Marketing Management-Product Management

1. 1

2. Marketing mix and product
management.
At the end of this module the learning actuates are.
1. What is a product?
2. Various levels of product.
3. How products are classified?
4. Differentiation
5. Product and brand relationships
6. Packaging
2

3. What is a Product?
A product is anything that can be offered to a
market to satisfy a want or need, including
physical goods, services, experiences, events,
persons, places, properties, organizations,
information, and ideas.

4. Components of the
Market Offering
Attractiveness
of the market
offering
Value-based prices
Product
features
and quality
Services
mix and
quality

5. Five Product Levels

6. Marketing mix and product
management.
1. Core product
- Most fundamental benefit customer is buying.
- Heart of the system.
Refrigerator
- Basic purpose.
Preservation.
- To preserve you need a compressor and cooling
system.
- This is core.
6

7. Marketing mix and product
management.
2. Basic product
- Do you buy compressor?
- You buy a basic product?
- Formal
Refrigerator
- Compressor is mounted on a body /cabinet.
- There is a door, shelves, trays.
- This is basic product.
7

8. Marketing mix and product
management.
EXPECTED PRODUCT
- A set of attributes and conditions customers expect. This
depends on the chosen target audience.
- This is expected from a marketer.
Refrigerator
- Freezer.
- Bulb.
- Thermostat.
- Quiet not noisy.
- Different types of shelves.
- Antirust system.
This is expected product.
8

9. Marketing mix and product
management.
AUGMENTED PRODUCT
- Prepare a product that exceeds customer
expectation. Is the reason to buy.
- Add further attributes
- Each attribute adds cost
- Will customer pay enough to cover the extra
cost?
Refrigerators
- Easy financing scheme
- Four year warranty on compressor
- Free rice – cooker with every refrigerator
purchased.
9

10. Marketing mix and product
management.
POTENTIAL PRODUCT
- Companies search for new ways to satisfy
customers and distinguish their offer.
Refrigerator
- Water dispenser – on the door
 Prevent frequent opening of doors.
 Faster cooling.

11. PRODUCT 11

12. Marketing mix and product
management.
WHAT DO WE OBSERVE?
- Most competition at augmentation level.
- Constant innovation.
- Understand how customers use their
product.
- New features add to the cost.
- Marketers have to find out that whether
customers are willing to pay extra cost.

13. Marketing mix and product
management.
REFRIGERATORS.
1. Whirlpool
• Quick lce making
1. Samsung
• Super x – flow
Uniform cooling.
3. LG
• Nutritional value maintained.
3. ALLWYN
• Efficient compressor.
3. KELVINATOR
• Coolest.

14. The Wedding Market
is a MetaMarket

15. Product Classification
Schemes
Durability
Use
Tangibility

16. Durability and Tangibility
Nondurable
goods
Services
Durable
goods

17. Marketing mix and product
management.
A. Durability & Tangibility
1. Non-durable goods
- Consumed in one or few uses
- Consumed quickly
- Frequent purchase
- Need to make them available in many locations
- Heavy promotion
- Induce trial
Example
Coke, Modern bread, Lux Soap, Mother Diary Milk

18. Marketing mix and product
management.
2. Durable goods
- Used many times
- More personal selling/service
- Seller’s assurance about product longevity
Example
- Refrigerators
- Mixer
- Car
 Higher priced than non-durable
 Consumer involvement is high as they are high
priced

19. Marketing mix and product
management.
3. Services
- Intangible
- Inseparable
- Variable
- Perishable
Example
- Beauty parlour
- Education Services
- A Surgery
- Listening to concert
- Airlines

20. Marketing mix and product
management.
Therefore
 Products which are predominantly tangible
are called goods
 Products, which are predominantly
intangible, are called services.

21. Consumer Goods
Classification
Convenience
Unsought
Shopping
Specialty

22. Industrial Goods
Classification
Materials and parts
Supplies/
business services
Capital items

23. Marketing mix and product
management.
B. Consumer – Goods classification
Based on shopping habits
1. Convenience goods
Goods purchased
- Frequently
- Immediately
- Minimum effort
Example
- Newspapers
- Bread
- Milk
Distributed at shops very near to households

24. Marketing mix and product
management.
2. Shopping goods
- Goods that the customer in the process of
selection and purchase
- Characteristically compares on such basis as
suitability, quality, price and style
Examples
- Furniture
- Clothing
- Appliances

25. Marketing mix and product
management.
3. Speciality goods
- Unique characteristics
- Unique brand values
- Buyers willing to make extra efforts
Example
- House
- Jewellery
Very few outlets, exclusive
- Cars

26. Marketing mix and product
management.
4. Unsought goods
- Goods the consumer does not know about or
does not normally think of buying
- Consumers made aware through
promotional efforts of the firm.
Examples
- Life insurance
- Security equipments
- Fire extinguisher

27. Marketing mix and product
management.
PRODUCT MIX
- Set of all products and items that a particular seller offers
for sale
Example:
BPL
• Consumer products
- TVs, Washing Machine
• Cellular Services
- Mobile operations in Mumbai
• Telecom
- Instruments

28. PRODUCT 28

29. PRODUCT 29

30. Marketing mix and product
management.
Product Mix-concepts
1. Width
- How many different product lines are carried by
the organization
2. Length
• Total number of items in the mix
3. Depth
• How many variants are offered of each product in the
line

31. PRODUCT 31

32. HUL
PRODUCT 32

33. PRODUCT 33

34. PRODUCT 34

35. Marketing mix and product
management.
4. Consistency
How closely related the various product lines are in
end use, production requirements, distribution
channels or some other way.
Proctor and Gamble
- Very consistent
- Why
- Products are available through the same
distribution channels

36. Marketing mix and product
management.
GE
• Very inconsistent
• Are Refrigerators, Aircraft engines and Electricity
equipment available from same places
• No ?
• Refrigerators
- Shops
• Aircraft Engine’s
- Direct

37. Hindustan Lever Limited
Product Mix : Width = 4 Length = 13;
Total Depth = 76 Average Depth = 76 /13=5.84
Soap (Length = 5) Detergent (Length = 4) Shampoo (Length
= 2)
Toothpaste
(Length = 2)
Lifebuoy (D = 8)
Lux (D =6)
Dove (D = 2)
Breeze (D = 12)
Pears (D = 2)
Wheel (D = 4)
Rin (D = 4)
Surf (D =6)
Surf Excel (D = 2)
Clinic (D =8
Sun-Silk (D =
12)
Close-Up
(D = 4)
(Pepsodent
(D = 6)
T Depth: 30 T Depth: 16 T Depth:
20
T Depth:
10
Av Depth: 6 Av Depth: 4 Av Depth: 10 Av Depth: 5
PRODUCT 37

38. Product Differentiation
 Product form
 Features
 Customization
 Performance
 Conformance
 Durability
 Reliability
 Repairability
 Style

39. Service Differentiation
 Ordering ease
 Delivery
 Installation
 Customer training
 Customer consulting
 Maintenance and
repair
 Returns

40. IHCL
 operates in the luxury, upper upscale, upscale and value
segments of the market through the following:
 Taj is the flagship brand for the world’s most discerning
travelers seeking authentic experiences in luxury. Besides
luxurious living and fine dining, Taj Hotels also promise a
whole new experience of tranquillity and total ‘wellness’
through Jiva Spas, a unique concept that brings together
the wisdom and heritage of the Asian and Indian
philosophy of wellness and well-being.

41.  Taj Safaris is India's first and only wildlife lodges circuit
that allows travelers to experience the unparalleled
beauty of the Indian jungle amidst luxurious
surroundings
 Vivanta by Taj provides the new generation of travelers a
contemporary and creative hospitality experience that
matches their work-hard, play-hard lifestyles.

42.  The Gateway Hotel chain is a pan-India
network of hotels and resorts that offers
business and leisure travelers a contemporary
hotel experience.
 Ginger is IHCL’s revolutionary concept in
hospitality for the value segment.
42

43.  Taj Trade and Transport operates the chain of
Taj Salon and Taj Khazana lifestyle boutiques
across selected properties of the Taj group.
Taj operated salons are currently operating at
12 locations in the group.
PRODUCT 43

44. Maintenance and Repair

45. The Product Hierarchy
Need family
Product family
Product class
Product line
Product type
Item

46. 46
7-Levels of Product
Hierarchy
 Product need—to satisfy a need e.g. feet protection
 Product class—a family of products having similar
function e.g. all shoes
 Product line—a group of products with closely related
functions e.g. sports shoes
 Product type—products within a line having similar form
e.g. basket-ball shoes
 Brand—a name representing a product or line e.g. Nike
 Item (Stock Keeping Unit)—a unit item e.g. one pair of
Nike basket-ball shoe

47. Line Stretching
Down-Market Stretch : Surf excel- wheel, Lo’real-
Garnier, Taj-Ginger
Down-Market Stretch : Surf excel- wheel, Lo’real-
Garnier, Taj-Ginger
Up-Market Stretch: Toyota's Lexus, Nissan's Infiniti,
and Honda's Acura
Up-Market Stretch: Toyota's Lexus, Nissan's Infiniti,
and Honda's Acura
Two-Way StretchTwo-Way Stretch

48. Line Filling & Pruning
Product line filling is the addition of further items to the current line of
products that a company is dealing in. Eg.Maruti Suzuki had launched
Alto in the year 2000 which was a product between two other models of
Maruti- Maruti 800 and Maruti Zen. Basically , it was an effort on part of
the company to fill the gap that existed in the market segment by
introducing this new model ALTO .
On the other hand, product line pruning is the removal of the unprofitable
products from the product line. Eg. Toyota Kirloskar phasing out their
model Qualis, when it was not adding any value to the product line as
such.

49. Co-branding

50. Ingredient Branding
Revotron is the new hope of Tata Motors. Tata Motors which once was the
number 2 in the Indian car market, is now finding it difficult to be in the top 5
thanks to the nagging quality issues coupled with a negative brand perception.
This brand is another example of ingredient branding.
The 1.2 Ltr engine is being promoted heavily by Tata Motors
ahead of the launch of the two major new products - Tata Bolt
and Zest. The Revotron brand is endorsed by the Indian F1
Racing star Narain Karthikeyan.
The USP of the Revotron engine is the 3 driving modes which
is usually seen in high end cars. There is a city mode, Eco
mode and a Sports mode. For a value-driven brand like Tata
Motors, this proposition is a very powerful differentiation.
Platforms and not products are now important to a company's
success. For automakers, engines offer the platforms on
which many products can be made. Honda has recently
demonstrated the power of platform with the diesel IDtec
engine.Tata Motors hope that the better engineered Revotron
would help build a better image for the cars produced under it.

51. What is the Fifth P?
Packaging, sometimes called the fifth P,
is all the activities of designing and
producing the container for a product.

52. Factors Contributing to the
Emphasis on Packaging
Self-serviceSelf-service
Consumer affluenceConsumer affluence
Company/brand imageCompany/brand image
Innovation opportunityInnovation opportunity

53. Innovations in Packaging

54. Packaging Objectives
 Identify the brand
 Convey descriptive and persuasive
information
 Facilitate product transportation and
protection
 Assist at-home storage
 Aid product consumption

55. Functions of Labels
Identifies
Grades
Describes
Promotes

56. Warranties and Guarantees