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Convenience goods

Services like salon/ theatre

Non durable like fresh food


Staple goods like coffee essentials

Emergency goods

Shopping goods

Specialty goods

Product and Service Classification System
• • • • • • Consumer products Durables Non DurablesE.g. Fresh food Services E.g. Haircut, theatre Convenience goods - little effort, relatively inexpensive, purchased frequently.

• Impulsive (spur of movement)(e.g. Ice cream) • Staple goods (essentials) purchased regularly like coffee, milk, shampoos • Emergency goods( infrequent and purchased at short notice) • like caps during match, flags during election. • FMCG • Shopping goods – carry higher risk especially of product failure) • e.g. white goods, furniture • Speciality goods - extensive search for niche products • e.g. Jewellery, wedding clothes

B2B/Industrial goods Capital goods (machinery) Accessories – (smaller capital items like hand tools, lath) Raw materials (cotton, water/yeast for brewing) Subassemblies/components/parts: already manufactured but not finished goods. • E.g. Denim fabric, condensers for refrigerator, microchips for nokia • Suppliers: minor items such as floppy, pens. • • • • • • •

• A brand is designed to enable customers to identify products or services which promise specific benefits. • A brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.

• Advantages to buyers:
– Product identification – Product quality

• Advantages to sellers:
– – – – Basis for product’s quality story Provides legal protection Helps to segment markets Price premium


Brand equity Brand Image

Brand Identity e.g. cool logo color s Brand personality (characterist ics) The way brand looks name e.g. upmark et

packagin g

The way in which market perceives brand The financial value of brand

Brand view
Brand personality : A brand can have same traits as person like: fun (Disney) sincerity (BATA) Sophistication (Sony), Dependability (LIC) Safety(Volvo) ruggedness (jeep/bullet) reliable (Nokia)

• Brand identity relates the brand to the world whereas brand image is audience perception for the brand. • Brand equity is financial value of the brand.

• Brand name is very important and plays important role in distinguishing brand. It may communicate function like Good Knight, Boost, Fair and lovely, Aqua guard, walkman • Sometimes acronyms are used as Madras rubber factory, Anand milk union ltd • Along with names logos are used for symbolic identity. Flags, mascots, pictures etc •

Brand types
Corporate umbrella brands Family umbrella brands* All products use corporate name Organisation uses different name for its products Cadbury, godrej, bajaj,sony, samsung HLL’s kissan, lakme, brooke bond or NDDB’s Amul and Dhara

Individual brands Own label(private)

Each brand has its own HUL- lux, rin ,surf, brand name hamam Products bear the retailer’s name Globus/ bigbazaar

* Family branding means same name for a particular product line

Branding strategies
• Co-branding: when two companies brand name appear together • e.g. Intel inside, bankassurance • Multiple branding: when different products of same company are introduced within same category • e.g. surf/wheel closeup/ pepsodent

• Companies also introduces product with same brand name (if brand is strong) : • Brand extension: using brand name on products in new category • e.g. Dettol soaps, maggi ketchup • Line extension: using the brand name on products within the same category • e.g. surf ultra Colgate gel, Colgate total

• Brand stretching: using name in different markets • From music industry to airline etc

Competitive position

Services Marketing
• Services
– Account for 70%of India gross domestic product. – Service industries include business organizations, government, and private not-for-profit organizations.

What is a Service?
• A form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
– Examples: banking, hotel, airline, retail, tax preparation, home repairs, educational establishments, consultants, hairdresser, doctors, stockbrokers, trainers

The Product-Service Continuum
Sugar Restaurant College Education

Pure Tangible Good

Pure Service

Nature and Characteristics of a Service

Stages in PLC

• This model has its own set of supporters and opponents • Like human beings product also go through various phases. the only difference is time at particular stage is not predictable and also unlike human beings is manageable • At every stage product requires different marketing, production, financing etc , strategies.

Characterist Introduction Growth ics Sales Profits Customers Competitors Low Negative Innovator Few Rising Rising Early adopters Growing Average Maturity Peak High Middle majority Stable low Decline Declines Decline Laggards Decline Low

Cost/custome High r Marketing objective

Crete product Maximize Maximize Reduce awareness market share profit/defend expenditure/ and trial market share milk the brand Basic Extensions/w Modification arranty Phase out


Product development
• It doesn’t means new invention always. In markets modification in products is very common by companies. Hence even change in color of package could be called as development. • Why???? • Defending market share • Appealing to different segment • To maintain leadership(apple) • Better use of resources • Vulnerable to changes in technology taste etc

• • • • • •

Innovative E.g. ipod Replacement E.g. DVD v/s CD,Alto V/s 800 Variant E.g. Addition in range of co’s product. may be temporary • Me-too product: Uses costly research done by others • Relaunched product: Basic product is same but total product offering changes

Types of new product

Some examples
• IDAM( integrated design and manufacturing) team of mahindra , with more than 120 members from different departments,worked on testing, design manufacturing supplier development, marketing, to create a product for indian consumers with name scorpio • Wafer chocolate BYTES from cadbury was idea of company’s driver.

Some examples
• National Innovation Foundation supported by Dept. of Science and Technology, GOI is nurturing and supporting grass –roots level innovations in India since 2000. Ideas are from consumers who face challenges in day to day life come up with innovative product. Some are motor-cycle driven sprayer, walking stick with light etc.

What are new products????

Stages in the new-product process

Forces fighting new idea

I have great idea

It wont work here

We ‘ve tried before

Isn’t right time

It cant be done

Its not the way we do things

We’ve done all without it

It will cost much

Let’s discuss at next meeting

Marketing information and methods used in the new-product process

Why do new products fail?
• • • • • • • • • • • • One study estimated that as many as 80% of new consumer packaged products failed. Only about 40% of new consumer products are around 5 years after introduction WHY???????????????????????? Overestimated market Poor design Incorrect positioning Error in pricing Poor marketing Cost overrun Competition