MARKETING UNIT 3 & 4

Q. Explain the types of Products.

Products can be categorized into various types based on
different criteria. Here are some common types of product
classifications:
1. Consumer Products: Consumer products are goods or
services purchased by individuals for personal use. They
can be further classified into:
a. Convenience Products: These are everyday items that
customers buy frequently and with minimal effort, such as
toiletries, snacks, or newspapers.
b. Shopping Products: These products require more
research and comparison before purchase, such as
clothing, electronics, or furniture.
c. Specialty Products: Specialty products are unique or
high-end items that customers are willing to make a
special effort to obtain, such as luxury cars, designer
clothing, or rare collectibles.
d. Unsought Products: Unsought products are those that
consumers are not actively looking for or may not even be
aware of, such as funeral services or insurance.
2. Industrial Products: Industrial products are goods used by
businesses to produce other goods or services. They can
be categorized as:
a. Raw Materials: These are basic materials used in the
production process, such as metals, chemicals, or
agricultural products.
b. Component Parts: Component parts are items that are
assembled or incorporated into a final product, such as
engines, circuit boards, or tires.
 c. Capital Goods: Capital goods are long-lasting, expensive
items that businesses use to produce goods or services,
such as machinery, vehicles, or buildings.
d. Supplies and Services: These include products used in
the day-to-day operations of a business, such as office
supplies, maintenance services, or consulting services.
3. Digital Products: With the rise of digital technology, a new
category of products has emerged. Digital products are
intangible goods or services that can be delivered
electronically, such as software, e-books, streaming media,
or online courses.
4. Perishable Products: Perishable products are goods that
have a limited shelf life or a short usage period. Examples
include fresh produce, dairy products, or flowers.
5. Non-Durable and Durable Goods: Non-durable goods are
products that are consumed or used up quickly, such as
food items or disposable items. Durable goods, on the
other hand, are long-lasting and provide utility over an
extended period, such as appliances, furniture, or vehicles.

Q. Discuss the elements of Product Mix.

A product mix represents the different products sold within a
company or a market segment. More explicitly, it refers to the
various product types that differ in size, style, price, or
manufacturer.
A product mix has four elements:
Width: the total number of product lines in a business.
For example,
Samsung has several products in their Galaxy smartphone
product line.
 S Series and Galaxy Folds for their flagships.
FE (Fan Edition) series for their mid-range offerings.
A series for budget-conscious buyers.
Length: the total number of products in the mix.
For example
A shoe store may have over two hundred different
products from different product lines from performance
footwear brands like Nike, Adidas, New Balance, etc.
Depth: number of variants of a product line.
Ex- The iPhone 13 Pro Max comes in a variety of storage
options.
Consistency: the degree each product relates to the other in a
product mix.
Ex- A retailer can recommend Adidas Solar Boosts to
customers when the Adidas Ultraboost is out of stock.
They are similar in performance, silhouette, and pricing.
Q. Briefly discuss the process of development of new
product.
The development process of a new product typically involves
several stages, from the initial idea generation to the final
launch. Here is a brief overview of the product development
process:
1. Idea Generation: The process begins with generating
ideas for new products. This can be done through
brainstorming sessions, market research, customer
feedback, or internal innovation initiatives. The goal is to
identify opportunities and potential concepts that align
with the company's objectives and market needs.
2. Idea Screening: In this stage, the generated ideas are
evaluated and screened based on various criteria such as
 market potential, technical feasibility, financial viability,
and alignment with the company's resources and
capabilities. Ideas that do not meet the criteria are
eliminated, and promising concepts move forward to the
next stage.
3. Concept Development and Testing: The selected ideas are
further developed into product concepts. This involves
creating detailed product descriptions, prototypes, and
mock-ups. These concepts are then presented to target
customers to gather feedback and insights through
surveys, focus groups, or product testing. This helps refine
and validate the concept before proceeding to the next
stage.
4. Business Analysis: In this stage, a thorough analysis is
conducted to assess the potential profitability and
commercial viability of the product. Factors such as
production costs, pricing strategy, market size,
competition, and revenue projections are examined. This
analysis helps make informed decisions about whether to
proceed with the development of the product.
5. Product Development: Once the concept and business
case are approved, the actual product development
begins. This stage involves designing the product,
engineering and manufacturing processes, sourcing raw
materials, and creating prototypes for testing and
refinement. Iterative feedback loops are often employed to
improve the product design and functionality.
6. Market Testing: Before a full-scale launch, the product is
typically tested in a specific market segment or
geographical area. This helps assess customer response,
gather user feedback, and identify any potential issues or
areas for improvement. The results of the market testing
 phase provide valuable insights for making final
adjustments to the product.
7. Launch: After all necessary refinements and adjustments
are made based on market testing, the product is ready for
a full-scale launch. This involves planning marketing
strategies, developing promotional materials, setting
distribution channels, and executing a comprehensive
launch plan. The goal is to create awareness, generate
sales, and establish a strong market presence.
8. Evaluation and Improvement: Once the product is
launched, it is crucial to monitor its performance, collect
customer feedback, and evaluate its success against
predetermined metrics and goals. This ongoing evaluation
helps identify areas for improvement, identify new
opportunities, and guide future product iterations or
extensions.

Q. Discuss the process of scientific selling.

1. Research and Preparation: The first step is to research and
gather information about the target market, industry
trends, and potential customers. This includes
understanding their business challenges, goals, and needs.
Sales professionals need to educate themselves about the
products or services they offer and how they can address
customer pain points.
2. Prospecting and Qualifying: Once the target market and
potential customers are identified, the salesperson
engages in prospecting activities to find and qualify leads.
This involves reaching out to potential customers through
various channels, such as cold calling, email marketing, or
networking events. The goal is to determine if the
prospect fits the ideal customer profile and has a genuine
need for the product or service.
3. Needs Analysis: In this stage, the salesperson engages in
active listening and asks probing questions to uncover the
customer's specific needs, challenges, and goals. The focus
is on understanding the customer's pain points and
desired outcomes. By analyzing the information gathered,
the salesperson can develop a customized solution that
aligns with the customer's requirements.
4. Presentation and Solution Development: Based on the
needs analysis, the salesperson creates a tailored solution
that addresses the customer's specific challenges. This
involves presenting the features, benefits, and value
proposition of the product or service in a compelling
manner. The presentation should focus on how the
solution can meet the customer's needs and provide a
clear return on investment.
5. Handling Objections: During the sales process, customers
may have objections or concerns. The salesperson needs
to address these objections and provide clarifications or
additional information to alleviate any doubts. This
requires active listening, empathy, and the ability to
provide persuasive and well-informed responses.
6. Closing the Sale: Once the customer is convinced of the
value and benefits of the solution, the salesperson moves
towards closing the sale. This involves negotiating terms,
discussing pricing and contracts, and ensuring a smooth
transition to the purchasing phase. The salesperson should
be skilled in handling objections, overcoming resistance,
and creating a sense of urgency to encourage the
customer to make a buying decision.
7. Follow-up and Relationship Building: After the sale is
closed, the salesperson continues to nurture the
relationship with the customer. This includes following up
to ensure customer satisfaction, providing ongoing
 support, and exploring opportunities for upselling or cross-
selling. Building strong relationships with customers can
lead to repeat business and referrals.

Q. Discuss about Product Knowledge.

Product knowledge refers to a deep understanding of the
features, benefits, and specifications of a product or service. It
involves knowing the details, functionalities, and unique selling
points of the product, as well as how it compares to
competitors in the market. Having comprehensive product
knowledge is essential for sales professionals, customer service
representatives, and anyone involved in promoting or selling
the product. Here are some key aspects of product knowledge:
1. Features and Specifications: Product knowledge includes
knowing the specific features, components, and technical
specifications of the product. This includes understanding
its physical attributes, capabilities, sizes, colours, materials,
and any other relevant details.
2. Benefits and Value Proposition: It is important to
understand how the product addresses customer needs
and provides value. This involves knowing the benefits,
advantages, and solutions that the product offers. Effective
product knowledge allows salespeople to communicate
the value proposition clearly and convincingly to potential
customers.
3. Usage and Applications: Understanding how the product
is used and its various applications is crucial. This includes
knowing the different scenarios or situations where the
product can be applied, and how it can improve the
customer's experience or solve their problems.
4. Target Market and Customer Profiles: Product knowledge
extends to knowing the target market and understanding
 the ideal customer profiles. This involves understanding
the demographics, preferences, behaviors, and pain points
of the target customers. Sales professionals need to know
how the product can meet the specific needs of different
customer segments.
5. Competitive Analysis: Having product knowledge also
includes understanding the competitive landscape. This
involves knowing how the product compares to similar
offerings in the market, identifying its unique selling
points, and understanding the strengths and weaknesses
of competitors' products.
6. Updates and Changes: Product knowledge should be
continuously updated to stay informed about any
changes, updates, or enhancements to the product. This
includes staying up-to-date with new features, product
versions, pricing changes, or any modifications that may
impact the product's positioning or value proposition.
7. Troubleshooting and Support: Product knowledge also
extends to troubleshooting common issues or challenges
that customers may face. Sales and support teams should
be equipped with the necessary knowledge to assist
customers in resolving problems or providing technical
support.

Q. Product Lifestyle.
The product life cycle (PLC) refers to the stages a product goes
through from its introduction to its eventual decline and
discontinuation in the market. It is a conceptual framework that
helps businesses understand and manage the different phases
a product goes through over its lifespan. The product life cycle
consists of four main stages:
1. Introduction: This is the initial stage of the product life
cycle, where the product is introduced to the market. Sales
are typically low during this stage as the product is being
launched and customer awareness is being generated.
Companies invest in marketing and promotion activities to
create product awareness and generate early adopters.
Profits may be minimal or negative due to high
development and marketing costs.
2. Growth: In the growth stage, the product experiences
rapid sales growth as more customers become aware of it
and start adopting it. Demand increases, and competitors
may enter the market. Companies focus on expanding
distribution, improving product features, and capturing a
larger market share. Profits start to rise as sales increase
and economies of scale are achieved.
3. Maturity: The maturity stage is characterized by a plateau
in sales growth. The product has reached its peak level of
market acceptance, and competition becomes more
intense. Sales stabilize, and market saturation occurs.
Companies focus on maintaining market share, defending
against competitors, and finding ways to differentiate the
product. Price competition may intensify, leading to
reduced profit margins.
4. Decline: In the decline stage, the product experiences a
decrease in sales and demand. This can be due to changes
in customer preferences, technological advancements, or
the emergence of substitute products. Companies may
decide to discontinue or phase out the product. However,
some products may continue to generate sales in niche
markets or with loyal customers. Companies may choose
to extend the product's life through strategies such as
product modifications, repositioning, or targeting new
market segments.
Q. Discuss various techniques of sales promotion.
Sales promotion refers to the use of various promotional
activities and techniques aimed at increasing sales, attracting
customers, and achieving specific marketing objectives. Here
are some commonly used techniques of sales promotion:
1) Discounts and Price Reductions: Offering temporary price
reductions, discounts, or promotional pricing to
encourage customers to make immediate purchases.
2) Coupons: Distributing coupons that provide customers
with discounts or special offers on specific products or
services. Coupons can be distributed through various
channels like newspapers, magazines, online platforms, or
direct mail.
3) Rebates: Providing customers with partial refunds after the
purchase of a product. This technique helps to stimulate
sales and encourages customers to choose a particular
brand or product.
4) Buy-One-Get-One (BOGO) Offers: Offering customers the
opportunity to receive an additional product or service for
free or at a discounted price when they purchase one item
 at the regular price. BOGO offers attract customers by
providing extra value for their money.
5) Free Samples: Distributing free samples of a product to
potential customers, allowing them to try the product
before making a purchase decision. This technique helps
to generate interest, trial, and subsequent sales.
6) Contests and Sweepstakes: Organizing competitions or
sweepstakes where customers have the chance to win
prizes. Participants are typically required to purchase a
product or perform a specific action to enter the contest,
thereby increasing sales and brand engagement.
7) Point-of-Purchase (POP) Displays: Creating attractive
displays at the point of sale, such as in-store promotions or
eye-catching product placements. POP displays aim to
grab the customer's attention and influence their purchase
decision at the last moment.
8) Loyalty Programs: Offering rewards, discounts, or exclusive
benefits to customers who regularly purchase or
demonstrate brand loyalty. Loyalty programs encourage
repeat purchases and help build long-term relationships
with customers.
9) Bundling: Offering a package deal where customers can
purchase a combination of products or services at a
discounted price compared to buying them individually.
This technique encourages customers to buy more items
and increases the average transaction value.
10) Referral Programs: Encouraging existing customers to
refer friends, family, or colleagues to make a purchase.
Referral programs often provide incentives or rewards to
both the referrer and the new customer, leveraging word-
of-mouth marketing to drive sales.
11) Limited-Time Offers: Creating a sense of urgency by
offering special promotions, discounts, or exclusive deals
for a limited period. Limited-time offers motivate customers
to make quick purchasing decisions to take advantage of
the time-limited benefits.
12) Cross-Selling and Upselling: Promoting additional or
upgraded products to customers during the purchase
process. Cross-selling involves suggesting complementary
products, while upselling encourages customers to choose
higher-priced options or upgrades.