This document discusses product classification, product life cycles, new product development, branding, and packaging. It provides the following key information: 1. Products can be classified in various ways such as by durability, tangibility, consumer goods classifications. The product life cycle consists of four stages: introduction, growth, maturity, and decline. 2. Developing new products involves idea generation, screening, concept development and testing, creating a marketing strategy, product development, test marketing, and commercialization. Many new products fail due to overestimation of demand, poor design, incorrect positioning, and other factors. 3. Branding identifies the source of products, simplifies handling, and creates advantages like customer loyalty.

1. MARKETING MANAGEMENT
UNIT – III
The product – Classification of products -
Product Life Cycle (PLC) – New product
planning - Product Modification - Elimination
– Product failure – Branding – Features –
Types of brands – Packaging – Functions -
Kinds.

2. What is a product?
 A product is any offering by a company to a
market that serves to satisfy customer needs
and wants.
 It can be an object, service, idea, etc.

3. Product Classification Schemes
Durability
Use
Tangibility

4. Durability and Tangibility
Nondurable
goods
Services
Durable
goods

5. Consumer Goods Classification
Convenience
Unsought
Shopping
Specialty
Consumer Product Classifications
 Convenience Products
 Shopping Products
 Specialty Products
 Unsought Products
(1) Products of which consumers are unaware
(2) Products that consumers do not consider
purchasing until a need or emergency arises

6. Product classifications
 Consumer products
 Industrial product
 Organizations, persons, places, and ideas

7. Specialty Products Unsought Products
Shopping Products
Buy less frequently
> Gather product information
> Fewer purchase locations
> Compare for:
• Suitability & Quality
• Price & Style
Convenience Products
Special purchase efforts
> Unique characteristics
> Brand identification
> Few purchase locations
New innovations
> Products consumers don’t
want to think about.
>Require much advertising &
personal selling
Buy frequently & immediately
> Low priced
> Many purchase locations
> Includes:
• Staple goods
• Impulse goods
• Emergency goods
Consumer-Goods Classification

8. Industrial Goods Classification
Materials and parts
Supplies/
business services
Installations

9. Product Life-Cycle Strategies
 The course of a product’s sale and profit
over it lifetime.
 It involves four distinct stages:
Introduction,
Growth,
Maturity,
And decline.
 Not all products follow this cycle

10. Sales & Profit Life Cycles
Introduction Growth Maturity Decline
Time
Sales
&
profits
($)

11. Introduction stage
 The product life-cycle stage in which the
new product is first distributed and made
available for purchase.

12. Growth stage
 The product life-cycle stage in which a
product’s sales start climbing quickly.

13. Maturity stage
 The stage in the product life cycle in which
sales growth slows or levels off.
 Modify the market,the product,and the
marketing mix.

14. Decline Stage
 The product life cycle stage in which a
product’s sales decline

15. Definition
 New Product Development
Development of original products,
product improvements, product
modifications, and new brands
through the firm’s own R & D
efforts.

16. New Product Development Strategy
 New products can be obtained via
acquisition or development.
 New products suffer from high failure
rates.
 Several reasons account for failure.

17. Causes of New Product Failures
 Only 10% of new consumer products are still on the
market and profitable after 3 years.
 Industrial products failure rate as high as 30%.
 Overestimation of Market Size
 Product Design Problems
 Product Incorrectly Positioned, Priced or Advertised
 Costs of Product Development
 Competitive Actions
 To create successful new products, the company
must:
 understand it’s customers, markets and competitors
 develop products that deliver superior value to
customers.

18. New Product Development Process
 Idea Generation and Screening
 Concept Development and Testing
 Marketing Strategy
 Business Analysis
 Product Development
 Test Marketing
 Commercialization

19. New Product Development Process
Step 1. Idea Generation
Systematic Search for New Product
Ideas
Internal sources: Company employees at all levels,
R & D
External idea sources:
Customers
Competitors
Distributors
Suppliers

20.  Process to spot good ideas and drop poor ones
 Criteria
 Market Size, Product Price, Development Time &
Costs, Manufacturing Costs, Rate of Return
 Executives provide a description of the product
along with estimates of market size, product price,
development time and costs, manufacturing costs,
and rate of return.
 Evaluated against a set of company criteria for new
products.
New Product Development Process
Step 2. Idea Screening

21. New Product Development Process
Step 3. Concept Development & Testing
1. Develop Product Ideas into
Alternative
Product Concepts
2. Concept Testing - Test the
Product Concepts with Groups
of Target Customers
3. Choose the Best One
idea for a possible product that the
company can see itself offering.
detailed version of the idea stated in
meaningful consumer terms.

22. New Product Development Process
Step 4. Marketing Strategy Development
Part Two - Short-Term:
Outlines the product’s planned price,
distribution, and marketing budget.
Part Three - Long-Term:
Describes the long-run sales and profit
goals, marketing mix strategy.
Marketing Strategy Statement Formulation
Part One - Overall:
Describes the target market, planned
product positions, sales, market share,
and profit goals.

23. New Product Development Process
Step 7. Test Marketing
Standard
Test Market
Full marketing campaign
in a small number of
representative cities.
Simulated
Test Market
Test in a simulated
shopping environment
to a sample of
consumers.
Controlled
Test Market
A few stores that have
agreed to carry new
products for a fee.

24. Brand
A name, term, sign, symbol
or design, or a combination of them,
intended to identify the goods
or services of one seller or group
of sellers and to differentiate
them from those of competitors.

25. The Role of Brands
Identify the maker
Simplify product handling
Organize accounting
Offer legal protection

26. The Role of Brands
Signify quality
Create barriers to entry
Serve as a competitive
advantage
Secure price premium

27. Advantages of branding
 Easy for the seller to track down problems and
process orders
 Provide legal protection of unique product
features
 Branding gives an opportunity to attract loyal
and profitable set of customers
 It helps to give a product category at different
segments, having separate bundle of benefits
 It helps build corporate image
 It minimises harm to company reputation if the
brand fails

28. Brand Strategy
 Brand Positioning
 Brand Name Selection
 Brand Sponsorship
 Brand Development
 Three levels of
positioning:
 Product attributes
 Least effective
 Benefits
 Beliefs and values
 Taps into
emotions
Key Decisions

29. Brand Strategy
 Brand Positioning
 Brand Name Selection
 Brand Sponsorship
 Brand Development
 Good Brand Names:
 Suggest something about
the product or its benefits
 Are easy to say, recognize
and remember
 Are distinctive
 Are extendable
 Translate well into other
languages
 Can be registered and
legally protected
Key Decisions

30. Brand Strategy
 Brand Positioning
 Brand Name Selection
 Brand Sponsorship
 Brand Development
 Manufacturer brands
 Private (store) brands
 Costly to establish and
promote
 Higher profit margins
 Licensed brands
 Name and character
licensing has grown
 Co-branding
 Advantages /
disadvantages
Key Decisions

31. New Product Development Process
Step 5. Business Analysis
Step 6. Product Development
Business Analysis
Review of Product Sales, Costs,
and Profits Projections to See if
They Meet Company Objectives
If Yes, Move to
Product Development
If No, Eliminate
Product Concept

32. Commercialization
 Must decide on timing (i.e., when to introduce
the product).
 Must decide on where to introduce the product
(e.g., single location, state, region, nationally,
internationally).
 Must develop a market rollout plan.

33. Packaging: The 5th P
All the activities of designing and producing
the container for a product.

34. What is the Fifth P?
Packaging, sometimes called the
fifth P, is all the activities of
designing and producing the
container for a product.

35. Packaging
 Includes the activities of designing and
producing the container for a product
 Packaging is done at three levels
- primary
- secondary
- shipping

36. Designing packaging
 Packaging concepts
 Technical specifications
 Engineering tests
 Visual tests
 Dealer tests
 Consumer tests
 Packaging innovations
 Environmental considerations

37. Packaging has been influenced
by…
Self-service
Consumer affluence
Company/brand image
Innovation opportunity