The document discusses key concepts related to product management including definitions of a product, components of a product, product mix, product life cycle, and new product development. It defines a product as a bundle of benefits that satisfies customer needs and discusses the core benefit, actual product, augmented product, and future product. It also outlines the stages of the product life cycle as introduction, growth, maturity, decline, and withdrawal. Finally, it lists the steps in new product development as generating ideas, screening, testing, development, market testing, and commercialization.

1. PRODUCT MANAGEMENT
PRODUCT & PRODUCT
RELATED DECISIONS
&
NEW PRODUCT
DEVELOPMENT & PRODUCT
LIFE CYCLE

2. What is a product?
 A product is a bundle of satisfaction that a
customer buys. It represents a solution to a
customer’s problem and satisfies his needs. It is
a combination of tangible and intangible
benefits.
 A product can be defined as a bundle of
attributes that satisfies a consumer.
 Anything made keeping in mind consumers can
be called as a product as it is formed with an
intension to satisfy consumers’ needs.

3. Essentials of a product:
 Product should have utility
 Need satisfying capacity
 With various features
 Selling point
 It is heart of the marketing mix
 It must have proper name and
identity

4. A product has its total product
personality which includes the
following component:
 The basic constituent ie. Physical aspect
 Associated features ie. Features, merit,
uses
 Brand name given to the product
 Package used
 Label attached to the product

5. For example: Refrigerator
•Cold Storage
•Chilling effect
•Multiple preservation
•Storage
•Add on features-colour,
appearance, design, energy
efficiency,
•Brands identification

6. Definition Of product
• Philip Kotler: “A product is anything that can be
offered to a market for attention, acquisition, use
or consumption that might satisfy a want or need.
It includes physical objects, services, persons,
places, or organizations, and ideas.”
• William Stanton: “A product is a set of tangible
attributes including packaging, colour, price,
quality and brand plus the services and reputation
of the seller. A product may be a good, service,
place, person or idea.”

7. What constitutes of a product?
[Component/Levels of product]
 A product planner should think about the
product at three levels:
 first needs- identify the core consumer
needs the product will satisfy.
 Then design the actual products
 And find ways and means to augment it
further to create bundle of satisfy
consumers.

9.  For example –
Digital Camera
Core Benefits
activity of photography
Actual product
•Price: Rs. 27500/-
•Quality: Instant camera, Polaroid
lenses, high zoom & resolution, can be
JPEG, GIF, TIFF format, Camera SLR
(Single Lens Reflect),
•Style: image display-LCD, Touch screen
function,
•Packaging: light-proof box (camera
body), System lenses, The lighter
portrait (shutter)
• Brand name: Sony well known brand,
icon recognizable,
•Features: USB connector, modes, flash,
stored can vary the type,, memory card
storage, Movie camera, user friendly
Augmented product:
Discounts: Available special retail
outlets only
Guarantee:2 yrs lenses & 1yr on
parts
Sales promotion :Deepika
Padukone, ads, new series
launches,
After sales services: at sony
specialized outlets spread across
country.
Carry packaging
Future Product:
•Projector
•Long hours recording

10. Future
Augmented
Actual
Core
Core product
Wrist watch
Package
Brand
ColorAttributes
Mannual
Warranties After sales
Installation
Complain managementPayment options
Replacement & Return
policies
Delivery pt & system
Total product concept: Source “Marketing management by Rajan Saxena” Adaptation from Theodore Levitt, ibid

12.  Core product:
 It means the basic product benefits or purpose for
which it is produced.
 The physical characteristic of a product remains the
same only its utility differs from one customer to
another.
 Before designing the product needs to define the
core benefit of the product.
 Actual product:
 tangible offer made to the target audience keeping
with their requirement.
 It is build around the core product with well
perceived characteristics of the product attributes.

13.  Augmented product:
 intangible component along with the actual and
core components is called augmented product.
 Augment means to increase. It refers to add on
services provided along with the product to retain
and attract consumers.
• Future product:
 The potential product consists of everything that
might be done to attract and hold customers.

14. Product mix
 Product mix means the number of product
carried by a firm at a given point of time i.e.
composition of products offered for sale by a
firm.
 For example : Samsung-television, music
system, cellphones, microwave, refrigerators
 Bajaj Electrical-household name in India, has
almost 90 product ranging from low value
products like bulb to high price consumer
durables like mixer, bikes-scooters, etc.

15.  It consists of product line and product items.
 It has four dimensions: LCDW
 Length: Total number of items included.
 Consistency: Degree of similarity bwt product
line with respect to end use, technology,
production techniques, & distribution channel.
 Depth: Number of versions offered by the
firms (size, packaging, colour, etc)
 Width: Different product line ( different
models offered) firm carries.

16. Product line:
 Different products that are closely related to each
other by virtue of satisfying a particular class of
needs, being used together, distributed through same
channel or processing common physical or technical
characteristics.
 It a group of products offered by a single firm that
have similar uses. Example- shoes(BATA)
 Under this the firm adds product to the product line.

17.  The ideal product mix is an issue that varies
from firm to firm and may be hard to define.
 The following situations may suggest that
the firm has a sub-optimal product mix:
a. Excess capacity in a firm’s manufacturing,
warehousing, or transportation facilities
b. High proportion of profits from a small
percentage of product items
c. Insufficient use of sale force contacts & skill
d. Steadily declining sales/ profit

18. PRODUCT MIX HLL
SKIN CARE
FAIR N
LOVELY
SUNSCREEN
LIRIL TALC
PEARS FACE
WASH
SOAP
BREEZE
DENIM
DOVE
FAIR N LOVELY
HAMAN
JAI
LIFE BUOY
LIRIL SOAP
LIRIL SHOWER
GEL
LUX
INTERNATIONAL
MOTI
PEARS
REXONA
SAVLON
DETERGENTS
RIN
SUPREME
RIN CAKE
SUPER 501
SURF
SURF BOX
SURF
INTERNATIO
NAL
TOOHT
PASTE
CLOSE UP
PEPSODENT
PRPSODENT
2IN1
SHAMPOOS
CLINIC ALL
CLEAR
CLINIC
PLUS
LUX
SUNSILK
Product Line

19. Product line consist of LCDW
 Length: Total number of items included.
 Consistency: Degree of similarity bwt product
line with respect to end use, technology,
production techniques, & distribution
channel.
 Depth: Number of versions offered by the
firms (size, packaging, colour, favours, etc)
 Width: Different product line( different models
offered) firm carries.

20. Product mix
of Cadbury

21. Product mix decision:
 Important and fundamental of all marketing strategy decision.
Decisions involved are:
1. Expansion of product mix -increase number of product lines
or depth
2. Contraction of product mix -reduce the product line
3. Alteration of existing product -Improve the existing products
4. New uses of the existing product -show more uses than the
core use
5. Trading up and trading down -Trading up: adding a higher
priced prestige value to existing lower priced product; Trading
down: Adding lower priced product to its prestige product
6. Product differentiation

22. Product life Cycle
 Movement through different stages
 A product is born grows lustily, attains a
dynamic maturity & then enters its declining
years.
 Understood through analysis of environ.
 PLC comparison to human life cycle
 Represented by sales & profit of a product over
a period of time.
 Philip Kotler “the product life cycle is an attempt
to recognize distinct stages in the sales history
of the product”

23.  PLC –heart of marketing strategy
 PLC lengthy & costly process
 Stages of PLC:
i. Introduction
ii. Growth
iii. Maturity
iv. Decline
v. Withdrawal

24.  Introductory Stages/market Pioneering stage:
1. Launch of the product
2. Preceded by product planning & Development
3. High operational cost
4. Lack market support
5. Consumer-trail basis approach
6. low / no awareness of the product
7. Strategies:
PRICE
PROMOTION
Rapid
Skimming
Slow
Skimming
Rapid
penetration
Slow
penetration
HIGH
LOW
LOWHIGH

25.  Growth Phase:
1. Cultivation of selective demand-focus on Covered
market
2. Increase in competition
3. Softening of pricing / competition oriented pricing
4. Operation on economical levels
5. Gaining market support
6. Strong service network & distribution
7. Product modification & improvement
8. Entry of substitutes

26.  Maturity stage:
1. Slow growth rate of sales & profit
2. Marked as the peak stage
3. Cutthroat competition
4. Enjoy economies of scale
5. Saturation stage
6. Pricing intensified
7. Increase in marketing cost
8. Product mix- product line altered

27.  Decline stage:
1. Sales gradually fall
2. Reduction demand
3. Consumer switch over to competitor
4. Expenditure brought down
5. Consumer attitude-old product
6. Vacuum
7. Reduce pricing to survive

28.  Withdrawal stage:
1. Dead market
2. Existence without much returns
3. Introduce new product and withdraw old ones
4. No demand

29. New product development
 Introducing new product in the market
 Adding new product to existing product line
 Constant changing environment dynamics
 Enjoy benefits of initial demand
 Different from product modification or innovation
Why New product development
needed?
1. Meeting growing & changing needs
2. Pressure from environment change
3. Earning more profit
4. Extending product line

30. Steps/ stage in New Product
Development Process
 Generating new product idea
 Idea screening
 Concept testing
 Business viability
 Actual development of the product
 Market test
 Test marketing
 Commercialization / large scale production