1. BSBMKG502B – Establish and adjust the
marketing mix
Product
First of the Four P’s
Product (and service)
Price
Promotion
Place(ment)

2. Product/Service
• Variety
• Quality
• Design
• Features
• Brand Names
• Packaging
• Sizes
• Add-ons
• Warranties
• Returns

3. Products (services)
• What is a product?
• Classifications & Levels
• Characteristics
• Product Decisions
• Branding
• Packaging
• Labelling

4. What is a product?
Anything that can be offered to
market that might satisfy a want
or need. Includes:
objects,services, persons, places
organisations & ideas

5. Classifications
Consumer & Business
Consumer : bought by final
consumers for personal
consumption.
Business: bought by business to
streamline operations.

6. Characteristics of Products
• Physical products
• durable - many uses over extended period e.g. Mobile
phone
• non-durable - consumed rapidly or only designed for a few
uses e.g. tissues
• Pure services
Distinguished from physical products on the basis of:
• intangibility
• inseparability
• variability
• Perishability e.g. Facials, massages

7. Levels of Products
• Core product
• the problem-solving service or core benefit that consumers
are buying when they obtain the product to satisfy a
specific need
• Actual Product
• parts, styling,features, brand name, packaging and other
attributes that deliver core benefits
• Augmented Product
• includes any additional consumer services and benefits
built around the core product e.g. Cars now also have
CD/MP3 player, air-conditioning, seat warmers etc.

8. Consumer products
Are classified as :
• Convenience goods - purchased frequently with a minimum of
comparison and buying effort e.g. shampoo
• Shopping goods – are compared on the basis of suitability,
quality, price and style e.g. shoes
• Specialty Goods - have unique characteristics and are
specifically sought by the consumer e.g. Coffee machines
• Unsought goods – may be unknown to buyer or not normally
considered for buying e.g. Cosmetic procedures

9. Industrial Business to Business
(B2B) products
Are classified as:
• Materials & Parts – that enter a product in manufacturing
(are transformed)
• Capital Items – (installations or accessories) indirectly
contribute to production - enter finished product partly
• Supplies & Services – do not enter production at all

10. Product Decisions
Decisions need to be made
about a product’s:
•quality
•features
•design

11. Branding
Four levels of meaning
• attributes
• benefits
• values
• personality
more on branding later

12. Packaging
The activities of designing &
producing the container or
wrapper for the product. Has
links to the
placement/distribution mix.

13. Labelling
Range: simple tags to graphics that
are part of packaging. They:-
• identify
• grade
• describe
• promote

14. New Product Development
The development of original
products or improvements through
organisation’s own Research &
Development efforts

15. Product Life Cycles (PLC)
The course of a product’s
sales & profits during its
lifetime

16. 5 Stages in a PLC
•Product development
•Introduction
•Growth
•Maturity
•Decline

17. Services Classification
• A service is any benefit or activity that one party can offer
to another that is essentially intangible and does not result
in ownership of anything (hairdressing, financial advice,
air travel)

18. Brand
• Attributes – a brand elicits certain product activities in the
mind of the consumers
E.g. what do you imagine when you hear the brand – Ferrari
• Benefits – objective needs satisfiers
• Values – The benefits of the brand indicates that these
things are important to the customer
• Personality – people personify brands and products
• E.g. Bollywood

19. Branding (cont)
• Brand Equity – brands create awareness, build
preference & command loyalty
• Branding Decisions – Brands usually command
higher profit margins than unbranded
• Brand Sponsors - organisations who sponsor the
brand
• Brand Repositioning – re-evaluation in relation to
competitive & market changes
• Brand Name Selection - see next slide

20. Brand Name Selection
• Should suggest product’s qualities & benefits
• Easy to use - pronounce, recognise & remember
• Distinctive
• Translatable
• Capable of registration/legal protection

21. Brand Strategy
• Brand Extensions – using a successful brand to
launch new or modified products
• Multibranding – establish different features and
appeal to a range of consumers
• New Brands - to enter new product category
• Line Extensions – introduction of additional items in
a given product category
• Brand Repositioning – change of product image

22. Packaging
• Design & production of the container or wrapper of a
product to support the marketing objectives
• Labelling – promote the product & meet legal
requirements – price, weight, contents, washing
instructions, nutritional requirements

23. Product Support Units
• Support services through;
• electronic media
• web sites
• mobile service representatives
• 1800 phone numbers
• agencies

24. Product Line Decisions
• Product Line – group of products closely related
because they function in a similar manner, are sold to
the same customer groups, marketed through the
same types of outlets or fall within a given price
range
• Product Line Decision – do we add or drop lines?
• Product Line stretching decisions – extend
product line downwards, upwards or to either side

25. Product Line Decisions (cont)
• Product Line filling decision – increasing the product
line by adding more items within the current range
• Product Line modernisation decision – decision
concerning look or feel of a product range
• Product Line Featuring Decision – decision on what
features to promote
Youtube: no more bad tasting “Mother” energy drink
http://www.youtube.com/watch?v=trFBxyC1T74

26. 26
Product Mix Decisions
• Also called product assortment
• The set of all product lines and items that a particular
seller offers
• Described in terms of breadth, length, depth and
consistency
More later

27. Activities
• Activity: Find-a-word puzzle
From the find-a-word you will be allocated a
marketing related term. You need to research this
term and provide a definition and example of how
it is applied in industry and present it to your
fellow students.

28. Conclusion
• Product and Service are treated as the same thing
but as two ends of a spectrum or continuum
• Product has many properties that can all affect the
overall marketing effort
• It is normally the most basic or first marketing mix
element to be managed by marketers (except in more
mature markets)