Convenience goods

Non durable like fresh food

Services like salon/ theatre

impulsive Staple goods like coffee essentials

PRODUCT CLASSIFICATION

Emergency goods

Shopping goods

Specialty goods

Product and Service Classification System

• Consumer products• Durables• Non DurablesE.g. Fresh food• Services• E.g. Haircut, theatre• Convenience goods - little effort, relatively

inexpensive, purchased frequently.

• Impulsive (spur of movement)(e.g. Ice cream)• Staple goods (essentials) purchased regularly like

coffee, milk, shampoos• Emergency goods( infrequent and purchased at

short notice)• like caps during match, flags during election.• FMCG• Shopping goods – carry higher risk especially of

product failure)• e.g. white goods, furniture• Speciality goods - extensive search for niche

products• e.g. Jewellery, wedding clothes

• B2B/Industrial goods• Capital goods (machinery)• Accessories – • (smaller capital items like hand tools, lath)• Raw materials • (cotton, water/yeast for brewing)• Subassemblies/components/parts: already

manufactured but not finished goods. • E.g. Denim fabric, condensers for refrigerator,

microchips for nokia• Suppliers: minor items such as floppy, pens.

Branding

• A brand is designed to enable customers to identify products or services which promise specific benefits.

• 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.

Advantages• Advantages to buyers:

– Product identification– Product quality

• Advantages to sellers:– Basis for product’s quality story– Provides legal protection– Helps to segment markets– Price premium

•

Brand personality

(characteristics)

Brand Identity

Brand Image

logo

colors

The way brand looks

name

packaging

The way in which market perceives brand

e.g.cool

e.g. upmarket

Brand equity

The financial value of brand

Brand viewBrand personality : A brand can have same

traits as person like: fun (Disney)

sincerity (BATA) Sophistication (Sony),

Dependability (LIC) Safety(Volvo)

ruggedness (jeep/bullet) reliable (Nokia)

Cont……..

• Brand identity relates the brand to the world whereas brand image is audience perception for the brand.

• Brand equity is financial value of the brand.

NAMES AND LOGOS

• Brand name is very important and plays important role in distinguishing brand. It may communicate function like Good Knight, Boost, Fair and lovely, Aqua guard, walkman

• Sometimes acronyms are used as Madras rubber factory, Anand milk union ltd

• Along with names logos are used for symbolic identity. Flags, mascots, pictures etc

•

Brand typesCorporate umbrella brands

All products use corporate name

Cadbury, godrej, bajaj,sony, samsung

Family umbrella brands* Organisation uses different name for its products

HLL’s kissan, lakme, brooke bond or NDDB’s Amul and Dhara

Individual brands Each brand has its own brand name

HUL- lux, rin ,surf, hamam

Own label(private) Products bear the retailer’s name

Globus/ bigbazaar

* Family branding means same name for a particular product line

Branding strategies

• Co-branding: when two companies brand name appear together

• e.g. Intel inside, bankassurance• Multiple branding: when different products of

same company are introduced within same category

• e.g. surf/wheel closeup/ pepsodent

• Companies also introduces product with same brand name (if brand is strong) :

• Brand extension: using brand name on products in new category

• e.g. Dettol soaps, maggi ketchup• Line extension: using the brand name on

products within the same category• e.g. surf ultra Colgate gel, Colgate total

• Brand stretching: using name in different markets

• From music industry to airline etc

Competitive position

Services Marketing

• Services– Account for 70%of India gross domestic

product.– Service industries include business

organizations, government, and private not-for-profit organizations.

What is a Service?

• A form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.– Examples: banking, hotel, airline, retail, tax

preparation, home repairs, educational establishments, consultants, hairdresser, doctors, stockbrokers, trainers

The Product-Service Continuum

Sugar Restaurant College Education

Pure Tangible Good

Pure Service

Nature and Characteristics of a Service

Stages in PLC

PLC

• This model has its own set of supporters and opponents

• Like human beings product also go through various phases. the only difference is time at particular stage is not predictable and also unlike human beings is manageable

• At every stage product requires different marketing, production, financing etc , strategies.

PLCCharacteristics Introduction Growth Maturity Decline

Sales Low Rising Peak Declines

Profits Negative Rising High Decline

Customers Innovator Early adopters Middle majority

Laggards

Competitors Few Growing Stable Decline

Cost/customer High Average low Low

Marketing objective

Crete product awareness and trial

Maximize market share

Maximize profit/defend market share

Reduce expenditure/milk the brand

Product Basic Extensions/warranty

Modification Phase out

Product development

• It doesn’t means new invention always. In markets modification in products is very common by companies. Hence even change in color of package could be called as development.

• Why????• Defending market share• Appealing to different segment• To maintain leadership(apple)• Better use of resources• Vulnerable to changes in technology taste etc

Types of new product• Innovative• E.g. ipod• Replacement• E.g. DVD v/s CD,Alto V/s 800• Variant• E.g. Addition in range of co’s product. may be

temporary• Me-too product: Uses costly research done by others • Relaunched product: Basic product is same but total

product offering changes

Some examples

• IDAM( integrated design and manufacturing) team of mahindra , with more than 120 members from different departments,worked on testing, design manufacturing supplier development, marketing, to create a product for indian consumers with name scorpio

• Wafer chocolate BYTES from cadbury was idea of company’s driver.

Some examples

• National Innovation Foundation supported by Dept. of Science and Technology, GOI is nurturing and supporting grass –roots level innovations in India since 2000. Ideas are from consumers who face challenges in day to day life come up with innovative product. Some are motor-cycle driven sprayer, walking stick with light etc.

What are new products????

Stages in the new-product process

Forces fighting new idea

I have great idea

It wont work here

We ‘ve tried before

Isn’t right time

It cant be done

Its not the way we do things

We’ve done all without it

It will cost much

Let’s discuss at next meeting

Marketing information and methods used in the new-product process

Why do new products fail?

• One study estimated that as many as 80% of new• consumer packaged products failed.• Only about 40% of new consumer products are• around 5 years after introduction• WHY????????????????????????• Overestimated market• Poor design• Incorrect positioning• Error in pricing• Poor marketing• Cost overrun• Competition