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 Chapter-7-Marketing Mix & Product Decisions-Product Life Cycle &
Brand
 Chapter-2-Concept of Product and Brand
 Chapter-8-New Product Development Process
 The Marketing Mix-Concept
 Blend of the Marketing Mix Depends Upon
 The Marketing Mix
 Marketing Mix & Product Decisions
 Product & Brand
 Difference between a Product and a Brand
 Product to cover offerings that fall into one of the following categories
 Levels of a product
 Product classifications
 Product Line
 Product Mix
 Product Life Cycle
 New-Product Development Process
The Marketing Mix-Concept
 The tools available to a business to gain the reaction it is seeking from
its target market in relation to its marketing objectives.
 7Ps – Product, Price, Place, Promotion, People, Physical Environment,
Process.
 Traditional 4Ps extended to encompass growth of service industry
Blend of the Marketing Mix Depends Upon
 Marketing objectives
 Type of product
 Target market
 Market structure
 Rivals’ behaviour
 Global issues – culture/religion, etc.
 Marketing position
 Product portfolio
 Product lifecycle
 Boston Matrix
The Marketing Mix
Product
Product...
 Product (service) as it is tangible or intangible, important issue is
understanding what benefits and satisfaction the consumer is seeking
from the product or service.
 Marketing of services is successful only if there is a match between service
product from the customer’s viewpoint and the supplier’s viewpoint.
 Customer benefit concept is very complex as customers can’t be able to
express what benefit they are looking for. Benefits sought may keep
changing over a period of time.
 Embrace all aspects of service performance that create value
 The core and periphery service elements at the centre of the company’s
marketing strategy
 Core product responds to customer’s primary need
 Array of supplementary /Periphery service elements
 Help customer use core product effectively
 Add value through useful enhancements
 Example: Blackberry Service, Online banking and SMS Alerts.
Price
Price...
 Price is only a part of what customers may part with when purchasing
a service, one must also consider time & convenience.
 Thus marketers must recognize that customer outlays involve more
than price paid to seller
 Traditional pricing tasks:
 Selling price, discounts, premiums
 Margins for intermediaries (if any)
 Credit terms
 Identify and minimize other costs incurred by users:
 Additional monetary costs associated with service usage (e.g., travel to
service location, parking, phone, babysitting, etc.)
 Time expenditures, especially waiting
 Unwanted mental and physical effort
 Negative sensory experiences
 Example: AMC/Maintenance along with product purchase.
Place
Place...
 The means by which products and services get from producer to consumer and
where they can be accessed by the consumer
 The more places to buy the product and the easier it is made to buy it, the
better for the business (and the consumer?)
 Delivering product elements to customers can be done physically and or
electronically, depending upon the service.
 Speed and convenience are essential to the customer and are important to
value-adds
 Delivery decisions: Where, When, How
 Geographic locations served
 Service schedules
 Physical channels/Electronic channels
 Customer control and convenience
 Channel partners/intermediaries
 Example: AC Delivery & Service, Online portals service pay on delivery etc
Promotion
Promotion...
 Informing, educating, persuading, reminding customers.
 Marketing communication tools
 Media elements (print, broadcast, outdoor, retail, the Internet, etc.)
 Personal selling, customer service
 Sales promotion
 Publicity/PR
 Imagery and recognition
 Branding
 Corporate design
 Content
 Information, advice
 Persuasive messages
 Customer education/training
 Marketer must make sure communications not only provide information
but also persuade the customer to opt for the product or service ‘s relevant
to the customer’s particular problem
 Example LIC, ICICI Direct
People
People...
 First line of contact with the customers.
 Should be well informed and provides the kind of service which wins
customer approval.
 Organizations spend more time in training the visible personnel.

 Categories of service –
 High People contact (People based services) – Restaurants, Dental and Medical
care.
 Low people contact (Equipment based services) – Car washing, Cinema.

 Professional- Legal services


 Non-Professional – House maid

 Primary – Dentist (Service is actually carried out by the service provider.)


 Facilitating – Bank (Where employees facilitate the service transaction and
participate in it.)
 Ancillary – Travel agent (Where the employees help to create the service exchange
but then is not part of it.)
Physical Environment
Physical Environment...
 The appearance of the place where the services are
delivered may have a significant impact upon whether
the service was satisfactory.
 Thus managing physical cues carefully— can have
profound impact on customer impressions
 Design service scape and provide tangible evidence of
service performances
 Create and maintain physical appearances
 Buildings/landscaping
 Interior design/furnishings
 Vehicles/equipment
 Staff grooming/clothing
 Sounds and smells
 Other tangibles
 Example Shop/Mall Environment with ambiance, lifts
& Elevators
Process
Process...
System by which customers receive delivery of the service.
Its a process of adding value to system inputs to create outputs which are
useful for the customers.
The performance process relates to the way in which service is created and
delivered;
It is concerned with the functional aspects of service delivery such as queuing
systems, timeliness, cleanliness and quality and reliability of delivery.
Important issues are –
Location of service delivery
Service itself
High people contact or low people contact service
Degree of standardization
Example Courier, aggregator service cabs
Marketing Mix & Product Decisions/Strategy
 Basic Marketing Mix Elements for all Products & Services-Price,
Product, Promotion, Place.
 Each target market will require a different combination of marketing
mix strategies.
 Once the marketing mix for each segment is determined the
marketers consider whether there are similarities between the groups
and whether some efforts can be combined to save resources.
 It is important that marketers consider how each marketing mix
element is integrated and related to each other elements.
 Example Variants of Protinex, Maggi’s promotion by Amitabh Bachan
for age groups.
 Product Strategy can be integrated with marketing mix elements in
the following ways.
Marketing Mix & Product Decisions….
 Product Strategy & Product:-
 Finding out how to make the product, product line, providing finance
and manufacturing the product.
 Product Strategy is not the responsibility of the marketing function but
again insights from market of what could be the most ideal product
and product line such inputs can be had from marketing function.
 Product Strategy & Pricing:-
 Of all aspects of marketing mix the price is the one which creates sales
revenue.
 An organisation’s pricing policy has to follow the model of 3C.
 For implementation of the same company needs to do market research
and the facts have to be given to decision makers involved in product
strategy
Marketing Mix & Product Decisions….
 Product Strategy & Place:-
 Roughly a fifth of the cost of product goes in logistics and channel
management.
 Thus getting the right product to the right place at the right time
requires proper distribution system i.e. ensuring availability for the
customer end.
 Choosing the distribution system as offline/Online , Organised/Un-
organised Retail require in-depth study of market through market
function and choosing the best option.
 Product Strategy & Promotion-The Product Strategy team needs to
evaluate all MARCOM tools available and based on past trends and
present targets in mind can choose the best options and create the IMC
plan.
Product & Brand
Product
 A Product is anything that meets the functional needs of the customer.
 A bundle of Satisfaction.

Brand
 A Brand can be defined as a specific name, symbol or design-or more
usually, some contribution of these
 Used to distinguish a particular sellers product.
Difference between a Product and a Brand

BRAND
Symbols
Brand
personality
Country of Scope
origin
Functional Attribute
benefits
User
PRODUCT imagery
Organizational
associations
Product
Quality/value uses

Emotional
Brand benefits
customer
relationship Self-expressive
benefits
Difference between a Product and a Brand
 Companies Make Products and Consumers Make Brands.
 Products Can Be Copied and Replaced but Brands Are Unique.
 Products Are Instantly Meaningful but Brands Become Meaningful over Time.
 Product performs a function, Brand offers an emotion.
 While you may need a product, you will want a brand.
Difference between a Product and a Brand
 Companies Make Products and Consumers Make Brands
 A product is made by a company and can be purchased by a consumer in
exchange for money while brands are built through consumer perceptions,
expectations, and experiences with all products or services under a brand
umbrella.
 For example, Toyota’s product is cars. Its umbrella brand is Toyota and each
product has its own more specific brand name to distinguish the various
Toyota-manufactured product lines from one another.
 Without a product, there is no need for a brand, when we say brand it means
recognition.
 Products Can Be Copied and Replaced but Brands Are Unique
 A product can be copied by competitors at anytime.
 When Amazon launched the Kindle e-reader device, it didn’t take long for
competitors to come out with their own branded versions of an e-reader
product.
 However, the brand associated with each e-reader device offers unique value
based on the perceptions, expectations, and emotions that consumers develop
for those brands through previous experiences with them.
Difference between a Product and a Brand
 Similarly, a product can be replaced with a competitor’s product if
consumers believe the two products offer the same features and benefits.
 Products with low emotional involvement are typically easily replaced. For
example, do you really care what brand of milk you buy or do you primarily
just care that the milk you buy is fresh and includes the fat percentage that
you want?
 Products Can Become Obsolete but Brands Can Be Timeless
 Remember VHS players? With the introduction of DVD players and more
recently DVR devices and streaming video services, VHS players have
become obsolete. The same thing happened to 8-track tapes, vinyl records,
cassettes, and CDs.
 Today, most people buy their music in digital format and listen to it on
their iPods. The Elvis Presley brand is timeless, but no one buys Elvis
music on cassettes anymore.
Difference between a Product and a Brand
 Products Are Instantly Meaningful but Brands Become Meaningful over
Time.
 When you launch a new product, it’s easy to make that product instantly
meaningful and useful to consumers because it serves a specific function for them.
 However, a brand is meaningless until consumers have a chance to experience it,
build trust with it, and believe in it.
 That’s why the 3 steps to brand building include consistency, persistence, and
restraint. It takes time and effort to convince consumers to believe in your brand.
 Consider Google as an example. When Google first hit the Internet scene it offered a
simple product — a search engine. That product was instantly meaningful to
consumers because it helped them find information online quickly.
 However, the Google brand didn’t become meaningful to consumers until people
had a chance to use the Google search engine product and see for themselves that it
really was a better search engine than yahoo in those times.
 Through those experiences, consumers began to trust that the Google brand could
deliver faster and better information online.
 Today, when Google launches a new product (like Google+), people were quick to
try those products because they trust the Google brand.
Difference between a Product and a Brand
 Product performs a function, Brand offers an emotion
 Products have properties that when combined together do something for
customers. The problem is that within any given category, most products
perform similar functions. There’s very little differentiation.
 Products are all about what they do for people. Products fulfill a customer’s
needs.
 Functions, ingredients and needs -- that’s what makes up a product.
 Brands are actually quite different from products because they don’t just cover a
customer’s needs, brands fulfill a customer’s wants.
 We don’t fall in love with products -- we fall in love with brands.
 Brands offer a promise and an emotion. Brands are about how they make
people feel. Brands fulfill a customer’s wants.
Difference between a Product and a Brand
 While you may need a product, you will want a brand.
 So for example, I may need a cup of coffee, but I personally want to get it at
Starbucks.
 Coffee is the product in this case and caffeine is the ingredient. I need it to get
going in the morning and I could get it literally anywhere, including at Dunkin’
Donuts, the corner market or at home. But I choose Starbucks
Product to cover offerings that fall into one
of the following categories
 Good
 Service

 Idea
Levels of a product

Core product
Problem solving service or core benefits that consumers are
really buying when they obtain a product.
Actual product
Incorporates the quality, features and design, brand name,
packaging and other attributes that combine to deliver core product benefits.
Augmented product
Incorporates the consumer services and benefits built around
the core and actual products.
Product classifications
 Products can be classified according to their durability and tangibility.
 Non-durable products are goods consumed quickly and used on one or a
few occasions, e.g. beer, soap, milk.
 Durable products are used over an extended time and may last for years,
e.g. Fridge, oven.
 Marketers also divide products and services into two other
classifications: consumer and industrial products.
Categories of Consumer Products-5
 Convenience Products
 Shopping Products
 Specialty Products
 Emergency Products
 Unsought Products
Categories of Consumer Products
 Convenience Products:–
 These are products that appeal to a very large market segment.
 They are generally consumed regularly and purchased frequently.
 Examples include most household items such as food, cleaning products,
and personal care products.
 Shopping Products:–
 These are products consumers purchase and consume on a less frequent
schedule compared to convenience products.
 Consumers are willing to spend more time locating these products since
they are relatively more expensive than convenience products and because
these may possess additional psychological benefits for the purchaser, such
as raising their perceived status level within their social group.
 Examples include many clothing, personal services, electronic products,
and household furnishings.
Categories of Consumer Products…
 Specialty Products:–
 These are products that tend to carry a high price tag relative to
convenience and shopping products.
 Consumption may occur at about the same rate as shopping products but
consumers are much more selective.
 In fact, in many cases consumers know in advance which product they
prefer and will not shop to compare products. But they may shop at
retailers that provide the best value.
 Examples iphone and ipads
 Emergency Products:–
 These are products a customer seeks due to sudden events and for which
pre-purchase planning is not considered.
 Often the decision is one of convenience (e.g., whatever works to fix a
problem) or personal fulfilment (e.g., perceived to improve purchaser’s
image).
 Example thermometer, Glucometer, BP instruments, etc
Categories of Consumer Products…
 Unsought Products:–
 These are products whose purchase is unplanned by the consumer but
occur as a result of marketer’s actions.
 Such purchase decisions are made when the customer is exposed to
promotional activity, such as a salesperson’s persuasion or purchase
incentives like special discounts offered to certain online shoppers.
 These promotional activities often lead customers to engage in Impulse
Purchasing.
 Example Life Insurance., online shopping purchases at huge discounts.
Industrial products
 Products bought for further processing or the purposes of resale.
 Materials and parts
 Capital items
 Supplies and services
Classification is done on the basis of three broad
groups:
Basic products like iron ore, crude oil, fish, fruits,
Materials &

Raw materials
vegetables
parts

Manufactured Acids, fuel oil, steel, chemicals


Industrial products & services

materials
Semi-finished parts like bearings, tyres, small motors,
Component parts batteries

Subassemblies Semi-finished goods like exhaust pipe in motorcycle


Capital items

Light equipment or Hand tools, dies, computer terminals


accessories

Installations or heavy Furnaces, machines, turbines


equipment
Offices, plants, warehouses, parking lots, real estate
Plant & building
property
Suppliers &

Operating & maintenance suppliers like fuels,


services

Supplies packaging materials, lubricants, paints, electric items

Services Legal, auditing, advertising, courier, marketing


research agency
Product Line
 A line can comprise related products of various sizes, types, colors,
qualities, or prices.
 A product line is a group of related products manufactured by a
single company.
 For example, a cosmetic company's makeup product line might
include all closely related products as
 Foundation
 Concealer
 powder, blush
 Eyeliner
 eye shadow
 Mascara
 Lipstick
Product Mix
 Product mix, also known as product assortment, refers to the total
number of product lines that a company offers to its customers.
 For example, a small company may sell multiple lines of products.
 Sometimes, these product lines are fairly similar, such as dish washing
liquid and bar soap, which are used for cleaning and use similar technologies.
 Other times, the product lines are vastly different, such as diapers and
razors.
 The four dimensions to a company's product mix include
 Width-No of product Lines
 Length-total number of items a company carries within the product lines. In
Colgate’s oral care product line, several different categories of toothpastes, tooth
brushes, dental flaws can be identified.
 Depth- number of versions offered for each product in the product line. For
instance, Colgate toothpastes come in several tastes and variations.
 Consistency-refers to how closely related the product lines are in terms of end
use, production requirements, distribution channels or any other way.
 In Colgate’s case, we can observe a rather strong consistency, which is based on
the fact that all product lines constitute consumer products and go through the
same distribution channels.
Product Life Cycle
 Product life cycle is the course of a product’s sales and profits
over time.

Sales and
Profits Sales

Profits

Time
Product Introduction Growth Maturity Decline
Develop-
ment
Sales and Profits Over the Product’s Lifetime
 1). The product development stage begins when the company finds and
develops a new product idea.
 This is a pre-stage.
 During product development, sales are zero and the company’s investment
costs mount.
 2). The introduction stage is a period of slow sales growth as the product
is being introduced in the market.
 Profits are nonexistent in this stage because of heavy expenses of product
introduction.
 3). The growth stage is a period of rapid market acceptance and increasing
profits.
 4). The maturity stage is a period of slowdown in sales growth because
the product has achieved acceptance by most potential buyers.
 Profits level off or decline because of increased marketing outlays to
defend the product against competition.
 5). The decline stage is the period when sales fall off and profits drop.
PLC & Marketing Planning-Relationship….
 Introduction:
 The need for immediate profit is not a pressure.
 The product is promoted to create awareness and develop a market for
the product.
 The impact on the marketing mix and strategy is as follows:
 Product branding and quality level is established and intellectual property
protection, such as patents and trademarks are obtained.
 Pricing may be low penetration to build market share rapidly or high skim
pricing to recover development costs.
 Distribution is selective until consumers show acceptance of the product.
 Promotion is aimed at innovators and early adopters.
Marketing communications seeks to build product awareness and educate
potential consumers about the product.
PLC & Marketing Planning-Relationship….
 Growth:
 Competitors are attracted into the market with very similar offerings.
 In the growth stage, the firm seeks to build brand preference and
increase market share.
 Product quality is maintained and additional features and
support services may be added.
 Pricing is maintained as the firm enjoys increasing demand with little
competition.
 Distribution channels are added as demand increases and customers accept
the product.
 Promotion is aimed at a broader audience.
PLC & Marketing Planning-Relationship….
 Maturity:
 Those products that survive the earlier stages tend to spend longest in
this phase.
 At maturity, the strong growth in sales diminishes. Competition may
appear with similar products.
 The primary objective at this point is to defend market share while
maximizing profit.
 Product features may be enhanced to differentiate the product from that of
competitors.
 Pricing may be lower because of the new competition.
 Distribution becomes more intensive, and incentives may be offered to
encourage preference over competing products.
 Promotion emphasizes product differentiation.
PLC & Marketing Planning-Relationship….
 Decline:
 At this point, there is a downturn in the market.
 For example, more innovative products are introduced or consumer
tastes have changed.
 There is intense price cutting, and many more products are withdrawn
from the market.
 Profits can be improved by reducing marketing spending and cost
cutting.
 As sales decline, the firm has several options:
 Maintain the product-possibly rejuvenating it by adding new features and
finding new uses.
 Harvest the product–reduce costs and continue to offer it, possibly to a
loyal niche segment.
 Discontinue the product, liquidating remaining inventory or selling it to
another firm that is willing to continue the product.
PLC & Marketing Planning-Relationship….
 Repositioning:
 By imaginatively repositioning their products, companies can change how
customers mentally categorize them.
 They can rescue products struggling in the maturity phase of their life cycles and get
them back to the growth phase.
 And in some cases, they might be able take their new products forward straight into
the growth phase.
New-Product Development Process
1. Idea generation
2. Idea screening
3. Concept development and testing
4. Marketing strategy development
5. Business analysis
6. Product development
7. Test marketing
8. Commercialization
1.Idea Generation
 New idea generation is the systematic search for new product
ideas
 Sources of new-product ideas
 Internal
 External
 Internal sources refer to the company’s own formal research
and development, management and staff.
 External sources refer to sources outside the company such as
customers, competitors, distributors, suppliers, and outside
design firms
2. Idea Screening
Idea screening refers to reviewing new-product ideas in order
to drop poor ones as soon as possible
 Process to spot good ideas and drop poor ones as soon as
possible based on.
 Market Size
 Product Price
 Development Time & Costs
 Manufacturing Costs
 Rate of Return
 Then, the idea is evaluated against a set of general company
criteria.
 Set of general company criteria.
 The product should fit into company’s present market
structure.
 The idea should fit into the company’s present production
structure.
 The product should fit as per the financial resources
available.
3. Concept Development and Testing
 The process of shaping and refining the idea into a more
complete product concept.
 Product idea is an idea for a possible product that the company
can see itself offering to the market
 Product concept is a detailed version of the idea stated in
meaningful consumer terms
 Product image is the way consumers perceive an actual or
potential product
 Concept testing refers to new-product concepts with groups
of target consumers
 Choose the best option.
4. Marketing Strategy Development
 Marketing strategy development refers to the initial
marketing strategy for introducing the product to the market
 Marketing strategy statement
• Part 1:
• Description of the target market
• Product positioning, sales, market share, and profit goals
• Part 2:
• Price, distribution, and budget
• Part 3:
• Long-term sales, profit goals, and marketing mix strategy
5. Business analysis
 Business analysis involves a review of the sales, costs, and
profit projections to find out whether they satisfy the company’s
objectives
 Sales-estimate sales volume based upon size of market.
 Costs-estimate likely selling price based upon competition and
customer feedback.
 Profit Projections-estimate profitability and break even point.
6. Product development
 Product development involves the creation and testing of one
or more physical versions by the R&D or engineering
departments.
 Finding out if the product requires an increase in investment
7. Test Marketing
 Test marketing is the stage at which the product and
marketing program are introduced into more realistic
marketing settings
 Test marketing provides the marketer with experience in
testing the product and entire marketing program before
full introduction
7. Test Marketing-Elements that May be Test
Marketed by a Company

Budget Levels Product

Packaging Positioning
Elements that
May be Test
Marketed by a
Branding Company Advertising

Pricing Distribution
8. Commercialization
 Commercialization (mass market) is the introduction of the new
product
 Launch the product.
 Produce and place advertisements and other promotions.
 Fill the distribution pipeline with product.
 Critical path analysis is most useful at this stage.

To
When? Where? Whom? How?
Questions
 Q1) Fill in the blanks
 Price is only a part of what customers may part with when purchasing a
service, one must also consider time & convenience.
 A Product is anything that meets the functional needs of the customer.
 A Brand can be defined as a specific name, symbol or design-or more
usually, some contribution of these.
 Non-durable products are goods consumed quickly and used on one or a
few occasions, e.g. beer, soap, milk.
 Durable products are used over an extended time and may last for years,
e.g. Fridge, oven.
 Industrial Products are bought for further processing or the purposes of
resale.
 A line can comprise related products of various sizes, types, colors,
qualities, or prices.
 Product mix, also known as product assortment, refers to the total number
of product lines that a company offers to its customers.
 Test marketing is the stage at which the product and marketing program
are introduced into more realistic marketing settings
 Product life cycle is the course of a product’s sales and profits over time.
 Commercialization is the introduction of the new product
Questions
 Q 2. Write notes on
 The Marketing Mix-Concept
 Blend of the Marketing Mix Depends Upon
 Product & Brand
 Levels of a product
 Product Line
 Product Mix
 Q3. Discuss all 7 P’s of Marketing Mix?
 Q4. Discuss “Marketing Mix & Product Decisions”?
 Q5. What is the Difference between a Product and a Brand?
 Q6. Discuss the “Product classification”?
 Q7. What is Product Life Cycle? Discuss PLC Stages?
 Q8. Discuss “New-Product Development Process”?
Thanks