Product and its selection strategies ✔Features of a product ✔Classification of a product ✔Levels of a product ✔Product Mix ✔Dimensions of Product Mix ✔Strategies of product Mix ✔Product Life Cycle ✔Reasons for Product Failure

1. Product
MARKETING
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

2. “✔ Product
✔ Features of a product
✔ Classification of a product
✔ Levels of a product
✔ Product Mix
✔ Dimensions of Product Mix
✔ Strategies of product Mix
✔ Product Life Cycle
✔ Reasons for Product Failure

3. What is a product?
✔ Product satisfy the need of the society.
✔ Product is determined by the needs and desires of the consumers.
E.g.: When one buys toothpaste he buys in the hope of getting whiter teeth and avoiding bad odour.
✔ Consumer buys a promise of solving problems.
✔ A product is both what a seller has to sell? and what a buyer has to buy?
✔ Alderson defines, “Product is a bundle of utilities consisting of various product features and
accompanying services”.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

4. BuyerSeller Product
Cash Flow
FEEDBACK
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

5. “
✔ Tangibility
✔ Intangible attributes
✔ Associated attributes
✔ Exchange Value
✔ Consumer Satisfaction
FEATURES OF A PRODUCT
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

6. Tangibility
✔touched and seen
✔Form of Product/Goods
✔Eg: Car, Shirt, Book etc
Features
Intangible attribute
✔Only be felt
✔Form of Service
✔Eg: Free service offered
Associated Attribute
✔Related features
✔Brand, Package &
warranty
✔Eg: HUL- DALDA real
name s Vanaspati Ghee
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

7. Place your screenshot here
Brand name and
packaging plays a
dominat role in
marketing
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

8. Exchange Value
✔Exchanged between the buyer
and seller for mutual agreed
price
Features
Customer Satisfaction
✔Product should offer Value
satisfaction to the consumer.
✔Real & Psychological satisfaction.
✔Eg: Buying Fairness Cream gives the
hope of buying beauty.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

9. Classification of Goods/Product
Classification of
Product/Goods
Industrial Goods Consumer Goods
Speciality
Goods
Convenience
Goods
Shopping Goods
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

10. Industrial Goods
Goods used for further Production.
Capital goods, Raw materials & Component Parts.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

11. Consumer Goods
Coveneience Goods
✔ Consumers buy
frequently.
✔ Minimum shopping
effort.
✔ Eg: Soap, Toothpaste,
Powder Etc.
Shopping Goods
✔ Not purchased
regularly.
✔ careful comparison on
the base of Quality,
style, Price, Suitability
✔ Eg: Clothes, furniture,
Shoes Etc.
Speciality Goods
✔ Less frequent
Purchase (once in few
years).
✔ Goods are with unique
characters.
✔ High priced goods.
✔ Eg: Fancy & Luxurious
✔ Car, Camera Etc.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

12. Consumer Goods
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

13. Consumer Goods
Convenience
Goods
Shopping
Goods
Speciality
Goods
Examples Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

14. “✔ Core Benefit or product
✔ Basic Or Generic Product
✔ Expected Product
✔ Augmented Product
✔ Potential Product
LEVELS OF A PRODUCT
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

15. Levels of a Product Diagram
Core Product
Basic Product
Expected product
Augmented Product
Potential Product
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

16. Core
product
✔ The core benefit is the basic
need or want that the
customer satisfies when they
buy the product.
✔ Eg: Hotel customer is buying
the concept of rest and peace
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

17. Basic
product
✔ The generic product is a basic
version of the product made
up of only those features
necessary for it to function.
✔ Eg: The basic product for
Hotel may include Bed, toilet,
Towel.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

18. Expected
product
✔ The expected product
includes additional features
that the customer might
expect during the purchase.
✔ Eg: Hotel customer expect
Clean bed, fresh towel and
degree of quietness.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

19. Augmented
product
✔ The augmented product refers
to any product variations or
extra features that might help
differentiate the product from
its competitors
✔ Additional amenities
✔ Eg: Hotel Customer expect TV
with remote control and Wi-Fi
connection (High Speed
Internet)
Exceeds Customer Expectation
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

20. Potential
product
✔ The potential product includes all
augmentations and improvements
the product might experience in the
future.
✔ Companies search new ways to
satisfy the customers.
✔ continue to surprise and delight
customers the product must be
constantly improved.
✔ Eg: Hotel customer expect gifts,
chocolates, or luxury bath products
that will make the customer happy .
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

21. Product Mix
• Product mix is also known as product assortment.
• It refers to the total number of product lines a company
offers to its customers.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

22. Four Dimensions of Product Mix
Width (Number of
Product Lines)
The number of product lines the
company sells.
Length (Total Products)
The product mix length is the total
number of products or items in your
company's product mix.
Depth (Product Variation)
Depth of a product mix pertains to the total
number of variations for each product.
Variations can include size, flavour and any
other distinguishing characteristic.
Consistency
Product mix consistency describes how closely related
product lines are to one another – in terms of use,
production and distribution. Your company's product mix
may be consistent in distribution but vastly different in
use..
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

23. Product Mix Division format
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for
Women, Virudhunagar.

24. Product Mix Example (Maggi)

25. Product Mix Example (HUL)

26. Product Mix strategies
The strategies are employed by the producer or wholesaler
of the company
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

27. “✔ Expansion of Product Mix
✔ Contraction of product Mix
✔ Alteration of existing
product.
✔ Positioning the product.
✔ Trading up and Trading
down.
✔ Product Differentiation
Strategies of Product Mix
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

28. Strategies of product Mix
Expansion of Product Mix
✔ Its is referred to Diversification.
✔ Expansion of product mix implies increasing the number of product lines.
✔ Increasing the number of Product items with the same line.
✔ New lines may be related or unrelated to the present products.
✔ Example TATA Products_Tata cliq, HUL , P&G etc.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

29. Strategies of product Mix
Expansion
of
Product Mix
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

30. Strategies of product Mix
contraction of Product Mix
✔ Drop the production of unprofitable product.
✔ Contraction consists of dropping or eliminating one or more product lines or
product items.
✔ It is also termed as Simplification. Deleting or eliminating product items, which are
unnecessary from the product line.
✔ To eliminate Low profit products and to get more profit from fewer products.
✔ E.g. Tata deleted Nano from his automobiles
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

31. Strategies of product Mix
Contraction
of
Product Mix
Samsung deleted these product because
of technological up-gradation.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

32. Strategies of product Mix
Alteration of Existing product
✔ Improvement or alteration can be more profitable and less risky compared to
completely a new product.
✔ Alteration may be made in design, size, color, packaging, quality etc.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

33. Strategies of product Mix
Alteration
of
Existing
product
Example
Change in packaging
design
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

34. Strategies of product Mix
Positioning of the product
✔ A product position is the image that the product projects in relation to
competitive product in the minds of the consumer.
✔ The product feature will attract the customer.
✔ Positioning is attained by Product differentiation and Market segmentation.
✔ Example, Coca Cola may convince to use its soft drink along with lunch.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

35. Strategies of product Mix
Positioning
of
product
Example
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

36. Strategies of product Mix-
Trading up & Trading Down
Trading up
✔ Trading up consists of adding the high-price-prestige products in its existing
product line.
✔ The new product is intended to strengthen the prestige and goodwill of the
company.
✔ New prestigious product increases popularity of company and improves image
in the mind of customers.
✔ Eg: Tata (Jaguar Car) Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

37. Strategies of product Mix-
Trading up & Trading Down
Trading Down
✔ A company producing and selling costly, prestigious, and premium quality
products decides to add lower- priced items in its costly and prestigious
product lines.
✔ Who cannot afford at high price product can buy expensive products of the
same company at low price.
✔ Attract price sensitive customers.
✔ Eg P&G (Ariel_-> Tide) Idhayam (Idhayam delight__-> sim sim)
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for
Women, Virudhunagar.

38. Strategies of product Mix
Product Differentiation
✔ Developing and promoting awareness of
difference between one company products and
those of others.
✔ To remove from price competition.
✔ Exclusive Trade mark, Patent rights, trade
name it is differentiated from other product.
✔ Unique in nature
Market segmentation
✔ Dividing the whole market into smaller
number of specific market to attract variety
of customers.
EG: Demographic segmentation- Income, age, Sex
etc
✔ perfumes – Male, female & Unisex
✔Watch (Titan)- Male , female & Unsex/ Kids &
Yougsters
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

39. Product life Cycle
✔ Philip Kotler:”The product life cycle is an
attempt to recognize distinct stages in
sales history of the product.”
✔ A new product progresses through a
sequence of stages from introduction to
growth maturity and decline. This
sequence is known as Product Life Cycle.
✔ It is associated with the changes in
Marketing Situation.
✔ There are Four stages of PLC
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

40. “
✔ Introduction (Birth)
✔ Growth (Adolescence)
✔ Maturity & Saturation
(Youth)
✔ Decline (Death)
Product life Cycle 4 stages of PLC
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

41. Product life Cycle Example
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

42. Product life Cycle Example
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

43. Introduction
✔ Huge selling and promotional costs are required to increase awareness of
customers.
✔ Price is kept high to recover high development, production, and marketing costs.
✔ Marketer has to tackle technical and production problems.
✔ Sale is low and increasing at a lower rate.
✔ There is loss or negligible profit.
✔ There is no competition
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

44. Growth
✔ Sales increase rapidly (or at increasing rate) as a result of consumer acceptance of
the products.
✔ Company can earn maximum profits.
✔ Competitors enter the market due to attractive profits.
✔ Price is reduced to attract more consumers.
✔ Distribution network is widened and improved.
✔ Necessary primary changes are made in product to remove defects.
✔ Company enters the new segments and new channels are selected.Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

45. Maturity
✔ Sales increase at decreasing rate.
✔ Profits start to decline.
✔ Marginal competitors leave the market.
✔ Product, market, and marketing mix modifications are undertaken.
✔ Some products the maturity stage is extended and it s classified as saturation stage.
✔ Saturation stage is between maturity and decline. (company gets a decision were a
replacement should be needed)
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

46. Decline
✔ Sales fall rapidly.
✔ Profits fall more rapidly than sales.
✔ Product modification is adopted.
✔ Gradually, the company prefers to shift resources to new products.
✔ Most of sellers withdraw from the market.
✔ Promotional expenses are reduced to realize a little profit.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

47. Characteristics Introduction Growth Maturity Decline
Sales Low sales Rapidly rising
sales
Peak sales Declining sales
Cost per
Customer
High cost Average Cost Low cost Low cost
Profit Negative Rising profit High Profit Declining profit
Customer Innovators Early adopters Middle Majority Laggards
Competitors No competitors
Or
Few Competitors
Growing Number Stable Number
begin to decline
Declining Number
Characteristics Introduction Growth Maturity Decline
Objective Create product
Awareness and
trial
Maximize market
share
Maximize profit
while defending
market share
Reduce
expenditure
Product Life Cycle

48. Characteristics Introduction Growth Maturity Decline
Product Basic product Product Extension
(Eg: Service, warranty)
Diversify Brands Phase out weak
products
Price Cost+ Pricing
Skimming pricing
Price to penetrate the
market.
Price to match
the competitors
Cut price
Place Selective
distribution
Intensive distribution More intensive
distribution
Phase out
unprofitable outlet
Promotion High Promotion Mass Market and build
awareness
Stress branding Reduce promotion
and provide offers
and discounts
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.
Product Life Cycle

49. “
Reasons
for
product Failure
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

50. Reason for product Failure
Poor product quality:
Obviously, a product, which is
of poor quality, cannot be
sold in the market.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

51. Reason for product Failure
Higher price:
Higher production and distribution
costs may lead to higher price.
Such a product cannot be sold in a
market consisting of middle and
lower income buyers.
Versace and Vertu mobile
Rs.3,80,000 & Rs. 85,000
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

52. Reason for product Failure
Volkswagen Beetle (Expensive Price Tag)
28.73
Lakhs
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.

53. Reason for product Failure
Poor timing
It is important that a product,
to be successful, is introduced
in the market at the correct
time. If it is introduced at an
unsuitable time it may turn out
to be a failure.
Pager
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

54. Reason for product Failure
Inherent Defect
There may be an inherent defect
in the product, which may affect
its market potentialities. Such a
product may not be preferred by
the buyers even if the defect is
rectified later.
Tata Nano
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

55. Reason for product Failure
Imitation product
The presence of a number of
imitation products in the market
makes the genuine products
vulnerable. An average buyer may
not be able to distinguish between
the genuine product and the fake
one.
Examples
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

56. Reason for product Failure
✔ Conception of product idea may be faulty.
✔ Design of the product is not clear to the audience
✔ Marketing may be inefficient or insufficient.
✔ High cost of production
✔ Poor packaging and Inappropriate size.
✔ Introducing product were there is no demand.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

57. Reason for product Failure
✔ Stressing product attribute incorrectly.
✔ Unavailability of spare parts and poor after-sales service
✔ Government policy.
✔ Faulty distribution policy (Right product at the right place and at
the right Time).
✔ Heavy Competition in the market.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

58. PACKAGING
AND
LABELLING
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

59. “✔ Brand name
✔ Logo, tagline
✔ Image of the product
✔ Address of the manufacturer
✔ Quantity of the content
✔ Usage of the product
✔ Ingredients in the product
✔ Precautionary measures
LABELING
Information
Inlabel
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

60. “✔ Nature of the product
✔ Date of packaging and
expiry
✔ MRP
✔ Barcode
✔ Veg & Non Veg symbol
LABELING
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

61. Example of a Label
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

62. Advantages of labeling
✔ Grades the product
✔ Right price for the product.
✔ Avoids confusion.
✔ Helps in advertising activity.
✔ Guarantee for the standard.
✔ Label is the media to popularize the product
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

63. Disadvantages of Labeling
✔ No use to illiterate population.
✔ Increases the cost of the product.
✔ It aims at popularizing the product rather than giving nformtion
to the customers.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

64. Packaging
✔ Packaging is the science, art, and technology of enclosing or for
distribution, storage, sale, and use.
✔ Packaging also refers to the process of .
Packaging can be described as a coordinated system of preparing goods for transport,
warehousing, logistics, sale, and end use.
✔ Packaging . In many
countries it is fully integrated into government, business, institutional, industrial, and
personal use.
✔ The wrapper or the container is called package.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

65. Functions of packaging
✔ Product Protection
✔ Product containment (throw away containers) – space in which
the product is contained.
✔ Product Attractiveness (size, shape and printed matter).
✔ Product Identification (package differentiate similar product).
✔ Product convenience (easily handled, opened, moved etc).
✔ Effective sales tool (silent salesman)
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

66. Psychology of packaging
✔ Good package s taller in size, not shorter, contains bigger
product.
✔ Women like round or curved shape of packaging.
✔ Attractive and innovative packaging has value, many people buy
the product for the sake of the containers.
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

67. Packaging is
done to protect
the product
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women,
Virudhunagar.

68. Thank You
Ms.C.Dharshanaa,
Assistant Professor,
Department of Business Administration
V.V.Vanniaperumal College for Women, Virudhunagar.