Product and Product Mix

7/27/2019 Product and Product Mix

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INTRODUCTION

Product begins the marketing activities. It isalso called the Heart of marketing mix. Amongthe components of marketing mix, the product

occupies the key-position. It ultimately satisfies

the customers.

Michel J Baker and Ronald McTavish opine that

success of an organisation is determined in themarket place where its sells the goods orservices which constitute its output.


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DEFINATION OF PRODUCT

According to Alderson W defines Product isbundle of utilities consisting of various

product features and accompanying services.As we know, utility means want satisfyingfeature of a product or services.


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FEATURES

The features of a product are:- Physical Attributes.

Intangible Attributes.

Associated Attributes. Exchange Attributes.

Consumer Satisfaction.

These above can be further grouped into:-

Implict Characteristics.

Explicit Characteristics.


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PRODUCT CONCEPTA product is a bindle of satisfaction. When a

product offers satisfaction its contents arecalled as augmented features. Augmentedfeatures come with the main product. IfPleasure bike is bought, it provides satisfaction

when it is augmented, supported with thefollowing-

Provide long term technical service,

Free service, Guarantee for 2years, warranty for Life time,

Tested mileage ,

Free 2years insurance to bike .


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The way in which a product is viewed by thethree angles of triangles is given below-

The product concept consists of three levels-

-The core product

-Related product features-Related product services.

PRODUCT


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I Level:Core product or services: through which a firmtries to establish the market. Therefore, thecontents of a product become Core and consistof identifiable characteristics and throughwhich a product is distinguished from otherproducts.

II Level:Product related features include the brand

name packaging, appearance, quality superiority,safety and style of product.


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III Level:Services relating to product which include

delivery speciality, credit facility, guaranteegiven, installation availability of spare parts,repair services, maintaining follow up action. The

most important for a customer is the totalbenefit received from a product.


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PRODUCT MIXIn modern days, companies selling a singleproduct are scarcely seen. Though, beginning ismade with one product, as and whenopportunities come, number of products join theproduct family. Even small concerns handle withwide range. The managerial personnel have todecide upon the number of factors relating to aproduct. These decisions are broadly classifiedinto three,

Product item Product Line

Product Mix.


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STRUCTURE OF PRODUCT MIX

The product mix is characterized by three mainfactors.i.e. Width of product mix. Depth of product mix.

Consistency of product mix.

Width=Number of product group of aproduct, within the company.

Depth=Number product items within eachproduct line.

Consistency=The product affinity to market,

research production


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FACTORS AFFECTINGPRODUCT MIX

The dimensions in product mix are not constant.They are subject to change. The marketing mix isaffected by the internal and external forces.The internal factors are not controllable. Themanagement whenever wishes to change thepolicy on product-mix, should consider thefollowing factors-

Cost of production. Market Forces.

Marketing Abilities. Financial Constraints.


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PRODUCT MIX STRATEGIES.

Product mix is represented by its width lengthand depth of products. Every company has toframe its own strategy for the product-mix.Usually following areas need strategic-

statements. They are,

Expansion and contraction.

Trading up and Trading down.

Product alteration.

Segmentation and Differentiation.

New uses for existing products.


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PRODUCT LIFE CYCLE [PLC]

According to Philip Kotler: The product lifecycle portrays distict stages in the sales historyof product. Corresponding to these stages, thereare distinct opportunities and problems with

respect to marketing stategy and projectpotential. By identifying the stage that aproduct is in or may be headed towards,companies can formulate better marketingplans.

STAGES OF PRODUCT LIFE


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STAGES OF PRODUCT LIFECYCLE

The PLC of a product is also compared to AgeingProcess. This has definite phases such as

Product Development,

Introduction,

Growth,

Maturity [Saturation]

Decline.


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SIGNIFICANCE OF PLCThe concept of PLC has a significant role to

play in the management of a product. Thescientific characteristics identified at thevivid phases would act as guiding lamp whileframing the strategies for success of

product. The advantages of PLC concept are-Product planning and development. Product testing.

Product pricing. Sales forecasting. Product control Estimation of promotional cost, budget.


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WEAKNESS OF PLC

All products do not have all phases of PLCExample: Products like coal, gold, silver,medicines etc. the demand for such products

depends on economic condition rather that ofPLC stages.

Non Uniformity.

The length of each phases to allproducts is not uniform. Due to variation,there can not be uniformity in strategy.


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Real product histories will speak differentstory which is quite different to PLC.

Raymonds since 1925.

Difficulties in exact stage identification.


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NEW PRODUCT DEVELOPMENT

Philip Kotler defines New Product asBy new product we mean original products,

product improvements, product modificationand new brands that to firm develops throughits own research and development efforts.


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PROCESS OF NPD

Idea generation.

Concept development.

Marketing strategy development. Business analysis.

Programme development.

Test marketing.

Commercialization / Evaluation.


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BRANDING

AMA Committee defines a brandas a name, term, symbol or design or a

combination of them which is intended toidentify the goods or services of one seller orgroup of sellers and to differentiate themfrom those of the competitors.


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ADVANTAGES OF BRANDING

Product differentiation.

Control on the prices.

Create brand loyalty. Ease in selling.

Helps in advertising and display


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TYPES OF BRANDING

Manufacturers name: Tata, Godrej, etc.

Special names: Prince, Camlin, Pears.

Special symbols or Design: Monkey brand,Postmans brand, Aristocrat.

Numbers: 777, 501, 555.


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PACKING AND PACKAGING

Packing is wrapping of goods.Whereas Packaging is a part of packing

like bags, bottles, etc. for sale toultimate consumers.


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KINDS OF PACKAGES

Primary packages: which cover the productsvery closely, like a plastic tube of ball pen,the squeezing tube of toothpaste, etc.

Secondary packages: protects primarypackages. For example, a carton on toothpastetube.

Shipping pack: which holds secondarypackages designed for storage andtransportation.


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LABELLING

The basic purpose of packaging andlabels is to give buyers an up to date

information. They have to provide informationabout the usage of product. Customers expectinformation about the product. Infact it isthe right of customers to know before using a

product.


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CONTENTS OF LABELLING

Date of manufacture.

Date of expiry.

Best use before. Max retail price.

Quantity.

Brand name, etc.


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TYPES OF LABELLING

Brand based labelling.

Grade based labelling.

Descriptive and Informative.


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Documents

Product and Product Mix