Session (1)

• Components of a product

  • Core product
  • Associated features
  • Brand name
  • Logo
  • Package
  • Label
• The total product personality is dependent on the basic constituent of the product
• Brand


  A name, term symbol, design or a combination of them which is intended to identify the goods and services of one seller and to differentiate them from those of competitors
• Logo


  The brand mark/symbol and an essential aspect of the product, extending its support to the brand effectively
• Package


  Ensures protection to the product, provides information about the product through the label, and increases aesthetics and sales appeal
• Label


  Provides written information about the product, helping the buyer to understand the nature of the product, its distinctive features, its composition, its performance
• Characteristics of a product

  • It is one of the core elements of marketing mix
  • Various people view it differently
  • Includes both goods and services
  • Marketer can realize their goals by manufacturing, selling, improving and modifying the product
  • Includes both tangible and non-tangible features and benefits
  • It is a vehicle or medium to offer benefits and satisfaction to consumers
  • The importance lies in the services rendered by the product and not ownership of product
  • Includes total offers, including main qualities, features and services
  • Product design is the sum of the product's form design, functional design, package design, product research and product development
  • Product package is the wrapping material around an item that serves to contain, identify, describe, protect, display, promote and help to market the product and keep it clean
  • Product quality is the acceptable characteristics of a product or service that satisfies the customer's wants and needs in exchange for fair monetary exchange
  • Product labelling is the printed information affixed to a product, communicated from the manufacturer to consumers, to identify the type, size, brand, product line, manufacturer etc., in order to inform the consumer and encourage a purchase
  • Product branding is the use of a name, term, symbol or design to give a product a unique identity in the marketplace
  • After-sales services are the periodic maintenance or repair of equipment by its manufacturer or supplier, during and after a warranty period
• Importance of product


  • Product is the focal point and all the marketing activities revolve around it
  • It is the starting point of planning
  • Product is an end, the main purpose of all marketing activities is to satisfy the customers
• The responsibility of the marketers to know their product well is pertinent
• Importance of the product

  • Product is the focal point and all the marketing activities revolve around it
  • Product is the starting point of planning
  • Product is an end (satisfaction of customers)
• Marketing activities like selling, purchasing, advertising, distribution, sales promotions are all meaningless unless there is a product
• Product is a basic tool by which profitability of the firm is measured
• No marketing programme will commence if the product does not exist
• Planning for all marketing activities, distribution, price, sales promotion, advertising is done on the basis of the nature, quality and the demand of the product
• Product policies thus decide the other policies
• The main purpose of all marketing activities is to satisfy the customers
• The life of low-quality products in the market is limited
• Price, Place, Promotion should vary with product quality, as per the consumer income group
• Product levels


  • Core Benefit (Product)
  • Generic Product
  • Branded Product
  • Differentiated Product
  • Customized Product
  • Augmented Product
  • Potential Product
• Core Benefit (Product)


  The basic level that represents the heart of the product with a focus on the purpose for which the product is intended
• Generic Product


  Unbranded and undifferentiated commodity
• Branded Product


  Products that get an identity through a name, belonging to a specific company
• Differentiated Product


  Branded products that are differentiated from competitor products by highlighting special attributes/features/qualities
• Customized Product


  Product modified to suit the requirements/specifications of the individual customer
• Augmented Product


  Product offer enhanced through voluntary improvements not suggested or expected by the customer
• Potential Product


  Future product inclusive of advancements and refinements possible under existing technological, economic, and competitive conditions
• Factors influencing product mix

  • Market demand
  • Cost of product
  • Quantity of production
  • Advertising and distribution factors
  • Use of residuals
  • Competitor's action
  • Full utilization of marketing capacity
  • Goodwill of the company
• Cost of product


  The company can develop and produce products which are low in cost
• Product manufacturing decision


  The company can choose the product to be manufactured by first considering the cost involved
• Quantity of production


  The Company can add more items to its product line in case the production of the new product is to be made on large scale
• Advertising and distribution factors


  An organization does not incur any additional efforts to advertise or distribute when the company adds one or more products to its product line
• Use of residuals

  In case the by-products can be developed or utilized, a company should produce such products
• Competitor's action

  In order to meet the competition/market, a firm may decide to include or eliminate a product
• Full utilization of marketing capacity

  The company can start to produce another product to utilize its capacity completely if the existing marketing resources are not being utilized
• Goodwill of the company

  When the company has a good reputation in the market, a new product can be launched without much difficulty
• Product mix

  The composite of products offered for sale by a firm or a business
• Dimensions of product mix

  • Breadth/Width - number or variety of products
  • Depth - assortment of sizes, colours and models
  • Consistency - close relationship of various product lines/their end use to the production requirements/distribution channels
• Product range

  A range of products that have similarities (e.g. same initial usage) with different features
• Product line

  A group of products that are closely related, either because they function in a similar manner or are sold to the same customer groups or are marketed through the same types of outlets, or fall within given price ranges
• Product positioning

  The manner in which a product is offered to a particular customer of a particular segment with the aim to meet the customer's needs