1. G PRODUCT
U
R
AND
U BRAND
R MANAGEMENT
A
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P
H
A
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Slides Prepared by
A GURURAJ PHATAK
K’ B.Sc ,MBA
(PhD)
S

2. WHAT IS A PRODUCT?
A product is anything that can be offered to a
market for attention, acquisition, use, or
consumption that might satisfy a want or need.
1. A product may be a tangible good, a service, an idea,
or any combination of these three.
2. Product features include packaging, style, color,
options, and size. Service features include the seller’s
image, the manufacturer’s reputation, and the way
consumers believe others will view the product.
4. Services and ideas are also considered products.

3. Product levels
 Customer value
 Core benefit
 Basic product
 Expected product
 Augmented product
 Potential Product

4. CORE BENEFIT
Fundamental service or
benefit offered by the
product to the
customers

5. CORE BENEFIT
Ex: Mobile
Communication

6. GENERIC PRODUCT
The marketer has to
turn the core benefit
into a generic product,
namely a basic version
of the product.

7. GENERIC PRODUCT

8. EXPECTED PRODUCT
Namely set of attributes
and conditions that
buyers normally expect
and agree to when they
purchase this product

9. EXPECTED PRODUCT

10. AUGMENTED PRODUCT
Namely one that includes
additional services and
Benefits that distinguish
The company’s offer from
competitors.

11. AUGMENTED PRODUCT

12. POTENTIAL PRODUCT
Namely all of the
augmentations and
transformations that this
product might ultimately
undergo in the future.

13. Product
Classifications
Business A product used to manufacture other goods or
services, to facilitate an organization’s operations,
Product or to resell to other consumers.
Consumer Product bought to satisfy an
Product individual’s personal wants
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14. Types of Products
PRODUCTS
Consumer Business
Products Products
Convenience Shopping Specialty Unsought
Products Products Products Products
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15. Types of Business Products
Major Equipment
Accessory Equipment
Raw Materials
Component Parts
Major Processed Materials
Categories
Supplies
of Business
Products Business Services
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16. • Major equipment: capital goods such as large or
expensive machines, airplanes, buildings. Personal
selling is an important marketing strategy.
• Accessory equipment: Less expensive and shorter-
lived than major equipment, includes fax machines,
personal computers, power tools. Often charged as an
expense. Often standardized and purchased by more
customers. Advertising is an important promotional tool.
• Raw materials: Unprocessed products, such as
minerals, lumber, wheat, corn, fish. Become part of
finished products. Personal selling is the marketing mix
component used, distribution channels usually direct
from producer to business user.
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17. 4. Component parts: Finished items ready for assembly or that
need very little processing. Examples are tires and electric
motors. Two important markets for component parts: original
equipment manufacturer (OEM) and replacement market.
5. Processed materials are used directly in manufacturing other
products. Sheet metals, chemicals, and lumber. Do not retain
their identity in final products. Price and service are important
factors in choosing a supplier.
6. Supplies are consumable items that do not become part of the
final product. Short lives and inexpensive. Generally fall into
categories of maintenance, repair, or operating supplies (MRO),
and include such items as detergents, pencils, paper, etc.
7. Business services are expense items that do not become
part of the final product. This includes, advertising, legal,
and maintenance services.
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18. Types of Consumer
Products
Convenience A relatively inexpensive item that
Product merits little shopping effort.
Shopping A product that requires comparison
shopping, because it is usually more
Product expensive and found in fewer stores.
Specialty A particular item that consumers
search extensively for and are
Product reluctant to accept substitutes.
Unsought A product unknown to the potential
buyer or a known product that the
Product buyer does not actively seek.
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19. Examples For each product categories
•Convenience: candy, soft drinks, deodorant, aspirin,
hardware, dry cleaning.
•Shopping: Homogeneous shopping products such as
washers, 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.
•Unsought: new products, insurance, encyclopedias.
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20. Convenience goods
Staples: Ex. Toothpaste
Impulse goods : Ex.Chocolates
Emergency goods : Ex.Umbrella
Shopping goods
Homogeneous shopping goods
Heterogeneous shopping goods
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21. Marketing
Management
Product-Mix Decisions

22. Marketing
Management
Rarely companies offer a single product. More
often they sell group of product items to meet
varying needs. . .
PRODUCT ITEM
A Specific version of a product that can be
designated as a distinct offering among an
organization’s products.
Ex:

23. Marketing
Management
PRODUCT LINE
A group of closely related product items.
Ex: Personal care- HUL
PRODUCT MIX
A group of product lines offered by the
company.
Ex: Personal care & Food- HUL

24. Marketing
Management
Product mix will have a certain width, length, depth.
WIDTH
The number of product lines an organization offers.
LENGTH
Total number of product items in the company’s mix.
DEPTH
Variants offered of each product in the line
by the company
Product Consistency: how closely the product lines
are related in usage

25. Marketing
Management
WIDTH
Product line-1 Product line-2 Product line-3
L Brand-1 Brand-1 Brand-1
E
N Brand-2 Brand-2 Brand-2
G
Brand-3 Brand-3 Brand-3
H
T Brand-4 Brand-4 Brand-4
Brand-5

26. Product Width
P Personal
Fabric Care Skin Care Oral Care Tea Coffee
Care
R
O
D
U
C
T
L
E
N
G
T WIDTH: The number of product lines an organization offers.
H LENGTH: Total number of product items in the company’s mix
DEPTH: Variants offered of each product in the line
by the company
CONSISTENCY: How closely the product lines are related in usage.

27. Marketing
Management
Product Line Extension
Adding additional products
to an existing product line in
order to compete more
broadly in the industry.

28. Marketing
Management
Product Line
Extensions

29. Marketing
Management
Line Stretching Decisions

30. Marketing
Management
Downward Stretch

31. Marketing
Management
High Rs. 12
Low Rs. 5

32. Marketing
Management
Higher end
Middle &
Lower

33. Marketing
Management
Upward Stretch

34. Marketing
Management
Higher end
Middle &
Lower

35. New Product
Development
&
Product Life-Cycle
Strategies

36. Causes of New Product
Failures
 Overestimation of Market Size
 Product Design Problems
 Product Incorrectly Positioned, Priced or Advertised
 Costs of Product Development
 Competitive Actions
 To create successful new products, the company must:
 understand it’s customers, markets and competitors
 develop products that deliver superior value to
customers.

37. New Product
Development
Process
 Idea Generation and Screening
 Concept Development and Testing
 Marketing Strategy
 Business Analysis
 Product Development
 Test Marketing
 Commercialization

38. New Product Development Process
Step 1. Idea Generation
Systematic Search for New Product
Ideas
Internal sources
Customers
Competitors
Distributors
Suppliers

39. New Product Development Process
Step 2. Idea Screening
 Process to spot good ideas and
drop poor ones
 Criteria
 Market Size
 Product Price
 Development Time & Costs
 Manufacturing Costs
 Rate of Return

40. New Product Development Process
Step 3. Concept Development & Testing
1. Develop Product Ideas into
Alternative
Product Concepts
2. Concept Testing - Test the
Product Concepts with Groups
of Target Customers
3. Choose the Best One

41. New Product Development Process
Step 4. Marketing Strategy Development
Marketing Strategy Statement Formulation
Part One - Overall:
Target Market
Planned Product Positioning
Sales & Profit Goals
Market Share
Part Two - Short-Term:
Product’s Planned Price
Distribution
Marketing Budget
Part Three - Long-Term:
Sales & Profit Goals
Marketing Mix Strategy

42. New Product Development Process
Step 5. Business Analysis
Step 6. Product Development
Business Analysis
Review of Product Sales, Costs,
and Profits Projections to See if
They Meet Company Objectives
If No, Eliminate
Product Concept
If Yes, Move to
Product Development

43. New Product Development Process
Step 7. Test Marketing
Test Marketing: is the stage where the entire product and marketing programme is tried
out for the first time in smaller no of chosen well chosen sales environment
- Philip Kotler
Standard
Test Market Controlled
Test Market
Full marketing campaign A few stores that have
in a small number of agreed to carry new
representative cities. Products.
Simulated
Test Market
Test in a simulated
shopping environment
to a sample of
consumers.

44. Product Life
Cycle
Sales and
Profits ($)
Sales
Profits
N Time
Product Introduction Growth Maturity Decline
Develop-
ment
Losses/
Investments ($) CLASSICAL PATTERN OF PLC

45. Introduction Stage of
the PLC
Sales Low sales
Costs High cost per customer
Profits Negative
Create product awareness
Marketing Objectives
and trial
Product Offer a basic product
Distribution Build selective distribution
Advertising Build product awareness among
early adopters and dealers

46. Growth Stage of the PLC
Sales Rapidly rising sales
Costs Average cost per customer
Profits Rising profits
Marketing Objectives Maximize market share
Offer product extensions,
Product
service, warranty
Price Price to penetrate market
Distribution Build intensive distribution
Advertising Build awareness and interest in
the mass market

47. Maturity Stage of the PLC
Sales Peak sales
Costs Low cost per customer
Profits High profits
Marketing Objectives Maximize profit while defending
market share
Product Diversify brand and models
Price to match or best
Price competitors
Distribution Build more intensive distribution
Advertising Stress brand differences and
benefits

48. Decline Stage of the PLC
Sales Declining sales
Costs Low cost per customer
Profits Declining profits
Marketing Objectives Reduce expenditure
Product Phase out weak items
Price Stable or low price
Go selective: phase out
Distribution unprofitable outlets
Advertising Reduce to level needed to retain
hard-core loyal customers

49. Distribution Strategies
Selective : use of more than one but fewer
than all, of the intermediaries who are willing
to carry the company’s products.
Ex:
Exclusive: giving a limited number of dealers the
exclusive right to distribute the company’s
products in their Territories
Ex:

50. Distribution Strategies
Intensive Distribution:
Stocking the products as many as
many outlets as possible.
Ex:

51. Marketing Strategies for
PLC
INTRODUCTION
INTRODUCTION GROWTH MATURITY DECLINE
Product Limited models More models Large number Eliminate
Strategy Frequent Frequent of models. unprofitable
changes changes. models
Distribution Limited Expanded Extensive. Phase out
Strategy Wholesale/ dealers. Long- Margins drop. unprofitable
retail distributors term relations outlets
Awareness. Aggressive ads. Advertise. Phase out
Promotion Promote promotion
Strategy heavily
Higher/recoup Fall as result of Prices fall Prices
Pricing development competition & (usually). stabilize at
Strategy costs efficient produc- low level.
tion.
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52. ALTERNATE PATTERNS OF PLC
Growth Slump Maturity Pattern:
Often characteristics of
small kitchen appliances.
S Some years ago, sales of
A
L
electric knives grew
E rapidly when the product
S was first introduced and
V
then fell in to a petrified
O level. The petrified level is
L sustained by late adopters
U
M
buying the products for the
E first time and early
adopters replacing the
product.
TIME

53. Cycle and Recycle Pattern
This is applicable for
pharmaceutical
S companies, they
A
L
aggressively promotes
E new drug and this
S
produces the first
V cycle.
O
L Later sales start
U declining and the
M
E company gives drug
another promotion
push which produces
a second cycle.
TIME

54. Scalloped Pattern
Here sales passes through
S a succession of life cycle
A based on the discovery of
L new product characteristics
E
S uses or users.
Nylon’s sales for example,
V
O
L Many new uses-
U parachutes, shirts,
M carpeting, boat sales,
E
automobile tyres
That continue to be
TIME
discovered over a time.

55. Style, Fashion and Fad Life Cycle
Style:
A basic and distinctive mode of
expression. It’s a product look and
feels to the buyer.
style
Fashion: currently accepted popular
style in a given field.
Fad: a craze that unpredictable, short
lived and without social, political, and
economical significance.
S Fashion
A
L
E
S
V
O
L
U
M
E
Time

57. Marketing
Management
A BRAND is……………..

58. Marketing
Management
A mixture of tangible and
intangible attributes,
symbolized in a
trademark, which is
properly managed,
creates influence and
generate
VALUE

59. What is Trademark?
It is a brand name or mark registered under the law for protection
against its copying or imitation, its legal protection against misuse by
competitors.
In India it is registered under Trademark and Mechanize Marks Act,
1958
www.ponds.com
www.axe.com

60. Advantages of Branding
 Helps in identifying goods and services.
 It stimulates the purchase decision of the
consumer
 It helps in creating customer loyalty
 It helps to the company to main the leadership
position in the market if they are already a
market leader

61. Disadvantages of Branding
 Requires huge investment
 An unsuccessful brand bring –ve image to the
company
 Customer may not willing to pay extra
because it is branded.

62. Brand Name Selection Marketing
Management
SHOULD SUGGEST SOMETHING
ABOUT THE PRODUCT’S BENEFITS
SHOULD SUGGEST PRODUCT QUALITIES
SUCH AS ACTION OR COLOR
SHOULD BE EASY TO PRONOUNCE,
RECOGNIZE, & REMEMBER
SHOULD NOT CARRY POOR
MEANINGS IN OTHER COUNTRIES
AND LANGAUAGES

63. Marketing
Management
BRAND
WHO SPONSERSHIP
SHOULD
SPONSOR
THE BRAND?
MANUFACTURE’S
BRAND
PRIVATE BRAND
LICENSED BRAND
CO-BRANDING

64.  BRAND DEVELOPEMENT

65. Marketing
Management
PRODUCT CATEGORY
EXISTING NEW
B
R
A LINE BRAND
EXISTING
N
EXTENSION EXTENSION
D
N
A NEW MULTI NEW
M BRANDS BRANDS
E

66. Marketing
Management
PRODUCT CATEGORY-SOAP
EXISTING
B
R
A
E
N
X
D
I LINE EXTENSION
S
N
T
A
I
M
N
E
G
-
L
U
X

67. Marketing
PRODUCT CATEGORY Management
DETERGENT SOAP
B
EXISTING NEW
R
A
N
D E
X
N I
A S
M T
E I
- N
N G BRAND
I EXTENSIONS
R
M
A

68. Marketing
Management
PRODUCT CATEGORY-SOAP
EXISTING
B
R
A
N N
D E
W MULTI BRANDS
N
A
M
E

69. Marketing
Management
PRODUCT CATEGORY
NEW
B
R
A
N N
D E
W
NEW BRANDS
N
A
M
E

70. Worlds Costliest Brand Add

71. Packaging and Labeling
 Packaging: the process of designing and
producing the container or wrapper for a
product.
 It gives proper protection to the product
 It helps in bulk braking
 Entices the consumer to buy the product

72. Packaging Strategies
 Adopting the same package for entire
product line
 Multiple packs for multiple products
 Changing the packages continuously

73. Labeling
 It carries the information about the seller.
 Types of labels:
 Brand label: only brand name is mentioned on
the product
 Grade label: identifies the product judged quality
with a letter number or a word
Ex: fertilizers 19-19-0-19
bikes MD2DDDZZZPLV12345
Descriptive Label: gives the information about
the product, use and care
Ex: Godreg Hair Dye Packet, medicines

74. End of your syllabus
Principles of Marketing-1

75. MY DEAR GUYS!
This is for you!!!!!

76. Life is a beautiful journey travel it.
May be whoever leads you!
Enjoy the things what you have.
Always Dream for good “Thought”
who knows your thought can become “Thing” in
future!!!
Jo guzar gaya vo kal hai jo aana hai voh bhi kal hai faisla aapko karna hai aap
kis kal main jeena Chahate ho!!
Love the life!!!!!

78. KEEP SMILING
Because
One Smile Can Change The Way of Life!!!!!
All the best for your Exams & Career.
Your loving
RAJ