Anything that can be offered to a market

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 After – sale service Core Benefit Quality Level Design Packaging Installation 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 7 E 7, Regional Shopping Center Computer chips, truck bed, jet engines, lawn equipment Canon copiers, T -mobile cell phones, Blackberry hand held computers ACCESSORY EQUIPMENT BUSINESS SERVICES Wackhenhut, Ryder, Pinkerton BUSINESS PRODUCTS Xerox, Scotch tape, copy paper, staples, Post-its MRO SUPPLIES Soya, Milk, Poultry, Bauxite, Cotton RAW MATERIALS

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 firm’s 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 & G’s 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&G’s Width – Detergents, Soaps, Shampoos. Product Length refers to the total number of items the company carries within its product lines. For Example: P&G’s 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&G’s 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 Manufacturer’s 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 product’s 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 • Manufacturer’s 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: Nescafè (Coffee) Kit. Kat (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 company’s 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 company’s 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.