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What is a Product?

A product is anything that can be


offered to a market to satisfy a want,
including physical goods, services,
experiences, events, persons, places,
properties, organizations, information,
and ideas.

Five Product Levels


Potential product
Augmented product
Expected product
Basic product
Core benefit

Product Classification Schemes


Durability

and tangibility
Consumer goods
Industrial goods

Durability and Tangibility


Services
Nondurable

goods
Durable goods

Intangibility
Intangibility
Services cannot
cannot
Services
be seen,
seen, tasted,
tasted,
be
felt, heard,
heard, or
or
felt,
smelled before
before
smelled
purchase
purchase

Inseparability
Inseparability
Services cannot
cannot
Services
be separated
separated
be
from their
their
from
providers
providers

Services
Services
Variability
Variability
Qualityof
of
Quality
services depends
depends
services
on who
who provides
provides
on
them and
and when,
when,
them
where, and
and how
how
where,

Perishability
Perishability
Services cannot
cannot
Services
be stored
stored for
for
be
later sale
sale or
or use
use
later

Consumer-Goods
Classification
Convenience Products

Shopping Products

Buy frequently & immediately


> Low priced
> Many purchase locations
> Includes:
Staple goods
Impulse goods
Emergency goods

Buy less frequently


> Gather product information
> Fewer purchase locations
> Compare for:
Suitability & Quality
Price & Style

Specialty Products

Unsought Products

Special purchase efforts


> Unique characteristics
> Brand identification
> Few purchase locations
>Mercedes

New innovations
> Products consumers dont
want to think about.
>Require much advertising &
personal selling
Life insurance,
gravestones etc

Classifying Business-to-Business
Products
1. Equipment goods that an organization uses in its daily operation.
Installations, Capital Equipment, Accessory Equipment
2. MRO Products goods that a business consumes in a relatively short
time.
Maintenance products, Repair products, Operating supplies
3. Raw Materials products of the fishing, lumber, agricultural or mining
industries used in the production process.
4. Processed Materials products created when firms transform raw
materials from their original state.
5. Specialized Services services purchased from outside suppliers.
6. Component Parts manufactured goods or subassemblies of finished
items that are needed to complete the organizations products.

Consistency

Product Mix
Width
Width -- number
number of
of
different
different product
product
lines
lines
Length
Length -- total
total
number
number of
of items
items
within
within the
the lines
lines
Depth
Depth -- number
number of
of
versions
versions of
of each
each
product
product

Product
Product Mix
Mix -all
all the
the product
product
lines
lines offered
offered

Product Line Analysis


Evaluate

sales and profits associated


with each item in product line
Evaluate line positioning relative to
competition
Decide whether to build, maintain,
harvest, or divest

Product-Line Length

Line

Stretching lengthening the product line


beyond current range
Downmarket

Carrefour to Carrefour Express,

Upmarket

Toyota with Lexus to compete with Mercedes

Two-way

Line

Wheel to compete with Nirma


Surf to compete with Ariel

Filling Toyota landcruiser, yaris; (Nissan also)


Line Modernization - Microsoft
Line Featuring (For Jumbo, Sony) & Line Pruning (HUL)

What is a brand?

1.12

What is a Brand?
A brand is a name, term, sign, symbol
or design, or a combination of them,
intended to identify the goods or
services of one seller or group of sellers
and to differentiate them from those of
competitors.

What is a Brand?
For Mercedes
User 55 year old top executive
or a rich person
Personality
Culture
sophisticated
German
Producer
Attributes Benefits
Values
- expensive emotional
performance

Brand
Value of the
brand depends
on how well
the brand is
attached with
the customers

Equity

5.Devoted
Devoted
5.
toBrand
Brand
to

4.Values
Valuesthe
theBrand
Brand
4.
(brandas
asfriend)
friend)
(brand
3.Satisfied
Satisfied&&Switching
SwitchingCost
Cost
3.
2.Satisfied
SatisfiedCustomer
Customer
2.
(noreason
reason to
tochange)
change)
(no
1.No
No Brand
BrandLoyalty
Loyalty
1.
(customerwill
will change)
change)
(customer

Camry
Vs
Lexus

Branding Decisions
Branding
Decision

BrandSponsor
Decision

BrandName
Decision

BrandBrandStrategy Repositioning
Decision
Decision
Line
extension

Manufacturer
brand
Brand
No brand

Distributor
(private)
brand
Licensed
brand

Arvind Mills &


Madura Garments

Individual
brand
names
Blanket
family
name
Separate
family
names
Companyindividual
names

Colgate

Brand
extension
Nike, Reebok

Multibrands

Electrolux,
Kelvinator,
Frigidaire

New
brands

Teflon, Lycra,
Tynex

Cobrands
McDonalds &
Coke

Repositioning
No
repositioning

Brand Strategies

Brand Name

Product Category
Existing

New

Existing

Line
Extension

Brand
Extension

New

Multibrands

New
Brands

Why Package Crucial as a


Marketing Tool
Self-service
Consumer

affluence ready to pay

extra
Company & brand image
Opportunity for innovation

Labels
Tag attached
to the
product
Could be
simple or
graphically
designed

Promote
Promote
Describe
Describe
Identify
Identify