Chapter Three Marketing Mix:: Product

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CHAPTER THREE
MARKETING MIX:
PRODUCT
PRODUCT
• Anything that can be offered to market for attention,

acquisition, use, or consumption that might satisfy want or
need
PRODUCT LEVELS
• Three levels
• Core customer value: the service or benefit the customer is really buying
• Actual product: the product the customers possess
• augmented product: Additional customer service and benefit
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MARKETING MIX: PRODUCT
• Challenges in creating new products
• idea shortage;
• fragmented markets
• social & governmental constraints;
• cost
• capital shortage;
• need for speed;
• short PLC
• Why new products fail

• overestimated demand;
• poor design
• poor marketing execution;
• high development costs
• strong competitive reaction
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MARKETING MIX: PRODUCT
• New Product Development Process
• idea generation & screening
• concept development and testing
• marketing strategy development
• business analysis
• product development
• market testing
• commercialization
MARKETING MIX: PRODUCT CLASSIFICATION
• Based on the type of consumers that use them there are two
types
• consumer products and
• industrial products
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CONSUMER PRODUCTS
• Convenience products
• low priced, many locations, bought frequently
• Specialty products
• special purchase effort, unique, brand identification
• exclusive distribution
• Shopping products
• Bought on suitability, quality, price and style
• Unsought products
• New innovation, requires advertising and selling
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MARKETING MIX: PRODUCT MIX
• Product Line:
• Group of products within product class that are closely related
• Width
• number of different product lines
• Length
• total number of items within the lines
• Depth
• number of versions of each product
• Consistency:
• How many related various product lines are in terms of:
o End use or,
o Distribution channel or,
o Production requirement.
o Example: Reliance, LG electronics
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NEW PRODUCT DEVELOPMENT
• What characteristics do you innovate

• location,
• flavor,
• price,
• size,
• experience
• ?????????
BRAND DECISIONS:
• • A Brand is a name/ term/ sign/symbol design or combination of them intended to identify the
good/services/ ideas of one seller /group of sellers & to differentiate them from these of competition.
• Essentially, Brand identifies seller/maker.
• It can be a name/ trademark/logo/symbol.
• As per law, seller is granted exclusive rights to the use of the brand name in perpetuity
i.e. there is no expiry date.
• A brand is essentially a seller’s promise to consistently deliver what it stands for to the
buyer. This is to meaning to consumers.
• A Brand may convey up to 6 levels of meaning:
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BRAND STRATEGY
• With existing brand name

• use brand extensions or develop a new brand name.
• With existing product category

• use line extensions with existing brands or develop multiple brands
• Good brand names:

• suggest product qualities or benefits
• are distinctive, but easy to pronounce and remember
• lack poor foreign language meanings
PACKAGING:
Packaging:
• Packaging includes the activities of designing a product (the container/wrapper for a product).
• Container/wrapper is called the Package.
Package could be:
Primary: Old spice after shave bottle (P&G).
Secondary: Cardboard box.
Shipping: Corrugated box of 6 dozen Old Spice
Well designed packages created for:
o Consumer: Convenience value.
o Producer: Promotional value.
• Various factors have contributed to packaging’s increasing used as a marketing tool.
These are
o Self Service:
In many outlets today, self service is growing in importance hence good
packaging is important in order to:
• Attract Attention.
• Describe product/ product feature.
• Create consumer’s confidence.
• Make favorable overall impression.
Consumer Affluence:
With increase affluence, consumers are willing to pay a little more for convenience/ appearance/ dependability/ prestige of better
packaging.
Company Brand/ Image:
Well designed packaging has the power of instant co./ brand recognition
o Innovation packaging:
Innovative packaging can bring benefits to consumer & profits to companies.
LABELING:
• Labeling:
• Labeling is a subset of packaging.
• Labels are mandatory for package products.
• Labels could range from a single tag attached to a product, to an elaborately designed
graphic that is part of packaging.
• Function of Label could be:
Identify product.
Describe product.
Grade product.
Promote product.
• END OF
CHAPTER THREE

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• Anything that can be offered to market for attention,

• Why new products fail

• What characteristics do you innovate

• With existing brand name

• With existing product category

• Good brand names:

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