5. On the Basis of Users
Consumer Goods
Convenience Goods
Staples
Impulse Goods
Emergency Goods
Shopping Goods
Specialty Goods
Unsought Goods
6. Industrial Goods
Materials and Parts
Farm Products (Wheat, Cotton, Fruits)
Natural Products (Crude Oil, Iron Ore)
Capital Items (Building Material)
Supplies and Business Services (Lubes,
Paper, Pens)
7. Product Mix
Product Mix is the set of all Products and
Items a particular seller offers for sale.
Product Line: Different categories of products
in product mix form product lines. A product
line consists of different brands in one product
category.
9. Width of product mix: refers to the number
of different product lines that a company
carries
Length of product mix: refers to the total
number of items in the mix
Depth of product mix: refers to the number
of variants in each brand
Consistency of product mix: Product mix is
consistent if various product lines are
closely related in end use, production
requirements, distribution channels or
some other way.
10. Having more products in Product Mix is
beneficial for marketers:
Up-selling and Cross-selling
High market share
High turnover and low Cost of operations
Risk reduction
Products for different customer segments
11. Lengthening Product Line
Line Stretching: A company lengthens its
product line beyond its current range
Down-Market Stretch
Up-Market Stretch
Two-Way Stretch
12. Line Filling: Adding more items within the
present range
Line Modernization: Adding more
advanced/modern variant and
discontinuing the older one
Line Pruning: Eliminating variants from
product line
13. Co-Branding
Two or more well-known brands/products
are marketed together in some fashion
Ingredient Branding: A special type of co-
branding. A brand/product is used as
component or part in another product.
14. Packaging
All the activities of designing and
producing the container for a product.
Usages are…
Identification of brand
Convey Information
Storage
Protection
Facilitate Transportation
15. New Product Development include-
Products which are new-to-the-world and
create an entirely new market
Minor improvements or revisions in existing
products
16. Why NPD
• Marketers need to develop new products
to maintain their positions or to grow
Drivers of NPD
Change in customers’ preference
New technologies
PLC
Competition
Gap at a price level or for a customer
segment
17. Challenges in NPD
Shortage of ideas
Cost of development
Capital shortage
Social and Government constraints
Shorter required development time
Fragmented markets and needs
18. Steps in NPD process
Idea Generation
Idea Screening
Concept Development and Testing
Marketing Strategy Development
Business Analysis
Product Development
Market Testing
Commercialization
19. Idea Generation: Brain storming and looking
for latent needs
Idea Screening: Two possible errors- Go
error for a poor idea and
- Drop error for a good idea
Overall Probability Probability Probability
Probability = of technical X of commer- X of econom-
of success completion cialization ic success
20. Concept Development and Testing
Gap level
Perceived value
Purchase intention
Purchase frequency and occasions
Conjoint analysis
Package design
Brand name
Price
Services
21. Marketing Strategy Development
Business Analysis:
Estimate total sales
Estimate costs and profit
23. Market testing
Test Market: A few representative cities are
chosen and sales force tries to sell the
product in real market conditions.
The characteristics of representative cities are
similar to the whole market
The ad and promotion campaign is also similar to
the proposed full market campaign
24. Commercialization: Marketing (Production,
Sales, Distribution and Promotion) of the
product on large scale to cater a large
area of market. For commercialization
marketer may have to invest heavily in
plant, machinery, logistics, distribution and
promotion
26. Adoption of Innovation
An innovation is an idea, practice or object
that is perceived as new by individuals or
organizations
Attributes of innovation
Relative advantage
Compatibility
Complexity
Trialability
Observability
27. Adoption is a mental process through
which an individual passes from hearing
about an innovation to final adoption
Diffusion is a social process while
adoption is individual and mental process
Diffusion and adoption are closely
interrelated processes
Adoption follows AIDA model
28. Innovators: Risk takers and eager to try new
ideas. Interests lead them out of peer group.
Financially resourceful and technically
sound. Play important role in diffusion.
Purchase products in introduction stage
Early adopters: Greatest degree of opinion
leadership in social system. Help products to
enter in growth stage.
29. Early majority: Purchase new products in growth
and maturity stage. Avoid taking risk but also tend
not to be the last
Late majority: Purchase products in Maturity and
decline stages. Wait for price cut and other
promotional offers. Purchase to avoid network
pressure
Laggards: Purchase products in decline stage.
Possess almost no opinion leadership. Near
isolated in social network. Point of reference for
them is the Past.
30. Product Life Cycle
Products have a Limited Life
At Different Stages of Life Cycle the
Challenges, Opportunities and Problems
are Different
Profits Rise and Fall at Different
Stages
Products Require Different Strategies at
Different Stages
31. Product Life Cycles
Introduction: Low
sales, Generally no
profits
Growth: Improvement
in Sales & Profits
Maturity: Slowdown in
growth, Profit may
decline
Decline: Decline in
Sales & Profits
34. Strategies: Introduction Stage
Establish Distribution Network
Target Innovators
Inform Potential Customers
Induce Trials
First Mover Advantage or
Play Safe by Launching Later with
Better Technology
35. Strategies: Growth Stage
Change in Price
Increase Promotion
Add Variants
Enter New Markets
Strengthen Distribution Network
Persuasive Advertising
38. Brand
Name, Term, Sign, Symbol or Design or
a Combination of them Intended to
Identify the Goods and Services of a
Seller to Differentiate them from
Competitors.
41. Disadvantages
Higher price
Impact of poor performance on other
products
High cost of brand establishment
Need time to develop brand
Less flexibility
Fake products may tarnish company’s
reputation
42. Brand Revitalization
The Process of Creating New Sources of
Brand Equity or Refreshing Old Sources
of a Fading Brand.
Reasons for Fading:
Change in Customers’ Taste &
Preference
Emergence of New Competitors
New Technology
Other Developments in Marketing
Environment
43. Brand Elements
Attributes which Differentiate Brand.
Name, Logo, Packaging, Spokesperson,
Trade-character, Jingle, Slogan etc.
Brand Elements give the flexibility to change
its positioning by changing B.E.
44. Core Brand Associations
Abstract Associations (Attributes & Benefits)
that Characterize the 5 to 10 Most
Important Aspects or Dimensions of a
Brand
45. Brand Extension
The process in which marketers launch
new product with an existing established
brand name
Marketers launch new products with
existing brand name in current market or
in a new market
46. Advantages of Brand Extension
Facilitate New Product Acceptance
Improve Brand Image
Reduce Risk Perceived by Customer
Increase the Probability of Trial
Increase Promotion Efficiency
Avoid Cost of Developing a New Brand
Bring New/Variety Seeking Customers
Revitalize the Brand
47. Disadvantages of Brand Extension
Can Encounter Retailer’s Resistance
Can Fail and Hurt Brand Image
Cannibalization of Existing Brands
Company can Rely More on a Single
Brand
48. Following Points Should be Taken into
Consideration while Extending the Brand
Perceived Similarity
Perceived Risk
Reputation
Innovativeness
52. Brand Awareness: Depth
High Brand Awareness
Brand Recall
Brand Recognition
No Awareness
Brand Awareness: Breadth
Purchase and Consumption Situations
(Frequency & Quantity) that Customers’
are Aware of
53. Brand Personality
The Human Characteristics or Traits that
Consumers can Attribute to a Brand
SINCERITY -(Down-to-earth, Honest, Cheerful)-
Peter England
EXCITEMENT -(Daring, Spirited, Imaginative, Up to
date)- HH Passion
COMPETENCE -(Reliable, Intelligent, Successful,
Knowledgeable)- BOB, Raymond, Sprite
SOPHISTICATION -(Upper class, Charming)-
Mercedes
RUGGEDNESS -(Outdoorsy, Tough)- HH Hunk,
Levis
54. Brand Portfolio
The Brand Portfolio is the Set of All
Brands and Brand Lines that a Particular
Firm Offers for Sale to Buyers in a
Particular Category
While each of these brands maintains its
own operational structure, they benefit
from shared resources and cross-
promotional opportunities with other
brands in the portfolio
55. Brand Equity
Customers’ Subjective and Intangible
Assessment of the Brand, Above and
Beyond its Objectively Perceived Value.
Key Drivers are:
Customer Brand Awareness
Customer Brand Attitudes (Perceived
Quality, Loyalty
Customer Perception of Brand Ethics
(Associations)
56. Brand Sponsorship
A marketer pays to the organizers of an
event to display/ announce its brand name,
logo etc. during the event an other related
communications
This marketer is called sponsor
Sponsor may pay in cash or kind
57. Sponsorship persuades indirectly by linking
the sponsor’s message to an event or an
organization although the sponsor's contract
may include advertising at the event
Brand and event/organization should be
related and reputed
60. Brand Name Selection
Consider target segment
Other similar brand names
Uniqueness
Easy to recall
Should reflect product benefits
Consider meaning