1. The document discusses different types of consumer products and factors that marketers must consider when developing products. 2. It covers convenience products, shopping products, specialty products, and other categories, and explains key decisions around a product's core benefits, actual features, branding, packaging, and more. 3. The life cycle of products is also examined, outlining objectives at different stages from introduction to growth, maturity, and decline.

1. By : Kritika Handoo

2. A product is anything that can offered to market for
attention, acquisition ,use, consumption that might
satisfy a want or need.

3.  Convenience Products – These are products that
appeal to a very large market segment. They are
generally consumed regularly and purchased
frequently. Examples include most household items
such as food, cleaning products, and personal care
products.

4.  Shopping Products – - consumers make a- consumers make a
considerable effort to evaluateconsiderable effort to evaluate
 Consumers make product comparison(s),
 They seek information before purchase,
 they are not impulsive
 Moderate substitutions are made
 Product’s last a considerable time
 Monetary & social costs may be high

5.  Specialty Products – These are products that tend to carry
a high price tag relative to convenience and shopping
products.
Specialty
Products

6.  Emergency Products – These are products a
customer seeks due to sudden events and for which
pre-purchase planning is not considered.
 Unsought Products – These are products whose
purchase is unplanned by the consumer but occur as
a result of marketer’s actions. Such purchase
decisions are made when the customer is exposed
to promotional activity

7.  Core Benefits
 Actual Product
 Augmented Product

8.  it’s not the product itself, it’s what the product can
bring about
 In some cases these core benefits are offered by the
product itself (e.g., floor cleaner) while in other cases
the benefit is offered by other aspects of the product
(e.g., the can containing the floor cleaner that makes it
easier to spread the product).
 Consequently, at the very heart of all product
decisions is determining the key or core benefits a
product will provide. From this decision, the rest of the
product offering can be developed.

9.  The core benefits are offered through the components that
make up the actual product the customer purchases.
 Within the actual product is the consumable product, while
toothpaste may come in a package that makes dispensing
it easy, the Consumable Product is the paste that is placed
on a toothbrush. But marketers must understand that while
the consumable product is, in most cases, the most critical
of all product decisions, the actual product includes many
separate product decisions including product features,
branding, packaging, labelling, and more.

10.  Marketers often surround their actual products with
goods and services that provide additional value to the
customer’s purchase.
 While these factors may not be key reasons leading
customers to purchase (i.e., not core benefits), for some
the inclusion of these items strengthens the purchase
decision while for others failure to include these may
cause the customer not to buy.
 Guarantee
 Warranty
 Customer Service

11.  The actual product is designed to provide the core benefits
sought by the target market.The marketer offers these
benefits through a combination of factors that make up
the actual product.
These factors include:
1. Consumable Product Features
2. Branding
3. Packaging
4. Labelling

12. 1. Functional Benefits- Customers derive functional
benefits from features that are part the consumable
product. For instance, a plasma television includes such
features and benefits as: screen size, screen resolution.
2. Psychological Benefits - For customers psychological
benefits represent certain benefits they perceive to
receive when using the product though these may be
difficult to measure and may vary by customer. These
benefits address needs such as status within a group,
risk reduction, sense of independence, and happiness.
Such benefits are developed through promotional
efforts that target customer’s internal makeup

13.  Quantity & Quality vs. Cost - For the marketers an
important decision focuses on the quantity and quality of
features to include in a product.
 Is More Better? – Even if added cost is not a major concern,
the marketer must determine if more features help or hurt
the target market’s perception of the product. A product
with too many features could be viewed as too difficult to
use.
 Who Should Choose the Features? – Historically marketers
determined what features to include in a product. However
the technology, and especially the Internet, offer customers
the opportunity to choose their own features to custom
build a product.

14.  Branding involves decisions that establish an identity for a
product with the goal of distinguishing it from competitors’
offerings. In markets where competition is fierce and where
customers may select from among many competitive
products, creating an identity through branding is essential.
It is particularly important in helping position the product
 The most well-known company to brand components is
Intel with its now famous "Intel Inside" slogan. Intel’s
success has led many other b-to-b companies and even
non-profits to incorporate branding within their overall
marketing strategy.

15.  To brand or not to brand
 Brand sponsor decision
 Manufacturer brand (HLL, Bajaj etc.)
 Distributor brand (private brand) (Shopper Stop)
 Licensed brand (Parker, Levi etc.)

16.  A brand communicates the following six levels of meanings
 Attributes
 Benefits
 Values
 Culture
 Personality
 User

17.  Brand name decisions
 Individual name (Lux, Liril etc.)
 Blanket family name (Amul products, Godrej product
lines etc.)
 Separate family names (TISCO,TELCO,TCS etc.)
 Company – Individual name (Bajaj Chetak, Bajaj Super
etc.)

18.  A strong brand offers many advantages for marketers
including:
 Brands provide multiple sensory stimuli to enhance customer
recognition.
 Customers who are frequent and enthusiastic purchasers of a
particular brand are likely to become Brand Loyal.
 Well-developed and promoted brands make product
positioning efforts more effective.
 Firms that establish a successful brand can extend the brand
more easily by adding new products under the same “family”
brand.
 Strong brands can lead to financial advantages through the
concept of Brand Equity in which the brand itself becomes
valuable.

19.  Packaging includes the activities of designing and
producing the containers for the products that,
serves many purposes including protecting the
product during shipment.
 Levels
 Primary
▪ Bottle containing the shampoo
 Secondary
▪ The cardboard box containing the bottles
 Tertiary
▪ Shipping package

20.  Protection – Packaging is used to protect the product from
damage during shipping and handling
 AddedValue – Packaging design and structure can add value to
a product. For instance, benefits can be obtained from package
structures that make the product easier to use while stylistic
designs can make the product more attractive to display in the
customer’s home.
 Distributor Acceptance – Packaging decisions must not only be
accepted by the final customer, they may also have to be
accepted by distributors who sell the product for the supplier.
For instance, a retailer may not accept packages unless they
conform to requirements they have for storing products on
their shelves.

21.  Cost – Packaging can represent a significant portion of a
product’s selling price. For example, it is estimated that in
the cosmetics industry the packaging cost of some
products may be as high as 40% of a product’s selling price.
Smart packaging decisions can help reduce costs and
possibly lead to higher profits.
 Long Term Decision – Changing a product’s packaging too
frequently can have negative effects since customers
become conditioned to locate the product based on its
package and may be confused if the design is altered.

22.  Environmental or Legal Issues – Packaging decisions must also
include an assessment of its environmental impact especially
for products with packages that are frequently discarded.
 Also, caution must be exercised in order to create packages
that do not infringe on intellectual property, such as copyrights,
trademarks or patents, held by others.

23.  May be a simple tag or complex graphics
 May carry only the brand name or a lot of other
information
 May be voluntary or enforced by law
 Functions
 Identification
 Gradation
 Description
 Promotion

24. Time
Product
Develop-
ment
Introduction
Profits
Sales
Growth Maturity Decline
Losses/
Investments ($)
Sales and
Profits ($)

25. SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
ProductProduct
PricePrice
Low salesLow sales
High cost per customerHigh cost per customer
NegativeNegative
Create product awareness
and trial
Create product awareness
and trial
Offer a basic productOffer a basic product
Use cost-plusUse cost-plus
DistributionDistribution Build selective distributionBuild selective distribution
AdvertisingAdvertising Build product awareness among
early adopters and dealers
Build product awareness among
early adopters and dealers

26. Growth Stage of the PLC
SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
ProductProduct
PricePrice
Rapidly rising salesRapidly rising sales
Average cost per customerAverage cost per customer
Rising profitsRising profits
Maximize market shareMaximize market share
Offer product extensions,
service, warranty
Offer product extensions,
service, warranty
Price to penetrate marketPrice to penetrate market
DistributionDistribution Build intensive distributionBuild intensive distribution
AdvertisingAdvertising Build awareness and interest in
the mass market
Build awareness and interest in
the mass market

27. Maturity Stage of the PLC
SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
ProductProduct
PricePrice
Peak salesPeak sales
Low cost per customerLow cost per customer
High profitsHigh profits
Maximize profit while defending
market share
Maximize profit while defending
market share
Diversify brand and modelsDiversify brand and models
Price to match or best
competitors
Price to match or best
competitors
DistributionDistribution Build more intensive distributionBuild more intensive distribution
AdvertisingAdvertising Stress brand differences and
benefits
Stress brand differences and
benefits

28. Decline Stage of the PLC
SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
ProductProduct
PricePrice
Declining salesDeclining sales
Low cost per customerLow cost per customer
Declining profitsDeclining profits
Reduce expenditure and milk the
brand
Reduce expenditure and milk the
brand
Phase out weak itemsPhase out weak items
Cut priceCut price
DistributionDistribution Go selective: phase out
unprofitable outlets
Go selective: phase out
unprofitable outlets
AdvertisingAdvertising Reduce to level needed to retain
hard-core loyal customers
Reduce to level needed to retain
hard-core loyal customers

29.  Failure to Meet Customer Needs
 PoorTiming
 Market Conditions
 Ineffective or Inconsistent Branding
 Technical or Design Problems
 Overestimation of Market Size
 Poor Promotion
 Insufficient Distribution
80 to 90% Fail. Why?

30. The Sustainable Competitive Advantage
The Way You Compete
•Product Strategy
•Positioning Strategy
•Manufacturing Strategy
•Distribution Strategy
Basis of Competition
•Assets and Competencies
Where You Compete
•Product-Market Selection
Whom You Compete Against
•Competitor Selection
SCA

31.  successful product management depends
on understanding consumer behavior
 the “product” is multifaceted, much more
than the physical product itself
 managing the ‘stable’ of products is no
simple task