Product Marketing

Principles of Marketing
Product Marketing
Product is the core of the
marketing mix
Product defines what will
be priced, promoted, and
distributed
If you are able to create
and deliver a product that
provides exceptional value
to your target customer,
the rest of the marketing
mix is easier to manage
 What is a product?

A product is a bundle of attributes (features, functions,

benefits, and uses) that a person receives in an exchange
A product can be:
• An idea (recycling)
• A physical good (a pair of jeans)
• A service (banking)
• Any combination of the three
Products are divided into consumer and business or B2B
products
Four Levels of the Product
 Types of Consumer Products

Consumer products are often classified into four groups

related to different kinds of buying decisions
1. Convenience - bread, pain reliever, power cords
2. Shopping - shoes, microwaves
3. Specialty - highly differentiated, custom goods
4. Unsought products - funeral plots, pest-control
Characteristics that Distinguish Goods
from Services
Product Life Cycle
 Stages of Product Lifecycle
0. Product
1.new product ideas are generated and tested; investment is made
development 
2.sales have not begun
stage
1.costs are very high with slow sales volumes to start
1. Market 2.little or no competition
introduction 3.demand has to be created and customers have to be prompted to
stage try the product
4.makes little money at this stage
1.costs reduced due to economies of scale as sales volume increases
2. profitability begins to rise
2. Growth
3. public awareness increases
stage
4. competition begins to increase with a few new players in
establishing market, increased competition leads to price decreases
1.costs are lowered as a result of increasing production volumes and
experience curve effects
3. Maturity 2.sales volume peaks and market saturation is reached
stage 3.new competitors enter the market, prices tend to drop
4.brand and feature diversification needed to maintain market share
5.profits decline
1.costs increase due to loss of economies of scale as sales volume
4. Decline declines, prices and profitability diminish
stage 2.profit becomes more a challenge of production/distribution
efficiency than increased sales
 Product Line

A product line is a group of products marketed by an

organization to one general market
They have some characteristics, customers, and/or uses
in common, and may also share technologies,
distribution channels, prices, services, etc
There are often product lines within product lines.
• Example: full range of Tylenol products, or over-the-
counter medicines
 New Product Development

• The internet has

increased the pace
and importance of
new product
development
• New products have
greater risk but may
bring greater rewards
 Product Development Process
Phase I: Generating Phase III:
Phase II: Developing
and Screening Commercializing
New Products
Ideas New Products

Stage 1: Generating Stage 4: Business Case Stage 6: Test

New Product Ideas Analysis Marketing

Stage 2: Screening Stage 5: Technical and

Stage 7: Launch
Product Ideas Marketing Development

Stage 3: Concept Stage 8: Evaluation

Development
and Testing