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ACCELERATED LEARNING

CENTRE (ALC )

DR.S.SHAJAHAN MBA , PhD, Market ing c ha ir,IIMS & Head ALC, CEDNER, GOVT.OF INDIA

Co py right prote c ted PERMISSIONSdrss@iimshillong .in

mailto:drss@iimshillong.inmailto:drss@iimshillong.in

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OVERVIEW OF PRODUCT MANAGEMENT AND MARKETING MIX

1. OVERVIEW OF THE WORKING PAPER

It is a fact that product/ service is a `mixer of ingredients'wherein the manufacturer /serviceprovider who blends various marketing activities in a manner that strengthen the business theinterests of the firm. as we seen in lesson 11,the crux of any marketing strategy is to bring aboutthe desired operations in the light of prevailing circumstances. We also learned from the previouslesson that the strategy basically involves the utilisation of the available tools, and their plannedmanipulation to get optimum results in limiting environments. This lesson narrates the importantconcepts like marketing mix, product, brand, trade mark, packaging and labelling with suitableexamples from Indian marketing environment.

2 SIGNIFICANCE OF MARKETING MIX

The most popular 4 Ps' framework as suggested by McCarthy with the marketing mix variables -Product, Place, Promotion and Price had originated from the study of the manufacturers - i.e. Theorganisations engaged in production and marketing of goods - it is more oriented to deal withgoods marketing situations. However service characteristics are radically different from goods; andso are the challenges in their marketing. It is wrong to imply that services are just like productsexcept for intangibility. But such wax-like logic as "apples are just like oranges, except for theirapple ness" does not stand the heat of nuts-and-bolts marketing. Product/ Service characteristicsadd new dimensions to a marketing situation that is faced by the service manager. Given theproduct/ service characteristics and activities in product/ service firms, Eight Ps framework forservices has been proposed. For the services . The additional prescribed Ps given below refers toactivities that are essential to meet the challenges posed by intangibility. Hence the product/ servicemarketing mix can be summarised as follows:

Product - Service core, levels, additional services, branding.Price - Price, discounts, terms of payment.Place - Location, channels of distribution, coverage.Promotion - Advertising,sales promotion, personal selling and publicity.

For service additional 4 Ps were added for marketing services .They are:People - Customer-provider relationship, training, culture, skills, attitudes.Physical - Ambience, appearance, equipment, machines,Evidence - buildings, physical facilities.Process - Activity sequence, quality management, customer participation, and delivery

process.Productivity - efficiency o f human and non-human capitals in the production process. But

our discussion limits only to the first four Ps.

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3 PRODUCT MANAGEMENT

The term `product' is widely used to refer a market offering of any kind. In its broadest sense this

may be anything from the physical to the abstract - an idea or a moral issue. Generally, however,

most products are made up of a combination of physical elements and services. This is true in

services marketing, where the service offering can include tangible features, such as food in arestaurant, or be a `pure' service, intangible in nature. A service product refers to an activity or

activities that a marketer offers to perform, which results in satisfaction of a need or want of

predetermined target customers. It is the offering of a firm in the form of activities that satisfy

needs such as hair styling done by a barber.

Consumers will buy only what suits them. As consumers, we buy different kinds ofproducts and services to satisfy our various needs. We buy toothpaste, butter,

shaving cream, pen, scooter, ticket for the U.S.A and many other such items in our

daily life. As we understand, our decision to buy an item is based not only on itstangible attributes but also on psychological attributes such as services, brand,

package, warranty, image, etc. Discussions about the marketing of goods apply

to services as well. Services have special characteristics that make them

different than products .According to Alderson, W., "Product is a bundle of utilities consisting of various product features

and accompanying services, "According to Schwarte, D.J., "A product is something a firm markets

that will satisfy a personal want or fill a business or commercial need".

At the time of product planning, the marketer has to think about three types of benefits.

a. Core benefits : What does the product mean to the customer? For example, a car offers the

generic benefits of convenience in travelling.

b. Tangible benefits : Features, colour, design, quality, size, weight, durability, etc.c. Augmented benefits : Company name, brand image, credit, packaging, repair / service

facilities, etc.

Most manufacturing and service businesses offer their customers a package, involving

delivery of not only the core product but a variety of service-related activities, too. Increasingly,these services provide the differentiation that separates successful firms from the relatively

unsuccessful. Levitt described "the total product concept" This consists of a core, surrounded by

three concentric circles. The core, or generic product, is defined as the basic skills and resources

needed to play in the market. The inner band surrounding this core Levitt termed the expectedproduct, representing the customer's minimal expectations. It includes pricing, delivery, appearance

of facilities and personnel, personality of service people, and so forth. The next encircling band iscalled the augmented product and includes further benefits, added to enhance the appeal of theproduct; as the market becomes accustomed to specific augmentations, these may eventually

evolve into part of the expected product. For instance, Air India and Indian Airlines today feel

obliged to offer a frequent flyer programme and, for competitive reasons, many internationalcarriers have followed suit. Finally, the area included in the outermost concentric band, the

potential product, consists of everything potentially feasible to attract and hold customers, in

contrast to the "augmented product" which means everything that is already being done. One

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shortcoming of Levitt's model is that it does not clearly distinguish between adding new elementsand improving performance on existing ones. In mature industries, the core product (which might

be either a physical good or a service) often becomes a commodity

Tangible / Intangible Attributes-key points

Tangible touch see taste smell

Intangible cant see cant touch cant smell

-cant taste

Think of examples of product /services possessing above tangible and intangible attributes.

4 ESSENTIAL FEATURES OF PRODUCTS AND SERVICES- Customer satisfaction

- Business need satisfaction

- Value for money- Associated attributes

- Tangible attributes

- Intangible attributes

5 PRODUCT CLASSIFICATIONS*

The nature of a product is found to have considerable impact on the method of product

positioning. There are two classes of products, consumer goods and industrial goods, and thisclassification is useful in product positioning. The table given below shows the categories of

consumer and industrial goods. Marketers have traditionally classified products on the basis of three

characteristics : durability, tangibility and use. The following figure shows the productclassification:

Product Classification

1. Durability andTangibility

a. Non-durable goods

b. Durable goods

c. Services

2. Consumer goodsa. Convenience

goods

b. Shopping goods

c. Specialty goodsd. Unsought goods

3. Industrial goodsa. Materials and parts

b. Capital items

c. Supplies and business

services

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5.1 Durability and Tangibility(a) Non-durable goods : Non-durable goods are tangible goods normally consumed in one or a

few uses. For example, soap, salt and biscuits.

(b) Durable goods : For example, colour TV, refrigerators, washing machines and vacuumcleaners.

(c) Services : services rate intangible, inseparable, variable and perishable products. Forexample, airline and banking services.

5.2. Consumer Goods Classification

a. Convenience goods : These are goods that the customer usually purchases frequently,immediately and with a minimum of effort. Examples include soaps and newspapers.

Convenience goods can be further classified into three categories:

i. Staple goods : Consumer purchases on regular basis.ii. Impulse goods : Consumer purchases without any planning or search effort.

iii. Emergency goods : Consumer purchases on urgent need.

b. Shopping goods : These are goods that the customer, in the process of selection and purchasecharacteristically compares on such bases as suitability and quality. Examples : Furniture,

electrical appliances, etc.

c. Specialty goods : These are goods with unique characteristics or brand identification forwhich a sufficient number of buyers are willing to make a special purchasing effort. For

example, cars.

d. Unsought goods : These are goods the consumer does not know about or does not normally

think of buying. The classic examples of known but unsought goods are life insurance.

5.3. Industrial Goods Classification

a. Materials and parts : These are goods that enter the manufacturer's product completely. They

fall into two classes. Raw materials and manufactured materials and parts.

b. Capital items : These are long lasting goods that facilitate developing or managing thefinished product. They include two groups: installations and equipment.

c. Supplies and business services: These are short-listing goods and services that facilitate

developing or managing the finished product.

6 CORE, TANGIBLE AND AUGMENTED HOSPITALITY AND TOURISM PRODUCTS

The core product offered by most hotels is the same, by differentiating augmented and tangible

product levels, the service may be enhanced in cost effective ways to make it more attractive to itstarget markets. Differentiation and competition, therefore, takes place largely at the augmented

product level.

7 Information Technology PRODUCTS

Product management in IT is radically different from the FMCG model. In India, typicallya product such as a PC is developed in the United States or elsewhere and is marketed here. Hence

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only the sales of the product is emphasised upon. However with the so-called IT revolution, Indiancompanies have realised the need to develop It products from scratch ideally suited for the Indianmarket. The development of Indian language software has raised the consciousness that importedor assembled IT products do not necessarily cater to the requirements of the average Indianconsumer.

Limitations on the part of the Indian consumer including the financial one have proved yetagain that companies have proved yet again that companies have to look inward in order tosuccessfully create a niche for themselves and that customisation is indeed the selling propositionof he new millennium. The creation of any new product entails four basic activities - marketunderstanding, technology management, product planning and product development. The challengeis to select the right product based on a company's strategy and then develop it to world-classperformance. Product development is at the heart of innovation, providing the capability to deliversuperior products or services to the market faster and more efficiently than the competition.

The most effective means to improve product development performance is to identify,implement and institutionalise the best practices across the organisation. The results are an

immediate and lasting improvement in time-to-market, productivity product cost and quality. Inrapidly changing industries, the focus will be on the next generation of products while incompanies that produce longer lived items, the focus is on evolving the existing productarchitecture to improve delivery performance without redesigning its current product lines.Effective customer-supplier collaboration has gained significance over the past decade, particularlyin the areas of manufacturing and distribution. As competitive pressures continue to increase, thevalue-creation opportunity through integration in the up-front innovation processes is attractingmore attention. Success in innovation requires a systematic approach for integrating customers andsuppliers.

The technologies that form the foundation for successive projects, products and processimprovements are another issue in product planning and development. The challenge is to have thecorrect and the best technology on hand or have access to it when needed. Success is based onexcellence in 5 areas - pipeline characterisation, broadened thinking, rigorous "how would I exploitit" analyses, medium term focus and performance measurement. Leveraging IT for productinnovation to day is likely to bring significant improvements in efficiency, speed, cost and quality.However many companies wrongly believe that if they build the IT capabilities, the benefits willcome and justify all costs.

At every step, companies need to address the design and use of the capabilities of ITsimultaneously and balance capabilities and benefits with costs and risks. A company thatunderstands its customers, its channels and its suppliers, and its competitors, has a superiorunderstanding of the market and can produce successful market-based innovations. The challengefor a company is to build a capability that allows for the continuous creation and delivery of"winners" to target markets. To improve market-understanding capabilities a company must build

an understanding of the market based on the customer's experience with the product. This is createdthrough the cycle of ownership, and creates a systematic process of inbound marketing to capture,synthesize and disseminate market information. The company should also increase emphasis onmarket-development activities including business models, pricing and channels. This can be acomplement to its existing product and technology development activities.

8. PRODUCTIZATION - THE KEY TO SURVIVAL AND SUCCESS

Imagine you as the CEO of a Software Company face the following situations in your business

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a) New business is hard and slow to come by and even the existing orders are becoming

difficult to execute given the dipping (hourly rates).b) Retaining Quality Employees has become almost a trial and challenge.c) There is total lack of clarity on which kind of technology area will take off well.d) Cash flow is taking a beating, and has literally dried out in recent times.

e) Visibility and hopes of an early economic and industrial recovery are rather low.

When this happens, it is possible to virtually solve most of these seemingly insurmountableproblems and troubles by focussing on Software Products. How so? Yes, you have a realopportunity to create a sizable client base rapidly through products and in the process spawn manyallied revenue streams. A successful product-line can contribute towards making long-term successand visibility a distinct reality. Ordinarily, if you wanted to develop a product, you must firstidentify an application area with business potential and use the inputs from the domain experts. Butalthough you neither have the time nor the resources to take this route at this particular moment,you need not feel despair. You can still get into product business and even quicker too, via a fasttrack mechanism called Productization.

If, in the past, you had delivered a sound application that your customer liked immensely,then you can now take that application and convert it into a product within a short time and enlargeyour installation base. Thus, by using your available code and the experience with this customer,you can quickly create a new line of business. You now have the chance of getting new customerswhom you can tap for your development or services business as well. By addressing their otherrequirements, you can build a solid domain expertise that will come very handy in developing newproducts with faster development cycles and thereby generate enough of revenues. This experienceand learning will also be hugely beneficial in developing and launching new products for themarket. Most of these do not call for heavy investment but only a change in one's entrepreneurialattitude and a solid commitment to the concept of software products.

In this context, it is relevant to mention that stabilizing the existing code is very importantand vital because supporting many customers is exponentially more expensive compared to justone customer and the support expenses can even ultimately dwarf and shave off the revenues if nothandled properly.

Benefits of Productization

a. Getting to the market fast. You can steal the First Mover Advantage from other players whoare building products from ground up.

b. You have a Valuable Reference Site from Day One and this will help in reducing theProduct Development and Sales Cycle substantially and even sizably increase therealization from the Sale.

c. By showcasing your development capabilities through the product, you can increase yourorganization's credibility in the eyes of the new Customers and this can lead you to newdevelopment opportunities in those companies, which in the normal course would not be

available to you.d. You can build new Income Streams such as maintenance, integration with other existing

applications in addition to selling licenses and implementing the Product.e. You can test the local market at a little cost and based on favourable feedback. You can

more to overseas markets faster than ever before.f. With a leaner development team you can build a high value business almost instantly.

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9 FACTORS TO BE CONSIDERED IN ORGANISING FOR PRODUCT MANAGEMENT

- What do we want out of product management?- What do we want our product managers to do?

- When do we want our product managers to do their jobs?- How do we want them to do the jobs assigned to them?- What operational guidelines will we establish?

- What expectations do we have for the specific contribution of product managers and product

management?

- What price are we willing to pay?- What general and what specific duties and responsibilities will be assigned to product

management?

- What authorities will be assigned to product managers?- What are the number and nature of products and brands?

- What are our product objectives?

- How will we measure the effectiveness of our product management.

10 ROLE OF PRODUCT MANAGER IN AN ORGANISATION

In assessing the product manager's performance the following checklist can be used:

- Product line control

- Product life cycle, analysis and capitalization- Product development and success of new products recommended.

- Improved communication- Improved supplies and sourcing

- More and better market information

- Wider product knowledge base- Centralised product planning

- Coordination of activities

- Achievement of planned profits- Cost and profit control

11 SUMMARY OF KEY TERMS IN PRODUCT MANAGEMENT

What is a Product?

what you buy, that satisfies what you want to be able to do it can be good feeling cause you bought some cosmetics and someone said you looked

pretty

it could be a happy stomach cause you bought a meal that tasted great it could be easier homework cause you bought new software for your computer Most customers think about product in terms of the total satisfaction this can lead to statements such as we dont sell cars, we sell safety ! we dont sell houses, we sell homes

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Product Line

A series of related products a group of products that are physically similar in performance, use or features and

intended for a similar market

a set of products that are closely related

shoes Nike, Adidas, Reebok, Fila, new balance, British knight, brooks, converse,vans, Asic, pumanotebooks Toshiba, NEC, TI, Compaq, IBM, DELL

Apple, HP, Hitachi, Mitsubishi, Matsushita,Cannibalization

Situation involving one product taking sales from another offering in a product line Cannibalization occurs when sales of a new product cut into (reduce) the sales of a

firms existing products

Consumer Goods and Services

- Situation involving one product taking sales from another offering in a product lineCannibalization occurs when sales of a new product cut into (reduce) the sales of afirms existing products .

Consumer Goods Classification of:

1. Convenience

2. Shopping

3. Specialty

4. Unsought Products

Different Classes Convenience goods and services

things consumer wants to buy frequently minimum effort, low risk small amount of money, not much time

Shopping goods and services stuff people buy after they shop & compare

Speciality goods and services jewellery, special clothing special entertainment

Unsought things people dont want to buy, but have to e.g. Auto insurance, funeral plan

Different Classes Convenience goods and services

things consumer wants to buy frequently minimum effort, low risk small amount of money, not much times

three types

1. Staples

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- bought routinely2. Impulse products

- unplanned purchases

3. Emergency products- bought immediately

Shopping goods and services stuff people buy after they shop & compare they have the time to compare prices Homogenous - stuff that is the same

simply pick the lowest price

e.g. Condensed milk, Heterogeneous - stuff that is different, so the customer will take time to

compare features and prices

- some retailers carry competing brands Speciality goods and services

jewellery, special clothing

special entertainment Willingness to search, not extent of searching, makes it a specialtyproduct

if people are willing to look and look at different products, before theycommit, it is a specialty item

Unsought things people dont want to buy, but have to e.g. Auto insurance, funeral

plan the only way to sell this is to convince people of the benefit because the

average person does not easily see the benefit.

Classifying Industrial Products1 Installations - major assets, factories, and heavy machinery

2. Accessory Equipment - used in production- short-lived items e.g. tools

3. Raw Materials

4. Component Parts and Materials - finished units which, when assembled, make the completeproduct

5. Maintenance, Supplies (MRO Items)

- maintenance,- cleaning fluids

6. Professional Services

- accounting firms, law firms

12 Brand management

Many consumer products, besides their basic features, need attractive packaging and a `brand name'.

A brand is a symbol or a mark that helps a customer in instant recall, differentiating it thereby roamthe competing products of a similar nature

What is a brand? Too often even marketing professionals don't have an answer, and too manyhave their 'own' answer. Which makes life very confusing! We've trawled through our resources

to find some of the best definitions: The Dictionary of Business and Management defines a brand

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Asia name, sign or symbol used to identify items or services of the seller(s) and to differentiate

them from goods of competitors

Signs and symbols are part of what a brand is, but to us this is a very incomplete

definition.Walter Landor, one of the greats of the advertising industry, said:"simply put, a brand

is a promise. By identifying and authenticating a product or service it delivers a pledge of

satisfaction and quality. In his book, 'Building Strong Brands' David Aaker suggests the brand is

a 'mental box' and gives a definition of brand equity as:"a set of assets (or liabilities) linked to a

brand's name and symbol that adds to (or subtracts from) the value provided by a product or

service. According to the American marketing association, "A brand name is a part of a brandconsisting of a word, letter, group of words or letters to identify the goods or services of a seller or a

group of sellers and to differentiate them from those of the competitors". David Ogilvy defined a

brand as `the consumer's idea of a product'. This is an important point, brands are not necessarilypositive!Building from this idea of a 'mental box' a more poetic definition might be:These are all

great definitions, but we believe the best is this:A brand is a collection of perceptions in the mind

of the consumer.A brand is the most valuable real-estate in the world, a corner of the consumer's

mind".Why is it best? Well, first of all it is easy to remember, which is always useful! But it is

also best because it works to remind us of some key points:

1. This definition makes it absolutely clear that a brand is very different from a product orservice. A brand is intangible and exists in the mind of the consumer.

This definition helps us understand the idea of brand loyalty and the 'loyalty ladder'. Different

people have different perceptions of a product or service, which places them at different pointson the loyalty ladder. A brand mark is a symbol or a design used for the purpose of identification.

For example : Air India's MAHARAJA.The legal version of a brand mark is the `trade mark' e.g.,

Ashok Masala and Good Health Atta. A brand is given legal protection from being used by othersbecause it is capable of exclusive approbation. A brand distinguishes a product or service from

similar offerings on the basis of names are : LUX, LIRIL, REXONA, EVITA, PROTEX,HAMAM, and LE SANSI in case of toilet soaps; SURF, ARIEL and NIRMA in case of detergents

and NIVEA, FEM, OIL OF OLEY, CHARMIS and VASELINE in case of vanishing creams

Brands provide a strong competitive advantage to the companies owning them and hencethey are increasingly becoming important tradable assets. In 193, coca-cola paid about Rs.175 crore

to buy Thums-up, limca, citra and gold spot brands. In 1994 Godrej soaps paid Rs.12 crore to

acquire the Rs.67 crore translectra (maker of goodknight mosquito repellent). In 1995, SmithklineBeecham paid Rs.42 crore to acquire the Crocin brand from Duphar Interfan. In 1997, Knoll

Pharma sold Coldarin and Burnol for Rs.34 crore Ranbaxy paid Rs.80 crore to Gufic Labs for Mox,

Zole Excel and Suprimox. In 1997, Hindustan Lever paid Rs.110 crore for Lakme's basket of

brands and only Rs.29 crore for Lakme's two plants. In 1999 Marico industries bought Parachuteand Suffola brands from Bombay oil industries for Rs.30 crore. The Gramophone company of India

acquired Sangeetha, a leading audio producer of classical and devotional songs in the South.

Acquiring a brand is a better, superior option over purchasing the entire operations of the companyowning them for 3 reasons. The buyer buys only the brand name. The brand name could be used

to sell anything which comes under the established brand personality. For example, the Burnol

brand name could be used to sell an antiseptic like Dettol. Buying a brand provides a ready-mademarket, Apparently, Ranbaxy bought Mox because its own brand in the same family, Amoxycillin

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was not doing too well. Buying a brand saves a lot of brand building time and cost. Drugcompanies are known to recoup the cost of acquiring a brand in less than four years.

13 Packaging

Earlier, packaging was considered a major expense in marketing. For some toiletries,packaging costs actually exceeded the costs of contents. Today, it is however, fully recognised thatpackaging helps in branding and promoting brand loyalty. It also enables the buyers to handle and

carry their products with case. Moreover, packaging may cut marketing costs thus adding to profit.

13.1 Qualities of Good Packaging1. Attractive appearance

2. Convenient for storage and display

3. Shield against damage or spoiling4. Product description shown on the package

13.2Functions of packaging especially for consumer goods

i. Protection and presentation are the basic functions of a packaging.ii. Modern marketing methods demand that, package be convenient to handle transport

requirements.

iii. A package must be made to consistent and rigid quality standards. The consumer demands

uniformity each time he purchases a product.

iv. Transport economies.

v. Every package must be recognisable and

vi. Every package must have eye appeal.

13.3 Importance and Requirements of Export PackingAppropriate packing facilitates safe and easy transport of the products, particularly in bulk.

Good packing will ensure that safety of the product and the package. If the goods are not properly

packed, it may cause a lot of problems. For example,while exporting the shipping company may

issue a claused bill of lading (like "goods not packed properly") which means that the shippingcompany will not be responsible for damages due to poor packing. Similarly, the insurance

company also will not bear the risk arising out of defective packing.

Packing to be satisfactory should satisfy the following conditions:i. It should be capable of withstanding the hazards of handling and transport. The cargo may

be handled manually and mechanically. The handling methods may differ between places.

When manually handled, it may be tilted, draped, thrown, pulled, pushed rolled etc. Further it

may also be subject to compression due to stacking. The packing should, therefore, becapable of withstanding such hazards of handling and transportation.

ii. It should be easy to handle. To facilitate easy handling, bulk packs may be provided with

handling facilities like hooks, handles, grippers etc. In case of products, which shall not beturned upside down, the position should be clearly indicated like marking `this side up.' In

case of fragile articles, which shall not be subject to rough handling, the size, shape and

weight of the pack should be amendable for smooth handling. Further, it should also beindicated on the pack (for example, `glass with care').

iii. It should be amendable to quick examination of contents. It may be remembered that the

customs authorities of the exporting and importing countries may want to examine thecontents.

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iv. It should be easy to identify.v. It should be adequately marked.

vi. Unless it is necessary, the contents shall not be disclosed(so as to discourage pilferage and

theft).vii. It should be easy to disposed of.

viii. Packing must conform to the buyer's specifications, if any, and the regulations in theexporting and importing countries, guidelines and regulations by the shipping company, etc.Care should be taken to observe the established packing and marking standards. The BIS

(formerly known as Indian Standards Institution) has prescribed packing standards for certain

goods. The British Standard packing Code, Published by the British Standards Institution and

Exporters' Encyclopedia, USA, give detailed packing instructions. Shipping companies alsogiven certain packing instructions especially for highly dangerous products.According to the

products he intends to export, the exporter has to choose the right type of packing l to send

the goods in good condition to the destination. A right package always guarantees the rightquality of the product at the time of delivery.

13.4 Labelling

Labelling is regarded as part of packaging because packaging decision making involves theconsideration of the labeling requirements. In international trade,many countries insist that labeling

should be done in the popular languages of the country. This should preferably be done even in the

absence of such a statutory requirement. Statutory obligations are important aspects of labeling.

Many countries have laid down labeling requirements in respect of a number of commodities.According to the regulations labelling of food items should disclose information about a number of

aspects like date of manufacturing, expiry date or optimum storage period for goods which do not

have an indefinite storage period, composition, storage conditions, necessary method of use, ifnecessary etc.

13.5 Role of Packaging

1. It helps increase sales

2. It adds to the use of a product3. It helps promote a product

4. It contributes to the safety of a product

5. It helps in storage6. It helps in product differentiation

13. 6 Packaging Decisions

a. Package DesignIt is not easy to design a package for various items. For example, all shaving creams come in tubes,

but different brands of shaving cream have different packaging. Because of the high cost of

packaging some companies have resorted to refill packs.

b. ColourColour is an important factor for determining customer acceptance or rejection of a product.The use of right colours in packaging may help marketers reap huge advantage. Packaging

colour should be attractive so that it may help promote sales.

c. Packaging the product Line

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A Company must decide whether to develop a family resemblance in the packaging of its

several products. Family packaging involves the use of identical packages for all products or

the use of packages with some common feature.

13. 7 SUMMARY OF KEY POINTSPackaging-

An Important Part of the Product convinces people to buy protects the contents when shipped and handled adds to the value describes features, advantages and benefits of using product contains Warranty Information cautions and warnings about contents and misuse

For more information mail your queries to shaangrila@gmail.com.

14. REFERENCE1 RAMANUJ MAJUMDAR, "Product Management in India", Prentice Hall of India (P) Ltd. New Delhi - 1.

2. EDGAR. A. PESSEMIER, "Product Management Strategy and Organization", John Wiley and Sons, Hamilton

Publication.

3. KOTLER,PHILIP,Marketing management,11 th edition,Prentice Hall of India(p) ltd,NewDelhi 2002

4 S.SHAJAHAN, New Product Strategy and Management -Text and Cases, , HimalayaPublishing House(P) ltd, Mumbai, 2002

5. S.SHAJAHAN, Relationship marketing -Text and Cases, Mc Graw- Hill, New Delhi,6. WILLIAM L. MOORE AND EDGAR A Pessemier, "Product Planning, Planning and Management", McGraw Hill,

INC, Publication.

7 PHILIP MARVIN, "Product Planning Simplified", American Management Association INC New York.8. CADY, JOHN F.L, BUZZELL AND RICHARD D., "Strategic Marketing", Boston, MA: Little, Brown &

Company, 1986

9. S.SHAJAHAN, Services Marketing - Text & Cases, 2nd

Edition, Himalaya PublishingHouse(P) LTD, Mumbai