Welcome to MM2 Glorious Guptas !!!!

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TNS - GLAKES
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Marketing Management

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II

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PGPM Glorious Guptas
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Term III
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GREAT LAKES
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 Session 1

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ot August 7, 2017
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TNS - GL 3
 Session 1

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Commodities, Products & Brands

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TNS - GL 4
 Course Objective

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This course - Marketing Management II, takes
forward the earlier learning with a focus on

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Creating, Capturing, Communicating and
Delivering value through the variables of the
Marketing Mix that includes decisions on , apart
from who the company wants as its customers , to
which of their needs to satisfy;

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what products and services to offer;
what prices to set;
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what communications to send and receive;
what channels of distribution to use and what
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partnerships to develop
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TNS - GL 5
 Course Objective

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Leads to understanding of Holistic Marketing
that is

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the development, design and implementation
of Marketing Programmes , Processes, control
and activities that recognize the breadth and
interdependence of Marketing Environment

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today.
The course will also give an insight into re-
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examining the 4 Ps of Marketing from the
Consumer Perspective that makes the 4 Ps 4
Cs. Viz. Customer Value, Cost, Convenience &
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Communication.
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TNS - GL 6
Evolution of Marketing

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Evolution of Marketing - Kotler

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 Marketing 3.0
Marketing is changing again

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Marketing 1.0 Marketing 2.0 Marketing 3.0
Product Centric Customer Centric Value Centric
Sell products to the Satisfy customers & Meet emotional and
Objective masses brand loyalty rational needs of
consumers

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Enabling Forces Industrial Information Connectedness of
Revolution technology consumers
How marketers see Mass market Smarter consumers & People instead of
the market mass market segments
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Key Marketing Product driven Differentiation Value of Product to
Concept market Consumer emotions
Value Proposition Functional Functional & Functional, Emotional &
Emotional rational
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Consumer Mass Micro Segmentation Consumers Collaborate
Interaction Communication with each other
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Power of Branding Marketers/ Marketeres/ Consumers

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Marketing 3.0"

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In a nutshell!
Mind* Heart* Spirit*

INDIVIDUAL(
COMPANY(
MARKETING*3.0*

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Mission*
(Why)* Deliver! Realize! Compassion!
Satisfaction! Aspiration!
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(What)* #! Return! Sustain!
Ability! Ability! Ability!

Values*
(How)* Be! Difference! Make a!
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Better! Difference!
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Mantra of Marketing - Kotler

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Customer Company Competitor Collaborator Context

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Market Target Market Product & Service
Segmentation Selection Positioning

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Product Place Promotion

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Customer Customer
Acquisition Retention
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Profits
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TNS - GL 12
 4 Ps Versus 4 Cs

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Product = Customer Value,

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Price = Cost,
Place = Convenience
Promotion = Communication.

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TNS - GL 13
@ Major Session Objectives

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Value

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Product

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TNS - GL 14
 Session Objectives - to understand:

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Characteristics of Products and their
Classifications.

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Methods of Differentiating the Product
Offer

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Classifications of Products
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Constituents of Product Mix
Product Mix Decisions
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Building and Managing Product Mix and

Product Lines
TNS - GL 15
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Ashok

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Leyland
is known
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for its
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products
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 What is a Product?

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A product is anything that can be

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offered to a market to satisfy a want or
need, including physical goods,
services, experiences, events, persons,

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places, properties, organizations,
information, and ideas.
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 Components of the
Market Offering

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Value-based prices

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of the market
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offering

Product Services
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features mix and
and quality quality
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 Five Product Levels

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Product Classification Schemes

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Durability

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Tangibility

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Use
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Durability and Tangibility

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Nondurable
goods

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Durable
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Services
goods
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Consumer Goods Classification

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Convenience Shopping

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Specialty Unsought

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Industrial Goods Classification

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Materials and parts

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Capital items
business services
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 Product Differentiation

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Product form
Features

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Customization
Performance
Conformance

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Durability
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Reliability
Repairability
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Style
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 Design

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Design

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The totality of
features that
affect the way a

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product looks,
feels, and
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functions to a
consumer
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 Design

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Is emotionally powerful
Transmits brand meaning/positioning
Is important with durable goods
Makes brand experiences rewarding

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Can transform an entire enterprise
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Facilitates manufacturing/distribution
Can take on various approaches
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 Luxury brands

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Quality

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Uniqueness
Craftsmanship
Heritage

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Authenticity
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History
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 Environmental Issues

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Environmental issues are also playing
an increasingly important role in

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product design and manufacturing

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The Product Hierarchy

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Item

Product type

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Product class
Product family
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Need family
 PRODUCT HIERARCHY
Vatika Hair oil

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Product family hierarchy

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1. Need family Core need Ayurvedic
2. Product family A family of product classes-
Family Product
3. Product class sharing functional coherence

4.
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Personal Product
Product line - performing similar or related
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functions Hair Care
5. Product type sharing one of possible functions
/ forms Hair Oil
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6. SKU / Item single item,variant or pack Vatika

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TNS - GL
 PRODUCT HIERARCHY Vatika
Hair oil

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1. NEED FAMILY
3.Product class
Ayurvedic

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2. Product
Family Family Product
4.Product Line
Personal Product
5. Product
Type ot Hair care
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6.S K U
Hair Oil
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VATIKA
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TNS - GL 31
PRODUCT HIERARCHY Auto
Loans

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Product family hierarchy

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1. Need family Core need Financial Services
2. Product family A family of product classes-
Banking
3. Product class sharing functional coherence

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Personal Banking
4. Product line - performing similar or related
functions Loans
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5. Product type sharing one of possible functions /
forms Short Term
6. SKU / Item single item,variant or pack Auto
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Loan
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TNS - GL
 PRODUCT HIERARCHY
Auto Loans

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1. NEED FAMILY
3.Product class
Fin Services

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2. Product
Family Banking
4.Product Line
Personal Banking
5. Product
Type ot Loans
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6.S K U
Short term
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Auto
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TNS - GL 33
 PRODUCT MIX & LINE

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Set of all product Lines that a

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particular seller offers for sale.

Product line is the combination of

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products generally performing
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similar or related functions (
Category)
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TNS - GL 34
 PRODUCT MIX

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Width ( Breadth ), Length & Depth
Width refers to how many different

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Product Lines the company has
Length refers to number items in a
particular line

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Depth refers to variants & pack sizes
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TNS - GL 35
 PRODUCT MIX - HUL

BREADTH

HEALTH ,
PRODUCT PERSONAL
FOOD HOME CARE WATER NUTRITION HUYGIENE &
FAMILY CARE
BEAUTY

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Beverages,Stap
PRODUCT Skin/Oral/ Support Support
lE,Snack,Additiv Fabric/Home Purifier
CLASS Hair/Body Programs Programs
es,Frozen
Toilet
PRODUCT TEA/COFFEE Detrgents/Sc Soaps/Shampo
LINE etc. ourers etc os/

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PRODUCT INSTANT/REGUL LIQUID/SOLID LIQUID/SOLID/B
TYPE AR /BAR AR/SPRAY
Support Support
3 Roses Surf Excel Aviance Pure It Programs Programs
Red Label Rin Ayush
Taaza Sunlight Clear
Taj mahal Comfort Axe
Sehatmand Beeze
Lipton Vim Clinic
LENGTH

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Bru Domex Close Up
Annapurna Dove
Kissan Fair & Lovely
Knorr Hamam
Modern Lakme
Kwality Walls Lifebuoy
N Liril
Lux
Pears
Pepsodent
Ponds
Rexona
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Vaseline
Liquid Pack 3
Pack 4
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Depth Surf Excel Powder Pack 5

TNS - GL Pack
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 PRODUCT LINE

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Width ( Breadth ), Length & Depth
Width refers to how many different

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Categories the company has
Length refers to number items in a
Category

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Depth refers to variants & pack sizes
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Assignment Obtain Price list of a company and
analyse the Product Line & Mix.
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TNS - GL 37
 Product Systems
and Mixes

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Product system

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Product
mix/assortment
Width
Length
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Depth
Consistency
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 Product-Mix

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Product-line (Low, Medium, High priced
shirts / Garments)

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Optional-feature (Cars Base model +
additional features)

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Captive-product (razor and blade; cell
phone and mobile connection)
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Two-part (Dish TV)
By-product (Petroleum company)
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Product-bundling pricing ( Hard & Soft ware)

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Sales and profits

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 Product Line Analysis

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Market profile and image

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 Product line length

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Line stretching

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Down-market stretch
Up-market stretch
Two-way stretch
Line filling

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Line modernization
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Line featuring
Line pruning
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 Product Mix Pricing

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The firm searches for a set of prices that
maximizes profits on the total mix

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Optional-
Product
feature
line pricing
pricing

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Product- Captive-
product
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bundling
pricing pricing
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By-product Two-part
pricing pricing
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 Co-Branding

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Two or more well-
known brands are

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combined into a
joint product or
marketed together

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in some fashion
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Same-company
Joint-venture
Multiple-sponsor
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Retail
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 Ingredient Branding
Co-branding that creates brand equity for

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parts that are necessarily contained within
other branded products

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 Packaging

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All the activities of designing and
producing the container for a product

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 Packaging

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Used as a marketing tool Packaging objectives

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G Self-service G Identify the brand
G Consumer affluence G Convey descriptive and
G Company and brand persuasive information

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image G Facilitate product
G Innovation opportunity transportation and
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protection
G Assist at-home storage
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G Aid product
consumption
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 Labeling, Warranties, and
Guarantees

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Labeling

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Identifies, grades, describes, and
promotes the product
Warranties

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Formal statements of expected product
performance by the manufacturer
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Guarantees
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Promise of general or complete
satisfaction
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 Metamarkets and Metamediaries

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There are some products whose

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purchase necessitates other purchases,
that are cognitively related such as:
automobiles, homes, and weddings.

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Metamarkets as these are called is the
total consumption system and a
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packaging if you will, of the related
product/service activities designed to
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simplify life.
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 Summing up

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Importance of Product Concept
No company is single Product
Product Concept helps arriving at decisions on

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Hierarchy & SBUs
Line & Mix
A product mix can be classified according to width, length, depth,
and consistency.

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These dimensions are the tools for developing the
companys marketing strategy and deciding which
product lines to grow, maintain, harvest, and divest.
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To analyze and decide how many resources should be
invested in that line, product-line managers need to look at
sales and profits and market profile.
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