1. UNIT II
MARKETING
MANAGEMENT
BY
IBADAT SINGH SETHI
HARVINDER SINGH
SAHIL SHARMA

2. PRODUCT
A product is anything that can be offered to a market to satisfy a want
or need
Physical goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information
Ideas

3. CUSTOMER VALUE HIERARCY

4. A product can also be defined as the end result of
the manufacturing process, to be offered to the marketplace
to satisfy a need or want.

5. CHARACTERISTICS OF
PRODUCTS
 Tangible in nature.
 Products have a physical evidence
 Products are something that are manufactured for its marketing
and selling purposes.
 Products can be physically shifted from one place to another
place i.e. a product is something that a customer can buy and
take with him.

6. CLASSIFICATION OF
PRODUCTS
PRODUCT
CONSUMER
PRODUCT
INDUSTRIAL
PRODUCT

7. CONSUMER
GOODS
CONVENIENCE
PRODUCT
SHOPPING
PRODUCT
SPECIALTY
PRODUCT

8. INDUSTRIAL
GOODS
MATERIAL AND
PARTS
CAPITAL
ITEMS
SUPPLIERS
AND SERVICES

9. PRODUCT
DIFFERENTIATION
FORM

10. PRODUCT DIFFERENTIATION
FEATURES
CUSTOMIZATION

11. PRODUCT DIFFERENTIATION
CONFORMANCE QUALITY
DURABILITY

12. PRODUCT DIFFERENTIATION
RELAIBILTY
REPAIRABILITY
STYLE

13. SERVICE DIFFERENTIATION
ORDERING EASE
DELIVERY
INSTALLATION
CUSTOMER TRAINING
CUSTOMER CONSULTING
MAINTAINANCE & REPAIR
RETURNS
SERVICE DIFFERENTIATION

14. PRODUCT MIX
Product mix is defined as the total composite offered by a particular
organization.
The product mix includes four elements
Width,
Length,
Depth,
Consistency

15. Width: The Width of the assortment refers to how many product
lines the company markets i.e. the number of product line the
company carries
Length: The Length signifies how many products a given line
includes i.e. the total number of items the company carries within
its product line.
Depth: The term Depth touches on how many versions of a given
product line offers.
Consistency: Finally, Consistency denotes the uniformity relative
to how products are used by consumers, or by how they are
produced or distributed.

16. E.G. HINDUSTAN UNILEVER LTD. (HUL).
Product Mix Width:
Deo, Personal Wash, Laundry, Skin Care, Hair Care, Oral Care, Colour Cosmetics,
Coffee, Foods.
Product line length:
Deo: Axe, Rexona
Personal wash: Lux, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears, Rexona
Laundry: Surf Excel, Rim, Wheel
Skin care: Fair & Lovely, Ponds
Hair care: Sun Silk, Clinic
Oral care: Pepsodent
Colours cosmetic: Lakme
Coffee: Bru
Food: Kissan, Annpurna, Knors

17. PRODUCT LINE ANALYSIS
SALES & PROFITS
Core products
Staples
Specialties
Convenience items
MARKET EVOLUTION

18. PRODUCT LINE LENGHT
LINE STRETCHING
 Down-Market Stretch
 Up-Market Stretch
 Two-Way Stretch

19. PRODUCT LINE LENGHT
LINE FILLING
LINE MODERNISATION, FEATURING & PRUNING

20. PRODUCT LINE ANALYSIS
Product line analysis applies established modeling
techniques to engineer the requirements for a product line
for software intensive system.

21. PRODUCT LINE LENGTH
Product line length may be defined as the number or
variety of different products in a product line.
The length of a product line can be extended. Product line
extension is a favorite method used by many manufacturers
as a means of deepening brand loyalty and increasing
revenue.

22. Product line extensions BMW 3 Series
through 7 Series automobiles, with each
series appealing to different types of clients.
Product line extensions may also be
horizontal in which a product‟s attributes,
and not cost differentiators, changes the
variety – such as Coke, Diet Coke, Cherry
Coke, and Caffeine-free Coke .

23. PRODUCT LINE FILLING
A business strategy that involves
increasing the number of products in an
existing product line to take advantage of
market place gaps and reduce competition.
Many businesses use line filling to round
out an already well established product line
and to help increase the market success of
new related products.

24. PACKAGING

26. NEED FOR PACKAGING
1. Self-Service
2. Consumer affluence
3. Company and brand image
4. Innovation opportunity

27. IMPORTANCE OF PACKAGING
1. To protect a product from damage or contamination by
micro-organisms and air, moisture and toxins.
2. To keep the product together, to contain it (i.e. So that
it does not spill).
3. To identify the product.
4. Protection during Transport and Ease of Transport.
5. Stacking and Storage.
6. Printed Information.

28. LABELING

29. The label may be a
simple tag attached to
the product or an
elaborately designed
graphic that is part of the
package. It might carry
only the brand name, or a
great deal of information.
Even if the seller prefers
a simple label, the law
may require more.

30. IMPORTANCE OF LABELING
 Identifies the product or brand
 Grade the product according to its quality
 Describe the product
 Promote the product through attractive graphics.

31. KEY CHARACTERISTICS OF GOOD PRODUCT
LABELING
 Provide basic information
 Details of the contents or ingredients
 Warnings and contra indication
 Instructions for use
 Visible & easy to read

32. HHA
NEW PRODUCT DEVELOPMENT

33. NEW
PRODUCT………………………?
A new product is one which is really innovative, which is
significantly different from existing and imitative products
that are new to the company.
There are two ways to make new product viz.
a) modify the existing product.
b) formation of entire new product.

34. EXAMPLES…………………………
…………..
New product -modified existing
Maruti Suzuki Swift(diesel)
New product-entire new formation
LML Freedom(bike)

35. 8 STAGES ARE THERE
Idea generation
Idea screening
Concept development and testing
Marketing strategy development
Business Analysis
Product development
Market testing
Commercialization

36. STAGE: 1

37. HOW TO GENERATE
IDEA………?
1.Interacting with others

38. STAGE 1 ……CONTD.
2. Creativity generation
a) Attribute listing
b) Forced relationships
c) Morphological analysis
d) Reverse assumptions
analysis
e) New contexts
f) Mind mapping

39. 2. IDEA SCREENING
Must avoid two errors
1.Drop error-the idea is good but we reject it.

40. SCREENING………CONTD.
2. Go error-when company permits a poor idea

41. 3.CONCEPT DEVELOPMENT &
TESTING
Concept is devised on three basic questions:
1. Who will use the product?
2. What primary benefit should this product
provide?
3. When will the people consume this product?
Example,a nutritive powder to add to milk…..

42. CONSUMERS DON’T BUY
PRODUCT IDEAS, THEY BUY
PRODUCT CONCEPTS
Concept 1: An instant breakfast drink for adults who want a
quick nutritious breakfast without preparation.
C-2: A tasty snack for children to drink as a midday
refreshment.
C-3: A health supplement for older adult to drink in the late
evenings before going to bed.

43. CONCEPT TESTING
Means presenting the product concept, symbolically or
physically to target consumers.
Type of information collected :
1. Communicability and believability.
2. Need level & Gap level
3. Perceived value & purchase intention.
4. User targets, purchase occasions & purchasing
frequency.

44. 4. MARKETING STRATEGY
DEVELOPMENT
It‟s a three part strategy…..
Ist part : target market, size & structure, market share and
behavior.
2nd part : price & distribution strategy and marketing budget
for first year.
3rd part : long run or futuristic marketing-mix strategy .

45. 5. BUSINESS ANALYSIS
Sales, costs and profit projections are prepared to determine
whether they satisfy company objectives.

46. 6.PRODUCT DEVELOPMENT
Consists of two sub stages:
1. Physical prototypes
2. Consumer tests
a) Alpha testing-within the firm
b) Beta testing-outside the firm

47. 7.MARKETING TESTING
The product is ready to be dressed up with a brand name and
packaging and put into market .
Small quantity of product is introduced in market to know the
performance of product.

48. 8. COMMERCIALIZATION
Four words to keep in mind while commercialization viz.
1. When(timing)
2. Where(geographic strategy)
3. To whom(target market)
4. How(introductory market strategy)

49. CHALLENGES TO NEW
PRODUCT DEVELOPMENT
 Globalization
 Time
 Market potential
 Technological change
 Distribution
 New features
 Critical unmet needs
 Market size
 Price
 Promotion
 Resistance to change
 Government policies

50. CHALLENGES TO NEW PRODUCT
DEVELOPMENT
GLOBAL COMPETITION
MAHINDRA &
MAHINDRA

51. CHALLENGES TO NEW
PRODUCT DEVELOPMENT
TIME
ZARA

52. CHALLENGES TO NEW
PRODUCT DEVELOPMENT
MARKET POTENTIAL
FACEBOOK AND INSTRAGRAM

53. CHALLENGES TO NEW
PRODUCT DEVELOPMENT
TECHNOLOGICAL CHANGE
APPLE

54. CHALLENGES TO NEW
PRODUCT DEVELOPMENT
DISTRIBUTION
STARBUCKS

55. CHALLENGES TO NEW
PRODUCT DEVELOPMENT
NEW FEATURES
GOOGLE

56. CHALLENGES TO NEW
PRODUCT DEVELOPMENT
CRITICAL UNMET NEEDS
EMAMI
FAIR & HANDSOME

57. CHALLENGES TO NEW
PRODUCT DEVELOPMENT
MARKET SIZE
SEGWAY

58. CHALLENGES TO NEW
PRODUCT DEVELOPMENT
PRICE
MICROMAX CANVAS

59. CHALLENGES TO NEW
PRODUCT DEVELOPMENT
PROMOTION
RAONE

60. CHALLENGES TO NEW
PRODUCT DEVELOPMENT
RESISTANCE TO CHANGE
COCA-COLA

61. CHALLENGES TO NEW
PRODUCT DEVELOPMENT
Government Policies
New drug

62. CONSUMER ADAPTATION
PROCESS
OR
INNOVATION DIFFUSION
PROCESS

63. ADOPTION??????
Adoption is an individual’s decision to become a regular
user of a product.
Consumer adoption process was first described by Bourne
(1959).
It describes the behavior of consumers as they purchase
new products and services.

64. ACCORDING TO EVERETT
ROGERS:
INNOVATION DIFFUSION
PROCESS IS DEFINED AS,
“SPREAD OF A NEW IDEA FROM
ITS SOURCE OF CREATION TO ITS
ULTIMATE USERS”

65. STAGES IN
CONSUMER
ADOPTION
PROCESS

66. ADOPTION PROCESS
ADOPTION
TRIAL
EVALUATION
INTEREST
AWARENWSS
No way!
If I have
to buy it
I will.
OK, we will
buy X.

67. THE CONSUMER BECOMES AWARE OF THE INNOVATION BUT
LACKS INFORMATION ABOUT IT.
THIS IS THE AREA WHERE MAJOR MARKETERS SPEND
BILLIONS OF DOLLARS.
AWARENESS

68. (1) THE CONSUMER IS STIMULATED TO SEEK INFORMATION
ABOUT THE INNOVATION.
(2) MARKETERS TRY TO ATTRACT CUSTOMERS BY ADDING
EMOTIONAL FACTORS WITH THE ADS.
(3) HOWEVER, IF THE CONSUMER DOES NOT PERCEIVE
THAT THE PRODUCT WILL SATISFY EXISTING WANTS OR
NEEDS, HE OR SHE IS NOT LIKELY TO MOVE TO THE NEXT
STAGE IN THE ADOPTION PROCESS.
INTEREST

69. EVALUATION
•CONSUMER CONSIDERS WHETHER TO TRY THE
INNOVATION.

70. TRIAL
• CONSUMER TRIES THE INNOVATION TO IMPROVE ESTIMATE
OF PRODUCT VALUE.
• COMPANIES SELL PRODUCTS IN THE FORM OF SAMPLES TO
ATTRACT CUSTOMERS.
•FMCG

71. THE CONSUMER DECIDES TO MAKE FULL AND REGULAR USE
OF THE INNOVATION.
AT ANY POINT, THEY MAY BECOME DISSATISFIED WITH THE
PRODUCT AND DISCONTINUE ITS USE.
ADOPTION

72. READINESS TO BUY PRODUCTS
IT IS THE DEGREE TO WHICH AN INDIVIDUAL IS
RELATIVELY EARLIER IN ADOPTION OF NEW IDEAS.
CLOTHING FASHION

73. ADOPTER GROUPS

75. PERSONAL INFLUENCE
• EFFECT ONE PERSON HAS ON ANOTHER’S ATTITUDE.
• IT HAS HIGH INFLUENCE ON LATE ADOPTERS THAN
EARLY ADOPTERS.

76. CHARACTERISTICS OF THE
INNOVATION
 RELATIVE ADVANTAGE
 COMPATIBILITY
 COMPLEXITY
 DIVISIBILITY
 COMMUNICABILITY

78. BRAND
“A name, term, sign, symbol, or
design, or a combination of them,
intended to identify the goods or
services of one seller or group of
sellers and to differentiate them from
those of competitors.”

80. PURPOSE OF A BRAND…
 Inspire
 Motivate
Connect
 Simplify
 Inform

81. HOW DO YOU BRAND
A PRODUCT?

82. Branding is the process by which
companies distinguish their product
offerings from the competition.
Branding protects a seller's products
against those marketed by competitors
and imitators and helps consumers identify
the quality, consistency, and imagery of a
preferred source.

83. BRANDING IS….
An image created in someone’s mind
It’s both tangible and intangible
characteristics of a product or
service that make it unique
 It’s all about creating differences
b/w products or services.

85.  Marketing is actively promoting a product or service.
It’s pushing out a message to get sales results.
Branding, on the other hand is not push, but pull.
 Branding is strategic. Marketing is tactical
BRANDING VS MARKETING

86.  Marketing may contribute to a brand, but the brand is
bigger than any particular marketing effort. It’s what
sticks in your mind associated with a product
 Marketing may convince you to buy a particular Maruti
but it is the brand that will determine if you will only
buy Maruti for the rest of your life.
BRANDING VS MARKETING

87. SCOPE OF BRANDING
 GOODS
 SERVICES
 PLACES
 PERSSON
 ORGANIZATION
 IDEA etc.

88. POSITIVES OF BRANDING…
Recognition And Loyalty
A strong brand name and logo/image helps to keep the
company’s image in the mind of potential customers.
Image of Size
A strong brand will project an image of a large and
established business to any potential customers.

89. Image of Quality
A strong brand projects an image of quality in your
business, many people see the brand as a part of a
product or service that helps to show its quality and value.
Image of Experience and Reliability
A strong brand creates an image of an established
business that has been around for long enough to become
well known.
POSITIVES OF BRANDING…

90. NEGATIVES OF BRANDING…
Cost
If you wish to create and maintain a strong brand
presence, it can involve a lot of design and marketing
costs.
Impersonal
One of the main problems with many branded
businesses is that they lose their personal image.

91. Fixed Image
Every brand has a certain image to potential
customers, and part of that image is about what products
or services you sell.
Timescale
The process of creating a brand will usually take a
long period of time.
NEGATIVES OF BRANDING…

92. BRAND EQUITY
Brand Equity is defined as the unique
set of brand assets and liabilities that
is linked to a brand. It is the net
result of all the investment and effort
that a marketer puts into building a
brand.

93. What‟s the first thing that comes to your mind when I say
Coffee?
What do you think when you see this logo

94. High Brand Equity provides a number of competitive advantages:
The Company will enjoy reduced marketing costs because of
consumer brand awareness and loyalty
The Company can charge a higher price than its competitors
because the brand has higher perceived quality.

95. The Company will have more trade leverage in bargaining with
distributors and retailers because customers expect them to
carry the brand.
The Company can more easily launch extensions because the
brand name carries high credibility.
The brand offers the Company some defense against price
competition.

97. BUILDING BRAND EQUITY

98. BRAND ELEMENTS
Brand Elements are those trademarkable devices that serve
to identify and differentiate the brand.
The main ones are brand names, URLs, logos, symbols,
characters, spokespeople, slogans, jingles, packaging etc.

99. WHY BRAND ELEMENTS?
The customer based brand equity model suggests that
marketers should choose brand elements
• To enhance brand awareness
• Facilitate the formation of strong and unique brand
associations
• Elicit positive brand feelings

100. BRAND ELEMENT
CHOICE CRITERIA
Memorable
Meaningful
Likable
Transferable
Adaptable
Protectable
Brand Builders
Defensive

101. CRITERIA FOR CHOOSING
BRAND ELEMENTS
Offensive Strategies
• Memorable
• Easily Recognized
• Easily Recalled
• Meaningful
• Descriptive
• Persuasive
• Likable
• Rich visual/verbal imagery
• Aesthetically Pleasing

102. CRITERIA FOR CHOOSING
BRAND ELEMENTS
Defensive Strategies
• Transferable
• Within and across product categories
• Across geographic boundaries
• Adaptable
• Flexible
• Update-able
• Protectable
• Legally
• Competitively

103. EXAMPLES OF
MEANINGFULNESS

104. MEANINGFULNESS OF
INTEL
The word „Intel‟ is a portmanteau of the words “intelligent”
“electronics”.
The name suggests that it is an electronics company that
delivers better, even “intelligent” products

105. PROTECTABILITY EXAMPLE

106. LOGOS AND SYMBOLS
Along with brand names, visual elements have a critical role
in building brand equity, especially brand awareness
Logos have been used since the middle ages to denote
names of Kings in the form of a Coat of Arms and Emblems

107. EXAMPLE OF LOGOS

108. CHARACTERS
 Characters are human or life-like brand symbols that take
the characteristics of the brand.
 They are usually introduced through advertising
campaigns
 Brand characters play a central role in brand campaigns
and package designs
 Brand characters can also be negative in the sense that
they dominate other brand elements and decrease brand
awareness

109. EXAMPLES OF BRAND
CHARACTERS

110. SLOGANS
 Slogans are short phrases that communicate descriptive
or persuasive information about the brand
 They often appear in advertising
 They function as “hooks” to help consumers understand
the meaning of the brand
 Eg: “Hungry Kya?” by Domino’s Pizza
 Eg: “Isse sasta aur achcha kahin nahi” by Big Bazaar

111. BENEFITS OF SLOGANS
 Build both brand awareness and image
 Strong links with the
 The brand is exaggerated to leverage maximum brand
equity. Eg: “It‟s not TV, It‟s HBO” by HBO; “The Citi Never
Sleeps” by CitiBank
 The brand is made an aspirational product – “Just Do It”
by Nike

112. JINGLES
 Jingles are musical messages written around the brand
 Usually composed by professional songwriters and
musicians
 Successful jingles are registered in the minds of the
listeners
 It was popular in the early 20th century when the primary
broadcast medium was radio
 Convey brand benefits and product meaning in a fairly
abstract manner

113. IPL JINGLE

114. BRANDING ELEMENTS – A
PICTORIAL OVERVIEW
Brand
Names
URLs
Logos
and
Symbols
Character
s
Slogans
Packagin
g
Brand Identity
Brand
Awareness
Brand
Association
s

115. BRAND REINFORCEMENT
 What products the Brand represent
 Core benefits
 How the brand makes the products superior, strong, favorable etc.

116. BRAND REVITALIZATION

117. REVITALIZING BRAND

118. HOLISTIC MARKETING
ACTIVITIES
Word of
Mouth
Observation
Interactions
w/company

119. SECONDARY
ASSOCIATIONS
Brand
Geographic
Regions
Other Brands
Characters
Spokespeople
Sporting Events

121. BRANDING REVITALIZATION
STRATEGY
Develop new brand elements
Apply existing brand elements
Combine new and existing
elements

122. BRANDING STRATEGY
Identifies which brand elements a firm
chooses to apply across the various
products it sells.

123. BRANDING STRATEGY
When a firm introduces new product, three main choices it has:
 Develop new brand elements for the new product.
 Apply some of its existing brand elements.
 Use combination of new and existing brand elements.

124. BRANDING STRATEGY
DECISIONS
Whether to develop a brand name for a product.
If a firm decides to brand its products or services, it must then choose
which brand name to use.

125. BRANDING STRATEGY
DECISIONS
Four strategies often used:
1. Individual names.
2. Blanket family names.
3. Separate family names for all products.
4. Corporate name combined with individual product names.

126. INDIVIDUAL NAMES
Company does not tie its reputation to the product.
For example : HUL

127. BLANKET FAMILY NAMES
Same name is used in diverse product categories.
Development costs are lower.
For example : TATA

128. SEPARATE FAMILY NAMES
Firms use separate family names for its various products..
For example : Aditya Birla Group

129. CORPORATE NAME COMBINED WITH
INDIVIDUAL PRODUCT NAMES
Kellog combines corporate & individual names in Kellogg‟s
Rice Krispies, Kellogg‟s Raisin Bran, Kellogg‟s Corn Flakes.
J&J

130. BRANDING STRATEGY
Two key components of any branding strategy are:
Brand Extensions
Brand Portfolios

131. BRAND EXTENSION

132. BRAND EXTENSION
Two general categories are:
1. Line Extension
2. Category Extension

133. LINE EXTENSION
The parent brand covers a new product within a product
category it currently serves, such as with new flavours,
forms, ingredients and package sizes.
Examples: Dove, LUX

134. CATEGORY EXTENSION
A company may use its parent brand name to launch new
products in other categories.
Example: Bajaj

135. ADVANTAGES OF BRAND
EXTENSIONS
 Facilitate new product acceptance.
 Provide positive feedback to the parent brand company.
 Reduce cost of the introductory launch campaign.
 Avoid difficulty and expense of coming up with the new name.

136. DISADVANTAGES OF BRAND
EXTENSIONS
May cause the brand name to be less strongly identified with any one
product.
For example : Cadbury.
Brand dilution occurs i.e. consumer no longer associate a brand with
a specific product and start thinking less of the brand.
Consumers become confused and perhaps frustrated.

137. BRAND PORTFOLIOS
Marketers often need multiple brands in order to target multiple
segments
Reasons for introducing multiple brands:
 Increasing shelf presence in the store.
 Attracting consumers seeking variety who may otherwise have
switched to another brand.
 Yielding economies of scale.

138. BRAND PORTFOLIOS
Reduce consumer confusion.
For Example: PepsiCo.

139. BRAND POSITIONING
POSITIONING: Act of designing the company‟s offering and image to
occupy a distinctive place in the minds of the target market.
A good brand positioning guides marketing strategy by clarifying the
brand essence.
Result of positioning – customer-focused value proposition.

140. BRAND
POSITIONING
Place in the customer‟s mind that you want your brand to own.
Deciding on positioning requires :
 determining frame of reference by identifying the target market and
the competition.
 Identifying and establishing points-of-parity and points-of-
difference to establish right brand identity and brand image.

141. EGS. OF BRAND
POSITIONING
Based on low price.

142. FRAME OF REFERNCE (FOR)
Concerns with category membership of the product or which product
category it competes with.
To determine competitive frame of reference, marketers need to
understand consumer behaviour.
For Example: Frooti – Mango drink
If Frooti – Apple drink, out of frame of reference.

143. POINTS-OF-DIFFERENCE
(PODS)
Attributes or benefits consumer strongly associate with brand,
positively evaluate, and believe they could not find to the same extent
with the competitive brand.
Examples
design
performance

144. POINTS-OF-PARITY
(POPS)
Associations that are not necessarily unique to the brand but
may in fact be shared with other brands.
POPs may not be the reason to choose the brand, but their
absence can certainly be the reason to drop the brand.
For example: Savlon & Dettol

145. Product & it‟s Characteristics
Product Differentiation
Product Line Analysis
New Product Development
Challenges to New Product Development
Consumer Adoption Process

146. Branding & it‟s Scope
Brand Equity
Brand Elements
Brand Revitalization
Branding Strategy
Brand Positioning