Product management is an important organizational role that typically involves analyzing market conditions, laying out a product vision, and providing cross-functional leadership between different departments like engineering, sales, and marketing. The role spans both strategic and tactical activities. At its best, product management bridges gaps within a company to deliver unique customer value based on demands.

1. Product Management
Product management is an important organizational role. Product managers are
typically found at companies that are building products or technology for customer
or internal use.
This role evolved from the brand manager position that is often found at
consumer packed goods companies.
The product manager often analyzes market and competitive conditions and lays out
a product vision that is differentiated and delivers unique value based on customer
demands.
The role of product management spans activities from strategic to tactical.
At its best, product management provides cross-functional leadership — bridging
gaps within the company between different functions, most notably between
engineering-oriented teams, sales and marketing, and support.

2. INTRODUCTION
The marketing mix, which is the means by which an organisation reaches its target
market, is made up of product, pricing, distribution, promotion and people decisions.
These are usually shortened tothe an acronym "5P's".
Product decisions revolve around decisions regarding the physical product
(size,style, specification, etc.) and product line management.
DEFINITION
A product can be defined as a collection of physical, service and symbolic attributes
which yield satisfaction or benefits to a user or buyer.
A product is a combination of physical attributes say, size and shape; and
subjective attributes say image or "quality".
A customer purchases on both dimensions
According to Jobber(2004), “ A product is anything that has the ability to satisfy a
consumer need.” ” A product is anything, favourable and unfavourable that is

3. We define a product as anything that can be offered to a market for attention, acquisition, use,
or consumption that might satisfy a want or need. Products include more than just tangible
objects, such as
cars, computers, or cell phones.
Broadly defined, “products” also include
•services,
•events,
•persons,
•places,
•organizations,
•ideas, or a mixture of these.
Services are 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
include banking, hotel services, airline travel, retail, wireless communication, and home repair
services.

4. Product Classification
 Consumer-Goods Classification
Classified on the basis of shopping habits
 Durability and Tangibility
Industrial-Goods Classification
Classified in terms of their relative cost and how they enter the production process.
CONSUMER PRODUCT:- “Product bought by final consumer for personal
consumption”.Consumer products divided into four classes.
Convenience product
Shopping Product
Specially Products
Unsought Product

5. Convenience Goods
•Inexpensive, frequently purchased.
•Little effort needed to purchase them.
•Staples, Impulse and emergency goods.

6. Shopping Goods:-Consumer good that the consumer, in the process of selection and
purchase , characteristically compares as such bases as suitability, quality, price, and style.
Example: Furniture , clothing, used cars, major appliances and hotel and motel services.
•Not as frequently as convenience products
•Costly
•Consumer does research before purchase.

7. Specialty Products:-Consumer product with unique characteristics or brand identification
for which a significant group of buyers is willing to make a special purchase effort.
e.g. Specific brands and types of cars, high-priced photographic equipment, designer clothes
etc.

8. Unsought Products:-Unsought products are consumer products that the consumer either
does not knows about or knows about but does not normally think of buying. Most major
new inventions are unsought until the consumer become aware of them through
advertising.
E.g. Life Insurance and blood donations to the Red Cross.
INDUSTRIAL GOODS :It is meant for use in the production of other goods or for
some business or institutional purposes. Industrial goods are classified into four-
production facilities and equipments, production materials, production supplies and
management materials.

9. There are three classes of industrial products
•Material and parts
•Capital items
•Supplies and services
Materials and parts : These include products which are used in the production
process as inputs.
Examples: raw materials and purchased inputs
Capital items: these products are not consumed in the production process but are
used repeatedly in the production process
Examples: machinery and buildings
Supplies and services: supplies are those items which are not directly used in the
production process but which are still required if the production has to take place
such as
Lubricating oil and brooms to clean the factory floor

10. Product and Service Decisions
Marketers make product and service decisions at three levels:
individual product decisions,
product line decisions,
and product mix decisions. We discuss each in turn.
Individual Product and Service Decisions
the important decisions in the development and marketing of individual products and
services. We will focus on decisions about product attributes, branding, packaging,
labeling, and product support services.
Product attributes Branding Packaging Labeling Product
supportServices
Product and Service Attributes
Developing a product or service involves defining the benefits that it will offer. These
benefits are communicated and delivered by product attributes such as quality, features, and
style and design.

11. Branding
Perhaps the most distinctive skill of professional marketers is their ability to build and
manage brands.
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.
Consumers view a brand as an important part of a product,
and branding can add value to a product.
Customers attach meanings to brands and develop brand relationships.
Brands have meaning well beyond a product’s physical attributes.
For example, consider Coca-Cola

12. Packaging
•Packaging involves designing and producing the container or wrapper for a product.
•Traditionally, the primary function of the package was to hold and protect the product.
•In recent times, however, numerous factors have made packaging an important marketing
tool as well.
•Increased competition and clutter on retail store shelves means that packages must now
perform many sales tasks—from attracting attention, to describing the product, to making the
sale.
Poorly designed packages can cause headaches for consumers and lost sales for the
company. Think about all those hard-to-open packages, such as
DVD cases sealed with impossibly sticky labels, packaging with finger-splitting wire twist-
ties, or sealed plastic clamshell containers that take the equivalent of the fire department’s
Jaws of Life to open.

13. Labeling
Labels range from simple tags attached to products to complex graphics that are part of the
packaging. They perform several functions. At the very least, the label identifies the product
or brand, such as the name Sunkist stamped on oranges. The label might also describe
several things about the product—
•who made it,
•where it was made,
•when it was made,
• its contents,
• how it is to be used,
• and how to use it safely.
Finally, the label might help to promote the brand, support its positioning, and connect with
customers.
For many companies ,labels have become an important element in broader marketing
campaigns.

14. Product mix decision and product line decision:
Product mix and product line are two expressions used in connection with the range and
variety of the products of a firm
Product mix product mix ,which is the larger entity denotes the complete set of all products
offered for sale by a company
Product line a group of closely related products constitute a product line the product mix of
a company is composed of all the product lines , it carries
Width of product mix the width of the product mix denotes the number of product lines it
carries
Length of product line length of a product line is decided by the number of products /
brands in the line
depth of product line depth of a product line denotes the total number of items under each
brand in the line , in terms of variants , shades , models , pack sizes.

15. HUL Product mix and product lines
Product mix width
Product
line
length
1. Dove
2. Liril
3. Le sancy
4. Pears
5. Rexona
6. Life buoy
7. Hamam
8. Breeze
9. Jai
10. moti
1. Surf
2. Rin
3. Wheel
4. Sunlight
5. Ala
6. 501
1. Bru
2. Brook bond red label
3. Lipton
4. Green label
5. Taaza
6. Deepam
7. Taj mahal
8. Super dust
9. Ruby dust
10. A1
Product line -
1
Bath soaps
Product line -
3
beverages
Product line -2
fabric wash
Product line -
4,line-5
etc

16. Product line depth- LUX
LUX
PINK
BLAC
K
WHIT
E
25 gm
50 gm
75 gm
75 gm
50gm
25 gm
25 gm
75 gm
50 gm

17. Decisions which are involved in the product line
Product line a group of closely related products constitute a product line the product mix of
a company is composed of all the product lines , it carries
1.Line stretching
Down ward stretch
Upward stretch
2. Line filling
Reasons filling
3. Line modernization
Line featuring
4.Product elimination
1.Line stretching(enlarge ,extend): line stretching consist in going beyond the current range
of products .
Downward stretch: many companies start with high end products , but later stretch
downwards by adding low priced products .
The down end products are advertised heavily so as to pull customers to the whole line the

18. Up ward stretch : here a company operates in the lower end of the market. By upward stretch
it proposes to enter the higher end
Examples: Life buoy bath soap stretched to lifebuoy gold
Line filling : with in the present range more product items can be added.
Reasons filling
To reach for incremental profits
To satisfy dealers
To utilize excess capacity
To offer a full line product
Example: cinthol in different variants like old cinthol , cinthol lime cinthol international

19. Line modernization
Modification and modernization of existing product line is another key concern of the product
manager.
Product elimination: in many organization weak products are allowed to continued in the
product line simply because of emotional reasons.

20. The process involved in creating a unique name and image for a product in the
consumers' mind, mainly through advertising campaigns with a consistent theme.
Branding aims to establish a significant and differentiated presence in the market that attracts
and retains loyal customers.
Definition of brand
A brand is defined as a name , term , sign , symbol, or special design or some combination of
these elements of that is intended to identify the goods or services of one seller of group
sellers.
American marketing association chicago
Brand Equity
“Brand equity” refers to the value of a brand. Brand equity is based on the extent to which
the brand has high brand loyalty, name awareness, perceived quality and strong product
associations.
Brand equity also includes other “intangible” assets such as patents, trademarks and
channel relationships.

21. Brand image
“Brand image” refers to the set of beliefs that customers hold about a particular brand. These
are important to develop well since a negative brand image can be very difficult to shake off.
Brand extension
“Brand extension” refers to the use of a successful brand name to launch a new or modified
product in a new market.

22. Branding gives the seller several advantages
•Seller’s brand name and trademark provide legal protection of unique product features
•Branding gives the seller the opportunity to attract a loyal and profitable set of customers.
•Branding helps the seller segment markets.
•Strong brands help build corporate image, making it easier to launch new brands and gain
acceptance by distributors and consumers.
BenefitsofBrandingtoABUYER
•Help buyers to identify the product that they like/dislike.
•Identify marketer
•Helps to reduce the time needed for purchase.
•Helps buyers to evaluate quality of products especially if unable to judge a products
characteristics.
•Helps to reduce buyers perceived risk of purchase.
•Buyer may derive a psychological reward from owning the brand, IE Rolex or Mercedes.

23. An Effective Brand Name or characteristics
● Is easy to pronounce
● Is easy to recognize and remember
● Is short, distinctive, and unique
● Has a positive connotation
● Reinforces the product image
● Is legally protectable
Different components of brand:
• Brand names
• Urls uniform resource locators
• Logos and symbols
• Characters
• Slogans
Examples: apple : think different
Timex : takes a licking and keeps on ticking
• Jingles : jingles are musical messages written around the brand.
• packaging

24. Types Of Brand
Brand can be classified in different types on different basis such as
1. on the basis of ownership,
2. on the basis of market area and
3. on the basis of number of product.
1. Types of brand on the basis of ownership
On the basis of ownership, brand can be divided in two as follows:
a. Manufacturer's brand
If the manufacturing firm itself gives brand name to its products, it is called manufacturer's
brand. Ownership of such brand lies with manufacturer.
b. Middleman's brand
Some producers sell their products to middlemen, wholesalers and retailers without branding.
Wholesalers or retailers sell such products giving seal of own brand name. This is called
middleman's brand.

25. 2.Types of brand on the basis of market area
On the basis of market area, brand can be divided as follows:
a. Local brand
If supply of product is limited to local level, and the brand is only in local area, such brand is
called local brand. This type of brand is used for the products sold or supplied to limited area.
Such type of brand is also called regional brand.
b. National brand
The products which are sold or supplied to all over the nation with only one named seal, this
is called national brand.
Store brand: they are those brands in which other companies give products to renowned
company in order to sell them out in a profit way also called as private brand or distributor
brand
Example: appollo hospital have their own appollo brand medicines they are less costly

26. Licensing brand: here the name characters are used as the brand by some of the company in
order to attract the customers ( specially kids)
Ex: superman ,barbie doll , spiderman’s toys t-shirts. For this the company has to pay
the royalties
Co branding : this is the joining of the two brands together
Ex: hero Honda ,Maruti Suzuki
Branding strategy decisions
A company has five choices when it comes to brand strategy
•Product Line extensions
•Brand extension
•Multiple brands
•New brands
•Company brands
•Reposition (change the position , putting some thing in new place)

27. Product Line extension: product Line extension occur when a company introduces
additional items in the same product category under the same brand name usually with new
features
Examples: juices -flavors , forms ,colors , added ingredients ,package sizes.Existing
products and existing brands
Brand extension : a company may decide to use an existing brand name to launch a product
in a new category.
Example : honda uses its company name to cover its different products viz., automobiles ,
motor cycles ,marine engine
Santoor: soap, body lotion ,powder, face wash
Maggi: noodles , tomato ketchups , soups , maggi masala

28. Multiple brands : a company will often introduce additional brands in the same product
category .
Example : HUL produces at least nine different brands of bath soaps
P&G Shampoo : Pantene , head & shoulders ,aussie
New brands : for new products , when current brands are not suitable
Examples : Timex will not suit to tooth brush
Aquafina mineral water from Pepsi company
Company brands : bearing two or more well known brand names also called dual branding
Example : TATA BP (BRITISH PETROLEUM)

29. PACKAGING AND LABELLING
Packaging and Labeling are among the most important areas in product management.
Packing means putting article into small packets, boxes or bottles for sale to ultimate
consumers or for transport.
Labeling is defined as a slip or tag attached with the product or with its package which
provides necessary information about the product and its producer.
Packaging materials include metal , plastic , wood , paper ,glass , laminates and polyester.
Functions of packaging
1. Protection
2. Differentiation/ positioning
3. Promotion‘
4. Packaging for convenience

30. Requirements of good packing
1. Package design
2. Packaging material
3. Placement of label
4. Convince of usage
5. Guarantee of economy
6. Assurance of adjustability
7. Package should be pollution less
Advantages of packaging
1. Protection during transportation and storage
2. Identification of products and quality
3. Packaging is an advertisement at the point of sales
4. Carrying the messaes from the marketer to the consumer
5. Package serves as a silent sales man in consumer products
6. Attract the consumers
7. It increases the sales & profit

31. KINDS OF LABELS
There are four kinds of labels:
1) Brand Label: It gives the brand name or mark. For example, Britannia Biscuits, Vicks
Vaporub etc.
2) Grade Label: It gives grade or quality of the product by a number, letter or words. For
example, Agrade, B grade or 1and 2 category based on quality.
3) Descriptive Label: It gives details of product, its functions, price, warnings etc.
4) Information Label: It provides maximum information about the product. It contains fuller
instructions on the use and care of the product.

34. NEW PRODUCT DEVELOPMENT
Developing a new product shouldn’t feel like you’re fighting in the dark. There’s an easier
way.
What you need is a structured road-map that gives your business a clear path to follow.
Actually developing the tangible product or service is only a small part of the new product
development process, which includes the complete journey from generating the initial idea to
bringing the product to market.
New Product Development proceeds in the following stages OR
Process.
1. Idea generation
2. Idea screening
3. Concept testing and development
4. Product development
5. Test marketing
6. Marketing strategy development
7. Business analysis
8. Test marketing methods
9. Commercilisation

36. The product life cycle is an important concept in marketing. It describes the stages a product
goes through from when it was first thought of until it finally is removed from the market. Not
all products reach this final stage. Some continue to grow and others rise and fall.
According to phillip kotler the product life cycle is an attempt to recognise distinct stage in
the sales history of the product
According to william j. stantonThe life cycle of product has many points of similarity with
the human life cycle the product is born , grows , attains dynamic maturity then enters its
declining year.
Stages of product life cycle
1. Market introduction stage
2. Growth stage
3. Maturity stage
4. Decline stage

38. 1. Product development Product development begins when the company finds and
develops a new-product idea. During product development, sales are zero, and the
company’s investment costs mount.
2. Introduction Stage – This stage of the cycle could be the most expensive for a company
launching a new product. The size of the market for the product is small, which means sales
are low, although they will be increasing. On the other hand, the cost of things like research
and development, consumer testing, and the marketing needed to launch the product can be
very high, especially if it’s a competitive sector.
3. Growth Stage – The growth stage is typically characterized by a strong growth in sales
and profits, and because the company can start to benefit from economies of scale in
production, the profit margins, as well as the overall amount of profit, will increase. This
makes it possible for businesses to invest more money in the promotional activity to
maximize the potential of this growth stage.
4. Maturity is a period of slowdown in sales growth because the product has achieved

39. Maturity Stage – During the maturity stage, the product is established and the aim for the
manufacturer is now to maintain the market share they have built up. This is probably the
most competitive time for most products and businesses need to invest wisely in any
marketing they undertake. They also need to consider any product modifications or
improvements to the production process which might give them a competitive advantage.
Decline Stage – Eventually, the market for a product will start to shrink, and this is what’s
known as the decline stage. This shrinkage could be due to the market becoming saturated
(i.e. all the customers who will buy the product have already purchased it), or because the
consumers are switching to a different type of product. While this decline may be inevitable,
it may still be possible for companies to make some profit by switching to less-expensive
production methods and cheaper markets.

40. Product Life Cycle Examples
Introduction – 3D TVs
Growth – Blueray discs/DVR
Maturity – DVD
Decline – Video cassette

41. Introduction Growth Maturity Decline
Characteristics
Sales Low sales Rapidly rising
sales
sales Peak Declining sales
Costs High cost per
customer
Average cost
per customer
Low cost per
customer
Low cost per
customer
Profits Negative Rising profits High profits Declining
profits
Customers Innovators Early adopters Middle
majority
Laggards
Competitors Few Growing
number
Stable
number
beginning to
decline
Declining
number

42. PRICING
•Setting the right price is an important part of effective marketing .
•It is the only part of the marketing mix that generates revenue (product, promotion and place
are all about marketing costs).
•Price is also the marketing variable that can be changed most quickly, perhaps in response to
a competitor price change.
What is a price?
In the narrowest sense, price is the amount of money charged for a product or a service.
More broadly, price is the sum of all the values that customers give up to gain the benefits of
having or using a product or service.
The price of a product may be seen as a financial expression of the value of that product.
For a consumer, price is the monetary expression of the value to be enjoyed/benefits of
purchasing a product, as compared with other available items.
The concept of value can therefore be expressed as:
(perceived) VALUE = (perceived) BENEFITS – (perceived) COSTS

43. A customer’s motivation to purchase a product comes firstly from a need and a want:e.g.
• Need: "I need to eat
• Want: I would like to go out for a meal tonight")
The second motivation comes from a perception of the value of a product in satisfying
that need/want (e.g. "I really fancy a McDonalds").
TYPES OF PRICING POLICIES
There are many ways to price a product.
Let's have a look at some of them and try to understand the best policy/strategy in
various situations.

44. Cost Based Pricing Policies: Setting price on the basis of the total cost per unit.There are
four methods as follows:
1. Cost Plus Pricing- cost plus a percentage of profit
2. Target Pricing- cost plus a pre determined target rate of return
3. Marginal Cost Pricing- fixed plus variable costs
4. Break-Even Pricing- at break-even point i.e, where total sales=total cost{no profit,no loss
point}
Demand Based Pricing Policies: Setting price on the basis of the demand for the product.
There
are two methods as follows:
1. Premium Pricing-Use a high price where there is a uniqueness about the product or
service. This approach is used where a substantial competitive advantage exists. Such high
prices are charged for
2. Differential Pricing-Same product is sold at different prices to different consumers.

45. Competition Based Pricing Policies: Setting price on the basis of the competition for the
product. There are three methods as follows:
1. Going Rate Pricing-Many businesses feel that lowering prices to be more competitive can
be disastrous for them (and often very true!) and so instead, they settle for a price that is close
to their competitors.
2. Customary Pricing- Prices for certain commodities get fixed because they have prevailed
over a long period of time.
3. Sealed Bid Pricing-Firms have to quote less price than that of competitors. Tenders ,
winning contracts etc.

46. Value Based Pricing Policies: It is based on value to the customer. The following are the
pricing method based on customer value.
Cost based pricing
Value based pricing
1. Perceived- Value Pricing: This is the method of judging demand on the basis of value
perceived by the consumer in the product. This method is concerned with setting the price on
the basis of value perceived by the buyer of the product rather than the seller’s cost.
2. Value Of Money Pricing: Price is based on the value which the consumers get from the
product they buy. It is used as a competitive marketing strategy.
product customersvalue
customers
pricecost
value price cost product

47. SKIMMING PRICING:
This is done with the basis idea of gaining a premium from those buyers who always ready to
pay a much higher price than others. It refers to the high initial price charged when a new
product is introduced in the market. For example, mobile phones which when introduced were
highly priced.
PENETRATION PRICING:
The price charged for products and services is set artificially low in order to gain market
share. Once this is achieved, the price is increased. This approach was used by France
Telecom and Sky TV.
Competitive pricing:
The producer of a new product may decide to fix the price at competitive level. This is used
when market is highly competitive and the product is not differentiated significantly from the
competitive products.

48. Pricing strategies
PREDATORY PRICING:
When a firm sets a very low price for one or more of its products with the intention of driving
its competitors out of business.
ECONOMY PRICING:
This is a no frills low price. The cost of marketing and manufacture are kept at a minimum.
Supermarkets often have economy brands for soups, spaghetti, etc.
Price Skimming.
Charge a high price because you have a substantial competitive advantage. However, the
advantage is not sustainable. The high price tends to attract new competitors into the market,
and the price inevitably falls due to increased supply. Manufacturers of digital watches used a
skimming approach in the 1970s.
Psychological Pricing.
This approach is used when the marketer wants the consumer to respond on an emotional,
rather than rational basis. For example 'price point perspective' 99 cents not one dollar.

49. PRODUCT LINE PRICING.
Where there is a range of product or services the pricing reflect the benefits of parts of the
range. For example car washes. Basic wash could be $2, wash and wax $4, and the whole
package $6.
Optional Product Pricing.
Companies will attempt to increase the amount customer spend once they start to buy.
Optional 'extras‘ increase the overall price of the product or service. For example airlines will
charge for optional extras such as guaranteeing a window seat or reserving a row of seats next
to each other.
CAPTIVE PRODUCT PRICING
Where products have complements, companies will charge a premium price where the
consumer is captured.
For example a razor manufacturer will charge a low price and recoup its margin (and more)
from the sale of the only design of blades which fit the razor.
Good night liquid

50. Product Bundle Pricing.
Here sellers combine several products in the same package. This also serves to move old
stock. Videos and CDs are often sold using the bundle approach.
PROMOTIONAL PRICING.
Pricing to promote a product is a very common application. There are many examples of
promotional pricing including approaches such as
BOGOF (Buy One Get One Free).
Geographical Pricing.
Geographical pricing is evident where there are variations in price in different parts of the
world.
For example rarity value, or where shipping costs increase price.
Value Pricing.
This approach is used where external factors such as recession or increased competition force
companies to provide 'value' products and services to retain sales e.g. value meals at
McDonalds.

51. FACTORS INFLUENCING PRICING POLICIES
The factors that businesses must consider in determining pricing policy can be summarized in
four categories:
(1) Costs
In order to make a profit, a business should ensure that its products are priced above their total
average cost.
In the short-term, it may be acceptable to price below total cost if this price exceeds
the marginal cost of production – so that the sale still produces a positive contribution to fixed
costs.
(2) Competitors
If the business is a monopolist, then it can set any price. At the other extreme, if a firm
operates under conditions of perfect competition, it has no choice and must accept the market
price.
The reality is usually somewhere in between. In such cases the chosen price needs
to be very carefully considered relative to those of close competitors.

52. (3) Customers
Consideration of customer expectations about price must be addressed. Ideally, a business
should attempt to quantify its demand curve to estimate what volume of sales will be achieved
at given prices
(4) Business Objectives
Possible pricing objectives include:
• To maximize profits
• To achieve a target return on investment
• To achieve a target sales figure
• To achieve a target market share
• To match the competition, rather than lead the market

53. STRATEGIES FOR NEW AND ESTABLISHED PRODUCTS
Product pricing strategies frequently depend on the stage a product or service is in its life
cycle; that is, new products often require different pricing strategies than established products
or mature products
NEW PRODUCT PRICING STRATEGY.
•Entrants often rely on pricing strategies that allow them to capture market share quickly.
When there are several competitors in a market, entrants usually use lower pricing to change
consumer spending habits and acquire market share.
•To appeal to customers effectively, entrants generally implement a simple or transparent
pricing structure, which enables customers to compare prices easily and understand that the
entrants have lower prices than established incumbent companies.