Anything that can be offered

to a market for attention,

acquisition, use, or
consumption that might
satisfy a want or need

Any activity or benefit that

one party can offer to
another that is essentially
intangible and does not
result in the ownership in
anything

Augmented Product

Delivery
and
Credit

Actual Product
Brand
Name

Features
Core
Benefit

Quality
Level
Installation

After
sale
service

Design
Packaging
Warranty

CONSUMER GOODS
- Convenience Product
- Shopping Product
- Specialty Product
- Unwholesome or Unsought Product

INDUSTRIAL GOODS
- Installation
- Accessory Equipment
- Component parts and materials
- Raw Materials
- Supplies
- MRO Item

CONVENIENCE
GOODS
Candy, soda,
Newspaper, Milk,
Disposable Camera
Gasoline

SHOPPING GOODS
Car, Furniture, Home
Appliances, Computers,
Electrical and Electronic
Goods

CONSUMERS
PRODUCTS
Rolex Watches, Ferrari
Cars, Lexus and all
Luxury Cars

Blood Donation,
Cemetery Plots,
Insurance, Long term
health care

SPECIALITY GOODS

UNSOUGHT GOODS

CONVENIENCE PRODUCTS
Convenience
Goods
Bought frequently
and immediately
Low priced
Mass advertising
Many purchase
locations

SHOPPING PRODUCTS
Shopping Goods
Bought less
frequently
Higher price
Fewer purchase
locations
Comparison
shop

SPECIALTY PRODUCTS
Specialty Products

Special purchase
efforts
High price
Unique
characteristics
Brand identification
Few purchase
locations

UNSOUGHT PRODUCTS
Unsought
Products

New innovations
Are often
products
consumers do not
want to think
about
Require a lot of
advertising and
personal selling

INSTALLATIONS

COMPONENTS

Oil Rig, Boeing 7E7,

Regional Shopping
Center

Computer chips, truck

bed, jet engines, lawn
equipment
Canon copiers, Tmobile cell
phones,
Blackberry hand
held computers
ACCESSORY
EQUIPMENT

BUSINESS
SERVICES
Wackhenhut,
Ryder,
Pinkerton

BUSINESS
PRODUCTS

Xerox, Scotch
tape, copy paper,
staples, Post-its
Soya, Milk,
Poultry, Bauxite,
Cotton
RAW MATERIALS

MRO
SUPPLIES

INSTALLATIONS
Major capital investment by a
business buyer that typically
involves expensive and relatively
long-lived products, such as a new
factory or piece of heavy
machinery

ACCESSORY EQUIPMENT

Capital product, usually

less expensive and
shorter-lived that
insulation, such as a
laptop computer

COMPONENTS PARTS AND

MATERIALS

Finished business products

that become parts of buying
firms final products, such
as spark plugs for new cars

RAW MATERIALS

Business product, such as a

farm product (wheat,
cotton, soybeans) or natural
product (coal, lumber, iron
ore) that become part of a
final product

BUSINESS SERVICES

Intangible product purchased

to facilitate a firms
production and operating
processes such as financial
services, leasing of vehicles,
legal advice and consulting

MRO ITEMS

Part of business supplies

categorized as maintenance
items, repair items, or
operating supplies such as
light bulbs, nuts and bolts
used in repairing
equipment, or pencils

Product
Attributes

Branding

Packaging

Product
Support
Services

Labeling

PRODUCT & SERVICE

ATTRIBUTES
Product quality
Performance quality
Conformance quality

Features
Value to consumer
Cost to company

Style and design

Influences
experience

BRANDING
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.

PACKAGING

Designing and
producing the
container or
wrapper for a
product.

LABELING

Printed
information
appearing
on or with
the
package.

PRODUCT SUPPORT
SERVICES
Assess the value of
current services and
obtain ideas for new
services.
Assess the cost of
providing the services.
Put together a package of
services that delights the
customers and yields
profits for the company.

Scion website

PRODUCT LINE
A group of products that are
closely related because they
function in a similar manner,
are sold to the same
customer groups, are
marketed through the same
types of outlets, or fall
within given price ranges

Product Mix (or Product

Portfolio) consists of all product
lines and items that a particular
seller that offers for sale.
Example P & Gs product mix
consists of three major product
lines: Detergent, Soaps,
Shampoos

PRODUCT MIX DECISION

P&G
Width
Soap

Length

Detergent

Depth

Shampoo

PRODUCT MIX DECISION

Product Width refers to the number of different product
lines the company carries. For example : P&Gs Width
Detergents, Soaps, Shampoos.
Product Length refers to the total number of items the
company carries within its product lines. For Example:
P&Gs Detergent product length Tide, Ivory, Cheer,
Bold.
Product Depth refers to the number of versions offered of
each product in the line. For example: P&Gs Tide product
depth Febreze, Cold water, Downy.
Product Consistency refers to how closely related to various
products lines are in end use, production requirements,
distribution channels or some other way.

BRANDING STRATEGY
BRAND POSITIONING

BRAND NAME
SELECTION

Attributes
Benefits
Beliefs and Values

Selection
Protection

BRAND DEVELOPMENT

BRAND SPONSORSHIP

Line Extensions
Brand Extension
Multi brands
New Brands

Manufacturers Brand
Private brand
Licensing
Co-branding

BRAND POSITIONING
Position brands at
any of three levels:
Product attributes

Least desirable; easily

copied.

Product benefits
Beliefs and values

Hits consumers on a
deeper level, touching
universal emotions.

BRAND NAME SELECTION

Desirable qualities for a brand name include:
1. It should suggest products benefits and qualities.
2. It should be easy to pronounce, recognize, and
remember.
3. It should be distinctive.
4. It should be extendable.
5. It should translate easily into foreign languages.
6. It should be capable of registration and legal
protection.

BRAND SPONSORSHIP
Manufacturers brands
Operated by
Manufacturer itself

Private brands
A brand created and
owned by reseller

Co-branding
Collaboration between
two companies
department

BRAND DEVELOPMENT
Product Category

Brand Name

Existing

New

Existing

Line
Extension

Brand
extension

New

Multi brands

New
Brands

LINE EXTENSION
Existing brand names are
extended to new forms, sizes,
and flavors of an existing
product category. Example:
Fair & Lovely Fairness Cream-1978
Fair & Lovely Ayurvedic Fairness
Cream-2001
Fair & Lovely Fairness Cream with extra
brightness -2003
Fair & Lovely Menz Active-2006

BRAND EXTENSION
Existing brand names are extended
to
new
or
modified
product
categories. Example:
Virgin Atlantic
Virgin Mobile
Virgin Cosmetics
Virgin Trains
Virgin Money

MULTI BRANDS
New brand names are introduced in
the same product category.
HUL: Lux, Lifebuoy, Liril, Hamam, Breeze,
Dove, Pears, Rexona

NEW BRANDS
New brand names in new categories
are introduced. Example:
Nescaf (Coffee)
KitKat (Confectionery)
Buxton (Water)
Buitoni (Pasta)
Sveltesse (Chilled Diary)
Shredded Wheat (Cereals)

NEW PRODUCT
DEVELOPMENT STRATEGY
Idea
Generation

Idea
Screening

Concept
Development
and testing

Marketing
Strategy
development

Business
analysis

Product
Development

Test
Marketing

Commercia
lization

IDEA GENERATION:
The systematic search for new-product ideas.
IDEA SCREENING:
Screening new-products ideas in order to spot
good ideas and drop poor ones as soon as
possible.
PRODUCT CONCEPT:
A detailed version of the product of the newproduct idea stated in meaningful consumer
terms.
PRODUCT TESTING:
Testing new-product concepts with a group of
target consumers to find out if the concepts
have strong consumer appeal

MARKETING STRATEGY DEVELOPMENT:

Designing an initial marketing strategy for a new
product based on the product concept.
BUSINESS ANALYSIS:
A review of the sales, costs, and profit
projections for a new product to find out
whether these factors satisfy the companys
objectives.
PRODUCT DEVELOPMENT:
Developing the product concept into a physical
product in order to ensure that the product idea
can be turned into a workable product.

TEST MARKETING:
The stage of new-product development in which
the product and marketing program are tested
in more realistic market settings.
COMMERCIALIZATION:
Introducing a new-product into the market.

STAGES OF PRODUCT LIFE

CYCLE
Introduction stage
Growth stage
Maturity stage
Decline stage

GRAPHICAL
REPRESENTATION OF
PRODUCT LIFE CYCLE

CHARACTERSTICS OF
PRODUCT LIFE CYCLE

INTRODUCTION STAGE

Product - one or few products, relatively undifferentiated

Price use cost plus basis to set a price

Distribution - Distribution is selective and scattered as the firm

commences implementation of the distribution plan.

Promotion - Promotion is aimed at building brand awareness. Samples

or trial incentives may be directed toward the customers. The
introductory promotion also is intended to convince potential resellers
to carry the product.

Advertising Advertising is aimed to be high to build product

awareness

GROWTH STAGE
Product - New product features and packaging
options; improvement of product quality.
Price Price to penetrate the market
Distribution - Distribution becomes more intensive.
Promotion- Reduce to take advantage of heavy
consumer demand.
Advertising- Build brand awareness in the mass
market

MATURITY STAGE
Product Either modifying the product or diversify
the brand.
Price - Possible price reductions in response to
competition while avoiding a price war.
Distribution Build more intensive distribution.
Promotion - Incentives to get competitors'
customers to switch.

DECLINE STAGE
Product - The number of products in the product
line may be reduced.
Price - Prices may be lowered to liquidate
inventory of discontinued products.
Distribution - Distribution becomes more selective.
Channels that no longer are profitable are phased
out.
Promotion - Expenditures are lower and aimed at
reinforcing the brand image for continued
products.

LUX
Lux is a brand of Hindustan Unilever India Ltd. It has
four modified soaps which are:

Orchid touch

Almond delight

Energising fruit

Lets us see its product life cycle

Aqua sparkle

INTRODUCTION STAGE

MARKETING OBJETIVES
The Lux marketing objectives in the initial stage was to create the
product awareness and to attract the customers towards the
product.
MARKETING STRATEGIES
The Lux marketing mix strategies in the initial stages of the
product were based on:
Product
They offer only on product in the market. They did not come up
with the differentiated product.

INTRODUCTION STAGE
Price
In the initial stages of the product, they offer the
relatively higher price than their competitor
(LIFEBUOY). Because, they want to recover their
cost which incurred initially in making the product.
Or another reason was that they have segmented
the niche market.
Advertising
In the initial stages, they allocate more advertising
budget to advertise the product. So that more and
more customers could be attracted towards the
product. In ads they targeted the early adopters,
who were readiest to buy the product.

GROWTH STAGE
MARKETING OBJECTIVES
In the growth stage, the marketing objectives of the
Lux were to expand their market to the other cities of
India. Another objective was to maximize more market
share.
MARKETING STRATEGIES
In the growth stage, company had the following
marketing mix strategies:
Product
In the growth stage, the company had offered the same
product in the market.

GROWTH STAGE
Price
In this stage, the company had changed their price
to some extent because of maximizing the market
share.
Advertising
In the growth stage, they had increased their
advertising budget as in the initial stages because of
attracting the new customers or to retain the
existing customers.

MATURITY STAGE
MARKETING OBJECTIVES
The marketing objective of Lux is to maximize more profit
while defending the market share. And to expand the market
to all the cities of India.
MARKETING STRATEGIES
In this stage, Lux marketing mix strategies are based on:
Product
The Lux has made the modification in the product by
introducing:
Orchid touch
Almond delight
Energising fruit
Aqua sparkle

MATURITY STAGE
Price
The Lux products are now available at higher prices in the
market, the reason behind is that the companys marketing
objectives is to maximize more profit.
Advertising
In this stage Lux advertising has been reduced to some
extent because of the more brand awareness in the minds
of customers. Recently, they show the ad in which the
India leading television and film actress were shown.