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'UNIT 1 — PRODUCT The PDF covers four main areas: Meaning & Importance of Product Product Classification Product Life Cycle Packaging & Labelling 1. Meaning of Product ⭐⭐⭐ Defin…
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'UNIT 1 — PRODUCT The PDF covers four main areas: Meaning & Importance of Product Product Classification Product Life Cycle Packaging & Labelling 1. Meaning of Product ⭐⭐⭐ Definition Philip Kotler: Product is anything that can be offered to someone to satisfy a need or a want. A product can include: Physical goods Services Experiences Events Places Properties Organisations Information Ideas Products may contain both tangible and intangible benefits. Important point Consumers do not purchase only the physical product. Their decision is also influenced by: Brand Package Warranty Image Service Other psychological attributes 2. Components of Product ⭐⭐⭐ Remember: C-B-L-L-P-L Core Product Associated Features Brand Name Logo Package Label 1. Core Product The basic element of the product. Example: In Dove soap, the basic soap itself is the core product. 2. Associated Features Features added to the basic product which enhance its personality and distinguish it from competitors. Example: Fragrance Moisturising ability Colour 3. Brand Name A name, term, symbol, design or combination used to identify a seller's product and differentiate it from competitors. Trademark = legally protected brand. 4. Logo A brand mark/symbol used for product identification and recall. 5. Package Performs three major roles: Protects the product Provides information Increases aesthetics and sales appeal 6. Label Provides written information about: Nature of product Features Composition Performance 3. Characteristics of Product ⭐⭐ Product is a core element of marketing mix. Different people have different needs and expectations. Product includes both goods and services. Marketers can achieve goals by manufacturing, selling, improving and modifying products. Includes tangible and intangible features and benefits. Acts as a medium to provide benefits and satisfaction. Importance lies in the services rendered, not merely ownership. Product includes the total offer — qualities, features and services. 4. Importance of Product ⭐⭐⭐ 1. Focal Point All marketing activities revolve around the product. Examples: Selling Purchasing Advertising Distribution Sales promotion 2. Starting Point of Planning Marketing activities such as: Distribution Price Advertising Sales promotion are planned according to the product's nature, quality and demand. 3. Product is an End The ultimate purpose of marketing is customer satisfaction. Therefore, product quality is extremely important. 5. Product Levels ⭐⭐⭐ The PDF gives 7 levels: 1. Core Benefit The basic purpose/benefit obtained from the product. Example: A car provides: Convenience Transportation Speed 2. Generic Product An unbranded and undifferentiated commodity. Example: Unbranded rice Wheat flour Pulses 3. Branded Product A product given an identity through a brand name. 4. Differentiated Product Product differentiated from competitors by highlighting special: Attributes Features Qualities Differentiation may be tangible or psychological. 5. Customized Product Product modified according to the individual customer's requirements/specifications. 6. Augmented Product Additional improvements/features voluntarily added by the marketer to increase product value. 7. Potential Product The future product, including possible advancements and refinements under existing technological, economic and competitive conditions. 6. Product Mix ⭐⭐⭐ Product Mix: The list/composite of all products offered by a company. It has 3 dimensions: Breadth Number/variety of product lines offered. Depth Number of varieties, sizes, colours and models within each product line. Consistency Degree of relationship between different product lines in terms of: End use Production requirements Distribution channels 7. Product Line ⭐⭐ A group of closely related products. They may be related because they: Perform similarly Serve the same customer group Are sold through similar outlets Fall within similar price ranges 8. Product Positioning ⭐⭐ The manner in which a product is offered to a particular customer segment to satisfy its needs. Product Repositioning Changing the product to satisfy a particular segment/customer, usually involving physical changes. Product Differentiation Modifying a product to make it more attractive to the target market. Three continuously changing areas: Product quality Product design Product support services Product Diversification Expansion of products in terms of depth and/or width. Product Modification Deliberate alteration in the physical attributes of a product or its packaging. Product Standardization Limiting varieties/types to uniform quality and standard sizes. Product Elimination Withdrawal of products that cannot be improved or modified to suit market needs. 9. Product Classification ⭐⭐⭐ Products are classified based on: A. Durability & Tangibility Non-durable goods Durable goods Services B. Consumer Goods Convenience goods Shopping goods Specialty goods Unsought goods C. Industrial Goods Materials and parts Capital items Supplies and business services Consumer Goods A. Convenience Goods ⭐⭐⭐ Purchased: Frequently With minimum effort and time Examples: Bread Milk Soap Soft drinks Types 1. Staple Goods Regularly purchased. Example: Bread, milk, eggs. 2. Impulse Goods Purchased without planning/search. Example: Chocolates, magazines. 3. Emergency Goods Purchased to satisfy an urgent need. Features Easily available Low priced Continuous demand High demand and competition Easily substitutable Heavy advertising and sales promotion Marketing Strategy Price: Low price + wide availability Promotion: Mass promotion Place: Wide distribution + convenient locations B. Shopping Goods ⭐⭐⭐ Consumers compare products on: Quality Price Style Suitability Types Homogeneous Similar products; competition often based on price. Heterogeneous Non-standardised products where quality/style are important. Features Generally durable High unit price Higher profit margin Customer spends time comparing Purchase is usually planned Retailer plays an important role Marketing Strategy Price: Moderate Promotion: Advertising + personal selling Place: Specialised stores/active shopping areas Examples: Furniture Clothes Used cars C. Specialty Goods ⭐⭐⭐ Goods having unique characteristics or strong brand identification for which consumers make special purchasing effort. Examples: High-end watches Diamond jewellery Cars Features Infrequent demand High priced Sold at few places Aggressive promotion After-sales service required Marketing Strategy Price: High Promotion: Targeted/high advertising Place: Exclusive/selected outlets D. Unsought Goods ⭐⭐⭐ Products available in the market but consumers: Do not know about them, OR Do not currently want them. Types Regularly Unsought Consumers do not want them now but may purchase eventually. Example: Life insurance. New Unsought Consumers must first be informed about the product. Example: Oral Polio Vaccine initially. Marketing Strategy Promotion: Personal selling + aggressive advertising Price: Varies Place: Depends on product 10. Industrial Products ⭐⭐⭐ Products used as inputs to produce consumer products and for business/non-personal purposes. Examples: Raw materials Tools Machinery Lubricants Features Limited number of buyers Short distribution channels Geographically concentrated demand Demand is derived from consumer goods Purchase based on technical considerations Reciprocal buying may occur Products may sometimes be leased due to high cost Types 1. Materials and Parts Raw materials Manufactured materials and parts 2. Capital Items Goods used to produce finished goods. Examples: Machinery Computers Tools 3. Supplies and Business Services Examples: Maintenance supplies Operating supplies Repair services Consultancy Advertising Legal services 11. Product Life Cycle — PLC ⭐⭐⭐⭐⭐ PLC shows the sales history of a product through four stages: I → G → M → D Introduction Growth Maturity Decline Introduction Stage Characteristics New product launched High operational costs High promotion costs Low customer awareness Trial purchases Limited competition Negative/low profits Limited distribution Strategies Promote product to create awareness Price may be low for penetration OR high to recover development costs Selective distribution Educate consumers through communication Growth Stage Characteristics Sales increase rapidly Repeat purchases increase Costs reduce due to economies of scale Competition increases Market expands Profits increase Strategies Maintain/improve product quality Add features/support services Price may remain the same Add distribution channels Promotion aimed at broader audience Maturity Stage Characteristics Sales peak Market saturation Competition increases Price reduction/price wars Heavy advertising for differentiation Product diversification Industry profits decline Strategies Carve a niche Improve services Image marketing Reposition Modify market/product/marketing mix Decline Stage Characteristics Sales decline Customer preferences change Number of competitors reduces Sales and profits decline Firms become cost conscious Strategies Maintain product by adding features/new uses. Reduce costs and target loyal customers. Discontinue product or sell it to another firm. 12. Packaging ⭐⭐⭐⭐ Definition Packaging is the art, science and technology of preparing goods for transport and sale. It is often regarded as the 5th P of marketing. Levels Primary package Secondary package Transportation package Role of Packaging Protects product Acts as a passive salesman Communicates with consumers Promotes product Provides convenience Protects from damage/pilferage Can increase sales Importance Provides information Identifies brand Protects product Helps handling Promotes product Provides convenience Increases sales Helps storage Differentiates product Adds safety Functions of Packaging ⭐⭐⭐ 1. Protection Protects against: Pilferage Moisture Breakage Damage Evaporation 2. Appeal Attracts attention Enhances product image Makes product look hygienic 3. Performance Package should perform its intended function consistently. 4. Convenience Should be: Easy to stock Easy to display Space efficient Easy to carry Easy to dispose 5. Cost-effectiveness Packaging should be economical considering: Handling Storage Insurance Transportation costs Types of Packages Consumer package Bulk package Industrial package Dual-use package Dual-use package: Has a secondary use after the product is consumed. 13. Labelling ⭐⭐⭐⭐ Labelling provides customers with information regarding: Quality Features Standards Grade Price Quantity Ingredients Manufacturer Dates Instructions Warnings Roles of Labelling Describes product and contents Identifies product/brand Helps product grading Promotes product Provides legally required information Types of Labels 1. Brand Label Popularises brand name. 2. Grade Label Shows standards/grades. 3. Descriptive Label Describes product features and uses. 4. Informative Label Provides maximum information.' make a ppt with all the content in '' Follow Design: {"palette":["Deep Navy #0B132B — primary slide backgrounds and dominant text","Executive Cobalt #1D4ED8 — primary accents and stage highlight anchors","Tangerine Orange #EA580C — critical takeaways, mnemonic tags, and star ratings","Slate Mist #F1F5F9 — content card surfaces and table fills","Muted Steel #64748B — secondary labels, metadata, and subtle borders"],"fonts":{"Plus Jakarta Sans":"https://fonts.googleapis.com/css2?family=Plus+Jakarta+Sans:ital,wght@0,200..800;1,200..800&display=swap","DM Sans":"https://fonts.googleapis.com/css2?family=DM+Sans:ital,wght@0,100..1000;1,100..1000&display=swap"},"type":"Plus Jakarta Sans set in bold weights with tight tracking (-0.02em) for slide titles, section markers, and mnemonic callouts; DM Sans in regular and medium weights (1.4 line height) for multi-tiered taxonomy lists, definitions, and comparative matrices.","layout":"Structured 12-column executive grid with generous 64px side margins, featuring a permanent left-edge section tracker and 2-to-4 card horizontal splits for product classifications and lifecycle comparisons.","framework_treatment":"Crisp off-white rounded cards with subtle 1px slate borders, pill badges for importance tiers (⭐⭐⭐), horizontal chevron flows for the four PLC phases, and shaded banner callouts for Kotler quotes.","feels_like":"A McKinsey brand strategy executive masterclass deck meets Harvard Business Review graphics"}
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