details, date of
manufacturing, batch no., weight, size and price of
product.
Cont……
The key requirements or components of label/labeling………………………
→ Name and address of producer
→ Ingredients of the products, quality and weight
→ Quality certification marks (ISO)
→ Operating or use instructions and effects of use
→ Price, batch number, date of manufacturer, date of expiry

→ Ingredients of the product, quality and weight
→ Guarantee/warrantee information of product
→ Safety precautions for hazards and fragile products
Home Assignment 6 [Sample Questions]
Q1. What is product? Define the various concepts of product.

Q2. Discuss about the various types or classification of products.
Q3. How can you define the term service? Explain the features, types and
strategies of service product.
Q4. Describe about individual product decisions and product mix decisions.
Q5. Do you know about new product development process? Explain.
Q6. What is product life cycle? Discuss strategies involves in product life cycle.
Q7. What do know about brand? Explain types and importance of branding.
Q8. Define the meaning, key components and strategies of packaging.
Q9. How can you define labeling? Discuss the types and key components of
labeling.
Q10. How branding is differing from packaging? Explain with suitable examples.
Q11. Discuss the distinguish between branding and labeling with appropriate
examples.
Text or Reference Books
o Kotler, P. and Armstrong G.: Principles of Marketing, (13th ed.),

Pearson, India [Philip Kotler and Gray Armstrong]
o Saxena, R.: Marketing Management (new ed.), McGraw Hill, India

[Rajan Saxena]
o Agrawal, G.R.: Marketing in Nepal, Fundamentals, Management

Strategy, Educational Enterprise, KTM [Govinda Ram Agrawal)
o Thapa, G., Neupane, D., and Rai, B.: Fundamentals of Marketing, (new
ed.), Asmita Publication, KTM [Gopal Thapa, Dipendra Kumar
Neupane and Bharat Rai]
Key Notes
After finalizing the chapter, your are required to solve and submit
CS PDF copy of answer sheet within the prescribed time and date. It
contains with 20 marks. The obtaining marks will fairly accumulates in
internal evaluation. If anyone fail to submit this assignment within the
datelines, I throw out form the evaluation. Thus, please do not miss or
neglect this work.
[Submission ID: kathayatbb44@gmail.com]
Thank You!!!

Unit 6 Product Decisions

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Unit 6 Product Decisions

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Lecturer B.B.

After completing this chapter, students should be able to:

 In marketing, a product is an object or system made available for consumer

According to Stanton, Etzel and Walker - “A product is a set of tangible and

According to Philip Kotler - “A product is a bundle of physical services and symbolic

Physical 2.Service Concept: It is called intangible

2. Customer/Consumer Dimension: According to Customer/consumer, a

3. Social Dimension: According to Society, a product as a source of long-

→ Product is the core component of Marketing Mix.

→ Different people perceive product differently.

→ Product is a base for entire marketing program.

→ Product includes both tangible and intangible features or benefits.

→ Product means a complete item or offering that can be sold to customers.

→ Product includes total offers, qualities, features, and services as whole.

→ Product is a vehicle/medium to offer benefits and satisfaction to

→ Marketer can actualize its goals by producing, selling, improving, and

3. Expected Product: It is a set of attributes and conditions that consumer

4. Augmented Product: It is the aggregate satisfaction of user through

5. Potential Product: It is the unexpected change in technology, product

Consumer Products Industrial Products

(iii) Equipments: It means machinery and equipment used by a manufacturer in a manufacturing

According to Philip Kotler - “A service is any activity or benefit that are

According to American Marketing Association - “Services are activities,

 Variable inputs and outputs (people!).

 Production and consumption at same place and time.

 High customer interaction.

Cannot Be Intangible = Not

Free From Inseparability

Call Center Services Teaching Services Health Services

→ Inseparability: Service product can not be separated from producer and

→ Heterogeneity: Different people have different level of understanding on services.

→ Free From Ownership: There is no transfer of ownership form service provider to

People based and

Personal and business

Profit and non-profit

→ Individual Product Decisions: It involve the development of a product and

→ Product Mix Decisions: It refers to the decisions regarding adding a new or

Product Line Product Line Product line

 A product is anything that can be offered to a market to satisfy needs and

World real life changes in different products………..

Replacement (2) Replacement Product: Existing

 Marketing managers must be aware and able to anticipate changes in new

Source: Philip Kotler (1931)

(2) Idea Screening: It concerns with identification of promising ideas, marginal

(4) Marketing Strategy: It mainly concerns with formulating marketing mix

According to Philip Kotler – “The product life cycle is an attempts to

3) Maturity Stage: There are varieties of features some of them - decrease in

4) Decline Stage: This stage consists number of features such as - declining

2) Marketing Strategy in Growth Stage: In this stage, marketing strategy

3) Marketing Strategy in Maturity Stage: In this stage, marketing manager

4) Marketing Strategy in Decline Stage: In the stage, marketing managers

 Brand is a combination of name, term, design, symbol that identifies a

Importance To Customer Importance To Organization Importance To Society

Customers Organization Society

Based on Ownership Based on Market Area Based on Product Line

 The functions and importance of packaging can be pointed as follows:

→ Film Packaging: It consists polyethylene, polypropylene,

→ Form Packaging: It is used thickness or broken products like

→ Textile Packaging: Some goods that are best protected by

→ Plastic Boxes and Container Packaging: Some goods that are

Size and Shape

Consistent →Innovative Package Strategy: If marketer design

 In other words, after packaging any product, meaningful and short