It is a presentation for fundamental of marketing

1. FUNDAMENTALS OF
MARKETING
BY
DR CHITRA JOSHI
ASST. PROFESSOR
PRESTIGE INSTITUTE OF MANAGEMENT AND RESEARCH

2. Product

4. Product
 Product is one of the important elements of marketing mix.
 A marketer can satisfy consume needs and wants through
product.
 A product is a bundle of attributes (features, functions, benefits,
and uses) that a person receives in an exchange
 A product consists of both good and service.
 Decisions an other elements of marketing mix depend on
product.
 For example, price is set for the product promotional efforts are
directed to sell the product; and distribution network is
prepared for the product

5.  “A product is anything that can be offered in a
market for attention, acquisition, use or consumption
that might satisfy a need or want”
 Philip Kotler: "Product is anything that can be offered
to someone to satisfy a need or want

6.  William Stanton: "Product is complex of tangible and
intangible attributes, including packaging, colour, price,
prestige, and services, that satisfy needs and wants of
people
 W. Alderson: "Product is a bundle of utilities, consisting
of various product features and accompanying services.“
 Product is a bundle of benefits-physical and
psychological that marketer wants to offer, or a bundle of
expectations that consumers want to fulfill

8. CHARACTERISTICS OF PRODUCT
 Product is one of the elements of marketing mix or
programme.
 Different people perceive it differently. Management, society,
and consumers have different expectations.
 Product includes both good and service.
 Marketer can actualize its goals by producing, selling,
improving, and modifying the product.
 Product is a base for entire marketing programme,
 In marketing terminology, product means a complete product
that can be sold to consumers. That means branding, labeling,
colour, services, etc., constitute the product

9. Benefitsfroma Product
 Core Benefit
 Tangible Benefit
 Augmented Benefit

11.  New Product Development
 “Developing a new product due to change in technology, Customer
taste and competition.”

12.  Steps Involved in New Product Development
 Idea Generation
 Idea Screening
 Business Analysis
 Product Development
 Testing the Product
 Commercialization

13. Classification of Product

15. On the basis of Durability
and Tangibility
 Durable Goods-
Used for many years.
Ex- TV, Refrigerators, Automobiles, Washing Machine
 Non Durable Goods- consumed in one or few years
Ex- Soap, Salt, Edible items.
 Service-
Intangible, inseperable,
variable, perishable
product.

16. Consumer Goods
These are meant for use of consumption by ultimate consumers
for the satisfaction of their needs and wants.
 Conveniencegoods-
 These are those products which a consumer purchases
frequently, immediately and with minimum efforts from
convenient locations. For example, tooth paste, bread,
newspaper, cigarette, match box, medicine, soap, cold drinks,
grocery items, etc.

17.  Shopping Goods-
 These are those goods where consumers devote considerable
time in making selections before they buy. On the basis of
durability, suitability, quality price and style, the selection and
purchasing of the goods takes place. For example, household
furniture, automobiles, refrigerators, sewing machines,
jewelleries, clothing, used cars; arid major appliance, etc.

18.  SpecialtyGoods
 These goods possess unique characteristics and brand
identification for which a sufficient number of
buyers are willing to make a special purchasing
effort. For example, stereo components, photographic
equipment, men’s suits, shoes, goggles, mobile
phones, cloth material, etc.

19.  UnsoughtGoods
 These are those goods which the consumer does not know
about or does not normally think of buying. These goods
require advertising and personal-selling support. For
example, smoke detectors, kitchen exhaust fans like
electric chimneys, etc. The classic examples of known but
unsought goods are life insurance, cemetery plots,
gravestones and encyclopedias, reference books, etc.


20. Industrial Goods
 Machines and components
 Service and Consultancies
 Supplies&Business
Services-
 Electricity and Fuel

22. Managing The Product
Product Hierarchy
Product family, class, line, type, brand& item
 Product Family
All product classes that can satisfy a core need with reasonable
effectiveness.

23.  Product Class
Group of products within the Product Family.

24.  Product Line-
Refers to a group of products clubbed together by virtue of
satisfying a particular class of needs, being used together
or distributed through the same channel or possessing
common physical or technical characteristics.

25.  Product Type
 A group of items within a product line that share one of
possible form of product.

26.  Items
 A distinct unit within a brand or product line
distinguishable by size, price, appearance or some other
attribute.

27.  Width of product line
No. of product line offered by a company.
 Depth of product line-
No. of product offered in a product line by a
a firm.
 Consistency-
Degree of similarity b/w product lines
respect to technology, production &
distribution channels
Product Mix
Set of all products and
items offered by a firm
at a given point of time.

28. ProductAssortment Of HUL
Product Width
Pl-1 Pl-2 Pl-3
Laundry Personal Wash Hair Care
Surf Excel Lifebuoy Sunsilk
Product
Length Wheel Lux Clinic Plus
Dove
Liril

29. ProductLifeCycle
 Product Life Cycle shows the stages that products go
through from development to withdrawal from the market
 Each product may have a different life cycle
 May help the firm to identify when
a product needs support, redesign, withdrawal, etc.
 May help in new product development planning

30. StagesoftheProductLifeCycle
 Introduction/Launch
 Growth
 Maturity
 Decline

31.  Introduction/Launch
Advertising and promotion campaigns
Target campaign at specific audience?
Monitor initial sales
Maximise publicity
High cost/low sales
Length of time – type of product

32.  Growth
 Increased consumer awareness
 Sales rise
 Revenues increase
 Costs - fixed costs/variable costs, profits may be made
 Monitor market – competitors reaction?

33.  Maturity
 Sales reach peak
 Cost of supporting the product declines
 Ratio of revenue to cost high
 Sales growth likely to be low
 Market share may be high
 Competition likely to be greater
 Price elasticity of demand?
 Monitor market – changes/amendments/new strategies?

34.  DeclineandWithdrawal:
 Product outlives/outgrows its usefulness/value
 Fashions change
 Technology changes
 Sales decline
 Cost of supporting starts to rise too far
 Decision to withdraw may be dependent on availability
of new products and whether fashions/trends will come
around again?

35. Product Life Cycle

36. Characteristics Introduction Growth Maturity Decline
Sales Low Rapidly Rising Decline Decline
Cost per
Customer
High Average Low Low
Profit Negative Rising High Decline
Customers Innovators Early Adopters Early &Late
Adopters
Laggards
Competitors Few Growing No. Stable No.
Beginning to
Decline
Declining No.
Market
Objective
Product
Awareness
Maximize
Market Share
Maximizing
Profit
Reduce Share
Product
Strategies
Basic Extension Diversity,
Defend Market
Share
Milk the Brand,
Phase out

37. Characteris
tic
Introduction Growth Maturity Decline
Price Strategies Cost Plus Penetration
price
Best matching
Price
Cut Price
Distribution
Strategies
Selective Intensive More Intensive Selective
Communication
Strategies
Build Awareness
for Early
Adopters
Build Awareness
for Mass Market
Brand
Difference
&Benefits
Reduce to level
needed to
retain loyalty ,
Reduce to
minimum level

38. StrategiesforDifferentPhasesof PLC
Introduction Stage
 Rapid Skimming- High price, High promotion
 Slow Skimming-High Price, Low promotion
 Rapid Penetration- Low price, High promotion
 Slow Penetration- Low price, Low promotion

39. Growth Stage
 Improving or adding new features
 Increased emphasis on promotion
 Strengthening or adding distribution channels

40. Maturity Stage
 Market Modification
 Product Modification
 Marketing Mix Modification

41. Decline Stage
 Maintain- To continue with the product
 Harvest- Reducing the cost
 Drop/ Divest

43. New Product Development
“Developing a new product due to
change in technology, Customer
taste and competition.”

45. Steps in New Product Development
 Idea Generation
 Idea Screening
 Concept Development and Testing
 Marketing Strategy Development
 Business Analysis
 Product Development
 Test Marketing
 Commercialization

46.  Idea Generation
 This part of the process involves brainstorming different
ideas and suggestions regarding new products or ways that
you can enhance a current product.
 During this phase, businesses will conduct extensive
research into their users and what they are looking for, as
well as evaluate market trends. This groundwork is
imperative in terms of designing a product that can provide a
solution for an issue that people are experiencing at the
moment.

48.  There are two ways that you can go about generating new ideas, and these are as
follows:
 Internal idea generation – Internal ideas come from various areas within your
areas within your business, for example, the sales team, customer support,
marketing, or the technical department.
 External ideas generation – External ideas come from outside sources, for
sources, for example, getting feedback from your target audience or studying the
competition.

49.  Screen your ideas
 Determining which ideas you should be discarding and
which ones are worth pursuing will depend on a whole host
of different factors. You need to consider the marketing
potential of your new product, as well as technical
feasibility, the product improvements that are most required,
and the expected benefits for your customers.

50.  Concept development and testing
 Once an idea has passed the screening stage, it needs to be
developed into a concept. This is basically a detailed
description of the product.
What should be included in your concept?
• The target market for the product
• The proposed price for the product
• The benefits of the product
• The features of the product and how they may appeal to the
consumer

52.  Marketing strategy
 You are also going to need to put together an initial
marketing strategy for your product. This will act as a
guide for the promotion, pricing, and positioning of your
new product.

53.  Business analysis
 A business analysis involves reviewing the profit
projections, expected costs, and sales forecasts for the
product. If they satisfy your objectives as a business, you
can move the product onto the development phase.

55.  Product Development
 This involves developing the product concept and
creating a product that is 100 percent finished and ready
to market.
 You should have, hopefully, considered what style of
product development you want to use by this point. There
are many methodologies you can follow, from waterfall to
agile product development. Some businesses like to use a
hybrid approach, which involves combining different
elements of the two.

56.  Test Marketing
 This involves releasing the finished item to a sample
market so that you can see how the product performs
under the marketing strategy that you have
predetermined.
 There are two testing methods that you can employ when
it comes to releasing the product to a sample market.
These are alpha testing and beta testing.
 Beta testing involves actual users getting to try out the
product and give their honest opinion on the product.
 Alpha testing involves testing that is carried out by
software to identify any issues or bugs before the product
is released to the public.

58.  Commercialization
 Now, the exciting time has come to launch your product.
You need to make sure that everything is in place to
guarantee that your launch is a success, i.e. your customer
support, sales, marketing, and product teams. Continue to
monitor the performance of your product, so you can make
adjustments as and when needed.