Course: Marketing Management (MM I) Session 10

Product Concepts
and
Product Management

Instructor: Vaibhav Chawla

Email: vaibhav.chawla@ifmr.ac.in
 Caution
(Do not use the slides and
other materials for purposes
other than academic
learning)

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STP, 4Ps, Marketing Strategy
Exploring Providi Deliveri Communi
and
Choosing ng the ng the cating the
the value value value value

Situation Analysis Product Strategy Placement Promotion

Segmentation Pricing
Targeting
Positioning
(STP) (4Ps)
Marketing Mix

Marketing Strategy

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Product Concepts

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What is a Product?
Name three popular products
that comes to your mind

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What is a Product?
Eating at a Restaurant
Flying experience in Airplane
Education

These are also products

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What is a Product?
Anything offered for sale for the
purpose of satisfying a want or a
need

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 Product Continuum
Tangible Good Service With
Pure Tangible With Hybrid Offer Accompanying Pure Service
Good Accompanying Minor Goods
Services

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Product Features
Customers expect benefit for the
features they are paying for

Features are important only to

the extent they provide benefits

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Product Classification Schemes

Durability

Tangibility

Use

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Durability and Tangibility
Nondurable goods: are used or consumed over
a short period of time, or after one or few uses.
E.g.: grocery items

Durable goods: are used or consumed over a

long period of time, usually at least three years.
E.g.: refrigerators, ACs, video cameras
Services: are intangible, inseparable, variable,
and perishable products that normally require
more quality control, supplier credibility, and
adaptability. E.g. Hair cut, legal advice
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Consumers Goods Classification
Convenience goods: are relatively inexpensive goods
that are purchased with a minimum of thought and
effort. Purchase involves less risk.

Shopping goods: are more costly and involve more

risk than convenience goods. Purchase involves more
time and effort in examining and selecting brands

Specialty goods: are highly expensive and involve

high risk. They are unique and specialized goods. In
many cases consumers know in advance which goods
they prefer and will not shop to compare goods.
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Consumers Goods Classification

Unsought goods: Consumer does not normally know

or buy unsought goods. As such these goods require
advertising and personal-selling support.

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Why We Classified Products
and Goods?
• Consumer behavior is similar for
products within a class
• Consumer behavior is different
for products from different
classes
• Marketing strategy would be
similar for products within a
class
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Elements of a Product

Product Supporting
Branding Packaging Labeling Elements
Features

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Product Features
• Successful product evolve through discovering
features that customer desires, then
- merging it with what makes more sense
technically and financially
• Aspects of product features to consider:
- Physical form or design
- Level of quality
- Durability
- Environmental impact
- Ease of use

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Branding

The process
involved in creating
a unique name and
image for a brand in
the consumers'
mind

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Brand

A name, term, symbol,

design, or combination
thereof that identifies a
seller’s products and
differentiates them from
competitors’ products.

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Brand
Brand Name is the portion of a brand that can be spoken,
including letters, words, or numbers
Brand Mark is the portion of a brand that cannot be expressed
verbally, such as graphic design or symbol
Logo A brand mark is sometimes referred as logo;
however, a logo can also refer to a distinctive type
style such as Coca-Cola’s elegant script
Trade name Many companies offer several brands under one
company name. The legal name under which a
company or organization operates is trade name
Trademark When the owner of a brand or portion of a brand
registers it with U.S. govt. for exclusive use
Service mark A service mark is same as trade mark, but it refers to
services

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Brand Equity

A notion of value of a
brand is called brand
equity, which indicates a
brand overall strength in
the marketplace

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Brand Equity: Five Components

1. Brand Loyalty
2. Brand Awareness
3. Perceived Quality
4. Brand Associations
5. Other Proprietary Brand Assets

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Types of Brands

Manufacturers’
Manufacturers’ The
The brand
brand name
name of
of aa
Brand
Brand manufacturer.
manufacturer.

A
A brand
brand name
name owned
owned by by aa
Private
Private wholesaler
wholesaler or
or aa retailer.
retailer. Also
Also
Brand
Brand known
known as
as aa private
private label
label or
or store
store
brand.
brand.

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Types of Brands

Generic Brand
A no-frills, no-brand-name,
low-cost product that is
simply identified by its
product category.

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Key Branding Issues
1. Brand Selection
2. Brand Protection
3. Brand Extension versus Individual
Branding

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Packaging

Contain
Contain and
and Protect
Protect

Promote
Promote
Functions
Functions
of
of
Packaging
Packaging
Facilitate
Facilitate Storage,
Storage, Use,
Use,
and
and Convenience
Convenience

Facilitate
Facilitate Recycling
Recycling

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Labeling

Persuasive
Persuasive Informational
Informational

 Focuses on  Helps make proper

promotional selections
theme
 Lowers cognitive
 Information is dissonance
secondary
 Includes use/care
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Universal Product Codes
A series of thick and thin
vertical lines (bar codes),
readable by computerized
optical scanners, that
represent numbers used
to track products.

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Supporting Elements
• Most products include some
type of supporting elements
- related products
- a warranty or guarantee
- maintenance and repair
services
- installation, training and
consulting services
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Product Management

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 Adopter’s Categories
ADOPTERS’ CATEGORIES BASED ON INNOVATIVENESS
Percentage of Adopters

Early Early Late

Majority Laggards
Innovators Adopters Majority
34% 16%
2.5% 13.5% 34%
Time
New Product Development
Process

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References
 Courtland L. bovee, Michael J. Houston, &
John V. Thill (1995), Marketing (International
Edition), 2nd ed., Mc-Graw-Hill Publishers
 Charles W. lamb, Joseph F. Hair, Jr., Dheeraj
Sharma, & Carl McDaniel (2012), MKTG: A
South-Asian Perspective, Cengage Publishers
 Philip Kotler, Kevin Lane Keller, Abraham
Koshy, & Mithileshwar Jha (2013), Marketing
Management: A South Asian Perspectives,
Pearson Publishing

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References
 Philip Kotler, Kevin Lane Keller, Abraham
Koshy, & Mithileshwar Jha (2013),
Marketing Management: A South Asian
Perspective, Pearson Publishing
 Philip Kotler, & Kevin Lane Keller (2008),
Marketing Management, 13th ed., Pearson
Publishing
 Dawn Iacobucci, & Avinash Kapoor (2009),
Marketing Management: A South-Asian
Perspective, Cengage Publishers
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References
 http://www.google.co.in/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=3
&cad=rja&ved=0CDQQFjAC&url=http%3A
%2F%2Fgactaern.org%2FUnit%2520Plan
%2FMarketing%2FAdvanced_Marketing
%2FAM_7%2520Product
%2520Concepts.ppt&ei=UU_dUfyiIsuErAf
UwIGwBQ&usg=AFQjCNEzWNF7HF6Gp
CPjGL0oHXtJ2HTPxQ&bvm=bv.48705608
,d.bmk
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Thanks for your Attention

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