The document discusses various topics related to products, including definitions of what constitutes a product, different types of products, and strategies for developing and managing product mixes. It provides examples of how companies like Google have developed innovative product offerings and leveraged strong customer focus to achieve success. Product development involves determining customer needs through research and balancing the marketing mix and customer relationship management.

1. What Is a Product?
Promotion
Place (Distribution)
Price
ProductProduct is the
“heart” of
Marketing Mix

2. What is a product?
 A product is a bundle of benefits that satisfies needs of
organizations or consumers.
 Includes tangible goods, services, ideas, people, and
places.
 Products such as search engines are unique to the
internet while others simply use the internet as a new
distribution channel.
 Organizations use research to determine what is
important to customers when creating new products.
 The marketing mix and CRM work together to produce
relational and transactional outcomes with consumers.

3.  In 1998, co-founders Brin and Page delivered an innovative
new search strategy that ranked results on popularity as well
as keywords.
 Today, Google performs 1 billion searches per day, speaks
345 languages and is the most-visited U.S. Web site.
 Innovative products and strong customer focus are driving its
success and profitability.
 Generates revenue from several B2B markets:
 Licensing of its search services; Sales of advertising to Web
advertisers.
 Google pays close attention to user value, keeps costs low,
and delivers eyeballs to advertisers.
 Google’s product mix includes 24 search products, 3
advertising products, 20 applications.
The Google Story

4. Types of Products
Unsought
Products
Specialty
Products
Shopping
Products
Convenience
Products
Consumer
Products
Business
Products
PRODUCTS

5. 5
Consumer Goods Classification:
 Convenience Goods: Purchased Frequently
with min. effort.
Staples: Eg: Food items, soaps etc.
Impulse Goods: Eg: Chocolates, Magazines etc.
Emergency Goods: Eg: Some pharma products
 Shopping Goods: Selection & Comparison
Process before purchase Eg: Apparel, Furniture
 Specialty Goods: Unique Characteristics/Brand
Eg: Mercedes Benz, Bose Speakers
 Unsought Goods: Consumer normally doesn’t
buy them till persisted Eg: Helmets, Reflectors

6. 6
Industrial Goods Classification:
 Materials & Parts:
Raw Material: Eg: Milk for Ice Cream etc.
Manufactured Material: Eg: Cement
 Capital Items:
Installations: Eg: Factories, power plants
Equipment: Eg: Tools, Lift trucks
 Supplies & Business Service
Eg: Office Stationary, cleaning services

7. 7
Product Classifications:
 On Basis of Durability & Tangibility:
Non Durable Goods
Eg: FMCG products
Durable Goods
Eg: TV, Mobiles
Services
Eg: Aviation Industry

8. 8
Define the terms
Product item,
Product line,
Product width,
Product depth, and
Product mix.

9. 9
Gillette’s Product Lines and Mix
Blades and Writing
razors Toiletries instruments Lighters
Mach 3 Series Paper Mate Cricket
Sensor Adorn Flair S.T. Dupont
Trac II Toni
Atra Right Guard
Swivel Silkience
Double-Edge Soft and Dri
Lady Gillette Foamy
Super Speed Dry Look
Twin Injector Dry Idea
Techmatic Brush Plus
Width of the product mix
Depthoftheproductlines

10. 10

11. 11
Five Product Levels:

12. 12
Product Levels Example:
5. Introduce New Features
4. Long Battery Life
3. Robust & Durable
2. Mobile Phone
1. Communicate

13. 13
Product Hierarchy:
 Need Family: To pass time while on move
 Product Family: Entertainment
 Product Class: Portable Entertainment
Instruments
 Product Line/Category: Portable DVD
players, CD players, MP3 players
 Product Type/Form: Audio ipods
 Brand: Apple
 Item/SKU: Apple ipod nano 4GB

14. 14

15. 15

16. 16
Product Mix:
 Width of Product Mix (Product Categories):
Eg: For HUL it is Detergents, Deodorants,
Soap, Shampoo, Tea, Ice Cream etc.
 Length of Product Mix (Brands): Eg: For
HUL it is Surf, Rin, Lux, Axe, Sun Silk,
Brooke Bond, Lipton, Kwality-Walls etc.
 Depth of Product Mix (SKUs): Variants of
each brand.
 Consistency of Product Mix: Close relation
among product categories

17. 17
Product Line Strategies:
 Line Stretching: Taking product line to new
segment
Down Market Stretching/Trading Down: Eg:
Tata’s 1 lakh car
Up Market Stretching/Trading Up: Eg: Hyundai’s
Verna, Elantra, Sonata, Tuscon
Two-Way Stretching:
Eg: Nokia Mobile Models

18. 18
 Line Filling: Adding More Variants/Filling
Product Depth
Maruti’s Strategy
 Line Modernization: Eg: Onida’s new
technologically advanced products
 Line Featuring: Eg: Tata Indica & Indigo
 Line Pruning: Eg: HUL concentrating on 30
power brands out of its 110 brands.
Product Line Strategies (Cont.):

19. 19
Product-Mix Pricing:
 Product Line Pricing Eg: Different price points for
HLL’s detergents, soaps
 Optional Feature Pricing Eg: In case of variants of
Car Models, Laptops
 Captive Product Pricing Eg: low priced HP printer
+ high priced cartages
 Two-part Pricing: Set up cost + monthly fee
 By-Product Pricing Eg: Petrol, LPG (domestic and
commercial)
 Product Bundling Pricing: Tour package
 Pure bundling, and Mixed bundling

20. Ingredient Branding
 One or more of the brands
provides a distinctive ingredient
or component to the primary or
carrier brand. In this case, the
ingredient brand is subordinate to
the carrier brand.
Examples
 Gateway Computer with Intel
chips (ingredient brand)
 Clorox cleaner with Teflon.
 In all cases the ingredient
brand’s identity structure is
subordinate to the carrier brand
in the co-branded identity
structure.

21. Co-Branding
 The combining and retaining of two or more brands to create a
single, unique product or service.
 Two or more companies acting in cooperation to associate any
of various logos, color schemes, or brand identifiers to a
specific product that is contractually designated for this
purpose.
 An arrangement that associates a single product or service with
more than one brand name, or otherwise associates a product
with someone other than the principal producer.
 It involves the transfer of a subset of attributes from the two
parent brands, and their recombination into a coherent
composite concept that could become a member of the
extension category to which new brand belongs.

22. Types of Co-branding
1. Promotional/Sponsorship Co-Branding
2. Value Chain Co-Branding
 Product Service Co-Branding,
 Supplier-retailer, and
 Alliance Co-Branding.
3. Innovation-Based Co-Branding. Ex:Apple-Nike
4. Shared Product Equity Co-Branding

23. Promotional Co-Branding

24. Value Chain Co-Branding
 Product-service co-branding
Sea World and Southwest Airlines
 Alliance co-branding
 Supplier-retailer co-
branding
Starbucks WiFi service from AT&T.

25. Private label
 Private label products or services are typically those
manufactured or provided by one company for offer
under another company's brand. These are also
known as store / private brands, or private goods.

26. Internal co-branding
 Internal co-branding means that company users
variety of their own products and services to
expand sub brands by using them in
conjunction with primary brand.

27. External co-branding
 External co-branding means a synthesis of
products and services by different organizations
(2 or more) that together create final product or
service.

28. Mixed co-branding
 Mixed co-branding is when any combination of
internal and external ventures and partnerships
is used to achieve the final product or service or
a complete package of services or products.
Often mixed co-branding is used as a method
for internationalizing brands by linking parent
brand to a more locally known smaller brands
or brands in parallel industries.
 Example: Coca-Cola and Axe in Argentina

29. 29

30. 30

31. Co-branding criteria
 Co-brand only with companies that share
complementary values.
 Co-brand only with products that hold best-in-
class status.
 Co-brand only in situations where you can
retain full review and approval rights on all
elements of communications. That narrows the
company's co-branding possibilities, but it also
reduces its risk.

32. Advantages of Co-Branding
 It lessens the costs of launching new products, since
different products can touch base with a wide range of
consumers on a broader scale.
 Consumer loyalty is enhanced since the same affection
and admiration bestowed on the product that they
respect and patronize will extend to its co-branding ally.
 Co-branding entails cost savings not only in terms of
advertising but in sharing overhead costs, like rental
expenses for leased spaces, utilities and manpower
costs.
 Talents, expertise and creativity are shared by
recognizing the principle that the success of one brand
also brings success to its partners.
 It encourages participation from consumers who benefit
from the convenience of having multiple selections and
different products that are available in one roof or outlet.

33. Disadvantages of Co-Branding
 In the same way that the benefits of co-
branding spreads from one brand alliance to
another, so do the negative issues that may
arise from mishaps or malicious attacks against
a brand’s integrity and reputation.
 Forging a misalliance with another brand who
cannot keep up with consumers’ demands,
since such inability will tend to drag down the
other brand’s reputation.

34. Some Examples
34

35.  Apple - Nike

36. Asus - Garmin

37. Gillette - Art of Shaving

38. MasterCard - Virgin

39. Best Western - Harley
Davidson

40. Motorola -
Ferrari

46. 46
Packaging & Labeling
 Why is it done?
To identify the brand
Convey descriptive and persuasive
Information
Facilitate product transportation
Facilitate product protection
Assist at-home storage
Aid product consumption

47. 47
Benefits of Product Lines
Equivalent Quality
Efficient Sales and
Distribution
Standardized
Components
Package Uniformity
Advertising Economies

48. Product Mix Width
 Diversifies risk
 Capitalizes on established
reputations
The number of product lines
an organization offers.

49. 49
Product Line Depth
 Attracts buyers with different
preferences
 Increases sales/profits by further
market segmentation
 Capitalizes on economies of scale
 Evens out seasonal sales patterns
The number of product items
in a product line.

50. Creating Customer Value Online
 Customer value = benefits – costs
 Value means entire product experience
 Product awareness to product disposition
 Product decisions must be made that deliver
benefits to customers.
 Attributes
 Branding
 Support Services
 Labeling
 Packaging

51.  Attributes include overall quality and specific
features.
 Notion: “You get what you pay for”
 Benefits are the same features from a user
perspective.
 The internet increases customer benefits in many
ways.
 “Broadening” and “Deepening” of product features
 Mass customization
 User personalization of the shopping experience can be
achieved
 Recommendations, wish list, follow-ups
Product Benefits: Attributes

52. Product Benefits: Branding
 A name, term, symbol, design, or combination thereof
that identifies a seller’s products and differentiates
them from competitors’ products.
 When a firm registers that information with the U.S.
Patent Office, it becomes a trademark.
 History of Branding
 What is Branding?
 Brand Awareness, Brand Recall, Brand
Recognition
A brand represents a promise or value

53. Brand Equity
 Brand equity is the intangible financial value of
a brand.
 A great brand taps into popular culture and
touches consumers.

54. 2006
2006
Rank Brand Value Industry
1 Microsoft 62039 Software
2 GE 55834 Technology
3 Coca-Cola 41406 F/D/T*
4 China Mobile 39168 Telecom
5 Marlboro 38510 F/D/T
6 Wal-Mart 37567 Retail
7 Google 37445 Software
8 IBM 36084 Technology
9 Citibank 31028 Bank
10 Toyota 30201 Cars

55. Ran
k
Brand Value Industry
1 Apple Inc. 153285
Technolog
y
2 Google 111498
Technolog
y
3 IBM 100849
Technolog
y
4 McDonald's 81016 F/D/T*
5 Microsoft 78243
Technolog
y
6 Coca-Cola 73752 F/D/T
7 AT&T 69916 Telecom
8 Marlboro 67522 F/D/T
9
China
Mobile
57326 Telecom
10 GE 50318
Technolog
y
Ran
k
Brand Value Industry
1 Google 114260
Technolog
y
2 IBM 86383
Technolog
y
3 Apple 83153
Technolog
y
4 Microsoft 76344
Technolog
y
5 Coca Cola 67983 F/D/T*
6 McDonald's 66005 F/D/T
7 Marlboro 57047 F/D/T
8
China
Mobile
52616 Telecom
9 GE 45054
Technolog
y
10 Vodafone 44404 Telecom
2011 2010

56. Levels of Brand Relationship
Intensity
Advocacy
Community
Connection
Identity
Awareness
Tell others about the brand
Communicate with each other
Communicate with company
between purchases
Display the brand proudly
Is on the list of
possibilities
Highest
intensity

57.  Firms can use existing brand names (i.e. online
extensions) or create new brands on the
internet.
 Some firms may use different names offline and
online to avoid risk if the new product or
channel should fail.
 Sports Illustrated created thriveonline.com.
 Wired Magazine changed its online version name to
Hotwired.
Branding Decisions for Web
Products

58. Creating New Brands for Internet
Marketing
 Good brand names should:
 Suggest something about the product.
 Differentiate the product from competitors.
 Be capable of legal protection.
 On the internet, a good brand name should be short,
memorable, easy to spell, and translate well into other
languages.
 Cobranding occurs when two companies form an
alliance and put their brand names on a product:
 Sports Illustrated co-brands with CNN as CNNSI
 Yahoo! Visa shopping pages
 EarthLink-Sprint

59. Product Benefits: Support
Services
 Customer support is a critical component in the
value proposition.
 Customer service reps help customers with
installation, maintenance, product guarantees,
etc. to increase customer satisfaction.
 Good companies combine online and offline
channels to increase their customer support.

60. Product Benefits: Labeling
 Labeling has digital equivalents in the online
world.
 Online “labels” provide information about product
usage, features, and installing software.
 Online “labels” also provide extensive legal
information about the software product.
 Online firms may add the Better Business logo
or TRUSTe privacy shield to their sites.

61. Customer Codesign
 Business and consumer collaboration are
possible on the Internet.
 Software developers often seek customer input
about new products.
 They often allow users to download new products,
test them, and provide feedback.
 Customer interaction has been found to increase
product success.
 Amazon seeks customers’ product reviews.
 CNN encourges citizen generalists to upload
videos of breaking news.

62. Product Mix Strategies, cont.
1. Discontinuous innovations are new-to-the-
world products.
2. New-product lines are new products in a
different category for an existing brand
name.
3. Additions to existing product lines.
4. Improvements or revisions of existing
products.
5. Repositioned products can be targeted to
different markets or promoted for new uses.
6. Me-too lower-cost products.