The product in theory

and practice
Dr. Sheetal Jain
CEO & Founder, Luxe Analytics
 Agenda

• What is product
• Product vs Brand
• Individual vs Umbrella brand
• Types of Consumer Product
• Levels of Product
• Product vs Service
• Business Product
What is a Product?
What is a Brand?
Are they same?
 Product vs Brand
• The product is an item or service produced and offered by the company
for sale in the market.
• A brand is an entity like the logo, symbol or name used by the companies,
to make their products identifiable among other products in the
marketplace.
 Product vs Brand
• A product can be your need, but the brand is something more than that.
You can understand it with an example like it is your need to wear outfits
and footwear, but it is your want to wear outfits of Gucci and footwear of
Nike.
• Copying a product is easy, but it’s hard to copy a brand.
• Companies create products. While Brand (image) is created by customers;
it takes years and years to build a brand loyalty.
 Product vs Brand
• Product performs its general functions, but a brand offers value to the
customers.
• The product is tangible or intangible in nature. However, a brand is
intangible it can only be experienced.
 Product vs Brand

Search engine
Product vs Brand
Growth of branding can be attributed to following factors:
Brand building is seen as essential to:
 Brands vs Products Video

• https://www.youtube.com/watch?v=WI0a8Cf5WLI
Brand name has number of distinguishing characteristics. It is:
Individual vs Umbrella Branding
 Individual branding
• Individual branding is a brand marketing strategy where a parent brand
gives a product a new identity, a unique brand name, and allows it to
function independently.
• It helps build a unique product an image in the market, contributes to
the brand's positioning over competitors, and defends its reputation.
 Individual branding
Advantages of individual branding:
• the parent brand’s reputation won’t be affected if the product fails;
• opportunity to use various marketing methods
• companies can use different approaches to reach customers and serve them;
• brands can produce lower-quality products without influencing the image of products
from the parent brand;
• brands can be positioned differently as corporate identity is reduced;
• the opportunity to obtain multiple levels of customer loyalty.
 Individual branding
Disadvantages of individual branding:
• a higher risk of instability within the parent brand;
• a new brand name can require significant costs;
• lack or absence of regular customers;
• increased number of human resources;
• lack of acknowledgment;
• customers questioning the quality of the products.
Umbrella Branding
 What Is a Product?
Product is the starting point of Marketing Mix

Product

Price Promotion

Place (Distribution)
 Types of Products

A
A product
product used
used to
to manufacture
manufacture otherother
Business
Business goods
goods or
or services,
services, to
to facilitate
facilitate an
an
Product
Product organization’s
organization’s operations,
operations, or or to
to resell
resell
to
to other
other customers
customers

Consumer
Consumer A
A product
product bought
bought toto satisfy
satisfy an
an
Product
Product individual’s
individual’s personal
personal wants
wants
 Types of Consumer Products
Products
Products

Consumer
Consumer Business
Business
Products
Products Products
Products

Convenience
Convenience Shopping
Shopping Specialty
Specialty Unsought
Unsought
Products
Products Products
Products Products
Products Products
Products
 Types of
Consumer Products
Increase market share among
Convenience A relatively inexpensive
existing customers item that
Product merits little shopping effort

A product that requires

Attract comparison
new customers to
Shopping
shopping, because
existing it is usually more
products
Product
expensive and found in fewer stores
A particular item
Create new for which
products for
Specialty Market
consumers search
present markets extensively and
Diversification
Product Development
are reluctant to accept substitutes

A product unknown to the potential

Unsought Introduce
buyer or a knownnew products
product that the
Product into new
buyer does not markets
actively seek
 Types of
Consumer Products
• Convenience: candy, soft drinks, deodorant, aspirin, hardware, dry cleaning.
• Shopping: Homogeneous shopping products such as washers, dryers, televisions.
Decisions are based on the lowest-priced brand with the desired features.
Heterogeneous shopping products are essentially different, for example furniture,
clothing, housing, universities. Decisions are highly-individual and based on
“finding the best product for me.”
• Specialty: fine watches, expensive automobiles, gourmet restaurants.
• Unsought: new products, insurance, burial plots, encyclopedias.
5 Levels of Product
 5 Levels of Product
1.Core benefit: The core benefit is the basic need or want that the customer
satisfies when they buy the product. For example, a hotel provides a bed to
sleep in when a person is away from home.
2.Generic product: The generic product is a basic version of the product made up
of only those features necessary for it to function. In this example, a hotel would
provide not only a bed, but a few additional items such as sheets, towels and a
bathroom.
3.Expected Product: The expected product includes additional features that the
customer might expect. In the hotel example, the sheets, towels and bathroom
would be clean.
 5 Levels of Product
4. Augmented Product: The augmented product refers to any product variations or
extra features that might help differentiate the product from its competitors and
make the brand a clearer choice amongst the competition. This could be additional
amenities such as a helpful concierge service or tourist guides available to hotel
guests.

5. Potential Product: The potential product includes all augmentations and

improvements the product might experience in the future. This means that to
continue to surprise and delight customers the product must be constantly improved.
In the hotel example, this could mean gifts, chocolates, or luxury bath products that
will make the customer happy and choose that product over others in the future.
 PRODUCT LEVELS

• https://www.youtube.com/watch?v=e-tSXu8dS6o
 Definition of Services

Services are activities or benefits that one party can benefit to

another that are essentially intangible and do not result in the
ownership of anything
 Tangible / Intangible Attributes

• Tangible • Intangible
• touch • can’t see
• see • can’t touch
• taste • can’t smell
• smell • can’t taste
Difference between physical goods and
services
Physical goods Services

tangible intangible

homogeneous heterogeneous

Production and distribution are Production, distribution and

separated from consumption consumption are simultaneous
processes

A thing An activity or process

Core value processed in factory Core value produced in the buyer-

seller interaction
Customers do not participate in the Customers participate in production
production process
Can be kept in stock Cannot be kept in stock

Transfer of ownership No transfer of ownership

Goods and Services: Scale of
Elemental Dominance
 The Goods-Services
Continuum

Canned Ready- Auto- Draperies, Rest- Repairs: Air Insurance,

foods made mobiles Carpets aurant auto, house, travel Consulting,
clothes meals landscaping Teaching

MOSTLY GOODS MOSTLY SERVICES

 Characteristics of Services

• intangibility: difficult to sample and to evaluate

• inseparability: difficult to separate services from the
service provider; mainly direct sales; staff are essential to
the delivery of quality services
• heterogeneity: virtually every service is different; very
difficult to standardize quality
• perishability: those not sold can not be stored
 Characteristics of Services

1. Intangibility - “u can’t touch this”

Marketing Strategies
• stress tangible cues, eg. Smiling face
• use personal information, sources, references
• use word-of-mouth
• Org. image
 Characteristics of Services

2. Inseparability of Production (or

performing the service) and Consumption
(using the service) - happens at the same time
Marketing Strategies
• Emphasize how much you train your people - so their
ability to give you good service will be high
• Have many locations so customers can get to you
• ie. Insurance sales come to your home
 Characteristics of Services

3. Heterogeneity - services are not always

delivered the same way
It is very difficult to standardize services

Marketing Strategies
customization
 Characteristics of Services

4. Perishability - cannot be put in inventory or

stored for later use

Marketing Strategies
• Cope with the fluctuating demand
• Better match through process
e.g. seats in an airline
7 P’s of Service Marketing
Mix
 7 P’s of Service Marketing Mix
• Product
• Price
• Place
• Promotion
• Physical Evidence
• People
• Process
What Is Business Marketing?

Business
Business
Marketing
Marketing The marketing of goods and services to
individuals and organizations for
purposes other than personal
consumption.
 Business Products

The key is intended use.

Business Products:
1. A product that is purchased for personal use is
considered a consumer good. If the same product is
purchased for use in a business, it is a business product.
The key in classification as a business product is
intended use.
2. The size of the business market in India and most other
countries substantially exceeds that of the consumer
market.
 Activity
• Is it a consumer transaction or a business
transaction?
You buy a gear to fix your mountain bike.
Ford buys the same gear to fix a machine.
You start a landscaping business and purchase
a lawnmower.
The Indian government buys…anything.
 Business Products
Business Products:
• Are used to manufacture other products
• Become part of another product
• Aid the normal operations of an organization
• Are acquired for resale without change in
form
 Business-to-Business
Business-to-business electronic commerce
is…

the use of the Internet to facilitate the

exchange of goods, services, and
information between organizations.
Major Categories of Business Customers

Producers • OEMs (original

equipment manufacturers)

Resellers • Wholesalers
• Retailers

• Federal
Governments • State
• Local

• Schools • Hospitals • Colleges

Institutions • Churches • Unions • Fraternal
• Civic Clubs • Foundations groups
• Nonbusiness organizations
 Business versus Consumer Markets
Characteristic
Characteristic Business
BusinessMarket
Market Consumer
ConsumerMarket
Market
Demand
Demand Organizational
Organizational Individual
Individual
Volume
Volume Larger
Larger Smaller
Smaller
No.
No.of
ofCustomers
Customers Fewer
Fewer Many
Many
Location
Location Concentrated
Concentrated Dispersed
Dispersed
Distribution
Distribution More
MoreDirect
Direct More
MoreIndirect
Indirect
Nature
Natureof
ofBuying
Buying More
MoreProfessional
Professional More
MorePersonal
Personal
Buy
BuyInfluence
Influence Multiple
Multiple Single
Single
Negotiations
Negotiations More
MoreComplex
Complex Simpler
Simpler
Reciprocity
Reciprocity Yes
Yes No
No
Leasing
Leasing Greater
Greater Lesser
Lesser
Promotion
Promotion Personal
PersonalSelling
Selling Advertising
Advertising
Types of Business Products
Major
MajorEquipment
Equipment(large
(largemachines;
machines;airplanes,
airplanes,buildings)
buildings)

Accessory
AccessoryEquipment
Equipment(power
(powertools,
tools,drill
drillmachines)
machines)

Raw
RawMaterials
Materials

Component
ComponentParts
Parts(automobile
(automobiletires)
tires)

Processed
ProcessedMaterials
Materials(sheet
(sheetmetal,
metal,chemicals)
chemicals)

Supplies
Supplies(pencils,
(pencils,papers)
papers)

Business
BusinessServices
Services(legal,
(legal,market
marketresearch)
research)
Types of Business Goods and Services