Anything that can be offered

to a market for attention,

acquisition, use, or
consumption that might
satisfy a want or need
Any activity or benefit that
one party can offer to
another that is essentially
intangible and does not
result in the ownership in
anything
 Augmented Product

Delivery Actual Product After –

and sale
Credit Brand service
Features
Name
Core
Benefit
Quality Design

Level
Packaging

Installation Warranty
CONSUMER GOODS
- Convenience Product
- Shopping Product
- Specialty Product
- Unwholesome or Unsought Product

INDUSTRIAL GOODS
- Installation
- Accessory Equipment
- Component parts and materials
- Raw Materials
- Supplies
- MRO Item
 CONVENIENCE SHOPPING GOODS
GOODS
Car, Furniture, Home
Candy, soda, Appliances, Computers,
Newspaper, Milk, Electrical and Electronic
Disposable Camera Goods
Gasoline

CONSUMERS
PRODUCTS

Blood Donation,
Rolex Watches, Ferrari Cemetery Plots,
Cars, Lexus and all Insurance, Long term
Luxury Cars health care
SPECIALITY GOODS UNSOUGHT GOODS
 CONVENIENCE PRODUCTS
• Convenience
Goods
– Bought frequently
and immediately
– Low priced
– Mass advertising
– Many purchase
locations
SHOPPING PRODUCTS

• Shopping Goods
– Bought less
frequently
– Higher price
– Fewer purchase
locations
– Comparison
shop
 SPECIALTY PRODUCTS

• Specialty Products
– Special purchase
efforts
– High price
– Unique
characteristics
– Brand identification
– Few purchase
locations
UNSOUGHT PRODUCTS
• Unsought
Products
– New innovations
– Are often
products
consumers do not
want to think
about
– Require a lot of
advertising and
personal selling
 INSTALLATIONS

Oil Rig, Boeing 7E7,

Regional Shopping
Center BUSINESS
COMPONENTS
SERVICES
Computer chips, truck Wackhenhut,
bed, jet engines, lawn Ryder,
equipment Pinkerton
BUSINESS
Canon copiers, PRODUCTS
T-mobile cell Xerox, Scotch
phones, tape, copy paper,
Blackberry hand staples, Post-its
held computers
ACCESSORY Soya, Milk, MRO
EQUIPMENT Poultry, Bauxite, SUPPLIES
Cotton
RAW MATERIALS
 INSTALLATIONS

Major capital investment by a

business buyer that typically
involves expensive and relatively
long-lived products, such as a new
factory or piece of heavy
machinery
 ACCESSORY EQUIPMENT

Capital product, usually

less expensive and
shorter-lived that
insulation, such as a
laptop computer
 COMPONENTS PARTS AND
MATERIALS

Finished business products

that become parts of buying
firms’ final products, such
as spark plugs for new cars
 RAW MATERIALS

Business product, such as a

farm product (wheat,
cotton, soybeans) or natural
product (coal, lumber, iron
ore) that become part of a
final product
 BUSINESS SERVICES

Intangible product purchased

to facilitate a firm’s
production and operating
processes such as financial
services, leasing of vehicles,
legal advice and consulting
 MRO ITEMS

Part of business supplies

categorized as maintenance
items, repair items, or
operating supplies such as
light bulbs, nuts and bolts
used in repairing equipment,
or pencils
 Product
Branding
Attributes

Packaging

Product
Support Labeling
Services
 PRODUCT & SERVICE
ATTRIBUTES
• Product quality
– Performance quality
– Conformance quality
• Features
– Value to consumer
– Cost to company
• Style and design
– Influences experience
BRANDING

• A brand is a name,
term, sign, symbol,
or design, or a
combination of
these, that
identifies the maker
or seller of a
product or service.
 PACKAGING

• Designing and
producing the
container or
wrapper for a
product.
 LABELING

• Printed
information
appearing
on or with
the
package.
 PRODUCT SUPPORT
SERVICES
• Assess the value of
current services and obtain
ideas for new services.
• Assess the cost of
providing the services.
• Put together a package of
services that delights the
customers and yields Scion website

profits for the company.

 PRODUCT LINE

A group of products that are

closely related because they
function in a similar manner,
are sold to the same
customer groups, are
marketed through the same
types of outlets, or fall
within given price ranges
Product Mix (or Product
Portfolio) consists of all product
lines and items that a particular
seller that offers for sale.
Example P & G’s product mix
consists of three major product
lines: Detergent, Soaps,
Shampoos………
 PRODUCT MIX DECISION
P&G
Width
Detergent Soap Shampoo
Length

Depth
 PRODUCT MIX DECISION

Product Width refers to the number of different product

lines the company carries. For example : P&G’s Width –
Detergents, Soaps, Shampoos.
Product Length refers to the total number of items the
company carries within its product lines. For Example:
P&G’s Detergent product length – Tide, Ivory, Cheer,
Bold.
Product Depth refers to the number of versions offered of
each product in the line. For example: P&G’s Tide product
depth – Febreze, Cold water, Downy.
Product Consistency refers to how closely related to various
products lines are in end use, production requirements,
distribution channels or some other way.
 BRANDING STRATEGY
BRAND POSITIONING BRAND NAME
SELECTION

Attributes Selection
Benefits Protection
Beliefs and Values

BRAND DEVELOPMENT BRAND SPONSORSHIP

Line Extensions Manufacturer’s Brand

Brand Extension Private brand
Multi brands Licensing
New Brands Co-branding
 BRAND POSITIONING

• Position brands at
any of three levels:
– Product attributes
• Least desirable; easily
copied.
– Product benefits
– Beliefs and values
• Hits consumers on a
deeper level, touching
universal emotions.
 BRAND NAME SELECTION

• Desirable qualities for a brand name include:

1. It should suggest product’s benefits and qualities.
2. It should be easy to pronounce, recognize, and
remember.
3. It should be distinctive.
4. It should be extendable.
5. It should translate easily into foreign languages.
6. It should be capable of registration and legal
protection.
 BRAND SPONSORSHIP
• Manufacturer’s brands
– Operated by
Manufacturer itself
• Private brands
– A brand created and
owned by reseller
• Co-branding
– Collaboration between
two companies’
department
 BRAND DEVELOPMENT
Product Category

Existing New

Line Brand
Brand Name

Existing
Extension extension

New
New Multi brands
Brands
 LINE EXTENSION
Existing brand names are
extended to new forms, sizes,
and flavors of an existing
product category. Example:
Fair & Lovely Fairness Cream-1978
Fair & Lovely Ayurvedic Fairness
Cream-2001
Fair & Lovely Fairness Cream with extra
brightness -2003
Fair & Lovely Menz Active-2006
 BRAND EXTENSION
Existing brand names are extended
to new or modified product
categories. Example:
Virgin Atlantic
Virgin Mobile
Virgin Cosmetics
Virgin Trains
Virgin Money
 MULTI BRANDS

New brand names are introduced in

the same product category.
HUL: Lux, Lifebuoy, Liril, Hamam, Breeze,
Dove, Pears, Rexona
 NEW BRANDS
New brand names in new categories
are introduced. Example:
Nescafè (Coffee)
KitKat (Confectionery)
Buxton (Water)
Buitoni (Pasta)
Sveltesse (Chilled Diary)
Shredded Wheat (Cereals)
 NEW PRODUCT
DEVELOPMENT STRATEGY

Concept Marketing
Idea Idea
Development Strategy
Generation Screening
and testing development

Business Product Test Commercia

analysis Development Marketing lization
IDEA GENERATION:
The systematic search for new-product ideas.

IDEA SCREENING:
Screening new-products ideas in order to spot
good ideas and drop poor ones as soon as
possible.

PRODUCT CONCEPT:
A detailed version of the product of the new-
product idea stated in meaningful consumer
terms.

PRODUCT TESTING:
Testing new-product concepts with a group of
target consumers to find out if the concepts
have strong consumer appeal
MARKETING STRATEGY DEVELOPMENT:
Designing an initial marketing strategy for a new
product based on the product concept.

BUSINESS ANALYSIS:
A review of the sales, costs, and profit
projections for a new product to find out
whether these factors satisfy the company’s
objectives.

PRODUCT DEVELOPMENT:
Developing the product concept into a physical
product in order to ensure that the product idea
can be turned into a workable product.
TEST MARKETING:
The stage of new-product development in which
the product and marketing program are tested
in more realistic market settings.

COMMERCIALIZATION:
Introducing a new-product into the market.
 STAGES OF PRODUCT LIFE
CYCLE
• Introduction stage

• Growth stage

• Maturity stage

• Decline stage
 GRAPHICAL
REPRESENTATION OF
PRODUCT LIFE CYCLE
CHARACTERSTICS OF
PRODUCT LIFE CYCLE
 INTRODUCTION STAGE
• Product - one or few products, relatively undifferentiated

• Price – use cost plus basis to set a price

• Distribution - Distribution is selective and scattered as the firm

commences implementation of the distribution plan.

• Promotion - Promotion is aimed at building brand awareness. Samples or

trial incentives may be directed toward the customers. The introductory
promotion also is intended to convince potential resellers to carry the
product.

• Advertising –Advertising is aimed to be high to build product awareness

 GROWTH STAGE
• Product - New product features and packaging options;
improvement of product quality.

• Price – Price to penetrate the market

• Distribution - Distribution becomes more intensive.

• Promotion- Reduce to take advantage of heavy consumer

demand.

• Advertising- Build brand awareness in the mass market

 MATURITY STAGE

• Product –Either modifying the product or diversify the brand.

• Price - Possible price reductions in response to competition

while avoiding a price war.

• Distribution –Build more intensive distribution.

• Promotion - Incentives to get competitors' customers to

switch.
 DECLINE STAGE
• Product - The number of products in the product
line may be reduced.

• Price - Prices may be lowered to liquidate

inventory of discontinued products.

• Distribution - Distribution becomes more selective.

Channels that no longer are profitable are phased
out.

• Promotion - Expenditures are lower and aimed at

reinforcing the brand image for continued
products.
 LUX

Lux is a brand of Hindustan Unilever India Ltd. It has

four modified soaps which are:

Orchid touch Almond delight Energising fruit Aqua sparkle

Lets us see its product life cycle

 INTRODUCTION STAGE

MARKETING OBJETIVES
The Lux marketing objectives in the initial stage was to create the
product awareness and to attract the customers towards the
product.
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the
product were based on:
Product
They offer only on product in the market. They did not come up
with the differentiated product.
INTRODUCTION STAGE

Price
In the initial stages of the product, they offer the
relatively higher price than their competitor
(LIFEBUOY). Because, they want to recover their
cost which incurred initially in making the product.
Or another reason was that they have segmented
the niche market.

Advertising
In the initial stages, they allocate more advertising
budget to advertise the product. So that more and
more customers could be attracted towards the
product. In ads they targeted the early adopters,
who were readiest to buy the product.
 GROWTH STAGE
MARKETING OBJECTIVES
In the growth stage, the marketing objectives of the
Lux were to expand their market to the other cities of
India. Another objective was to maximize more market
share.
MARKETING STRATEGIES
In the growth stage, company had the following
marketing mix strategies:
Product
In the growth stage, the company had offered the same
product in the market.
 GROWTH STAGE

Price
In this stage, the company had changed their price
to some extent because of maximizing the market
share.
Advertising
In the growth stage, they had increased their
advertising budget as in the initial stages because of
attracting the new customers or to retain the
existing customers.
 MATURITY STAGE

MARKETING OBJECTIVES
The marketing objective of Lux is to maximize more profit
while defending the market share. And to expand the market
to all the cities of India.
MARKETING STRATEGIES
In this stage, Lux marketing mix strategies are based on:
Product
The Lux has made the modification in the product by
introducing:
Orchid touch Almond delight
Energising fruit Aqua sparkle
 MATURITY STAGE

Price
The Lux products are now available at higher prices in the
market, the reason behind is that the company’s marketing
objectives is to maximize more profit.
Advertising
In this stage Lux advertising has been reduced to some
extent because of the more brand awareness in the minds
of customers. Recently, they show the ad in which the
India leading television and film actress were shown.