Product

Meaning
We encounter with numerous products every day either on the way to college or on the way to
colleague's’ home. From A cup of tea that you drink early morning on a hotel to the bike you ride,
the cinema you go for entertainment to gym club where you exercise to be fit, paragliding of
pokhara and itself pokhara are some of the examples of products.
All these products have two things in common- 1. pose monitory value and, 2. have ability to
satisfy human needs.
To make the meaning consistent we should divide the meaning of product into two major sense.
Narrow Sense
Under this concept Product is regarded as Physical goods which comes with the unseen utilities
it carries. Like Car is a product but it comes along with servicing and After sale service and
insurance.
Broad Sense
According to Philip Kotler “ A product is anything, tangible or intangible, which can be offered to
a market for attention, acquisition, use or consumption that might satisfy a need or want”.
In short product is a bundle of satisfaction which may be goods, services, experiences,
events, persons, places, properties, organization, information.

Concepts of Product
Product can be viewed via different
views regarded as concepts are
presented below :
1. Tangible Concept
2. Intangible Concept
3. Augmented Concept
4. Total Concept
Under Tangible which basically mean physical goods product is viewed as substance which has a
name,shape,design,color,flavor,taste and quality.
Intangible concept see product as something physical good which comes with the utilities and
benefits attached. Like Bus comes with the transportation facility.
Augmented Concept is a conglomerate of Tangible and Intangible concept which is a total offer as a
whole. If car is regarded as Augmented, along with physical good benefits and utilities other factors
such as brand image,warranty,guarranty ,brand also come.

Total Concept is another view which see product as the combination of earlier three
concepts. Under Total concept a product is taken as something that meets customer’s
need and requirement.
Levels of Product
1. Core Product
2. Basic Product
3. Expected Product
4. Augmented product
5. Potential Product
Knowingly unknowingly a consumer expects so many attributes from the product. On the basis of Tangible
and Intangible factors here we go to explain Levels respectively.
There is a basic reason for what a consumer buys goods and services. If consumer buys a cloths the
reason behind it is to get protected. This is known as core product.
Basic product refers to the ingredients and core benefits depending on what a basic product is
designed. Fiber and cotton attributes are knitted so that a fine cloths of piece would be produced. In
cloths primary services are supposed to come up with.

Expected product includes a set of features and
benefits what a consumer desires to gain. If consumer
wishes to have cloths then quality, durability,brand
image come as a expected desirable options for them.
Augmented product refers to additional services
and facilities to the customers. Free pen in buying book,
free ink in buying copy free toner in buying computer
etc.
Potential product level is a futuristic approach
which carries all the potential modifications that could
be happen during the pace of time. It combines all
possible augmentations and developments.

Product Classifications
PRODUCT can be subdivided between two headings :
1. Consumer Products : Products purchased for daily needs as
well as personal and family needs are known as consume products.
2. Industrial Products : Products that are purchased to make
other products including raw materials, machine and tools are known as
industrial products.

1. Consumer Goods
Non business purpose goods are simply called consumer goods. These goods are consumed by
customers. Bought to satisfy personal or family needs. The motive behind purchase is consumption.
Daily household goods are fall under this. E.g. Rice,flour,milk,furniture,radio,t.v. etc. These goods
satisfy the needs of consumer.
a) Convenience Goods
Convenience goods are purchased in short time and without any effort. These goods are purchased
regularly. All the information about these goods are already known by consumers.
E.g. Soap,match,cigarette,medicines,tooth paste,fruits,vegetables,newspapers.
Features of Convenience goods
-Daily consumable
-Often named
-Regularly purchase
-Low per unit cost
-short life and less durable
-less effort to purchase

Marketing Considerations for convenience Goods
Marketing considerations includes series of activities that are performed for
these goods to bring into the market.
- Normally packaged and sold under a brand name.
- Convenience goods should be sold through retailers.
- Long distribution channel should be selected.
- Attractive decoration in shop should be initiated.
- Brand should be given so that separate recognition would be established.
- Packaging should be good and attractive.
- Low profit margin strategy should be adopted.
- Needs aggressive advertisement supported by sales promotion in competitive market.
- The responsibility of promotion is generally lies with manufacturer but also retailers
would be engaged in it too.

2. Shopping Goods
Once more time and more effort are spend while
buying goods and services, these goods are called
shopping goods.
Generally buyer do well plan for shopping goods.
Consumer do comparison with other goods in quality, price, size, orinigal,
features while buying.
Eg. Refrigerator,computer,furniture,t.v.,radio,car,bike etc.
Features
-more time and more effort
-durable goods
-partial knowledge about goods
-high per unit price
-purchase period is long
-comparison with other substitute goods

Marketing Considerations for SHOPPING goods
- Decoration and packaging are not much important
- Short supply channel is good for these goods
- Selling should be done via retailers, there role is
important
- More earning strategy should be made (HPM)
- Retailers take responsibility of advertisement.
- Sellers should have good product knowledge

c) Specialty goods
Goods having special nature are called specialty goods.Thaese goods are
unique and special. Buyer buys such goods with full of joyment and
enthusiasm. E.g. expensive sports goods,ornaments,currencies,stereo-
sound equipment, photographic equipment, old stamps, valuable suits,
electriec goods etc.
Features :
-purchased in special occasions
-special efforts and time is given to purchase
-quality and price is not given importance

Marketing considerations for Specialty goods
-Branding and packaging are not necessary
-Producers and sellers should have joint effort to promote
-No decoration is needed
-brand /trade mark has role
-shorter supply channel should be used
D) Unsought Goods
These goods are unpopular goods which are not demanded by consumers because of ignorance and even
though they know, they don’t care. They realize the need of such goods in special occasion.
E.g. New invented goods, life insurance, valuable stone, electronic car, encyclopedia etc.
Features
-No buying plan is made
-These goods have different prices
-No brand, trademark
-Consumer may be aware and ignorant about
These goods.

Marketing considerations for unsought goods
- Information should be widely spread
- Strategy of personal sale and advertisement should be done
- Price of these goods can be fixed high
- Short and direct channel should be chosen

Characteristics of consumer
1.Time and effort
devoted by
customer in
shopping.
2.Knowledge prior to
purchase
3.Willingness to
accept substitute
4.Frequency of
purchase
5.Information search
6.Price
7.Comparison of
price and quality
8.Want satisfaction
period
9.Durability of
product
Specialty productsShopping productConvenience product
1. Very little
2. High
3. High
4. High
5. Low
6. Generally low
7. No
8. Immediate
9. Non durable
1. Moderate
2. Low
3. Moderate
4. Moderate
5. High
6. Moderate
7. Yes
8. Intermediate
9. Generally durable
1. Cannot be generalized
because consumer can go
to exclusive store and buy a
particular brand or may
wait for a desired brand.
2. High
3. Low
4. Low
5. Low
6. High
7. No
8. Long time
9. Durable

Meaning
• Industrial products are those products
that are purchased by individual or
organizations for further processing, for resale
and for the use in operation a business.
• In other words If an individual, group or firm purchases the
product and services with further motive rather than personal
use, then they are known as industrial product.
• The buyers of industrial product may be business organizations,
organizational institution, private and government offices and
producers.
• Industrial products can be divided into five categories.

1. Raw materials
• Unprocessed and semi- processed item that will be converted
into final product by a manufacturer is called raw materials.
• Finished goods are made by changing quality, shape, and form of
such raw materials. Form and utilities of raw material change
many times under the process of production. Such basic
materials are purchased by producer and business organizations.
• The raw materials are also divided into two categories as
i. Agricultural products such as millets, wheat, corn, paddy, cotton tobacco,
fruits animal products, and
ii. Natural products such as gold, silver, iron, copper, coal, petroleum, herbs.

Raw materials cont..
Features of raw materials
i. Buying frequency:- Raw materials are purchased frequently
ii. Life:- The life of raw material is very short.
iii. Per unit price:- Per unit price of raw materials becomes low.
iv. Limited Supply:- Supply of raw materials is limited, especially
natural raw materials.
v. Purchase quantity:- Raw materials are purchase in large
quantity.
vi. Availability:-It is available in limited area or place.
vii.Effect:-Raw materials cost affect the product cost.

Raw materials cont….
Marketing Consideration for raw materials:-
i. Branding:- More importance should be given to the quality of raw
materials than to the branding
ii. Before sales and after sales service:- No need of before sales and after
sales service.
iii. Transportation and warehouse:- As such goods becomes different in
quality and nature during transportation and storing, there should be
carefully stored and transported.
iv. Contract period:-Long term contract should be done for supplying such
goods of different quality and standard.
v. Promotion:-No promotional activities need to be conducted in
distribution of raw materials.
vi. Price competition:- Competitors price strategy of raw materials should
be consider when determining price of raw materials
vii. Distribution Channel:- Distribution channel should be short and direct

2. Fabricating Materials and parts
• Fabricating materials and parts are those industrial products
that becomes an actual components of the finished products.
After including such materials in main product, new types of
product becomes ready.
• Such finished materials and parts are used without changing
their quality, form and nature to prepare a third product.
• Per unit price of such products are relatively low. They give
completeness to the new products or goods.
• Motors tyres, buttons, zippers, batteries, nuts and bolts,
machinery parts etc. are the example of such goods.

Fabricating Materials and parts cont..
Features of Fabricating materials and parts:-
i. Organ:- Fabricating materials and parts are important organ of
final product.
ii. Life:- Parts and materials have short life period and it also
depends on the life of final product.
iii. Per unit price:- per unit price of fabricating materials and parts
becomes relatively low
iv. Purchases quantities:- Fabricating materials and parts are
purchased in large quantities.
v. Standardized:- Such products are highly standardized.
vi. Direct purchased:- Such products are purchased directly.

Fabricating Materials and parts cont..
Marketing Consideration of Fabricating materials and parts
i. Duration of contract:- Duration of contract or agreement between buyer
and sellers of fabricating materials and parts should be long.
ii. Channel of distribution:- distribution channel of fabricating materials
and parts should be short and direct as far as possible.
iii. After sales service:- Service after sales is essential for such materials and
parts.
iv. Promotion:- Promotional activities for fabricating materials and parts
should be conducted
v. Branding:- Branding of such goods is not given importance but not
applicable for all.
vi. Packaging:- Packaging is not important for such types of product so
packaging is not necessary.
vii. Price competition:- marketing manager should analyze the competitors
price strategy when setting the price of such products.

3.Installations
• Big industrial capital equipment and instruments are installations.
• Capital goods or installations are industrial products that support in the
buyers production or operations.
• They are the highly price of machinery items in the organization and the
entire production process depends on it Installation consists of major
purchases such as buildings like as factories, offices, fixed equipment like as
generators, press, large computer system, lift, etc.
• In the lack of these installation, raw materials cannot be converted into
finished goods. As these items need huge investment, a rational decision
should be taken to buy installation.

Installations cont..
• Feature of Installation:-
i. Per unit price:- Per unit price of installation is very high
ii. Life span:- Installation have very long life span
iii. Purchase quantity:- Very few items are purchased in
installation.
iv. Buying frequency:- Installation need not to be bought
frequently.
v. Importance:- Brand name or trade mark of installation is very
important.
vi. Problems:- No problems of supply.

Installations cont..
Marketing consideration of Installation
i. Channel of distribution:-Distribution channel of installation should be
direct and short as far as possible.
ii. Brand: - After producing capital items, they should be given brand name
and trade mark.
iii. Before and after sales service:- Before and after sales services should
provide by the sellers.
iv. Promotion:- Personal selling should be given preference rather than
advertising and other promotional activities.
v. Knowledge:- The supplier of installation should be efficient and
experienced and he/ she must have technical knowledge.
vi. Contract period:- Long term agreement should be applied.
vii. Profit margin:-High per unit profit margin strategy should be adopted.
viii.Price competition:- Industrial users gives priority to quality, after sales
service rather than price of . So there is no need of price competition.

4. Accessory Equipment
• Accessory equipment is an industrial
product. It does not become a part of the finished goods, but
it plays an important role on the operation of organization.
• Accessory equipment includes portable factory
equipment's and tools such as hand tools, lifts, trucks, pick,
liver, tables, chairs, drawers, office equipment like computer,
fax machine, operating desk etc.
• Such equipment do not come into direct use in the
production process but helps in the production activities to
run the production functions smoothly.

Accessory Equipment cont…
Features of accessory equipment:
i. Regular help:- The accessory equipment help in production process
ii. Price:- Per unit price of accessory equipment become low than
installation.
iii. Purchase frequency:- Purchase frequency of accessory equipment
becomes medium
iv. Purchase quantity:- As demand of accessory equipment becomes low and
purchasing quantity is also low.
v. Time and effort:- less time and effort is needed for purchase in such
products.
vi. Capital Items:- It is not capital items like installation.
vii. Durability:- Accessory equipment have moderately long life span but less
than installation.

Accessory Equipment cont…
Marketing Consideration for accessory equipment
i. Distribution Channel:- Distribution channel of accessory equipment should be
long. it should be through intermediaries such as agents, wholesalers, and
retailers.
ii. Promotional tools:- Promotional activities should be conducted for such
equipment. Generally personal selling and advertising can be effective.
iii. Brand:- Trade Mark and brand of such equipment should be given more
importance.
iv. Price factors:-Marketers should give more emphasis on quality rather than
price of the product.
v. Contract period:- Medium contract period is needed for such product.
vi. Before and after sales service:- Pre and post sales service should be provided
according to buyer's needs.
vii. Packaging:- Customer gives more priority to quality, brand, warranty rather
than packaging of product. So it is not necessary to give more emphasis on
packaging of the product.

5. Operating Suppliers:-
• things which help to make production easy and regular are called operating
suppliers. It help to conduct business activities continuously.
• Operating suppliers are also called the convince goods.
• Stationary, fuel, oil chemicals, petroleum, coal, cloths, computer, etc. and
repair and maintenance items such as nails, paints, brushes etc.
Features of Operating suppliers:-
i. Life span:- Operating suppliers have short life span.
ii. Per unit price:- These products have low unit price.
iii. Purchase frequency:- Operating suppliers are frequently purchased items.
iv. Parts:- operating supplier cannot be a part of finished products.
v. Time and Effort:- Neither much effort nor time is needed to buy operating
suppliers.
vi. Knowledge:- Customers have full knowledge about such product.
vii. Supply Problems:- No supply problem of such product.

Operating Suppliers cont…
Marketing Consideration of operating suppliers
i. Wide distribution:- Intermediaries should be used to supply operating
suppliers.
ii. Brand:- Importance is not given to the brand and trademark of such goods.
iii. Contract:- The duration of the contract for supplying such goods should be
short.
iv. Promotion:- Promotional activities are not important for such goods.
v. Before and after sales service:- Before and after sales service is rarely
provided for such goods.
vi. Packaging:- Marketer should give more importance to quality of such
product rather than packaging
vii. Price competition:- Price strategy should be followed when setting price of
such product.

Industrial Goods
Consideration Material and parts Capital goods supplies n business
services
Life span short very long short
Unit price Very low high low
Purchase contract long term one time none
Marketing channel Direct direct retailers
Pricing Negotiable Negotiable fixed
Advertising not important company image Brand Image
After sale not important Very important not important
service

Meaning of service
• A service is a non-material equivalent of goods. A service provision is an economic
activity that does not result in ownership and this is what differentiates it from
providing physical goods.
• It is claimed to be a process that creates benefits by facilitating either a change in
customers, a change in their physical possessions, or a change in their intangible assets.
• Philip Kotler : “ A service is an act of performance that one party can offer to another
that is essentially intangible and does not result in the ownership of anything. Its
production may or may not be tied to a physical product.”
• Service industries vary greatly. Governments offers services through courts,
employment services, hospitals, military services, police and fire department, postal
services, and schools. Private non-for-profit organizations offers services through
museums, charities, temples, colleges, and hospitals. Large number of private business
organizations offers services though airlines, banks, hotels, insurance companies,
consulting firms, medical and law practices, entertainment companies, real state,
retailing and so on.

Characteristics:
1. Intangibility:
do not have a physical existence.
 Hence services cannot be touched, held, tasted or smelt.
2. Heterogeneity/Variability:
each service offering is unique and cannot be exactly repeated even by the same service provider.
While products can be mass produced and be homogenous the same is not true of services. the
service rendered by the same counter staff consecutively to two customers.
3. Perishability:
Services cannot be stored, saved, returned or resold once they have been used.
Once rendered to a customer the service is completely consumed and cannot be delivered to
another customer..
4. Inseparability/Simultaneity of production and consumption:
This refers to the fact that services are generated and consumed within the same time frame.
Eg: a haircut is delivered to and consumed by a customer simultaneously unlike, say, a takeaway
burger which the customer may consume even after a few hours of purchase.
5. Quality of work in not the quality of service.

Service marketing strategies
• Marketing strategies for service product are not very different form the
marketing strategies of goods because service organizations also operate
in same environmental variables as goods producing organization operate.
• Service organizations also adopt same marketing concept to satisfy
customers needs. They identify the target market and offer a marketing
mix strategies to the customers.
• Due to the distinct nature of service, service firms need to offer 3
additional marketing mix strategies to satisfy its customers.
• As a whole service marketing strategies can be termed as 7ps of marketing
mix that the service organizations offers to its customers to satisfy them.

Service
marketing
strategy
Product
mix
strategy
Price mix
strategy
Place mix
strategy
Promotion
mix
strategy
People mix
strategy
Physical
evidence
mix
strategy
Process
mix
strategy

Product mix strategies:
services offerings
quality of service and
branding of service.
Firms needs to focus on
Service productivity
Differentiating service
Service image

Price mix strategies:
i. one price,
ii. flexible pricing or
iii. competition based pricing strategy.
Normally service pricing needs to be based on the perceived delivery
value and perceived quality of service and perishable nature of service too.

Place mix strategies:
• deciding on the
i. Place or location- based on customer convenience
ii. Selection of channel members
Normally the service is provided to the customer directly due to the
inseparability nature of service.
Some service like plumbing, cleaning, baby-sitting need to provide at
buyers location, other service like retailing, hotel, entertainment need to
be provided in a standard location, some service like insurance, share
brokering need to provide through use of agents.

Promotion mix strategies:
Decisions regarding how to communicating service attributes to the
customers
Promotion strategies:
i. Personal selling
ii. Innovative advertising campaign
iii. Sponsorship
iv. Sales promotion
v. Public relation

People mix strategies:
People mix strategy consists of three decisions:
i. decision regarding service personnel and
ii. Customers
iii. Profit
The relationship between employees, customers and profit is know as
service profit chain.
People mix strategy calls for
Employees Interactive
Marketing
External
Marketing
Customer
s
Company
Internal
marketing

Physical evidence mix strategy:
• Physical evidence is the tool to demonstrate the service quality provided by
service provider.
• Decision on
i. Entry and exit
ii. Comfortable surrounding
iii. Decoration
iv. Furnishing
v. Reception counters and compartments
• hotels have elaborate decorations and beautiful gardens, dentist or doctors have
comfortable waiting rooms, airlines have unique dressed air hostesses, car
showroom have beautiful layout and decoration of showroom with beautifully
lighted rooms, banks have comfortable sofa sets and counters, all these are the
examples of physical evidence designed and created by service providers that
glances the evidence of quality that they provide.

• Process mix strategy:
• procedures, mechanisms and flow of activities by which service is
acquired.
i. restaurants can be fast food, buffet, candlelight service.
ii. Hotels can be lodges, non-star, star.
• For choosing process strategy firms can pick any of the two options:
1. service differentiation based on delivery process,
2. service differentiation based on image.

Meaning
• The condition such as introduction, development, maturity, and decline of
product as a whole is called product life cycle.
• It is a cycle through which every product goes from introduction to withdrawal
or eventual demise. Product life cycle is just like a cycle of human beings. It
describes the stages a product goes through from when it was first thought of
until it finally is removed from the market.
• The changes that appears in new technology, competition, changing interest of
consumers etc. affect the life cycle of product. Thus, the life cycle of all products
does not remain the same. Some have long life cycle and some have short.
• According to Philip Kotler: Product life cycle is an attempt to recognize distinct
stages in the sales history of the product
• In conclusion, product life cycle is the cycle through which every product goes
from introduction to withdrawal. It is an important concept in marketing. It
describes the stages of a product. Introduction, growth, maturity, and decline are
the common stages of product life cycle. Different marketing strategies should
be adopted according to stages of product life cycle.

Stages of product life cycle and Implication of marketing strategies

1. Introduction Stages
First stage of product life cycle is introduction. In this stage, a product is launched into the
market in a full -scale marketing program. At this stage, the possible customers become totally
ignorant about the new product.
Due to high production cost, the price of the products also becomes high. The customers do not
easily accept the new products appeared in the market. So different sales promotional activities
should be conducted to create demand for the new product. This stage of the products is very
costly as well as risky.
Features of Introduction stage:-
i. High Cost:-Because of heavy promotional activities cost of product becomes high
ii. Slow sales growth rate :- Sales growth rate becomes very low at this stage because
buyers are not aware of existence of new product .
iii. Low profit margin:- Profit margin becomes nominal or sometimes even loss at this stage
due to high promotional expenses.
iv. Price of the product:- The products are new, they require high introductory expenses,
and price of new products generally charged high to recover high expenses in
introduction stage.
v. No competitors:-The new products need not face competitions at this stage, as
considerable competitors do not appears in the market.
vi. Need of promotion:- Product are unknown in the market. Customers do not accept new
products easily. Thus, they require heavy promotional activities.

1. Introduction Stages cont…
Implication of marketing strategies in introduction stage
i. High Profile Strategy:-A high profile strategy consists of introducing the product with a high
price and promotional tools. High price is charged as far as possible to recover as much as
gross profit per unit. High promotional level is maintained to convince buyers on the merit of
the product at higher price. This strategy can be applied if potential buyers are not fully
aware of the product.
ii. Selective penetration strategy:-A selective penetration strategy consists of introducing a
product with high price and low promotion. Higher price is charged to recover the initial
investment cost. Low promotion is maintained to keep the marketing cost down. This
strategy can be applied if the market is small. Most of the market is aware of the product, and
those who want it can afford to pay a higher price.
iii. Preemptive penetration strategy:- A preemptive penetration strategy involves introducing
the product at a lower price with heavy promotion. This gives the firm a penetration and
larger market share in a short period of time. This strategy is suitable if the market is large;
the market is relatively unaware of the product.
iv. Low profile strategy:-The low profile strategy involves introducing the product under low
price and low promotion levels. Lower price is targeted at fast market penetration and lower
levels of promotion at keeping marketing cost down. This strategy is suitable if the market is
large. The market is aware of the product. The market is price sensitive; and there is some
potential competition.

2. Growth Stage
The stage when demand of product grows and competitors enter the market is called
growth stage. This is the second stage of the life cycle of the product where product's
sales start climbing quickly and price of the product slightly starts to decrease.
The product becomes well recognized in market and buyers repeat the purchase
patterns. Growth stage is market acceptance stage of product life cycle.
In this stage, company focuses on brand preference and gaining market share. But due
to competition, company invests more in promotional activities such as advertising,
personal selling, sales promotion, publicity etc. to convince customers.
Features of Growth stage:-
i. High Sales:-Sales growth rate intensely increases at this stage
ii. High profit:- Customers' acceptance and high sales volume generates high profits.
iii. Large number of competitors:- As good opportunities for sufficient profit appear at
this stage, new competitors enter the market and competition also increases
iv. Lower price:- Per unit price of product becomes low due to low production cost.
v. Loyal Customer:-it is market acceptance stage of product life cycle. Thus, customers
become loyal towards brand of the company.

2. Growth Stage cont…
Implication of marketing strategies in growth Stages:-
a. Improve quality of the product:- Maintaining the existing quality, improvement in
quality, and adding new product features policy is adopted.
b. Add new features and models:- Growth stage is the best time to introduce new
feature of the product. A firm may also extend the product line and introduces new
models. The reputation of the main product can easily attract buyers to the new
models and brands.
c. Enter into new market segment:- During the growth period the organization should
move into new segment of rapid market expansion.
d. Use new distribution channels:- During the growth period, distributors may show
their interest in the product. This is the appropriate time to use multi-distribution
system to achieve wider market coverage.
e. Change in advertising theme:- Advertising should be done to provide information
about product quality and features. it's content or theme can be changed according to
customer demand. Generally the advertisement theme in this stage should be
persuading type advertisement
f. Low price:- Low price strategy should be adopted because of customer's price
sensitivity.

3. Maturity Stage
The third stage of product life cycle is called maturity stage. In this stage, sales grow at slowing rates and
finally stabilize but increase in promotional expenditure. At this stage a situation appears where market
related cost and competition increases but price and profit decrease.
In the beginning of this stage, the sales quantity goes on increasing at a low rate. Towards the end of this
stage, both the sales quantity and profit goes on decreasing. At this stage economically weak firms
disappear. The companies may revise price, add new feature to their products and enter new market
segment which help them maintain market.
Features of maturity stage:-
i. Slowdown in sales growth rate:- Although the sales growth rate increases in the beginning of
maturity stage but it goes on decreasing later on.
ii. Stable profit:-Although profit becomes stable in the beginning of the maturity stage, it gradually goes
on decreasing later on.
iii. Price war:-Comparatively, competition increase at this stage. The price war may begin at this stage.
Weak firms try to withdrawal from market.
iv. Promotional expenditure:- Due to the keen competition and price war, promotional expenditures
increase in this stage of product life cycle.
v. Low price:-As price war becomes intense at this stage, there arises compulsion to decrease price
frequently.
vi. Middleman:- The number of middleman decrease in this stage.

3. Maturity Stage cont…
Implication of marketing strategies in maturity Stages:-
i. Market modification Strategy:- The market modification strategy searches new
buyers for the product which can be done through: (a) Convert non users into users.
(b) Enter into new market segments. (c) Win competitors customer
ii. Product modification:- During maturity period several organizations modify their
products to satisfy the needs of the buyers. Product modification involves changing
product quality, flanking (re-lunch an existing product with adding something new to
the product) and adding adjective(e.g. extra, plus, deluxe, new) on the brand name.
iii. Marketing mix modification:-
a. Product:- Product differentiation and quality improvement strategy should be applied
b. Price:- Lower price strategy should be adopted. Discount, credit sales, free transportation facility
can also be given
c. Distribution:-Maintaining higher volume channel, search new distribution channel, to increase
sales volume bonus, discount, rewards can also be provided.
d. Promotion:-promotion is done in order to create product differentiation and loyalty. Incentives are
also offered to attract more customers.
iv. Service: Before, during and after sales service, home delivery, warranty should be
given to customer.
v. Public relation:- Positive relation with pressure group should be develop.

4. Decline stage
The situation of decreasing sales and profit of product is called decline stage. It is the final stage
of product life cycle. At this stage sales quantity, profit and demand decrease.
Due to new technology, new development and appearance of new products in market, demand
of the old products ends. The change in the customer's interest and wants also directly affect
demand. Companies find difficulty to maintain their existence, so they focus their attention to
seek new opportunities. This stage of life cycle is very challenging.
The top level management should take a very rational decision whether to continue the existing
brand or dropped it.
Features of decline stage:-
i. Decline competitors:-In this stage competitors begins to search new opportunities,
competition slows down.
ii. Decline sales:- At this stage, sales quantity may decrease due to change in the interest of
customers and new technology.
iii. Decline profit:- profit decreases continuously, if necessary strategy could not be adopted in
time. Business firm may suffer direct losses.
iv. Decline customer:- The needs and wants of customers have changed with the span of time.
They purchased new products. Thus customer decline slowly.
v. Distributer:-The number of distributer becomes very low.
vi. Promotional expenses:- Promotional expenses should be decreased.

4. Decline stage cont…
Implication of marketing strategies in decline stage:-
i. Contraction of product line;-Firm normally reduce their product line to a
minimum during this stage. Normally they drop weak brands and continue one
or two of the stronger brands.
ii. Withdrawal of all promotions:-During the decline period none of the
promotional tools have any significant effect on sales. Therefore, it is normal to
withdraw all forms of promotion, to reduce expenses and decrease the price of
the product to attract the price sensitive buyers.
iii. Adopt few distribution channels:- Firms generally adopt a few distribution
network policy during the decline stage. Normally, the firm retains the higher
volume cost effective marketing channels and withdraws from the lower
volume channels.
iv. Abandon the product:- If any of the three strategies does not work, a firm is
forced to fully abandon or give up the product. Product abandonment is a wise
decision that continues with terminally ill product.

Concept of new product development
New product development is the process of bringing a new product in the market.
New product includes innovation, modification and imitation products.
The company develops new product through its own research and development
efforts. It is a process which consists of idea generation, idea screening, business
analysis, product development, test marketing and commercialization. It is a
specialized activity. It is done to introduce a new product in the market or to
improve the existing product.
The changeable forces like as customer's needs, desire, taste, preference,
technology, competition and environmental factors focus on the development of
new product.
According to Philip Kotler: New product includes original products, improved
products, modified products and new brands that the firm develops.
In conclusion, new product development is a creation, innovation, utility
enhancement or continuous improvement of earlier features of an existing product
or developing an entirely new kind of product to satisfy requirements of its
consumers. New product development helps to create new business opportunities
and brings growth, boost productivity and profitability of the entrepreneur, and
enhance the satisfaction level of the consumers.

Types of new product
1. Innovative products
Innovative products are produce or introduce for the first time in the market.
These are unique and original and new to the world. These products involve high risks
and takes a long time for profitability to the organization. Innovative products greatly
help to meet the new needs and wants of customers. Customer may accept or reject the
innovative market. An apple i-phone, medicines to cure AIDS can be taken as the
innovative product.
2. Modified Products
The modified products are modified form of the existing product. The producer
can modify the product on the basis of quality, quantity, shape, durability and other
characteristics, as they required. It is changing one or more of the product's features
and may involve reformulation, redesigning, re-coloring, and re-packaging to enhance its
customer appeal. The example of modified products is new Horlicks from Horlicks,
gladiator from YBX motorcycle.
3. Product imitations
The imitation products are those which are new for the organization but old to
the market. These products are already familiar in the market. Imitation products have
less competitive power and they have marketing strategy. China and India are the
champions for product imitation.

New product development Process

New product development Process
1. Idea generation:-
Idea generation also known as brainstorming phase for new product
development is the first step of new product development. Idea generation can
be on quality, features, and utility of products. Idea for new products can be
obtained from basic research using a SWOT analysis. Many ideas are generated
about the new product development out of these ideas some best are
implemented. The main sources of idea generation are as follows.
i. Internal Sources:- Salespersons, employees, managers, engineers, planning department,
board of directors, research department, account department, internal records etc. are
internal sources of idea generation.
ii. External Sources:- Company can generate ideas
from external sources. Customers publications, advertising
agencies, competitors, suppliers, universities,
distributers, and suppliers, consultants, focus groups
corporate spies, trade shows etc. are external sources for
idea generation.

New product development Process cont….
2. Idea screening:-
Idea screening is the second step of new product development. Idea
screening is selecting best reliable ideas. It is possible through the
evaluation of collected ideas. The ideas are screened through the help of
organizational objectives, policies and procedures, resources, technical
capabilities, information sources and HR skills.
For the screening process evaluate the collected ideas and select best
alternatives and reject the unreliable ideas. Generally, the ideas can be
classified into three groups.
i. Prominent ideas:- Prominent ideas are very important ideas. They are correctly
and properly evaluated for next step.
ii. Marginal ideas:- It may be useful to the company in future, so they are stored for
future purpose.
iii. Reject idea:- Reject ideas are not useful to the company, such ideas are rejected.

3. Business analysis:-
Business analysis is a research discipline of identifying business needs and
determining solutions to business problem. Business analysis consists of demand
analysis, competition analysis, cost analysis and profitability analysis. Business
analysis may be affected by the resource of the company. Thus, it is necessary to
analyze the risk, break-even, cash flow, capital budgeting and so on.
4. Product development:-
It is the process of designing, creating and marketing new products or services
to benefit customers. In this step, the company has decided to introduce the new
product in the market.
Sample products are produced in certain size, shape, weights, and quality. While
developing new product, important decision should be taken on brand name,
packaging, labeling, and promotion mix.
After the new product has been developed, they are sent for technical and
laboratory.

5. Test marketing:-
Test marketing is the fifth step of new product development. Test marketing is the testing
sample product within a specific market segment. The sample products are launched in market
and marketing mix is monitored. It provides the reaction of the customer. Such reaction may
be positive or negative. If it is positive reaction or performance of product satisfy the customer
then they took further steps for product commercialization. If it is not successful to fulfill the
expectation of customer then they are sent back for modification or redevelopment.
6. Commercialization:-
 It is the last step of new product development. Commercialization is the process of
introducing a new product the target market segment. If test marketing is successful the
product is ready for launch. The company produces and distributes the new product in large
volume. In the commercialization process, marketers should focus on the appropriate
promotion and distribution strategy.
 The following decisions regarding the launch need to be made:
i. Timing:- New product must be launched in order to reach its intended target market. Time of
product launching must be fixed in advance.
ii. Place:- New product is launched for target market. Marketing system and distribution channels
are fixed to serve target market.
iii. Market segment:- Market segment is target market to be served. Market segment should be
attractive.
iv. Strategy:- It is strategy for successful launching, lasting and gaining competitive advantage.

Reasons of product failure
1. Poor quality and design
2. Strong competition
3. Government regulation
4. Poor technology of company
5. Price of the product
6. Cost of the product
7. Market Sector
8. Poor management
9. Weakness of sales force
10. Timing

Product Adoption
and Diffusion

• The life cycles of all new products are highly dependent upon
how the market responds to these products. As a result, we need
to spend some time examining a conceptual model of how
consumers adopt new products and how these new products
diffuse through social systems over time.
• The new product adoption process is and individual process in
which a consumer decides to adopt a new product for his or her
personal use.
• The new product diffusion process is the spread of a new
product through a given social system.

Product Adoption
The concept of product adoption is concerned with new product.
There are basically three methods for developing new product:
INNOVATIONS
Innovations implies research and Development activities.
MODIFICATIONS
1) Quality modifications
2) Functional modifications
3) Style modifications
“ME TOO PRODUCTS”
Producing same goods and services those have already rocked the market by new manufacturer.

• Product adaptation is concerned with how customers learn about
the new product for the first time and make decisions to become its
regular users.
• It is the mental process through which an individual passes form first
learning about an innovation (new product) to its final adoption.

1. Awareness:
 Awareness is the point at which consumers first become aware of the new product’s existence but lacks enough
information.
 Awareness is a function of, and is highly dependent on, marketing communications and consumer word-of -
mouth behavior.
 Creating awareness and interest in the new product is probably the most critical promotion objective associated
with any new product launch.
 Advertising, publicity, and sales promotions are crucial for creating awareness and interest in new products.
2. Interest:
 When the product catches the consumer’s attention and she herself tries to discover more and more about it.
 Once aware of the new product, consumers may establish an interest in that product if they perceive a fit
between the benefits the products delivers and their own wants and needs.
 Consumers who are interested in new products will be more attentive in search of information about those
products.
 For example, consumers interested in a new brand of high performance computer may actively seek information
about that computer from internet sites, retail stores, and articles in computer magazines. The consumer also
will be more attentive to advertising for the brand.

3. Evaluation:
 In this stage, the consumer has enough knowledge about the product and s/he considers its relative benefits and
evaluates it in terms of various factors as cost, aesthetics, competitors’ offering, etc.
4. Trial:
 If the evaluation is favorable, consumers are more likely to take the next step, trial. During trial, the product is
sampled on a limited basis and further evaluated.
 Trial can be stimulated by marketing activities. Free samples and coupons are quite effective at stimulating trial
as they effectively reduce the potential risk surrounding trial for many consumer non-durable products,
particularly convenience goods.
 Reducing the risk of trial is most critical for consumer durable products because these products are typically
more expensive. Marketers reduce the perceived risk of trial for such products by offering generous warranties
and return policies. Some products actually can be 'test driven' prior to purchase. Obvious examples are cars and
microcomputers.
5. Adoption or Rejection decision:
 This is the stage when the consumer has made up his/her mind whether to remain with the product or switch
back to her earlier product.

Product Diffusion
• The diffusion process describes the spread of a new product or innovation through a social group. It
refers to the market development process of new product. The speed with which a new product
diffuses through a social group is a function of the fact that different people adopt new products at
different rates.
• Some people will adopt products more quickly than others. Often the people who adopt the product
first are very different than those people who adopt the product in later time periods.
• Marketers attempt to identify the characteristics of these initial adopters and construct marketing
strategies to influence them. Carefully constructed advertising programs supported by sales
promotions, trade promotions and personal selling efforts that are targeted specifically to the initial
adopters of new products can dramatically speed the diffusion process.
• Because consumers adopt new products at different rates, we can divide up the total population of all
consumers who adopt a given product into five basic categories

Pioneers or Innovators:
 Innovators typically are characterized as higher on the socio-economic
ladder than are consumers in subsequent adopter categories. They buy
products during introduction stage of PLC
 They are said to be more venturesome, educated, financially stable, and
willing to take risks associated with new product purchase and adoption.
 Innovators are certainly important from the standpoint that they are the
first consumers to adopt new products.
 However, innovators are not as influential as are the individuals in the next
category of adopters -- the early adopters -- when it comes to convincing
others to try new products. In other words, innovators generally do not
contribute significantly to word-of-mouth communications.

Early Adopters
 Early adopters are also quick to buy new products and services, and so are key opinion
leaders with their neighbors and friends as they tend to be amongst the first to get
hold of items or services.
 the early adopter category consists of 13% to 15% of the adopter population. Early adopters are
important early in a product’s life cycle because this category contains opinion leaders. The influence of
opinion leaders can determine a new product's success or failure in the market place. As a result,
marketers are particularly interested in identifying these individuals and positively influencing their
purchase decisions. Marketers direct a substantial amount of promotion at opinion leaders very early
in a product’s life cycle in order to generate favorable word-of-mouth communications.
 Effectively targeting and developing demand with the early adopter is perceived as a critical step in
launching a successful new product. Targeting early adopters can be relatively easy.
 Early adopters may have specific preferences for advertising media, such as the types of magazines and
newspapers read, types of television shows viewed, and preferred radio stations. Astute marketers will
target the appropriate communications media required to reach these opinion leaders with a
substantial portion of their promotion budget.

Early majority
 The early majority tends to be more deliberate and more
cautious than innovators and early adopters.
 Members of the early majority category are characterized as
"solidly middle class consumers."
 They are somewhat average in socio-economic status.
Successfully targeting the early majority determines whether
a new product will eventually succeed in general use or will
remain a product that serves primarily a narrower niche
market.

late majority
 The late majority category is quite similar to the early
majority with respect to its members' characteristics and
propensity to take risks.
 The late majority typically adopt when the product is
approaching or has reached the mature phase of the product
life cycle.
 Thus, the product has already been widely accepted, which
serves to reassure the risk averse consumer in this category
of the product’s merits. Moreover, price competition probably
has substantially lowered the realized price of the product.
Given their lower standing on the socio-economic ladder,
many consumers in this category may only at this point in
time be able to afford this product.

Laggards
 Laggards resist new product adoption almost to the point that
they will adopt only after the product has become obsolete and is
in imminent danger of replacement by new products, often based
on new technologies.
 Laggards are characterized as highly resistant to challenges of
tradition, more orientated toward the past, and as highly risk-
averse. These consumers tend to be older in age and lower in
socio-economic status than members of other adopter categories.

Branding
• A brand is a name, word, number, sign, symbol, logo, picture, figure,
color or any combination of these that are used to identify a particular
product produced by a producer.
• According to Philip Kotler:- A name, term, sign, symbol, or a combination of
above, is that which identifies the marketer or seller of products or service.
• Brand has several components:
i. Brand name: is the part of brand that can be vocalized which includes letters,
worlds, and numbers. Eg. Coco cola, Apple, IBM, Dell, 555, KFC etc.
ii. Brand mark: is the part of brand that cannot be vocalized but are useful in
identification of the product, which consists of sign, symbol, designs, unique
colors.
iii. Trade mark: registered brand name and brand mark in concerned government
authority under certain law.

Class of Brand
Trademark
 Trademarks are registered brand name in concerned office.
Legally protected brand names are trademarks.
 A trademark is a word, name, symbol or device which is
used in trade with goods to indicate the source of the goods and to distinguish them from the goods of others.
 Trademark rights may be used to prevent others from using a confusingly similar mark, but not to prevent others from making the same
goods or from selling the same goods or services under a clearly different mark.
Copyright
 Copyright is a form of protection provided to the authors of "original works
of authorship" including literary, dramatic, musical, artistic, and certain
other intellectual works, both published and unpublished.
 The copyright protects the form of expression rather than the subject
matter of the writing. For example, a description of a machine could be
copyrighted, but this would only prevent others from copying the description;
it would not prevent others from writing a description of their own or from making and
using the machine.
Patient
 Scientific, inventions and artistic works protected by concerned law of country is known as patient. For example
the curved shape of apple i-phone is patented, similarly the tail light of pulsar bike is also patented.

Branding
• A brand is a name, word, number, sign, symbol, logo, picture, figure, color or any
combination of these that are used to identify a particular product produced by a
producer.
• Branding is a process of creating a unique name, term, design, symbol or any other
feature to the products. It helps to identify manufacturer of the product. In other words,
the name, sign, symbol, digit, letters or design or a combination of these intended to
identify the product or services of one seller or a group of sellers and to differentiate
them from those of competitors is called branding of product. As various types of
products enter in markets, every company tries to give separate identity to their
product. It plays an important role in marketing. Brand name of any product should be
short, easy tom pronounce, suggestive, distinctive, and attractive so that it can be kept
in mind by the customer.
• According to Philip Kotler:- A name, term, sign, symbol, or a combination of above, is
that which identifies the marketer or seller of products or service.
• In conclusion branding is a process of creating a unique name, term, design, symbol or
any other feature to the products. It is essential for advertising, promotion, packaging
and appeal customer to buy customer. It is an important function and strategy of
business in marketing. it is used identify the product of one company and distinguish
from competitors products. Wai Wai noodles, Puja shop, Pepsodent toothpaste,
Hajmola. Ok shop, Coca-Cola etc. are some example of branding.

Objectives of Branding
1. Design brand identity- brand identity is established through the brand’s
name, logo, colors, slogan, and symbol. The primary step in brand building is to
select the appropriate brand name, logo, brand color and slogan.
2. Develop brand awareness- brand awareness is the ability of customers’ to
recall and recognize brand through brand identity features. It is achieved
through a well thought out promotional campaign.
3. Achieve brand image- deals with the properties of the brand to meet
customers’ psychological and social needs.
4. Brand attitude- is the customers’ personal opinions and evaluation of the
brand. It is based on products’ quality and superiority.
5. Customer loyalty- degree of relationship between the customer and brand.
Characterized by repeat purchase, brand advocacy, referrals,
recommendations.
6. Brand equity- creating the extra value of the brand in marketplace.
Developing goodwill. Is the ultimate strategy to add monetary value to the
recognized brand.

Importance of Branding
Importanceof
Branding
Importance
to customer
Product
identification
Price Stability
Quality
Stability
Regular supply
Prestige
Importance to
business
organization
Promotion
Legal
Protection
Market control
Save from
competitors
Product
positioning
Importance
to society
Consumer's
welfare
Involve Social
Activities
Environmental
Protection

Importance to customer:-
i. Product identification:- A brand helps the customer to identify the product easily.
Then, they can easily select the goods among goods produced by different producer.
For example customer can easily buy Coca-Cola easily. They do not become
bewildered to buy. There does not remain possibility to be cheated.
ii. Price Stability:- Price of the branded goods is determined by producer itself. Then,
there will be no up-down in price of such goods. Stability in price of branded goods
provides the goods to consumers in same price for long time.
iii. Quality Stability:- Consumers will not accept the goods if the branded goods will be
less quality. The producers never decline the quality of branded product. Thus
customer can always get quality products at right place at right time at reasonable
prices. Generally, all branded products have quality consistency forever.
iv. Regular supply:- Brand ensures regular supply of product to the target markets. The
customers can easily get right products at right place at right time. A branded
product wins the heart of the customers. So regular supply can be possible.
v. Prestige:- Branded goods enhance to increase the prestige of the customer in
society. For example, customer who use Apple mobile and computer have good
prestige in society.

Importance to organization:-
i. Promotion:- Brand helps in promotion of the product. Business organization can easily
promote the branded goods because the information about the features, price size style and
advantage etc. of such goods can be easily provided to the consumers. This will not only
increase the sales but also the business organization.
ii. Legal Protection:- Trade mark i.e. brand name after getting registration in government
department owner can use it at sole. it provides legal protection. No other organization or
entity can use trade mark. Trade mark can be sold or leased to other company.
iii. Market control:-Branded goods are easily identified by consumer. Similarly, the information
about the characteristics of branded goods as well as its producer can be easily gained. In
such situation producer can make the consumers loyal towards its brand and can control the
market.
iv. Save from competitors:- Business organization can easily advertise the branded goods.
Therefore, they can attract consumers towards their products. Due to branding, business
organization can be saved from competitors.
v. Product positioning:- Branding plays its role in product positioning. The meaning of
product positioning is to make their product s unique and different from their competitors.
Thus product image and personality are used in marketing the product look different from
their competitor's products.

Importance of branding to society:-
i. Consumer's welfare:- Branded goods Preserve the consumer rights.
Consumers have right to file a case against the manufacturers for their
defective products that cause harm to the consumers. But this is not
possible in the case of unbranded product.
ii. Involve Social Activities:- The producer of branded goods do some
social activities like sponsor of games and sports, health campus,
religious conference etc. The major objective behind sponsoring such
events is to promote the social interest.
iii. Environmental Protection:- Manufacturers of branded products
generally produce ecologically safer products that will be less harmful to
the environment. They are more conscious towards environment.

Types of Brands
on the basis of ownership:-
i. Manufacturer's Brand:- If the manufacturer's name is used as branding for whole
product then it is called manufacturer's brand. If ownership of brand goes to
manufacturers, that brands are popularly known as manufacturer's brand. Giving
manufacturer's brand name to the product is possible only when the manufacturer
has strong image in the market. For example:- Sony, Samsung, Bata, Nike.
ii. Distributor's or Middleman brand:- Some times product are sold under the brand
name of distributors or marketing intermediaries such as distributers, wholesalers
and retailers etc. This type of brand name which is given to the products is called
distributors brand. Giving distributors brand name to the product is possible only
when the distributor's brand name is stronger than manufacturer's brand. Asian Sky
Shop and Tele-Shopping network, Mechi tea, Upahar tea etc are some examples of
distributors' brand.
iii. Licensed Brand:- When a company provides license to other companies to use it's
popular brand name, the brand name so received is called licensed brand. A Producer
can use the brand of other producers who do not put their products in competition.
Permission can be taken through agreement to use any brand of other producers.
After such permission authority has been got, royalty is paid for the use of such
brand. For example Chaudhari group(CG) is using license of gold star TV and National
Panasonic radio.

Types of Brands
On the Basis of market area:-
i. National brand:- When the brand name is used in the national level, it is
known as national brand. For example Pooja soap, Surya Cigaratte, Wai
Wai noodles etc.
ii. Regional Brand:- When the brand name is used for any particular
region, it is known as regional Brand.
iii. Local Brand:- Local brand refers to the brand used to sale goods in a
special local area. For example Krishna Bread, Nanglo bread Palpali
Dhaka etc.

Types of Brands
On the basis of Product line:- applicable with companies producing different types of products
in various models.
i. Corporate brand:
in corporate branding, the company uses a common brand specially the corporate name across a variety of products. It
is used to identify the entire product offering.
The products produced by the TATA Company of India gives TATA brand name to all its products such as bus, car, trucks,
machineries, soap, chemicals, and cloths. Same is the scenario in the case of Sony, apple, Samsung, Microsoft, Honda, bajaj etc.
ii. Family brand:
family branding involves using a single name for a product line. For example Sony manufactures camera, mobile, TV,
music etc, it gives distinct name (family brand) for each product line. Its calls its camera cybershot, calls its TV set Bravio, calls its
mobile Xperia. Cybershot, bravio, xperia are the family brand for sony.
iii. Individual brand:
under this brand, each product in product line are branded with a separate name or use a separate brand name when
they produce the products of different features and quality. Each product produced by the same producer has a different brand
name. Surya Tobacco Company Produces Surya, Sikhar, Bijuli, and Chautari under individual, Uniliver limited are given individual
brand name like Lux, Liril, Lifeboy, bajaj gives individual brand name for its bikes like pulsar, discover, lights, fans, etc.
iv. Joint Brand:- When the producer or manufacturers name and products brand are used jointly or together it is termed as the
joint brand. In the joint brand the individual and family brand names are used collectively. Like YAMAHA YBX, DABAR VATIKA,
TATA INDICA etc.

Reasons for not branding:-
i. Perishable Product:- The products of perishable nature like fruits and vegetables lack
standardization and they are sold unbranded. Such Product can be sold without branding. So they
need not be given brand name.
ii. Increase in price:- Branded product may more expensive than unbranded ones. Brand name reflects
the quality and features of the products. Promotional activities also should be conducted for the
branded product, due to which per unit price of such products becomes higher. So, decision can be
taken not to give brand name to the products to save for high price.
iii. Homogeneous product (in the case of Raw materials):- Many companies may produce same type
of products. It becomes difficult to identify which product belongs to which company. Raw materials,
paddy, wheat, millet, maize all the food stuffs are the examples of such products They can not be
distinguish by branding. So such homogeneous products are sold without branding.
iv. Low quality:- Some products are not branded due to being unable to maintain quality. Customers also
do not believe in products whose minimum quality can not be maintained. Once they have bought and
used, they do not buy such products again. So brand name are not be given such types of products.
v. Inability of brand promotion:- Branding involves heavy responsibility on the part to marketer for
promotion. Marketer of branded product should make huge promotional investment to build and
maintain brand awareness, brand image, loyalty among buyers. Financially weak organization
cannot meet the promotional costs.
vi. Legal procedure:- Legal procedure should be fulfilled for branding. Government prescribed legal
procedures and requirement should also be carefully considered. it needs to spend time and money
for fulfilling such requirements. So some production companies decide not to give brand name to their
products to avoid legal troubles.

Essential for good brand name:-
1. Suggestive:- Brand of the products that enter in marketer should be suggestive.
Such suggestion encourages customers to use products of the concerned company.
For example, the brand Safa sabun suggests that it makes cloths clean. In this way,
brand name of any product can give suggestion to the customer.
2. Easy to pronounce:- The name of product should be easy to pronounce for all
levels of customer such as educated, uneducated, children, young, old etc.
otherwise customers feel difficulty to buy product.
3. Legally protectable:- Brand name of product should be registrable. It should
not be similar to those which have been already registered by other company. If it
is registered then it is protected by government. It can be used by those people
who have the ownership of this brand name.
4. Short, sweet and attractive:- Brand name of product should be short, simple,
sweet and attractive. Complex and difficult brand name is difficult to pronounce
and remember. If brand name of product is short and attractive, customer are
attracted to such products.
5. Originality/Distinct:- Brand name should be original and distinct from
competitors brand name. Similar or copied brand name makes confusion to the
customers to buy and difficult to the marketers to marketing mix. So brand name
should be original and distinct.

Essential for good brand name cont….
5. Originality/Distinct:- Brand name should be original and distinct from
competitors brand name. Similar or copied brand name makes confusion to the
customers to buy and difficult to the marketers to marketing mix. So brand name
should be original and distinct.
6. Memorable:-Brand name should be memorable and able to leave positive
impression on the customers even when it is heard once. If such brand name is
kept, trust and loyalty of customers to the product becomes long- lasting. For
example Rara, Apple, Sony, Hulas etc. are memorable brand name.
7. Project qualities:- Good brand name should projects the quality of product. For
example Sunsilk, surf, good-night, Khukuri rum, fair and lovely.
8. Lack of obscenity- Good brand name should not be obscene. Names that affect
the social norms and values should not be used as brand name.
9. Easy to promotion:- Good brand name should be easy for promotional
activities like advertisement, publicity etc. because brand name is used to sell the
product by creating emotional attachment.
10. Cultural:- While selecting brand name producer should have to consider the
culture of the nation. If it is cultured than it will be acceptable to all the consumers
of that nation.

Packaging meaning
Packaging is the activity of designing and producing the container or wrapper
for a product.
Packaging also refers to the process of design, evaluation, and production of
package. It is an important and effective sales tool for encouraging desire
buying.
It provides information to the customer about features, quality, using, method,
etc. about the product. It must perform all the basic function such as protection,
easy in handling and storage, convenience in usage etc.
According to Philip Kotler:- packaging is the activity of designing and
producing the container or wrapper for products.
In conclusion, packaging is the general group of activities which concentrate in
formulating the design of a package, and producing an appropriate and attractive
container or wrapper for the product. For example bottle for medicine, alcohol,
beer, soft drink etc. tin cans for juice, wooden box for fruits, plastic bottle for
water etc. It contains, protects, promotes and differentiates the product. It should
be attractive, convenient, economic, communicative, environment friendly, and
reusable.

Requirement / Essential of a good packaging
1. Suitable:- Packaging should be suitable according to the nature of the
product. Quality and size of the product should be considered when
determining packaging.
2. Protective:- The package must protect the product from mechanical
damage and poor environmental conditions during handling and distribution.
Some products are such that they do not exist if they are not packaged
properly such as gas, alcohol etc. are some goods.
3. Reasonable Cost:- A package should not be expensive or costly. It should
be designed in an artistic way, safe and economy. Packaging should be done
in reasonable cost.
4. Attractive:- Attractive packaging makes the product look nice and
impressive. Impressive and good looking packaging itself is the promotion
and contributes in the higher sales.

Requirement / Essential of a good packaging cont..
5. Dependable:- Dependable means trustworthy and reliable. It is a value
showing the reliability of a product. A package should be dependable.
6. Convenience:- Product packages should be easy to handle. Packaging
should be convenient to carry, open and store the product. The products that
are used frequently or occasionally should be easily open able and closeable
7. Durability:- Packaging should be durable according to the nature of
product. It should be re-usable.
8. Size and shape:- Size and shape of packaging should be matched
according as the size and shape of product.
9. Identification:- The package must identify and provide useful
information about the product. It must provide information such as the
producer's name, brand, size, grade, variety, net weight, quantity, ingredients,
manufacturing date, method of using, expiry date, and so on.

Packaging Strategies
1 Unique Strategy:- Packaging must be unique. It must be different from
competitors. It should give distinct and positive image of the product and
manufacturers. Unique strategy helps to customer not to be confused in
product selection.
2. Functional Strategy:- Packaging must serve more than one function. It
must contain, protect and promote the product. It is use to contain core
product, keep it safe, to differentiate from competitors and promote the
product.
3. Brand reinforced strategy:-Brand reinforcement is an activity associated
with getting consumers who have tried a particular brand to become repeat
purchasers and with attracting new users. Packaging must reinforce the
brand of the product.
4. Single package strategy:- If one package is used for one product i.e.
different product use different packaging then this strategy is called single
packaging strategy.

Packaging Strategies cont….
5. Family package strategy:- In family packaging strategy, same types of package
is use for all products same line.
6. Multi-product packaging strategy:- If different nature of product are kept in
one container or box for sale such types of strategy is called multiple -product
packaging strategy. For example cosmetic items are kept in one bucket or box.
7. Innovative packaging strategy:- If new packaging style is used by removing
old packaging style of the product then it is called innovative packaging strategy.
8. Re- use packaging strategy:- The marketer may use such packages, which can
be used by the consumers for further purposes or multi-purpose. Such package
can be used for the same product or different product. For example Coca-Cola
bottle and Horlicks bottle can be re-use.
9. Green packaging strategy:- Producer are using environmental friendly
packaging materials to save environment in green packaging strategy. For example
paper is used in the place of plastic for the packaging.

Functionsofpackaging
Basic functions
Protection
Containment
Identification
Other functions
Prevent alteration
Economy
Other functions
Promotion
Public image
creation
Communication
Product
differences

Function of Packaging
Basic function
i. Product Containment:- A package is the actual container or wrapper.
It contains product safely and in an attractive way. In order to keep
safe bottles, containers, bags, tubes, drums, plastics, tin boxes,
wooden boxes, jar etc.
ii. Product protection:- Package protects the core product. It plays an
important role to keep the quality and features of the products fresh
or as it is.
iii. Product identification:- Package gives detail information about
product such as producer's name, manufacturing date, expiry date,
ingredients, method of keeping safe etc.

Selling Function
i. Promotion:- Packaging helps product promotion. Good packaging itself is
advertising, that attracts the customers and makes them confident about the
quality of the product.
ii. Public image creation:- Packaging creates positive image of the public. Customer
becomes loyal towards product. They buy products regularly. They also tell their
relatives, friends and neighbors about the products and suggest them to buy it.
iii. Communication:- Packaging gives information about quality and features of the
products to the customer. Such information motivates the customers to buy the
product.
iv. Product differences:- Packaging helps in product differentiation. Products are
different with each other but customers get confusion in substitute products.
They can differentiate product from others only with the help of packaging.

Other function
i. Preventing adulteration:- Packaging prevent adulteration doing by
wholesaler and retailer.
ii. Economy:- Packaging should not massively increased the cost of
production. It should not massively increase price of product.

Meaning of Labeling
• Label is the name or short description, which is written on the package of the product.
• A label shows written information about Producer's name brand name,
ingredients, method of use, date of manufactures, date of expiry, price,
precaution and safety etc.
• Labeling is the act or process of giving or attaching or tagging labels on products.
A label can be anything -a piece of paper, printed statement, imprinted metal,
leather which is either a part of package or attached to it. It carries verbal
information about the product, producer, or such useful information to be beneficial
to the users.
• According to W. J Stanton:- A label is the part of a product that carries information
about the product and the seller.
• In conclusion, Labeling is the process of giving tag on package or product itself to
provide instructions, contents, certification, and manufacturer's identification. It
performs both informative and promotional activities. It gives information about
product. Label is closely related to packaging and branding. Label might promote
the product through attractive graphics. Labeling plays an important role in
business world. This provides necessary as well as valuable information about
quality, brand, feature etc. of the product.

Types of label
i. Brand Label:- If only of the product is used in packaging of the products, such
label is brand label. Brand label includes only the brand name of the product.
Brand label is printed in product itself or package of product.
Dettol, Puja shop, Raymond cloths, mobile phone, shikhar shoes etc. are some
examples of Brand label.
i. Grade label:- Grade label is used to identify class or standard of product. This
type of label indicates the quality of the product through sign, symbol, letter, or
word, or number. As it reflects the grade, taste and quality of the product in
market, it helps buyers to buy according to their capacity.
For instance, grapes may be labeled as A, B, or C. Vegetable can be organic or non-
organic. Product achieving NS and ISO sign etc.
i. Descriptive Label:- Descriptive label gives detail information about the
product than brand and grade labels. This label describes about product such as
brand name and address of the manufacturers, product, weight, quality,
ingredients, manufacturing date, expiry date, maximum retail price, using method,
and so on.
Foods, medicines, and other drugs require descriptive label.

Requirements of label
1. Identification:- Label should provide detail identification of product. It must
provide information about grade, features, prices, manufacturers and so on.
Customers should distinguish product from competitors with the help of label. It
also should provide information about NS and ISO of the product to the
customers.
2. Grading:- A good label should divide products in to different grade. For example:-
Grade A, Grade B, Grade C and so on. Big size, medium size, and small size in
agriculture product. So labeling should help in grading the product according to
quality and features.
3. Description:- A good label should provide descriptive information of product
such as manufacturer's name or Brand name, product composition,
manufacturing date, using method, expiry date, quantity of the product, retail
price, precaution etc.
4. Promotion:- Label must act as a promotional tool. Attractive graphic design,
figure and symbols, color, writing style must attract the customers. Eye catching
label attracts customers and arouse their interest in the product. Label should
helps in advertising, personal selling publicity, and sales promotion.

Function of Labeling
1. Product identification:- labeling identify the product or brand easily.
Customer can identify the value, quality, grade, or standard of the product
with the help of label. Customers can differentiate product from
competitors. They also identify about NS and ISO of the product.
2. Grading:- Labeling helps in grading in the product according to quality and
feature of product.
3. Product description:- Labeling describe the size, quality, feature, brand
name, production date, expiry date, ingredients using method of the
product.
4. Product promotion:- The graphic design, attractive sign, figure, symbols
words attract the customers to buy the product. It persuades the customer
to buy the product.
5. Protect the customer:- Labeling protects the customer from adulteration.
For example information about ingredients and date of manufacture and
expiry published in label like food items, medicines, cosmetics etc.

Product line and mix strategies

• Product Line Strategies
• There are two personnel who mostly handle the product mix of the
organization. One is Line manager who sees the entire line of the
product and a Brand manager who sees the Individual product.
• Strategies are the ways to move forward. In organization line
manager evaluates and analyzes the sales and profit of the product
item and its effect in entire product line.
• If any deviation he finds, he seeks to eradicate that threat with the
strategies which are known as product line strategies.

• Product line length is all the total number of the interrelated product that a organization deals in. Company
starts from few products but it increases its length with the course of the time.
• When line manager sees the significance of another new
product and
if it favors the objectives of the organization then a new product
is added which expands the number of the product that a
organization is sending to the market, this is product line
expansion function.
• Modernization refers to the adaptation with the contemporary circumstances. When a line manager finds some
products are weaker in comparison to other rival product he changes their quality,offerings,price or say shape,
design etc, these all comes under Proudct line modernization strategies.

• Product line featuring is that strategy where company picks one or two major
product from the entire product of product line and promotes them heavily
so that other individual item would be benefited and overall sales would go
high, this strategy is very much in practice. See Pepsi cola company hugely
advertises “pepsi” among all.
• Product line Pruning is that process where company carefully examines the
significance of each product item of the line , if line manager finds some
product toatlly headache for the organization which are causing company to
the death. Such products would be terminated , this strategy known as
product line pruning strategies.

• Product line stretching includes two major aspects Trading down and Trading
up.
• Trading Down happens whenever the low priced goods included in existing
product line.
Example, Tata has added Tata Nano to its small car segment which is cheapest,
so this can be taken as Trading down.
Trading up means whenever a organization sumps up higher priced goods to its
existing product line it is to be said so. Example, Boeing has just added
“Dreamliner” airbus to its fleet which is premium range.

• Product mix includes all of the existing product that company is
offering to the customers. Company may have several problems or
say difficulties promoting these product mix to the market. A
Marketing department should adopt suitable strategy to address
such threats. In short Product mix strategies includes decision
making process on product width, product length, product depth,
and product consistency.
• Product width : Reputed company have several product line. Such
as samsung have SamSung Chemicals, Samsung Shipping, Samsung
Electronics. Product width refers to the size or say number of
product line that a business organization handles. Management
would decide whether to add or delete existing product line.
PRODUCT MIX STRATEGIS

• Product Length : product length Refers to the number of items
that an organization is offering to the market. Company often
changes the product line by adding and deleting product item.
•

• Product depth : In product line there are several individual items. These
individual items also have suffered to many improved versions. This is known
as product depth. Versions may vary from designs,styles,brand,features .
• Product consistency : Product consistency refers to the closeness or say
interrelation between product lines in terms of production
process,technology,distribution,end use etc
.

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