The document discusses various concepts related to products and branding. It defines products, discusses different types of products based on tangibility, durability, and user status. It also covers product life cycle, new product development process, reasons for product failure, and different approaches to selecting brand names. The key stages of new product development discussed are idea generation, screening, concept development and testing, marketing strategy development, business analysis, product development, market testing, and commercialization.

1. ABHINAND N
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2.  Anything that can be offered to a market for attention,
acquisition, use or consumption that might satisfy a
want or a need
Product
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3. Definition
 Definition of Philip Kotler: “A product is anything that can
be offered to a market for attention, acquisitions, use or
consumption that might satisfy a want or need. It includes
physical objectives, services, persons, places, organizations
and ideas”.
 Definition of William Stanton: “A product is a set of
tangible and intangibles attributes, including packaging,
colour, price, manufacturer’s prestige, retailer’s prestige and
manufacturer’s and retailer’s services which the buyer may
accept as offering want satisfaction”.
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4. Product Levels: The Customer Value
Hierarchy
Potential
productAugmented product
Expected product
Basic product
Core benefit
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5. Five Product Levels
 Core benefit: the fundamental level. It is the service or benefit the
customer is really buying.
 Basic product: the marketer has to turn the core benefit into a
basic product.
 Expected product: a set of attributes and conditions buyers
normally expect when they purchase this product.
 Augmented product: That exceeds the customers expectations.
 Potential product:: encompasses all the possible augmentations
and transformations the product might undergo in the future. Here
is where companies are searching for new ways to satisfy customers
and distinguish their offer.
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6. 12/29/2015 6

7. Classification of products
Tangibility
• Tangible
products
• Intangible
products
Durability
• Durable
goods
• Non-
durable
goods
User status
• Industrial
goods
• Consumer
goods
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8. On the basis of tangibility
 Tangible Products: tangible products are those which can be touched,
seen or smelt.
 Eg:
 Intangible products (Services): Intangible products are benefits or
satisfactions or considerations that are offered for sale and are
satisfying human wants. Examples are haircuts, repairs; medical
treatment etc. services are intangible, inseparable, variable and
perishable.
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9. On the basis of Durability
 Durable goods are a category of consumer products that do not
need to be purchased frequently because they are made to last for
a long time (usually lasting for three years or more). They are also
called consumer durables or durables. Eg: Tv, Refrigerator
 Non durable goods are also tangible goods which normally
serve one or few uses. Examples are soap, salt, tooth paste etc.
those goods are used fast and purchased frequently.
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10. On the basis of User status
 Consumer goods:
Consumer goods are the goods purchased for final consumption. These
are marketed to households and ultimate individual consumers.
consumer goods are further classified into four on the basis of
consumer’s buying behavior and attitudes. They are
 Convenience Goods:
Those products, customers buy often and without much thought or
planning are classified as convenience goods. Soap, condiments and
toothpaste are common examples of convenience goods.
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11.  Shopping goods:
Buying decisions are detailed considerations of price, quality and value
for products classified as shopping goods. Successful marketing of
shopping goods can come from positioning as a better buy than
competitors -- for example, presenting better value with higher quality
for the price
 Specialty Products:
Goods in the specialty products classification tend to promote very
strong brand identities, often resulting in strong brand loyalty among
consumers. Examples include stereos, computers, cameras and the most
high-end brands of cars and clothing
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12.  Unsought Goods:
The products classified as unsought goods are those that consumers
don’t put much thought into and generally don’t have compelling
impulse to buy.
Examples include batteries or life insurance. Consumers essentially
buy unsought goods when they have to, almost as an inconvenience
rather than the newest, latest, greatest product they can’t wait to
purchase
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13.  Industrial goods:
Industrial goods are those goods purchased by individuals and
organizations for further processing or for use in conducting business. A
particular product may be an industrial product or a consumer product based
on the purpose for which it is purchased. These are the goods not purchased
for final use. The demand for industrial products depends on the demand for
consumer goods.
Industrial goods include raw materials, equipments, fabricating goods
etc.
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14. Product planning
The act of making out and supervising the search,
screening, development and commercialisation of new
products, the modification of existing lines and the
discontinuance of marginal or unprofitable items.
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15. Product Line
 A product line is group of different product items, closely
related with each other.
 All the products of a product line are closely related with
each other either because they satisfy a class of needs or
used together or are sold to the same group of customers
or are sold through the same channel of distribution.
 It is a group of products that are related in some way as
serving the same customer need, being sold to same
target markets or group of customers, marketed through
the same distribution network or outlets or falling in a
common price category or given price range.
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16. Characteristics of the product line
 Width - number of different product lines a
company offers
 Length - total number of items in the mix
 Depth - the variety of sizes, colors, and
models offered within each product.
 Consistency –close relationship of product
lines in production requirements,
distribution, etc.
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17. Product Mix
 Product mix refers to the collection of products dealt
with by a business firm.
 This is defined as the composite of products offered for
sale by a firm or a business.
 According to Philip Kotler,” product mix or product
assortment is the set of all product lines and items that
a particular seller offers for sale to buyers”.
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18. Product Line of Hindustan Unilever Ltd
Color
Cosmetics
Hair care Skincare Oral care Deodora
nts
Soaps
&
detergen
ts
Toilet
soaps
Beverag
es
Food
Lakme
Elle 18
Sunsilk
Clinic
Fair &
lovely
Ponds
Pepsod
ent
Closeup
Axe
Ponds
Rexona
Denim
Surf
Rin
Wheel
OK
501
Sunlight
Ala
Vim
Liril
Lifebu
oy
Lux
Breez
e
Pears
Hama
m
Rexo
na
Dove
Savlo
n
3roses
Lipton
Red
label
Taj
Mahal
Brooke
bond
Taaza
Bru
Annap
urna
Moder
n foods
Kwality
walls
Kissan
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19. Major product mix strategies
 Expansion of product mix
 Also referred as diversification
 Either by increasing the no. of product lines or increasing the no.
of product items within the same line
 Contraction of product mix
 Product line elimination
 Simplification or deletion
 Alteration of existing products
 Alteration may be made in the designs, size, colour, packaging,
quality etc.
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20.  Positioning the product
 Trading up
 Adding of higher priced & more prestigious products to their
existing line in hope of increasing sales of existing low priced
products
 Trading down
 Adding of lower priced item to its line of prestige products in
the hope that people who cannot afford the original products
and hope that they will buy the new one because it carries
some of the status of the higher priced product
Major product mix strategies
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21. Line stretching
 Occurs when a company lengthens its product line
beyond its current range
 Down market stretch
 A company positioned in the middle market may want to
introduce a lower priced line
 Upmarket stretch
 Companies may wish to enter high end of the market for
more growth, higher margins etc
 Two-way stretch
 Companies serving the middle market decide to stretch their
line in both directions
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22. Product life cycle
 Introduction
 Growth
 Maturity
 Decline
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23. The Product Life Cycle
Time
Growth
Maturity
Decline
Introduction Profit curve
Sales curve
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24. Introduction stage
 Low sales
 High cost
 Negative profits
 Offer a basic product
 Create product awareness and trial
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25. Growth stage
 Increasing sales
 Average cost
 Rising profits
 Increase market share
 Market penetration strategy
 Offer product extensions, warranty
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26. Maturity stage
 Peak sales
 Low cost
 High profits
 Diversification of products
 Build intensive distribution
 Advertising stresses on brand differences and benefits
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27. Decline stage
 Declining stage
 Declining profits
 Firm cuts the prices
 Go selective and phase out unprofitable outlets
 Advertising is reduced to the level which is needed to
retain hard-core loyal customers
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28. New Product Development
 A product is said to be a new product, when the consumers
consider it as new. Here, consumer is the ultimate authority
to decide whether a product is new or not. Thus a new
product consists of original product, improved products,
modified products and new brands that the firm develops
through its own research and development efforts.
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29. Idea generation
Idea screening
Concept development and testing
Development of the marketing strategy
Business analysis
Product development
Market testing
Commercialisation
Stages in new product development
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30. 1. Idea
generation
2. Idea
Screening
Co-ordinate
stimulate,and
search for
ideas in
external
environment
and among
co. personnel
Identify:
• Company
factors
• Their
weights
3. Concept
developing and
testing
Develop
alternative
product
concepts
4. Marketing
strategy
development
Purpose:
• Price
• Distribution
• Promotion
New Product Development Process
Is the idea
worth
considering?
Is the product
idea compatible
with company
objectives,
strategies, and
Resources?
Can we find a
good concept
consumers say
they would try?
Can we find a
cost-effective,
affordable
marketing
strategy?
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31. 5. Business
Analysis
6. Product
development
Prepare:
• Market
analysis
. Cost
analysis
Conduct:
• Engg.tests
• Consumer
preference
tests
• Branding
• Packaging
7. Market
testing
Market
surveys and
experiments
8. Commercia-
lization
Buy
equipment
and
go into full
production
and
distribution
New Product Development Process
Will this
product
meet
our profit
goal?
Have we
developed a
technically and
Commercially
sound product?
Have product
sales met
our
expectations?
Are product
sales meeting
our
Expectations?
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32. Generating new product ideas
 Ideas generates from customers, dealers, in company
sources including market research group and external
research organizations
 Customers problems are most fertile ground for the
generation of new product ideas
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33. Idea screening
 The various new product ideas are put under rigorous
screening by evaluation committees
 Answers are sought to questions like:
 Is there a felt need for the new product?
 Is it an improvement over the existing product?
 Is it close to our current lines of business?
 Can the existing production & marketing organisations
handle the product?
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34. Concept testing
 Whether the prospective consumers understand the
product idea
 Whether they are receptive towards the idea
 Whether they actually need such a product
 Whether they will try out such a product if it is made
available to them
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35. Business/ market analysis
 Analysis is done on:
 Estimate of demand
 Seasonal patterns in consumption
 Price elasticity of demand
 Competition
 Other market features affecting demand
 Volume cost profitable analysis
 Type of marketing channels required
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36. Actual product development
 The idea on paper is converted into a physical product. Pilot
model or small quantities are manufactured as per
specifications.
 Laboratory tests and other technical evaluations are needed
to determine the engineering and production feasibility of the
article.
 This stage is also called technical development stage as at this
stage all developments of the product from the idea to physical
form takes place.
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37. Market test
 This stage involves product testing and test marketing.
 Product testing: Once a product is developed, next step is
to put it into few selected markets. It means to put the new
product in few selected markets with a view to identify
whether the product performs up to the promise of the
likes of the consumers towards the product.
 Test Marketing: Under test marketing the product is
introduced in selected areas, often at different prices in
different areas. Test marketing means the introduction of a
new product in selected representative markets on limited
scale with a view to study the response of the consumers
towards the product
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38. Commercialisation
 After product testing and test marketing the company
takes the decision to go in for large scale manufacturing
and marketing of the product
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39. Consumer Adoption Process Of New
Products
 Awareness: The consumer becomes aware of the
innovation but lacks information about it.
 Interest: The consumer is stimulated to seek
information about the innovation.
 Evaluation: The consumer considers whether to try
the innovation.
Trial: The consumer tries the innovation to improve
his or her estimate of value.
Adoption: The consumer decides to make full and
regular use of the innovation.
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40. Reasons for product failure
 Inadequate market analysis
 Product Deficiencies
 Lack of Effective Marketing Effort
 Higher Costs than anticipated
 Improper Timing of Introduction
 Technical or production Problem
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41. Brand name
 That part of a brand which can be vocalised
 Eg: Fiat car, Sony TV, Bata shoes
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42. Brand
 A name, term, sign, symbol or design or a combination
of them which is intended to identify the goods and
services of one seller or group of sellers and to
differentiate them from those of competitors.
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43. Brand mark
 That part of a brand
which can be recognised
but not utterable, such
as a symbol, design or
distinctive colouring or
lettering.
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44. Different approaches in selecting brand names
 Names communicating the functions/ attributes
of the product
 Eg: Goodknight, Boost, Aquaguard, Fair & Lovely,
Touchwood, Walkman
 Names which communicate the speciality of the
product
 Eg: Taj Hotels
 Use of acronyms
 Eg: ADIDAS, MRF
 Use of the company name
 Eg: Bata, Cadbury, Samsung, Philips, Sony
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45. Options in branding
 Individual brand names
 Here each product of the company is given an
independent brand name
 Family/ umbrella brand
 In this case different products of the company are
marketed under one brand name
 Company name as brand name
 In certain cases, the company name itself is used as
brand name under which varied products are marketed
 Middlemen’s brand/ store brand
 Some manufacturer’s leave their products for branding
by the distributors/ retail chains as per choice
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46. Individual Names:- Company can use this policy
because if product fails or appear to have low quality,
the company's name or image is not hurt.
Example:- H UL
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47. Brand equity
 The unique set of assets and liabilities that is linked to
a brand that enhances or depreciates the value of the
brand.
 Determinants:
 Awareness
 Quality perception
 Loyalty
 Patents
 Trademarks
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48. “If this business were split up, I
would give you the land &
bricks & mortar, and keep the
brands & trademarks. I would
fare better than you”
- John Stuart, Chairman, Quaker Oats, 1900
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