Module 2

Product Mix
 Product
Product means commodity or service manufactured to satisfy the
needs of consumers.

According to Philip Kotler “ a product is anything that can be

offered to a market for attention ,acquisition ,use or consumption
that might satisfy a want or need .It includes physical
objectives ,services, persons ,places ,organization and ideas”
 Want Satisfying Capacity of a Product

Desirability how appealing a product is to potential users

Eg: Apple’s Iphones

Purpose product fulfilling a specific need or solving a

problem Eg: A Knife

the ease with which a user can interact with

Usability the product. Eg: Google

User how they feel when using it Eg: Swiggy

experience
 Features of a Product

1.capacity to fulfil the needs of people

2.physical good or service
3.tangible and intangible
4.satisfy both commercial and personal needs
5.subject and object of all marketing activities
 Levels of a Product

Core Benefit

Generic Product

Expected Product

Augmented product

Potential product
 fundamental service or benefit that the
Core Benefit
customer is buying Eg: Hotel

basic version of the product containing only

Generic Product those features necessary for it to function
Eg:basic room with a bed

includes all the attributes that customers

Expected Product expect when they purchase the product. Eg: a
clean room, a comfortable bed, Wi-Fi, a TV

additional features, benefits, or services that

Augmented Product go beyond the customer’s expectations Eg:
complimentary breakfast, room service, a
fitness center,

all the possible future enhancements and

Potential Product transformations a product might undergo.
Eg: smart room technology
 Product V/s Service

Product Service

Tangible; can be touched, seen, Intangible; cannot be touched or

and stored. stored.

Produced, stored, and consumed Produced and consumed

separately. simultaneously.

Easier to evaluate before purchase Harder to evaluate before

through physical examination. purchase; relies on experience or
reviews
Can often be returned or Cannot be returned once
exchanged. consumed or delivered.
 Types of Product

Industrial products Sold by one business to another Eg:

Machines and Equipment's

Items purchased by consumer for

Consumer Products
their daily use Eg: Fruits, Vegetables
 Types of Product
Consumer Products

Fast moving consumer

Goods products that sell quickly at relatively low
cost Eg: Chocolate, pen, tooth paste

Long-lasting items that can be used over a

Consumer durables
period of years Eg: Cars, Fridge

short shelf life and require specific storage

Perishable durables conditions to remain fresh Eg: Vegetable,
Fruits

Products that are bought frequently,

Convenience Goods immediately, and with minimal effort. Eg:
Snacks, house hold items
 Types of Product
Consumer Products

consumers purchase less frequently and

Shopping Goods compare for quality, price, and style before
buying. Eg: Textiles and footwears

Unique or high-end products that consumers

Specialty Goods specifically seek out and are willing to make
a special effort to purchase. Eg: Luxury cars,
Gold, Diamond

consumers do not regularly consider buying

Unsought Goods or do not think of until a need arises. Eg: Life
Insurance, Medicines, coffins
 New Product Development
the process of bringing a new product or service to the market. It involves
several stages, from the initial idea generation to the product's launch and
beyond. Successful NPD requires a systematic approach that incorporates
customer needs, market research, design, and testing to ensure that the
product meets market demands and provides value to consumers.
 Need for Product
Development
Customisation of the
Product
Adjust with Product Life
cycle
Innovation
Fighting Competition
Improving Brand Loyalty
Increasing Market share
 Product Development process
Idea Generation

Idea screening

Concept Testing

Business Analysis

Product development

Product testing

Commercialisation/ Launching the new product

Post Launch analysis

 Product Development process
Idea Generation: company brainstorms new product ideas

Idea Screening: valuates the feasibility, potential market appeal,

Concept Testing: concepts of the product are developed and tested with
target customers to gather
feedback
Business Analysis assess the profitability of the new product, including
cost estimates, sales forecasts

Product Development: concept is turned into a working product

Product Testing: product undergoes rigorous testing to identify any

flaws and make improvements.

Commercialization: product is launched in the market with a full-scale

marketing
Post-Launch Analysis: company reviews its performance in the market
Factors to be considered in Product Development

Demand

Availability of Raw
materials

Finance

Development Team

Legal Standards

Reputation
 Failure of new products
product fails to stand out due to insufficient
Lack of speciality
unique features

inappropriate time, either too early or too

Poor Timing late, affecting its market acceptance

Poor product quality leads to customer

Inferior Quality dissatisfaction

Unfair Price being too high or too low, can alienate

potential customers
Lack of
competitive doesn’t have enough competitive advantages
Strength to outperform existing market players

Lack of promotion Insufficient marketing and promotional

efforts result in low awareness and poor
sales.
 Failure of new products
Poor Distribution Ineffective distribution strategies hinder the
Network product’s availability, limiting its market
reach.
Poor after sales Inadequate support post-purchase can lead
service to customer dissatisfaction

Unavailability of spare Difficulty in accessing necessary spare parts

parts can deter customers
 Product Innovation
Product innovation refers to the creation and introduction of a new
product or improvements made in an existing product.

Modification of an existing product: Pepsi with Reduced Sugar

New model of existing product: iPhone 14

New product under existing range: Nike Air Max Plus

Totally new product: Tesla Model S
Need and Importance of Product Innovation

Increase sale and profits

Increasing competitive advantage

Offering more benefits

Reducing cost

Improving Quality
 Product Mix Strategies

Product Diversification Expanding into new product categories Eg: A

smartphone brand launching smartwatches

Product Simplification removing underperforming or less popular

products. Eg: discontinuing certain styles or colors

Alteration of Existing Products Modifying current products Eg: Updating a

software
Development of New uses for
Finding new applications Eg: Baking soda
existing Products
marketed as a cleaner

Trading up and Trading Down Introducing premium products or Offering

more affordable versions

Product differentiation distinct products that stand out from

competitors Eg: offering unique features
Product Life Cycle (PLC)
 Product Life Cycle Management
(PLCM)

Introduction Growth Maturity Decline

Product Quality Quality Product New product

specification Improved expansion or
maintains alteration

Pricing Low price Stable price Lower price High Price

Distribution Selective Expands Mass network Distribution to

customers network distribution loyal customers

Promotion Aim is to create Heavy Differentiate Reduces amt on

awareness expenditure the competitors existing
promotion
Branding

Branding is the process of creating a unique

identity for a product, service, or company

through the use of names, symbols, designs,

or messaging. It shapes customer

perceptions, builds loyalty, and differentiates

a product from its competitors.

Key Elements of Branding

Brand
Logo
Name

Brand
Taglin
identi
e
ty
 Branding Strategies

Family Corporate Individual Combination

Branding Branding Branding Branding
• Single brand • Company • Unique • Both family
name for name itself brand name and
multiple become for each individual
products brand product Branding
• Eg: • Eg: Google • Tide, Surf • Eg:
Samsung- Excel Microsoft
phones,TV,fr
idge
 A Good Brand
Easy to Read

Easy to pronounce

Suitable for features of product

Easy to memorise

Unique

Legal standards
 Brand Equity

Brand equity refers to the

value that a brand adds to a
product or service, beyond its
functional benefits. It
represents the premium that
customers are willing to pay
because of the brand’s
reputation, trust, and
perceived quality.
 Elements of Brand Equity
Elements Meaning

Brand Loyalty refers to a customer's consistent

preference for a particular brand

Brand Awareness refers to the extent to which

consumers are familiar with a brand
and can recognize it in various
situations.
Perceived Quality customer’s opinion of a product’s or
service’s overall quality or superiority
in comparison to alternatives

Brand association refers to the mental connections and

attributes that consumers link to a
brand
Brand Assets components that contribute to a
brand's identity, Eg: Trademark, Logo
Brand Loyalty

Tendency of consumers to consistently

choose a particular brand over its
competitors, demonstrating a
commitment to purchasing the same
brand’s products or services
repeatedly over time
 Patterns of Brand Loyalty

Hard-Core Split Shifting

Switchers
Loyals Loyals Loyals
• Buy the • Loyal to • Move • No
brand at two or from one Loyalty
all time three brand to to any
brands another Brand
 Trade Mark

A trademark is a legally recognized symbol,

word, or phrase that identifies and
distinguishes the source of goods or
services of one party from those of others.
Trademarks serve to protect brand identity
and ensure that consumers can identify the
origin of a product or service.
 Packaging

refers to the process of designing, creating,

and using containers or wrappers to protect,
contain, and present products.

Key Aspects:

1. Protection
2. Containment
3. Identification
4. Marketing
5. Convenience
Product Labelling

refers to the information displayed on the

packaging of a product, which provides
essential details about the item

Types of label
1. Brand Label- Logo
2. Price label - MRP
3. Barcode Label- Barcode
4. Quantity label – Net Weight
5. Descriptive Labe - Ingredients
6. Address label - Manufacturer
7. Date label – Expiry Date
8. Warning Label – Caution , Smoking is
Injurious to health
 Service Marketing

the promotion and selling of intangible services rather than physical products.
Unlike tangible goods, services cannot be stored or owned, making their
marketing distinct in several ways.

Service Marketing Mix

1. Product
2. Price
3. Place
4. Promotion
5. People
6. Process
7. Physical Evidence