BASIC

MARKETING
 3.
Products
 3.1. What is a product?
- A product is anything that can be offered in
a market for attention, acquisition, use, or
consumption that might satisfy a need or
want.
- Products can exist in physical or immaterial
form, including goods, services, people,
places, organizations, activities, ideas, or
promises to satisfy one or more needs, market
demand at a particular point in time.
 3.1. What is a product?
Thus the product could be:
- A motorbike: meet travel needs
- A new hairstyle: meet the beauty needs
- Travel trip: meet the need for rest
- Performances of music stars: meet
entertainment needs
- Telephone answering service: meeting
information needs
 3.2. Levels of products

Core benefits
Actual product
Augmented -product
 3.2. Levels of products

Core benefits represent what the buyer is really

buying.
Actual product represents the design, brand
name, and packaging that delivers the core
benefit to the customer.
Augmented product represents additional
services or benefits of the actual product.
 3.2. Levels of products

Consumers perceive products as a complex of benefits

that satisfy their needs. When developing products,
marketers must first identify the core customer needs that
the product will satisfy, then design specific products and find
ways to increase the product to satisfy the desires of
customers in the best way.
 3.2. Levels of products
Discussion Question: Describe the core,
actual, and augmented levels of a TV
Core – the need to watch television programs.
Actual –the size of the screen, it’s weight, what apps come
pre-installed, ease of setup, connectivity options, the brand
name.
Augmented 0% financing.
3-year warranty.
The company’s reputation for post-sales
support.
A QR code on the side of the box which takes
you directly to the installation instructions.
Donating 1% of revenue to plant trees,
helping offset the environmental impact of manufacturing
TVs.
3.3. Product classifications

● Consumer products
● Industrial products
 3.3. Product classifications

Consumer products
● Consumer products are products and services
bought by final consumers for personal
consumption.
● Classified by how consumers buy them
○ Convenience products
○ Shopping products
○ Specialty products
○ Unsought products
 3.3. Product classifications

Consumer products
● Convenience products are consumer products and
services that the customer usually buys frequently,
immediately, and with a minimum comparison and
buying effort.
○Newspapers
○Candy
○Fast food
 3.3. Product classifications

Consumer products
● Shopping products are consumer products
and services that the customer compares
carefully on suitability, quality, price, and
style.
○Furniture
○Cars
○Appliances
 3.3. Product classifications

Consumer products
● Specialty products are consumer products and
services with unique characteristics or brand
identification for which a significant group of buyers
is willing to make a special purchase effort.
○Designer watches
○Branded fashion wear
○High-end electronics
 3.3. Product classifications

Consumer products
● Unsought products are consumer products
that the consumer does not know about or
knows about but does not normally think of
buying.
○Life insurance
○Funeral services
○Blood donations
 3.3. Product classifications

Discussion Question: Classify the following

consumer products
○A laptop
○A surgeon
○Automobile tires
 3.3. Product classifications

● A laptop– shopping good: most people purchase a laptop

infrequently, and when they purchase it, they usually conduct
extensive research and comparison of brands and features
● A surgeon – Specialty good: There is usually little comparison
between doctors as most patients collect only a few names
● Automobile tires – it depends on the individual and the situation. If
a consumer has a luxury brand of car and will consider only
“designer” tires, this is a specialty good; for most consumers, tires
are a shopping good, and they will be heavily influenced by price
and brand name; in some situations, the tires could be an unsought
good.
If one was traveling and had a flat tire in an unknown area he would
probably be towed to a local station and with little product
knowledge, agree to a tire carried by the local station
 3.3. Product classifications
Industrial products
Industrial products are products purchased for further
processing or for use in conducting a business.
● Classified by the purpose for which the product is
purchased
○Materials and parts
○Capital items
○Supplies and services
 3.3. Product classifications

Industrial products
● Materials and parts include raw materials and
manufactured materials and parts usually sold
directly to industrial users.
○Wheat
○Lumber
○Iron
○Cement
 3.3. Product classifications

Industrial products
● Capital items are industrial products that
aid in the buyer’s production or operations.
○Buildings
○Elevators
○Computers
 3.3. Product classifications

Industrial products
● Supplies and Services include operating supplies,
and repair and maintenance items, as well as
maintenance and repair services and business
advisory services.
○Copy papers
○Stationary
○Training service
○Market research/Advertising service
3.4. Product decisions

3.4.1
. Product attributes

3.4.2 Branding

3.4.3 Packaging

3.4.4 Labeling
Product support
3.4.5 services
 3.4.1
.
Product attributes

Product attributes are the benefits of the product or

service
• Quality
• Features
• Style and design
 3.4.1
.
Product attributes
Define “Quality” in terms of the lack of defects or
creating customer value and satisfaction
Quality level is the level of quality that supports the
product’s positioning.
– Performance quality is the ability of a product to
perform its functions.
– Conformance consistency is freedom of defects
and consistency in delivering a targeted level of
performance.
 3.4.1
.
Product attributes

Product features are a competitive tool for

differentiating a product from competitors’
products
Assessed based on the value to the customer versus
the cost to the company.
Product style and design add value to customer
value.
– Style describes the appearance of the product.
– Design contributes to a product’s usefulness as well as
to its looks.
 3.4.2 Branding

Brand is the name, term,

sign, or design, or a
combination of these,
that identifies the
maker or seller of a
product or service.
 3.4.2 Branding

Brand Name: A name intended to identify the goods or services of a

seller and to distinguish them from those of other enterprises. It
consists of words, numbers or letters which can be pronounced such
as Pepsi, Apple
Brand Mark: It refers to symbols, designs, marks etc. which can only
be seen but not pronounced.
Trademark is a sign capable of distinguishing the goods or services
of one enterprise from those of other enterprises. Trademarks are
protected by intellectual property rights.
 3.4.2 Branding
A Brand can convey up to six Level of Meaning
• Attributes - Mercedes brings to mind expensive, well built,
well engineered, durable, high prestige automobiles.
• Benefits - The attributes "durable" could translate into the
functional benefits and the attributes "expensive" translates
into the emotional benefits.
• Values - Mercedes stands for high performance, safety and
prestige.
• Culture - Mercedes represents German Culture: organized,
efficient and high quality.
• Personality - Mercedes may suggest a no nonsense boss
(person), a reigning lion (animal) or an austere palace
(object).
• User - Suggest the kind of consumer who buys or uses the -
 Branding
Branding
3.4.2
decisions

Brand/ Brand-
Brand Name
No Brand Sponsor

Brand
Brand
Repositionin
Strategy
g
 Brand or No Brand

It is wiser to use brand names in modern times. Branding

involves cost but gives the following advantages to companies.
- The brand name makes it easier for the seller to process orders
and track down problems.
- The 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 the corporate image, making it easier to
launch new brands and gain acceptance by distributors and
consumers.
- Consumers want brand names to help them identify quality
differences and shop more efficiently.
 Brand-sponsor
Decision
A manufacturer has several options with respect to brand
sponsorship.
- The product may be launched as a manufacturer
brand(national brand). Example: Sony, Videocon etc.
- The product may be launched as a distributor brand (reseller,
store, house, or private brand). Example: Stop, Westside etc.
- The product may be launched as a licensed brand name.
Example: Nike may allow a pen manufacturer to use the name
and symbol of Nike on its product and give licensing fee in
return
 Brand name Decision

- Select a single brand for all products. Ex: Samsung,

Yamaha
- Individual names: Nestle launched Maggi as an individual
name.
- Separate Family Names for all Products: Where a
company produces quite different products, it is not desirable
to use one blanket family name. Example: Matsushita used
three different names for different product classes. It used
National for home appliances, Panasonic for entertainment
Desirable qualities for a brand name

 Suggests benefits and qualities

 Easy to pronounce, recognize, and remember
 Distinctive
 Extendable
 Translatable for the global economy
 Capable of registration and legal protection
 Brand strategy

A company has four options regarding brand

strategies;

- Line extension, adopting a successful brand name to

introduce additional items in a given product category under
the same brand name, such as new flavors, forms, colors,
added ingredients, or package sizes.
- Brand extension, adopting a successful brand name to
launch a new or modified product in a new product category.
- Multibranding, a strategy under which a seller develops
two or more brands in the same product category.
- New brands, creating a new brand name when entering a
new product category for which none of the existing brand
names are suitable.
 Brand Repositioning
• A well-positioned brand might need repositioning in the
market later. A competitor’s brand may snatch away the
company’s market share.
• Demand may also fall due to changes in customer wants. So,
marketers might find it necessary to reposition their existing
brands before introducing new ones, ensuring brand
recognition and consumer loyalty.
• Repositioning may involve changing both the product and its
image.
• Repositioning of a brand can also be made by changing only
the product’s image. When repositioning a brand, the
marketer should make sure that such an action will not result
in losing or confusing existing loyal buyers.
 3.4.3 Packaging

• Some marketers refer to packaging as the fifth P along

with the four Ps in the marketing mix (Package).
However, most marketers see packaging as an element
of product strategy.

• Packaging includes all the activities of designing and

producing the container for a product.

• Packaging is the use of containers and wrapping

materials plus decoration and labeling to protect the
product, to help and promote its sales, and to make it
convenient for the consumers to use the product.
 3.4.3 Packaging
There are 3 levels of packaging: Primary, Secondary
and Tertiary
• Primary packaging is the packaging that contains the
product.

• Secondary packaging includes boxes or containers

containing specific quantities of primary packages.

• Tertiary packaging includes pallets and large shipping

containers for storing and warehousing.

 All three types are used to ship products from the

production line to the consumer; each level represents a
different scale.
 3.4.3 Packaging

Apart from containing and protecting the product, packaging also has
several other benefits for which it is now being recognized as an
important marketing tool.
• Packaging attracts attention, describes the product, and completes the sale.
Good packaging creates instant consumer recognition of the company or
brand.

• For example, in an average supermarket, which stocks 15,000 to 17,000

items, the typical shopper passes by some 300 items per minute, and 53
percent of all purchases are made on impulse.6 Innovative packaging gives
a competitive advantage to a company.

• ill-designed packages may cause apathy for consumers resulting in a

declining sale. Good packaging is also required for ensuring product safety.
 3.4.3 Packaging
Decisions
- Should the main functions of the package be to offer product
protection, introduce a new dispensing method, suggest certain
qualities about the product or the company, or something else?
- The size, shape, materials, color, text, and brand mark. These
various elements must work together to support the product’s
position and marketing strategy. The package must be consistent
with the product’s advertising, pricing, and distribution.
- Ease in use, ease in handling by dealers, and the consumer
response received.
- Take into account environmental considerations. Companies should
always be ready to take responsibility for the environmental costs
of their products and packaging.
PACKAGING STRATEGIES
Unique
Functional
Packaging
Safe packaging
Easy to remove
Promotional
packaging
Brand Reinforcement
Packaging
 3.4.4 Labeling

- Labeling is any written, electronic, or graphic

communications on the packaging or on a separate
but associated packaging or on a separate but
associated label.
- Sellers must label products. The label may be a
simple tag attached to the product or an elaborately
designed graphic that is part of the package. The label
might carry only the brand name or a great deal of
information
 Purposes of Labeling

Labels perform several functions:

• Brand Identification – The label identifies the
product or brand.
• Product Grading – The label might also grade the
product; canned fruits are grade labeled A, B and C.
• Product Description – The label describes the
product: who made it, where it was made, when it
was made, what it contains, how it is to be used,
and how to use it safely.
• Product Promotion – The label might promote the
product through attractive graphics.
 Labeling Decisions
• Brand Name
• Label Text, Graphics and Design
• Features and Benefits
• Weights and Measures
• Instructions for Use
• Package Inserts
• Safety Hazards
• Statement of Contents
• Nutritional Labeling (incase of Food Products):
• Additional Labeling
• Labeling Laws
 Product support
3.4.5 services

- Product support services are used by many business

organizations which serve as an important tool in getting
competitive advantage.
- When deciding on services, businesses must base on
four main factors:
+ product features
+ customer needs
+ competitors' services to customers
+ the capabilities of the business.
 Thanks!
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