The document discusses product as the first element of the marketing mix. It defines product as anything that can be offered to a market for attention, acquisition, use or consumption. Products can include goods, services, experiences, events, properties, organizations, information or ideas. The document discusses different classifications of products such as consumer products, industrial products, services, and levels within a product hierarchy from core benefits to individual items. It also discusses concepts such as product differentiation, product mix, and product line length.

1. Product – The first element of
marketing mix

2. Marketing mix
 The marketing mix is the combination of variables that a
business uses to carry out its marketing strategy and meet
customer needs.
 The tools available to a business to gain the reaction it is seeking
from its target market in relation to its marketing objectives
 Traditional 4Ps extended to encompass growth of service industry
The marketing mix is often called the 4Ps:
 Product
 Price
 Place
 Promotion

3. The Marketing Mix
 Think of a Cake
 All cakes need 4 things – flour, egg, sugar, milk
 However, you can play with the flavour of your
cake by changing the ingredients slightly
 Example: Sweeter cake – add
more sugar

4. Water Storage Problem in India
 How is drinking water supply in India?
 How People used to store water in India?
 What were the options available?
 Steel, Brick, reinforced cement concrete.
 Need for leak proof & maintenance free solutions to water
storage.
 Sintex industries came up with a idea of modelled polythene
water storage tanks of standard size, were easy to transport
and quick to install.
 On ground, intermediate, underground, elevated and industrial
water storage tanks
 Building & construction material – plastic, steel or wooden
doors, false ceilings etc.

5. Wello Water Wheels

7. Product Levels
Customer-value
Hierarchy
Potential Product
(Future augmentations)
Core Benefit
(Rest and sleep)
Basic Product
(Bed, bathroom, towels)
Expected Product
(Clean bed, fresh towels)
Augmented Product
(Free Internet; free breakfast)

8. Components of the
Market Offering

9. Product Levels
 More Differentiation & more competition on Product
augmentation.
 Augmented benefits become expected benefits
 E.g. Today’s hotel guests expect satellite television,
high speed internet access, fully equipped fitness
center etc.
 ITC Hotels
 Super Delux Hotels – ITC Hotels & Luxury Collection
 5* - Welcome & Sheraton hotels
 1st class – Fortune Hotels
 Place, forts, havelis - WelcomeHeritage

10. Product Levels
 Indian Hotel Company Ltd (TATA)
 Taj
 World-renowned landmarks, modern business hotels, idyllic
beach resorts, authentic Rajput palaces and rustic safari
lodges
 Gateway – Modern travellers (24*7)
 Vivanta Hotels & resorts- Stylish and sophisticated
 Ginger (Roots Corporation - RCL)

12. Product Characteristics/Classifications
• Experiences
• Events
• Properties
• Organizations
• Information
• Ideas
Places
Persons
Services
Goods

13. Product - Meaning
• Anything that can be offered to market for attention,
acquisition, use or consumption that might satisfy a
want or need.
• A product is a good, service, or idea consisting of a bundle of tangible
and intangible attributes that satisfies consumers and is received in
exchange for money or some other unit of value.
• Also includes services, events, persons, places,
organizations, ideas or mixes of these.
• Pure tangible goods – toothpaste, soap or salt.
• Pure service – medical, financial services.
• Consumer & Industrial products.
• Non durable goods, durable goods, services

14. Product Differentiation
Form
Customizatio
n
Performance
Reliability
Features
Durability
Conformanc
e
Repairability
Style

15. Services - Meaning
 Services are a form of product that consists of
activities, benefits, or satisfactions offered for sale
that are essentially intangible and do not result in
the ownership of anything.
 Banking, hotel, airline, retail, wireless
communication & home repair services

16. Service characteristics
 Intangibility
 Cannot be seen, tasted, felt, heard or smelt before they are
bought.
 Service providers need to manage the evidence by providing
evidence of the benefits.
 Inseparability
 Cannot be separated from providers, whether people or
machines.
 Customers are always involved
 Variability
 Quality may vary greatly depending on who provides the service,
when and how.
 Staff need to know how to do something well.
 Staff must be well motivated to maintain high standards of service
 Perishability
 Services cannot be stored for later sale or use

17. Classification of Services
 Utilities (MSEDCL)
 Insurance, Banking & Finance (ICICI Bank)
 Law-enforcing Civil, Administrative & Defense
services (Govt.)
 Transport & Communication (Indian Railways)
 Business Professional Services (Wipro)
 Distributive Trades (HSBC)
 Hospitality Services

18. Goods & Services continuum
Managing customer experiences

19. Categorising offerings along the service continuum
 Pure tangible goods
 toothpaste
 Tangible goods accompanied by one or more service
 computer and warranty
 Hybrid offer consists of equal parts of goods and
services
 restaurants
 Service with accompanying minor goods
 air travel
 Pure service
 haircut

20. Services Differentiation
Ordering
Ease
Delivery &
Returns
Installation
Training
Maintenance & Repair
Customer
Consulting

21. Classification of Products
Consumer
Products
On the basis
of durability
Durable
Goods
FMCG or
Non durable
On the basis
of shopping
nature
Convenience
Goods
Shopping
Goods
Specialty
Goods

22. Product Classifications
•Tangible goods
•Consumed in few
uses
•Distribution
•Small mark up
•Heavy ads
•Induce trial
•Build preference
 Survive many
uses
 More personal
selling &
service
 Higher margin
 More seller
Nondurable
goods
ServicesDurable
goods
Durability and
Tangibility
 Intangible
 More quality
control,
credibility, &
adaptability

23. Consumer goods
Unsought
Products
Specialty
Products
Shopping
Products
Convenience
Products
Consumer
Products
Business
Products
PRODUCTS

24. Product Classifications
Consumer-Goods
Convenience
goods
Shopping goods – furniture,
clothing, major appliances
Specialty goods
-
Stereo
component,
Men suits, TVs
Unsought goods
Life insurances,
encyclopedias &
reference books, blood
• Staples
• Impulse goods
• Emergency goods

25. Convenience
Product
Shopping
Product
Specialty
Product
Unsought
Product
Frequently bought, inexpensive, little shopping effort.
Staples - on regular basis (Colgate toothpaste, detergent)
Impulse Goods - purchased without planning (chocolates,
potato chips, pan masala)
Emergency Goods – when need is urgent (umbrellas)
A product that requires comparison on the basis of
suitability, quality, price & style, Usually more expensive
and found in fewer stores.
Homogeneous – same quality but different prices
Heterogeneous – differs in product features & services
Unique characteristics or brand identification.
A particular item that consumers
search extensively for and are reluctant to accept
substitutes.
Mercedes
A product unknown to the potential buyer or a
known product that the buyer does not actively
seek.
Smoke detector
Requires advertising & personal selling support

27. Product Classifications
Industrial-Goods
Raw materials
Materials and Parts
Manufacture
d
materials
Capital Items
Installations
EquipmentSupplies and
business
Services

28. Industrial product
Materials & parts
Raw materials
Farm Products
(wheat, cotton,
livestock, fruits,
vegetables)
Natural products
(fish, lumber,
crude petroleum,
iron ore)
Manufactured
materials &
parts
Component
materials (iron,
yarn, cement,
wires)
Component parts
(small motors,
tires, castings)

29. Industrial product
Capital Items
Installations
Buildings
(factories,
offices)
Fixed
equipments
(generators, drill
presses, large
computer
systems,
elevators)
Accessory
Equipments
Portable factory
equipments &
tools (hand tools,
lift trucks)
Office
equipments
(computers, fax
machines,
desks)

30. Industrial product
Supplies & Services
Supplies
Operating supplies
(lubricants, coal,
paper, pencils)
Repair &
maintenance items
(paint, nails,
brooms)
Business
Services
Maintenance &
Repair services
(window
cleaning,
computer repair)
Business advisory
services (legal,
management
consulting, advertising)

31. Industrial product
Materials & parts
Raw materials
Farm Products
(wheat, cotton,
livestock, fruits,
vegetables)
Natural products
(fish, lumber,
crude petroleum,
iron ore)
Manufactured
materials & parts
Component
materials (iron,
yarn, cement,
wires)
Component parts
(small motors,
tires, castings)
Capital Items
Installations
Buildings
(factories, offices)
Fixed equipments
(generators, drill
presses, large
computer
systems,
elevators)
Accessory
Equipments
Portable factory
equipments &
tools (hand tools,
lift trucks)
Office equipments
(computers, fax
machines, desks)
Supplies & Services
Supplies
Operating
supplies
(lubricants, coal,
paper, pencils)
Repair &
maintenance
items (paint, nails,
brooms)
Business
Services
Maintenance &
Repair services
(window cleaning,
computer repair)
Business advisory
services (legal,
management
consulting,
advertising)

32. The Product Hierarchy
 Need Family
 Core need that underlines the existence of the product
 Insurance - Security
 Product Family
 Savings and Income
 Product Class
 Financial Instruments
 Product Line
 Life insurance
 Product Type
 Term Life Insurance
 Item (SKU)
 LIC Anmol Jeevan II plan

33. Product Mix
Product
System A Product System is a
group of diverse but related
items that function in a
compatible manner
e.g. iPod Product System
Headphones, headsets,
cables and docks,
armbands, cases, power
and car accessories and
speakers

34. Smartphone

35. Product Mix
Product Mix A product mix is the set of all
products and items a particular
seller offers for sale. A company’s
product mix has a certain width,
length, depth, and consistency.
E.g. ITC various product lines
1)FMCG (Cigarettes, foods,
personal cares,
stationary & education,
lifestyle retailing,
safety matches,
agarbattis)
2) Hotels
3) Paperboards
4) Agribusiness
Product Line
A group of products that are
closely related because they
function in a similar manner,
are sold to same customer
groups, are marketed through
same type of outlets, or fall
within given price ranges

36. Product Mix
 Product Line
 Nirma
 Personal-Care Products
 Nirma-Bath Soap, Nima Beauty Soap, Nima Sandal Soap
 Fabric-Care Products
 Nirma Washing powder, Detergent Cake,
 Super Nirma washing powder and Detergent cake,
 Nirma Popular washing powder and Detergent cake
 Food Products
 Nirma Shudh Iodized salt
 Scouring Products
 Nirma Clean Dish Wash Bar, Nirma Bartan Bar

37. Product Mix - Sony
 Sony Electronics
 TV & Home cinema, Audio, Cameras, Mobile Tablet
& Smart Devices, Video Camera, Car Audio System
 Sony Computer Entertainment
 Playstation, games
 Sony Pictures Entertainment
 Movies, TV shows, music, DVDs
 Sony Financial Service
 Life insurance, banking
 Sony Life, Sony Bank
Consiste
ncy

38. Product Mix
• Width – different product lines a company carries
• The number of product lines an organization offers.
• Diversifies risk
• Capitalizes on established reputations
• Length – total no of products a company carries within its
product line
• Depth – how many variants/versions are offered of each
product in each line
• Attracts buyers with different preferences
• Increases sales/profits by further market segmentation
• Capitalizes on economies of scale
• Evens out seasonal sales patterns
• Consistency – how closely product lines are related in
terms of end use, production requirements, distribution

39. Proctor & Gamble Product Mix
Detergent
s
Toothpast
e
Health &
Sanitatio
n
Hair Care
Disposa
ble
Diapers
Person
al Care
Ariel Oral-B Vicks
Head &
Shoulde
rs
Pamper
s
Olay
Tide
Whispe
r
Pantene Gillette
Product Mix Width
Produ
ct
Line
Lengt
h

40. Hindustan Unilever Ltd.
Food & Drink

41. Hindustan Unilever Ltd.
Home Care

42. Hindustan Unilever Ltd.
Personal Care

43. Hindustan Unilever Ltd.
Water Purifier

44. Product Line Depth - Lux
1. Velvet Touch,
2. Soft Touch
3. Charming Mangolia
4. Hypnotic Rose
5. Iconic Rose
6. Fresh Splash
7. Creamy Perfection
75, 100, 150,
400gm

45. Product Line Depth - Ayush

46. NESTLE - Product Line

47.  Nestle
 Milk Products and Nutrition
 Nutrition
 EveryDay, a+, Slim dahi & milk, Actiplus, Bhuna Jeera Raita,
Real Fruit Yoghurts (Strawberry & Mango), Milkmaid, Neslac,
Everyday Ghee, Buttermilk, Lassi, Grekyo, Raita
 Baby & Me
 Beverages
 Nescafe Classic, Sunrise, Nestea, Cappuccino, Gold
 Breakfast Cereals
 Nestplus (Fillows, kokos etc)
 Prepared Dishes & Cooking Aids
 Maggie
 Oats, 2 minutes noodles, Chicken, Veg Atta, Cuppamania,
Bhuna Masala, Coconut Milkpowder, Magic Cubes, Masala-a-
magic, Pazzata, Sauces, Hungrooo
 Chocolates and Confectionery
 Alpino, KitKat, BarOne (12g, 22g), munch, Classic (18, 36g), Milkybar,
Milkybar Choo, Eclairs (Caramel, Milky), Polo, Party Treats
 Vending and Food Services
 Beverage Systems, Beverage Solution Products, Food Service Products,
Touch Points.

48. Godrej Agrovet Ltd. Product Mix
 Animal Feed
 Cattle Feed – Bovino Calf Grower, Milkmore, Bypro etc
 Poultry Feed – Crumbro, Crumchick, CrumEgg, Eggy-P, Elite,
Excel etc.
 Aqua Feed – Growplus, Nutrifry, Indica etc
 Specialty Feed
 Crop Protrection
 Plant Growth Regulators and Bio-Stimulants – Vipul, Double,
Supershakti, Anarika etc.
 Herbicides – Hitweed, Delete, Metzin, Weednash etc.
 Insecticides – Acevip, Czaar, Elpida, Torpid etc.
 Fungicides – Cronus, Gomeda, Milduvip, Lark etc
 Soil Conditioners and Organic Manures – Vikas Neem & Vikas
Organic
 Palm Oil Plantation
 Creamline Dairy Products
 Milk, Milk products,
 Tyson Foods
 Real Good Chicken – Cutpices, lollipop, drumsticks, whole precut,

52. Product Line Analysis
Sales and Profit
Market Profile

53. Product-Item
Contributions

54. Product Map

55. Product Line Length
Line
stretching
Up-market
stretch
Down-market
stretch
Two-
way
stretch
Line modernization,
featuring, and
pruning
Line
filling
Objectives –
To induce up selling
Protection against economic ups &
downs

56. Product Line Length
 Line stretching – company lengthens its product line beyond its
current range.
 Down-Market Stretch – introducing low priced line
 Reasons -
 Strong growth opportunities. Walmart, Big Bazaar etc
 Tie up/counterattack with lower end competitors
 If market is stagnating or declining.
 Choices –
 Use of Parent Brand. Sony
 Low priced offering using sub-brands. Gillette Vector
 Low priced offering under different name. Britannia – Tiger
 Risk of existing customer shifting to lower priced version.
 Up-Market Stretch
 Moving higher end of the market to achieve more growth, higher
margins, or to position as full-line manufacturers.
 Toyota Lexus, Starbucks in Coffee
 Ultra dry Pampers
 Two-Way Stretch – in both directions

57.  Line filling – company lengthens its
product line by adding more items
within the present range.
Motives – to get incremental profits
satisfying dealers, utilizing excess
capacity, to become full line company,
plugging holes to keep out
competitors.
Avoid self cannibalization and
consumer confusion. Good Knight –
coils, mats, liquid vaporizers, mosquito

58.  Line modernization, featuring, and pruning
 Piecemeal approach
 Intel, AMD, Microsoft, Oracle – not to early or
not too late.
 Companies continuous modernize product
lines to encourage customer migration to
 higher-valued,
 higher-priced items;
 boost demand for certain product lines by
featuring them; and
 optimize their brand portfolios by focusing on
 core brand growth and concentrating resources on
the biggest and most established brands.

59. Thank You
Questions?????