OUR LADY OF FATIMA UNIVERSITY
COLLEGE OF PHARMACY LEARNING OUTCOMES:
At the of the lecture, the students should be able:
• To explain the meaning of Product, Product Line, Product Mix,
PHME311 Product positioning, Product Life Cycle, Brand, Brand Mark, Brand
MODULE 5: PRODUCT MIX, DECISIONS & Name, and trademark
• To discuss the Portfolio and Product Life Cycle
STRATEGIES
Prepared by: John Kenneth D. Concepcion, RPh
RECALL: RECALL:
A set of tactical marketing tools that the firm blends to produce the In giant corporation like United Laboratories, Inc. a fifth “P” is
response it wants in the target market. included which means People.
MARKETING MIX
While all the four major marketing variables
are normally done by people, this Filipino-
owned drug company, considers its human
assets as its greatest asset.
AFFORDABILITY
RECALL: RECALL:
ACCEPTABILITY
ACCESSIBILITY AWARENESS
TERMINOLOGIES TANGIBLE!
PRODUCT
PRODUCTS, SERVICES, AND Anything that can be offered to a market for attention, acquisition, use
or consumption that might satisfy a want or need.
BRANDS: BUILDING A form of product
CUSTOMER VALUE SERVICE
Any activity or benefit that one party can offer to another that is
essentially intangible and does not result in the ownership in
anything
TERMINOLOGIES NATURE & CHARACTERISTICS OF A SERVICE
CUSTOMER EXPERIENCE
To differentiate their offers, they are creating and managing customer
experiences with their brands or companies.
LEVELS OF A PRODUCT CORE PRODUCT
PRODUCT CLASSIFICATION
AKA: Core Customer Value
CONSUMER PRODUCT
What is the buyer really buying?
How can we solve the customer’s A product bought by final consumers for personal
problem? consumption.
ACTUAL PRODUCT
INDUSTRIAL PRODUCT
AUGMENTED
PRODUCT What is the offering to solve problem? A product bought by individuals and organizations for further
What are the additional consumer services
Features, design, packaging, quality processing or for use in conducting a business
level, brand name
and benefits to supplement the offering?
It is based on the purpose for
which the product is purchased
CONSUMER PRODUCT CONSUMER PRODUCT
CONVENIENCE PRODUCT SPECIALTY PRODUCT
A consumer product that customers usually buy frequently, A consumer product with unique characteristics or brand
immediately, and with minimal comparison and buying effort. identification for which a significant group of buyers is willing to
make a special purchase effort.
SHOPPING PRODUCT
UNSOUGHT PRODUCT
A consumer product that the customer, in the process of
A consumer product that the consumer either does not know
selecting and purchasing, usually compares on such attributes as
about or knows about but does not normally consider buying
suitability, quality, price, and style.
CONSUMER PRODUCT INDUSTRIAL PRODUCT
MATERIALS AND PARTS
It includes raw materials and manufactured materials and parts.
Price and service are the major marketing factors; branding and
advertising tend to be less important.
CAPITAL ITEMS
Industrial products that aid in the buyer’s production or
operations, including installations and accessory equipment.
INDUSTRIAL PRODUCT
SUPPLIES AND SERVICES
Supplies are the convenience products of the industrial field
because they are usually purchased with a minimum of effort or
comparison. PRODUCT MIX DECISIONS
Services are usually supplied under contract.
PRODUCT MIX PRODUCT LINE
It consists of all the product lines and items that a particular seller A group of products that are closely related because they function in a
offers for sale. similar manner, are sold to the same customer groups, are marketed
DIMENSIONS through the same types of outlets, or fall within given price ranges.
WIDTH Number of different product lines the company carries
The major product line decision involves product line length.
Total number of items a company carries within its product
LENGTH
lines
DEPTH Number of versions offered for each product in the line A company can expand its product line in two ways: by line filling or
How closely related the various product lines are in end use, line stretching.
CONSISTENCY production requirements, distribution channels, or some
other aspect.
PRODUCT LIFE CYCLE
It is the process a product goes through from when it is first
introduced into the market until it declines or is removed from the
market.
PRODUCT LIFE CYCLE It refers to the stages a product goes through, tracking its sales and
profitability
PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
INTRODUCTION
The product is developed keeping in view particular need of a set of
consumers, and introduced in the market by initiating its commercial
production.
At this stage product is new in the market, consequently its demand is low
and requires vigorous sales efforts.
The promotional costs are, therefore, high at this stage and the production
costs are also not fully recovered due to low volume of sales.
PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
GROWTH STAGE SATURATION STAGE
There is a rapid expansion in sales as the cumulative impact of the The sales volume of the product ceases to grow.
promotional expenditure helps in the market acceptance of the product as
well as the reputation of the product gains around. The only additional demand for the product happens to be its replacement
demand.
This rapid expansion can be sustained only by the maintenance of product
quality.
PRODUCT LIFE CYCLE PRODUCT LIFE CYCLE
MATURITY STAGE DECLINE STAGE
The rate of growth of its sales decline, though the volume of sales keeps on Its sales volume starts shifting down.
increasing.
The competitors have by then entered the market with substitutes and
The firm has to spend relatively increasing amount of sales promotion. imitations and the product distinctiveness starts diminishing.
PRODUCT PORTFOLIO
PRODUCT PORTFOLIO PRODUCT PORTFOLIO
Importance in a business:
The compilation of products and services offered by the company to
1. Innovation
the target market.
2. Tax benefits
3. Aligns projects with the business strategy
It comprises of all the set of products offered right from the ones that 4. Visualize the entire portfolio
were launched and offered during the inception of the brand to the 5. Effective allocation of resources
ones that are launched currently along with ones that are in the 6. Data for the key members of the management
pipeline. 7. Cash flow management
8. Synergy within the internal team
9. Proper selection of the target market
PRODUCT PORTFOLIO ANALYSIS WHAT DOES PRODUCT PORTFOLIO ANALYSIS MEAN?
This can provide nuanced views on a stock type, company growth When a company markets a range of different product or services it is
prospects, profit margin drivers, income contributions, market required to conduct portfolio analysis periodically.
leadership, and operational risk.
This can be used to assist in planning product development and This means to analyze each product separately in terms of
strategy by: profitability, contribution to the company’s income and growth
potential.
• Analyzing an existing portfolio to decide which products should
receive more or less investment, and This analysis facilitates the identification of products that are not
• Adding new products to the portfolio or deciding which products profitable at all or play poorly within the group.
and businesses should be eliminated.
WHAT DOES PRODUCT PORTFOLIO ANALYSIS MEAN?
The products are categorized by pre-defined criteria such as sales
value, market share, gross profitability, contribution margin and life
cycle.
The results could clearly point to products that should be taken out of
PRODUCT POSITIONING
the market or simply receive fewer resources.
It might also indicate that the company must increase its investments
and efforts to some star products that have a higher potential.
PRODUCT POSITIONING PERCEPTUAL MAP
A marketing technique intended to present products in the best A visual diagram that shows how the average target market consumer
possible light to different target audiences. perceives your product versus those of your competitors.
“It refers to consumers' perceptions of a product's attributes, uses, It uses two determinant attributes on a graph.
quality, and advantages and disadvantages relative to competing
brands. Marketers often conduct marketing research studies to
Determinant attributes are those attributes that a customer uses in
analyze consumer preferences and to construct product position
making their purchase decision.
maps that plot their products' positions in relation to those of
competitors' offerings.”(Louis E. Boone and David L. Kurtz)
PERCEPTUAL MAP
PERCEPTUAL MAP
IMPORTANCE OF PRODUCT POSITIONING TO THE
MARKET PLAN
Product positioning is an important element of a marketing plan.
Product positioning is the process marketers use to determine how to
best communicate their products' attributes to their target customers NEW PRODUCT
based on customer needs, competitive pressures, available
communication channels and carefully crafted key messages.
Effective product positioning ensures that marketing messages
resonate with target consumers and compel them to take action.
NEW PRODUCTS ELEMENTS OF PRODUCT DECISIONS
These are the lifeblood of a company. As old products mature and 1. Production process
fade away, companies must develop new ones to take their place. 2. Specifications
3. Culture
PRODUCT DECISION 4. the physical product
Decisions regarding the product, price, promotion and distribution 5. Packaging
channels are decisions on the elements of the “marketing mix”. 6. Labelling
7. Branding
It can be argued that product decisions are probably the most crucial 8. Warranty
as the product is the very epitome of marketing planning. 9. Service
Errors in product decisions are legion.
NEW PRODUCT DEVELOPMENT STRATEGY NEW PRODUCT DEVELOPMENT STRATEGY
Screening new product Concept testing: Testing new product
ideas to spot concepts with a group of target
Systematic search for new good ones and drop poor
product ideas consumers to find out if the concepts
ones as soon as possible. have strong consumer appeal.
A review of the Developing the
sales, costs, and profit product concept into a
projections for a new Introducing a new product
physical product to
product to find out into the market
ensure that the
whether they satisfy the product idea can be
company’s objectives. turned into a workable
market offering.
PRODUCT BRANDING
It is a symbol or design that identifies and differentiates a product
from other products.
PRODUCT BRANDING, A strong brand creates a personality for the product and
PACKAGING, AND LABELING differentiates a product from competitors.
PACKAGING LABELING
The wrapping material around a consumer item that serves to
Display of information about a product on its container, packaging, or
contain, identify, describe, protect, display, promote and otherwise
the product itself.
make the product marketable and keep it clean
It is more than just your product's pretty face. For several types of consumer and industrial products, the type and
extent of information that must be imparted by a label is governed by
Package design may affect everything from breakage rates in the relevant safety and shipping laws.
shipment to whether stores will be willing to stock it.
PRODUCT MANAGEMENT IN PHARMACEUTICAL INDUSTRY
LABELING
Importance of Labeling:
• Provides identification
• To exaggerate the product
• To grab the attention of the audience
• To encourage potential buyers to purchase the product
• Used for convenience and information transmission
• Makes product grading easy
• Provides information as per Law
• Protects customers from getting cheated
• Helps in marketing
REFERENCES
• Albrecht, M. G., Green, M., & Hoffman, L. (2023). Principles of
marketing. OpenStax.
• Armstrong, G. M., & Kotler, P. (2017). Marketing: An Introduction
(13th ed.). Pearson.
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