MARKETING MANAGEMENT

BE-MBA Fall Semester

(July – December2019)

Harjot Singh, LM TSM, TIET

9/11/2019
Product Concepts :
Differentiation

2
Session Questions
• What are the characteristics of products and how
do marketers classify products?
• How can companies differentiate products?
• How can a company build and manage its product
mix and product lines?
• How can companies combine products to create
strong co-brands or ingredient brands?
• How can companies use packaging, labeling,
warranties, and guarantees as marketing tools?
Ashok
Leyland is
known for
its
products
What is a Product?
A product is anything that can be offered to a
market to satisfy a want or need, including physical
goods, services, experiences, events, persons,
places, properties, organizations, information, and
ideas.
Five Product Levels
Product Classification :Durability
and Tangibility

Nondurable
goods

Durable
Services
goods
 Consumer Goods Classification

Convenience (staples, Shopping (examples,

Impulse, example grocery) furniture, clothes)
Specialty
Unsought
(special effort, examples,
(Example, insurance)
cars, equipment)
Industrial Goods Classification

Materials and parts

Supplies/
Capital items
business services
Product Differentiation

• Product form
• Features
• Customization
• Performance
• Conformance
• Durability
• Reliability
• Repairability
• Style
Design Differentiation
Service Differentiation
• Ordering ease
• Delivery
• Installation
• Customer training
• Customer consulting
• Maintenance and repair
• Returns
Ginger Hotels
has carved a
profitable
niche through
its innovative
service
configuration
Developing products for rural markets
• Products should be designed keeping in mind the rural
conditions
• Packaging is one of the key drivers of success in rural
areas
Transfer and storage: Rugged packing
Affordability: Small-unit packs
• Brand elements should be decided keeping the rural
consumers in mind
The Product Hierarchy

Item

Product type

Product line
Product class
Product family
Need family
 The Product Hierarchy
• Need family: The core need that underlies the
product family, for example, security.
• Product family : All the product classes that can
satisfy a core need with more or less same
effectiveness. Example: savings and income.
• Product class : A group of products within the
product family that are recognized as having a
certain functional coherence. Example: financial
instruments.
• Product line : A group of product within a product
class that are closely related because they function
in a similar manner or are sold to the same customer
groups. Example : life insurance
16
 The Product Hierarchy

• Product type : Those items within a product line that

share one of the several forms of the product.
Example: term life insurance
• Brand : The name associated with one or more
items in the product line, to identify the character of
the item. Example : ICICI Prudential
• Item : A distinct unit within a brand or a product
line that is distinguishable by size, price,
appearance, or some other attribute. The item is also
called a Stock-Keeping Unit (SKU), or a product
variant. Example : ICICI Prudential Term Life
Insurance
17
Product Systems and Mixes

• Product mix
• Product assortment
• Depth
• Length
• Width
• Consistency
Pruning
Pruning weak brands
can strengthen the
remaining brands in
the line
What is the Fifth P?
Packaging, sometimes called the fifth P, is all
the activities of designing and producing the
container for a product.
Innovations in Packaging
Packaging Objectives
• Identify the brand
• Convey descriptive and persuasive information
• Facilitate product transportation and protection
• Assist at-home storage
• Aid product consumption
Factors Contributing to the
Emphasis on Packaging

Self-service

Consumer affluence

Company/brand image

Innovation opportunity

Copyright © 2009 Dorling

Kindersley (India) Pvt. Ltd.
Functions of Labels

Identifies

Grades

Describes

Promotes
Warranties and Guarantees
Co-branding
Ingredient Branding
Product life-cycle – the concept

A firm’s positioning and differentiation strategy must

change as the product, market and competitors change
over time. A product normally passes through
Introduction, Growth, Maturity, and Decline. This
analysis, called as Product life-cycle concept, assumes
that products have limited life, sales pass through distinct
stages, profits rise and fall at different stages, and
products require different functional strategies in each
life-cycle stage.
Product life-cycle – the concept
Sales and Profits

Introduction Growth Maturity Decline

Time
 Product life-cycle – the concept

Not all products exhibit a S-shaped PLC. Common

alternate patterns are:
Growth-slump-maturity pattern Cycle-recycle pattern

Sales
Sales

Time Time
Scalloped pattern
Sales

Time
Product life-cycle – the concept

Style Fashion Fad

Sales

Sales

Sales
Time Time Time

It is a basic and distinctive It is a currently accepted Fads are fashions that

mode of expression or popular style in a given come quickly into public
appearing in a field of field. It pass through four view, are adopted with
human endeavor. It can stages: distinctiveness, great zeal, peak early, and
last for generations and emulation, mass-fashion, decline very fast.
can go in and out of and decline.
vogue.
 Product life-cycle marketing strategies

Introduction Growth Maturity Decline

Marketing Create product Maximize market share Maximize profit while Reduce
objectives awareness and trial defending market expenditure
share and milk the
brand

Strategies

Product Offer a basic Offer product Diversify brands and Phase out weak
product extensions, service, models
warranty

Price Charge cost-plus Price to penetrate Price to match or best Cut price
market competitors’
 Product life-cycle marketing strategies
Strategies Introduction Growth Maturity Decline

Distribution Build selective Build intensive Build more intensive Go selective;

distribution distribution distribution phase out
unprofitable
outlets

Advertising Build product Build awareness and Stress brand Reduce to level
awareness among interest in the mass- differences and needed to
early adopters market benefits retain hard-core
and dealers loyals

Sales promotion Heavy to entice Reduce to take Increase to Reduce to

trial advantage of heavy encourage brand minimal level
demand switching
 34

References
• Keller, Kotler, Philips, K.L. Keller, A. Koshy and M.
Jha, Marketing Management – A South Asian
Perspective, Pearson Education
• Evans, Joel R. and Berman, Barry, Marketing,
Biztantra Publishers
SUGGESTIONS FOR TELECOM SERVICE PROVIDERS

• Telecom service providers need to put greater focus on

pre-paid consumers to prevent them from availing MNP
and churning.

• Telecom service providers need to focus more on the

functional dimension of service quality rather than the
technical dimension of service quality.

Thank You
• Service providers need to make greater efforts to retain
those customers who have been on the network for a
longer time and who have been contributing more to the
top line or bottom line.