The document discusses product life cycles and product development. It notes that there are four stages in a product life cycle: introduction, growth, maturity, and decline. It also discusses two approaches to product development - modifying existing products and developing new products. Branding is defined as differentiating a product through things like names, symbols, or designs. The key advantages of branding for both producers and consumers are creating product recognition and assurance of quality.

1. Product, PLC & Product Development
Asst. Prof. Parasmani Jangid
SDJ International College

3. Introduction
• Among the 4 elements of marketing mix, the Product occupies a
dominant position. In absence of product, no marketing strategies
can be shaped, as product is the key element of marketing as
ultimately it is the product which is to be sold. In other words, study
of marketing ultimately leads to study of product.
• Any firm that markets its products or services has 2 aims : a)
consumer satisfaction b) profit maximization. Needless to say that
letter is dependent on the former. The medium through which firms
attain this dual objectives is the Product.

4. What is a Product ???
• Simply a product is “everything the purchaser gets in exchange for his
money.”
OR
• “Anything that is capable of satisfying human needs is a Product”
OR
• “Product is what a seller has to sell & a buyer has to buy”
• From the above attributes, it would be proper to define Product as
“bundle of physical services & symbolic attributes” , expected to
yield satisfaction or benefits to the buyers.

5. Characteristics of Product
1. Creation of Utility
Product creates utility by changing the form of an article & satisfies human
needs.
1. Addition of Value
When RM is transformed into a final product, it becomes consumable, thereby
adding to the value of product.
1. Use of factors of production
These are nothing but the inputs for making final product viz., land, labour,
capital & entrepreneurship. It is the entrepreneur who brings the 3 resources
together, combines them & produces a product.
1. Commodity or service
In product concept, goods & services both are included. Eg : services rendered
by electricity company, gas company, etc are also regarded as a product.
1. Process
A product passes through various stages before becoming a final product.
Hence production is a process.

6. Types of Products
Mainly products are classified into 2 groups:
1. Industrial products
2. Consumer Products
The former i.e. Industrial products are the products which help in
producing other goods & services. The latter i.e. Consumer products
are the products meant for final use or consumption.

7. Product Life Cycle (PLC)
There are 4 main stages of a product life cycle:
1. Introduction
2. Growth
3. Maturity
4. Decline

8. Introduction
This is the stage in which a product is newly introduced in the market.
Features
―Customers are few
―Competition is less
―Sales are low, risk is high, profits are low or even nil (0).
―Heavy promotional expenses, high costs of advertising, etc

9. Growth
• In this stage, buyers are satisfied with the product and so sales start
increasing rapidly. A large number of new buyers are added.
Attracted by possibility of making profits, competitors enter the
market.
• Features-
―High degree of competition
―Prices reduce slightly due to competition
―Profits increases as expenses are spresd over large number of competitors.

10. Maturity
• In this stage, sales are stabilized at a definite level. This stage
normally lasts for a longer time than the previous stages.
• Features-
―Leading cos make a place in the market & their brands gets popularity Eg:
Bata
―Sales promotion expenses stabilise
―Prices also stabilise
―Cos think of product development

11. Decline
• Every product reaches this stage. This decline may be slow or rapid.
Here new products come in the market. The current products lose
buyers. A no. of firms withdraw from the market.
• Features-
―Sales decline rapidly
―Profits decline more rapidly than sales
―Producers move towards product simplification
―Producers shift to the production of new products
―They are eager to clear stocks at the earliest. Eg : sale flat 50%

13. Product Development
• There are 2 ways in which a product can be innovated:
1. Modification/changes in existing product
When major changes are made in quality, features, style, packing, etc to make
in suitable to suit the changing needs & tastes
2. New product development
Introducing a new product in the market to face competition. Eg: LED in place
of LCD TV.

14. Classification of New products
• Philip Kotler has classified new products into
1. New to the world products – product which is not produced so far
2. New product lines – these are the new products that allow a company to
enter an established market
3. Additions to the existing product lines – these are the products that add
to the company’s existing product lines
4. Improvements to existing products – these are the new products that
provide improved performance or replace the existing ones.
5. Repositioning – existing products that are targeted to the new markets
or market segments.
6. Cost reduction – new products that give same performance at lower
cost.

15. Need for Developing New Products
• Changes in customers tastes & fashions – due to rise in standard of
living, tastes change.
• Changes in Marketing Techniques – as customers want new brands of
products.
• Intense competition – due to cut throat competition, cos have to
develop new products otherwise they will be thrown out of market.
• To use idle capacity – company by using spare production capacity &
developing new products, can make profitable use of idle capacity.
• Other factors – like using scrap or waste from present production to
produce new product, to use marketing skills more efficiently, etc.

16. Branding : Meaning & Definition
• “A manufacturer gives a distinct name to his product which is called a
Brand”
OR
• “A brand is defined as a name or symbol or design of a product
whereby it gets differentiated from other products in the market.”
• Eg : Vadilal Ice-Cream, Sony TV, Raymonds, etc. are the brand names.
A brand is something that differentiates a seller from others.

17. Characteristics of Branding
1. It is a term used to identify a product
2. It can be in the form of a sign, symbol, mark, design, word, number,
etc
3. The objective of branding is to recognize visually & orally a distinct
product of a business & distinguish it from rivals
4. Even a trademark can be brand. A trademark is a brand registered
under Trademark Act
5. No one can use the same brand name or sign or symbol

18. Trademark
American Marketing Association defines it as
• “It is a brand that is given legal protection because, under the law, it
has been appropriated by one seller.”
OR
• “It is a sign, symbol, mark, design, word, number, etc which indicates
the ownership of the product & differentiates it from other
products.”

19. Note :
Each trademark is a brand
but
Each brand is not a trademark

20. Advantages of Branding
A) To Producers
1. A fix rate or price can be established for branded products instead
of wasting time & energy with customers daily regarding
bargaining.
2. A brand develops a distinct or different image of the product in the
minds of the customers. The seller earns goodwill, prestige, etc.
3. When brand becomes popular, a definite or fixed group of
customers get attached to it.
4. It is easy & less costly to advertise a branded product
5. Sales can be increased by brand name, symbol or trademark only.

21. Advantages of Branding
6. Branded products get protection against imitation as a registered
trademark cant be used by anyone else as it is an offence.
7. Branding helps in maintaining direct contact of the manufacturer
with the customers.
8. Branding by differentiating from others & monopolizing a part of
market helps in acquiring market control.
9. Branding provides legal protection to the manufacturer & dealers.
10. Because of the Brand name the sale are automatically promoted.

22. Advantages of Branding
B) To Consumers
1. Consumers can easily identify products they want to purchase.
2. A branded product has a standard quality & consumers can be
assure of good quality.
3. The supplier can’t cheat the consumers by giving other products Eg:
Garnier cant be given to consumer who wants Loreal Paris
shampoo.
4. The buyers don’t need to waste time in inquiring about price as
they know the fixed prices of branded products.

23. Advantages of Branding
5. Branded products can be purchased from any corner of world as
quality will be same.
6. Buyers can easily place the order online or on telephone without
going in details.
7. Generally branded products are sold in good & attractive
packaging, so they are safe from heat, dust & moisture.
8. A highly popular brand product is a symbol of status Eg: Sony LED
TV.

24. Limitations of Branding
1. Responsibility on the manufacturer – to supply quality products.
2. Heavy costs – branding has heavy costs.
3. Indifference of Wholesalers & retailers – as long as product
becomes popular, both are not ready to stock it & sell it.
4. Inferior quality – if proper RM is not available in the market.
5. Difficult in choice – when there are large number of products
consumers get confused.

25. Need for Branding
• It is needed to distinguish the goods & services of one producer from the
other.
• It is needed to protect the product against inferior quality products.
• It helps to give identity to the market of the product.
• Brand improves standard of living of consumers.
• Branding adds to the value of the firm.
• It is needed for the firm to simplify the product handling.
• It is needed for the firm to organize inventory & accounting records.
• It gives legal protection to the firm for its products unique features.
• Branding is needed to provide protection against competitors.
• Brand creates positive mind set in minds of the consumers.