CHAPTER FIVE

MANAGING THE PRODUCT

5.0. AIMS AND OBJECTIVES

After you study this unit, you will be able to explain,

 Meaning of product in its fullest sense

 Classification of consumer and business products
 Steps in product development process
 How can a company build and manage its product mix and product lines?
 The nature and importance of brands
 How can a company make better brand decisions?
 How can packaging and labeling be used as marketing tools?
 Characteristics of a good brand name

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 Introduction
Product is the first and most important element of the marketing mix. Product strategy calls for
making coordinated decisions on product mixes, product lines, brands, packaging and labeling.
Most companies sell more than a product. Their product mix can be classified according to width,
length, depth and consistency.
To analyze a product line and decide how many resources shall be invested in that line, product line
managers need to look at the line’s sales and profit and market profile.
A company can change the product component of its marketing mix by lengthening its product via
line stretching or line filling. By modernizing its products; by featuring certain products and by
proving its products to eliminate the least profitable.

5.1. MEANING OF A PRODUCT

A product is anything that can be offered to satisfy a need or want.

A product consists of as many components as: Physical good(s) service(s) and idea (s).
Products that are marketed include physical goods (automobiles, books etc), service (concerts,
professional advice), persons (Mr A, B, C), places (Langano, Sodere), organizations (Health
association, social clubs (and ideas (family planning, safe driving) etc.

5.1.1. FIVE LEVELS OF A PRODUCT

In planning its market offering, the marketer needs to think through five levels of the product. Each
level adds more customer value, and the five constitute of a customer value hierarchy. The most
fundamental level is the core benefit: the fundamental service or benefits that the customer is really
buying. I.e., a Hotel gust is buying "rest and sleep." Marketers must see themselves as benefit
providers.
At the second level, the marketer has to turn the core benefit into a basic product. Thus a hotel room
includes a bed, bathroom, towels, desk, dresser and closet.
At the third level, the marketer prepares an expected product, a set of attributes and conditions that
buyer normally expect and agree to when they purchase this product. For example, hotel guests
expect a clean bed, fresh towels, working lumps, and a relative degree of quiet. Since most hotels
can meet this minimum expectation, the traveler normally will have no preference and will settle for
whichever hotel is most convenient or least expensive.

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At the fourth level, the marketer prepares an augmented product that meets the customers' desires
beyond their expectations. A Hotel can augment its product by including a remote control television
set, fresh flowers, rapid check-in, express check-out, fine dining and room service and so on.

Today's competition essentially takes place at the product augmentation level. (In less developed
countries, competition takes place mostly at the expected product level). Product augmentation
leads the marketer to look at the buyers total consumption system: the way the purchaser of a
product performs the total task of whatever it is that he or she is trying to accomplish when using
the product. In this way, the marketer will recognize many opportunities for augmenting its offer is
a competitively effective way.
According to Luitl: The new competition is not between what companies produce in their factories,
but between what they add to their factory output in the form of packaging, services, advertising,
customer advise, financing, delivery arrangements, warehousing, and other things that people value.
At the fifth level stands the potential products, which encompasses all the augmentations and
transformations that the product might ultimately undergo in the future. While the augmented
product describes what is included in the product today, the potential product points to its possible
evolution. Here is where companies search aggressively for new ways to satisfy customers and
distinguish their offer. The recent emergence of all site hotels where the guest occupies a set of
rooms represents an innovative transformation of the traditional hotel product.

Some of the most successful companies add benefit to their offering that not only satisfying
customers but also surprise and delight them. Delighting is a matter of exceeding the normal
expectations and desires with in anticipated benefits. Thus the hotel guests find candy on the
pillow, or a bowl of fruit, or a video recorder with optional video tapes.

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 5.2. CLASSIFICATION OF PRODUCTS
Products can be classified into two major categories depending on the intended use of the
product. These are consumer goods and industrial goods.
Consumer goods are products purchased by ultimate household consumers for ultimate use or
non-business purposes, usually for consumption or personal use. Industrial goods are products
intended to be sold primarily for use in producing other products or rendering services for
business purposes. The fundamental basis for distinguishing between the two groups is the
ultimate use for which the product is intended in its present form. Therefore, the same product
can be categorized either as consumer or industrial good depending on the intended use or
service of the product.
Classification of Consumer Goods
Consumer goods can be classified in many ways of which the traditional theory is the most
popular one, which bases itself on the buying attitude or shopping habits of consumers.
Consumers buy a vast number of goods. A useful way to classify these goods is on the basis of
consumer shopping habits because they have implications for marketing strategy. Accordingly,
consumer goods are classified into convenience, shopping, specialty, and unsought goods.
Convenience Goods
Convenience goods are consumer goods that the consumer often buys frequently, immediately,
and with minimum shopping effort. Examples would include cigarette, soaps, matches, and
newspapers. The significant characteristics of consumer goods are:-
- the consumer has complete knowledge of the particular product wanted, and the
consumer is thus dominated by habit
- they are non-durable
- usually inexpensive and bought by their brands
- Consumers exert minimum shopping effort.
- they are available in a number of convenient locations
Shopping Goods
Shopping goods are goods that the consumer selects and buys only after making comparisons
with respect to price, quality, suitability and style. Examples include household furniture and
clothing, used cars.
In contrast to convenience goods, shopping goods are relatively expensive and durable. Since
there is no enough knowledge and information about the product, consumers exert a maximum
shopping effort and often face difficulty in buying decisions.

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 In the marketing of shopping goods, manufacturers require fewer retail outlets because
consumers are willing to look around a bit for what they want. They are more dependent upon
those they do select. In this case the distribution and promotional strategy of both the
manufacturers and retailers is significant. Store names are often more important to buyers of
shopping goods than manufacturers' names.
Specialty Goods
Specialty goods are consumer goods with unique characteristics and/or brand identification for
which a significant group of buyers are habitually willing to make a special purchasing effort.
Expensive cars, photographic equipment, and men's suits are examples of specialty goods.
The consumer has prior product knowledge and is reluctant to accept substitutes for it. Specialty
goods do not involve the buyer's making shopping comparison; the buyer only invests shopping
time to reach the required outlets. The store does not necessarily has to be established in a
convenient place, for the buyer is ready and willing to search for the outlet. Indirectly, since
consumers insist on a particular brand or product and are willing to expend considerable effort to
find it, manufacturers can afford to use fewer outlets. Both the manufacturer and the retailer
advertise the product extensively. They can be expensive or inexpensive.
Unsought Goods
These are goods that the consumer either does not know about or knows about but does not think
of buying them. New products until they are promoted through advertising; life insurance, and
encyclopedias are categorized under this group.
Classification of Industrial Goods
It is not useful to classify industrial goods according to the shopping habit of buyers as we did in
consumer goods classification, because producers do not shop in the same sense. They are more
usefully classified in the broader use of the products. Accordingly, they are classified in to six
major categories.
Raw Materials
Raw materials are industrial goods, which are used in the form of their natural state or processed
to the extent necessary to ensure economy of protection before being incorporated in the final
product. Raw materials include goods found in their natural state, such as minerals, land,
products of forests and the seas; and agricultural products such as wheat, cotton, fruits,
vegetables, livestock, and animal products.
Natural state raw materials-these are characterized by the following:
- limited in supply

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 - their great bulk results in low unit value and due to the long distance between
producers and industrial users, transportation is a major cost
- products are graded and highly standardized, i.e., the quality, size, and volume of the
products are determined.
- promotional activities are rarely used
- industries are located at the source of the product
- channel of distribution is very short, because there are few producers, and
transportation cost is very high.
Agricultural and livestock products also have their own characteristics.
- they are seasonal and perishable
- products are better graded and standardized
- there are large number of small producers
- channel of distribution is long and transportation cost is high for there are many
producers.
- very little promotional activity is involved.

Operating Supplies
Operating supplies are materials which are used in the operation of a business and which are
purchased routinely and in fairly large quantities. These are expense items and thus do not
become part of the finished good. Examples would include lubricating oil, pencils, and stationery
etc.
Characteristics
- low priced items usually purchased with minimum effort
- non-durable
- frequently bought in small quantities
- channel of distribution is long
- promotional activities and branding are low.
- price competition is heavy because competitive products are standardize.
Accessory Equipment
These are industrial goods used to facilitate rather than to perform the basic operation of an
industrial firm. They do not become an actual part of the finished product. Examples would
include forklift trucks, photocopier, and typewriter.

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 Characteristics
- their price is very high as compared to operating supplies and low as compared to
installations.
- the same is true to their life span.
- channel of distribution is controversial
Installations
Installations are major industrial equipment that determine the nature, scope and efficiency of an
organization. They are long-lived and expensive equipment performing the basic operations of a
firm. Examples include large generators in a dam, a factory building, Jet airplanes for an airline.
The differentiating characteristic of installations is that they directly affect the scale of operation
in a firm.
Other Characteristics
- unit sales is very large in terms of money and importance
- sales is on negotiation
- presale and post-sale servicing is required
- usually no middlemen are involved
- products are often to the buyer's specification
Fabricating Materials and Parts
These are industrial goods that become an actual part of the finished product. They are already
processed to some extent and will undergo processing. Pig iron going to steel; flour becoming
part of bread and zippers are typical examples. Availability and quality consistency are highly
considered because lack of uniform quality may result in product failures, which causes bad-will
and costly warranty repairs.
Characteristics
- purchased in large quantities and on a direct sale basis
- buying decisions are based on the price and service provided by the seller
- brand preference and promotional activities are very low
- Channel of distribution is short and specifications of the buyer are important.
Service
The sixth category of the industrial goods is the intangible product called service. Services are
used to facilitate or support the operations of a firm. Employee service, repair services,
consultancy and office services are categorized under this group.

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 Buying Patterns of Industrial Goods
Overt buying behavior in the industrial market differs significantly from consumer behavior in
many ways. These differences stem from the differences in the products, markets, and buyer-
seller relationships.
Direct Purchase
In most cases of industrial goods direct marketing from the producer to the industrial user is
common, especially when the order is large and the buyer needs technical assistance.

Frequency of Purchase
Industrial goods are generally purchased infrequently and usually once in many years. Smaller
parts and materials to be used in the manufacture of a product may be ordered on long-term
contracts, so that an actual selling opportunity exists only once a year.

Size of Order
The infrequent purchase spotlights the importance of each sale in large volume of few orders.
Length of Negotiation Period

The period of negotiation in an industrial sale is usually much longer than in consumer market
sale. The reasons are the following:
- several executives are involved in the buying decision
- the sale often involves a large amount of money
- the industrial goods are purchased on specifications and is made to order.
Reciprocity
This is the policy in which organizations buy products from each other. Many companies
established trade relations to make effective use of this powerful selling tool. This is usually seen
in firms marketing homogeneous basic marketing products such as oil, steel, rubber, chemicals
and paper products.

Demand for Product Servicing

The user's desire for excellent service is a strong industrial motive that may determine buying
patterns. Frequently, a firm's only attraction is its service because the product itself is so
standardized that it can be purchased from any other company. Presale and post-sale service is
often demanded for installations.

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 Quality and Supply Requirements
Adequate supply and uniform quality product are of great value in the industrial buying.
Shortages and variations in the quality of materials going into finished products can cause
considerable trouble for the manufacturers. Adequate quantities are as important as good quality.

Leasing Instead of Buying

Today industrial firms are expanding leasing arrangements including heavy construction
equipment, delivery trucks, machine tools and other items generally less expensive than major
installations. However, it is usually used when the equipment are very expensive and it is to be
used for a short period of time. Generally it minimizes the capital requirement for certain
activities.

5.3. PRODUCT PLANNING AND DEVELOPMENT

NEW PRODUCT:
Definition:
A new product can be defined as innovative or improvements to the already existing products
that auto manufacturers introduce each autumn, or an item that is totally new to the market. Here,
we need not seek a very limited definition. Instead, we can recognize several possible categories
of new products. What is important, however, is that each separate category may require a quite
different marketing program to ensure a reasonable probability of market success.

Three recognizable categories of new products are as follows:

1. Products those are really innovative- truly unique: Examples would be cancer cure-
products for which there is a real need but for which no existing substitutes are
considered satisfactory. In this category we can also include products that are quite
different from existing products but satisfy the same needs. Thus television to a great
extent replaced radio and movies, plastic compete with wood and metals, and solar power
competes with other energy sources.
2. Replacements for existing products those are significantly different from the existing
goods. Instant coffee replaced ground coffee and coffee beans in many markets; then
freeze-dried instant replaced instant coffee. Annual model changes in autos and new
fashions in clothing belong in this category.

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 3. Imitative products those are new to a particular company but not new to the market. The
company simply wants to capture part of an existing market with a "me-too" product.
Perhaps the key criterion as to whether a given product is new is how the intended market
perceives it. If buyers perceive that a given item is significantly different (from competitive
goods being replaced) in some characteristic (appearance, performance), then it is a new product.
Reasons for developing new product:
The social and economic justification for the existence of a business is its ability to satisfy its
customers. A firm meets this basic social responsibility to society through its products or
services. And this is accomplished with the help of new product innovation. Product innovation
is essentially important for the following reasons.
a. The Justification of a Firms Existence
Organizations exist as far as they satisfy the needs of their consumers. It is unnecessary to
mention that consumer behavior is dynamic in that human needs are unlimited. Thus the firm
should cope with the emerging new needs of its customers. When the life cycle for a certain
product is to end customers develop a new need that calls for a new product innovation.
b. Maximum Use of Resources.
The fact that the supply of many of our natural resources are limited and irreplaceable points out
clearly the importance of careful new product development that requires efficient and effective
use of available resources.
c. Product is a Basic Profit Determinant
New products are essential for sustaining a firm's expected rate of profit. As the product goes
through all five stages of its life cycle, the profit starts to decline in the late stages until it
becomes zero. Thus the introduction of a new product at the proper time will help to maintain the
firm's desired level of profits.
a. New Products are Essential for Growth
New products are designed not only to maintain the existing profit but also to increase their
profits and have greater market share.
5.3.1. New Product Development
It has been said that nothing happens until somebody sells something. This is not entirely true.
First, there must be something to sell a product, a service, or an idea. From inside or outside the
firm must come the germ of a product idea.
Steps in the Development Process
- As a new product is developed, it progresses from the idea stage to the product and
marketing stages.

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 - In general, the development process follows the steps outlined below. In each stage,
management must decide whether to move on to the next stage, abandon the product,
or seek additional information.
a. Generation of New Product Ideas
New product development starts with an idea. The search for product ideas should be systematic
that stimulates new ideas that should be acknowledged and reviewed promptly. The source of
product ideas can be internal to the organization, such as salesmen, marketing executives and
production personnel. A firm can also obtain new product ideas from external source, such as
customers, competitors, middlemen, private research organizations, inventor and trade
associations.
b. Screening of Ideas
The purpose of idea generation is to collect or create a number of good ideas. The purpose of
idea screening is to make a preliminary survey on the ideas. In this stage the generated ideas are
screened and evaluated to determine which ones warrant further study. Here great care should be
taken not to accept wrong ideas and reject the right ideas. Otherwise we are aggravating the risk
of innovation.
c. Analysis of Ideas or Business Analysis
In business analysis, the company further goes to analyze and evaluate the right ideas. In this
stage management:
 evaluates the ideas with respect to company resources
 identifies product features
 estimates market demand and the product's profitability
 establishes program to develop the product
These first three stages are referred to as concept testing. This is pre-testing of the product idea,
as contrasted to later pre-testing of the product itself and its market.
d. Product Development
At this stage the product idea is converted into actual physical product. The product is not
directly to be sent to the production department, rather pilot models or small quantities are
manufactured to designated specifications.
Laboratory tests and other necessary technical evaluations are made to determine the production
feasibility of the article.
b. Market Testing

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 Market tests and commercial experiments are conducted in a limited geographic area to ascertain
the feasibility of full-scale production and marketing program. At this stage all necessary
adjustments are made after findings. Then management must take a final decision regarding
whether or not to market the product commercially.
c. Production and Marketing Stage or Commercialization
The product is sent to the production department for mass or full-scale production. Once the
product is born and enters its life cycle, the external competitive environment becomes a major
determinant of its destiny.
The first three stages in the product development are simply idea or concept stages; and the last
three stages are concerned with the physical product. And the concept stages are relatively
inexpensive and important, for they are the bases for the product.
5.3.2. PRODUCT LIFE CYCLE AND ITS MANAGEMENT
Growth

Introdu
ction Maturity Decline and abandonment

Sales/profit

Sales

loss Product Life Cycle Profit

Products are created, they live and then they die. This link is called the product life cycle. The
length of duration in the product life cycle is not the same for all products. The basic product life
cycle consists of four major stages: introduction, growth, maturity, and decline. Let alone the
product life cycle as a whole, a single stage may also be different for different products.
However, regardless of the type of product, the product life cycle is applicable in all new
products. Factors, which affect the length of a product life cycle include customer preferences,
seasons, technological changes, competition, and the rate of acceptance of consumers for new
ideas. Accordingly, a firm's marketing success can be affected considerably by its ability to
understand and manage the life cycle of its products.
Introduction Stage
In this stage the product is launched in to the market in full-scale production and marketing
program. It has gone through the embryonic stages of idea evaluation, pilot models, and market

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 testing. Operations in the introductory stage are characterized by slow sales growth, high cost,
net losses, limited distribution outlet and absence of competition. Product weaknesses and
failures can be identified and eliminated at this stage. Promotional activities emphasize on the
type of product rather than the brand.
Growth (Market Acceptance) Stage
Growth is marked by rapid sales and profit rise. The rise in sales and profit tempts to attract
competitors. As a result, distribution outlets are increased with expected price reduction. At this
stage manufacturing and distribution efficiency are the key elements for success. Selective
advertising is required emphasizing on its own brand's advantages. Profits may tend to decrease
at the end of the growth stage.
Maturity
During the first part of this period, sales continue to increase but at a decreasing rate. While sales
are leveling, profits are declining. It is marked by stiffening competition accompanied by
increased marketing expenses used to defend the product against fierce price competition.
Competitors heavily promote their brands using subtle differences because supply exceeds
demand making demand simulation essential.
Decline and Possible Abandonment
The market decline stage is marked by either the products gradual replacement by a new product
or by any evolving change in the consumer behavior. It is a period of highly aggravated sales
reduction, and profit declines more than ever. Consumers shift their attention to other newly
introduced products. A number of competitors withdraw from the market and promotional
expenditures drop off. Cost control becomes and important marketing tool. Introduction of a new
product is expected.

Summary of Product life Characteristics

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 Introduction Growth Maturity Decline
Characteristics
Sales Law Fast growth Slow growth Decline
Profits Negligible Peak levels Declining Law or zero
Cash flow Negative Moderate High Low
Customers Innovative Mass market Mass market Laggards
Competitions Few Growing Many rivals Declining
Number
Responses
Strategic focus Expand market Market penetration Defend share Productivity
Marketing
Expenditure High High(declining) High(rising) Low
Mktg. Emphasis Brand awareness Brand preference Brand loyalty Selective
Distribution Patchy Intensive Intensive Selective
Price High Lower Lowest Rising
Product Basic Improved Differentiated Rationalized

5.6. PRODUCT FEATURES

As parts and parcel of the product, product features combined together help a prospective
customer to perceive a product. The cost structure and the financial risk of a firm are affected by
the introduction or development of new product features. Being the first producer to introduce a
needed and valued new feature is one of the most effective ways to compete.
Brand
A brand is a name, term, symbol, sign, design or combination of these, used to identify the
products of a firm and differentiate them from those of competitors. Branding is an intrinsic
aspect of product strategy, for it adds great value to a product.
Brand name. The part of a brand, which consists of words, letters and/or numbers which can
be vocalized.
Brand mark. The part of a brand which can be recognized but one cannot utter it. It can
appear in the form of a symbol, design, distinctive coloring or lettering.
Trade mark.. A brand or part of a brand that has been given legal protection so that the owner
has exclusive rights to its use.

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 Importance of a Brand
 The brand 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 profitable set of customers and
helps to increase the control and share of the market.
 Branding helps the seller to segment markets and expand the product mix.
 Good brands help to build the corporate image because it advertises the quality and size
of the company.
 Brands make it easy for customers to identify products or services.
Requirements of a Good Brand
Among the desirable qualities for a brand following are very important. A good brand should:
 be easy to pronounce, recognize and remember
 be distinctive
 suggest something about the product's benefits or characteristics
 Suggest about the product qualities such as action or use.
 Be large enough to be applicable to new products that may be added to the product line.
 Have a possibility of registration and legal protection.
Packaging
Packaging is a marketing process concerned with the design and production of the container or
wrapper for a product. The container or wrapper is called the package. In recent times
packaging has become a potential marketing tool because it can create convenience value for the
consumer and promotional value for the producer or seller. Packaging is closely related to
labeling and branding because label often appears on the package and the brand typically on the
label.
Importance of Packaging
Packaging was production-oriented activity in most companies, performed mainly to obtain the
benefits of protection and convenience. Currently, however, the importance of packaging is
growing. Generally, there are three reasons for packaging.

1. Packaging serves several safety and utilitarian purposes. It protects a product on its route
from the producer to the final consumer, even while it is being stored by middlemen and
used by the customer. For liquid, granular and other divisible products, packaging is

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 needed to secure the items in a given quantity and form. Compared with bulk items,
packaged goods are generally more convenient, cleaner, and less susceptible to losses
such as evaporation, spilling and spoilage. Furthermore, multiple packaging in large sizes
encourages increased product usage when packages are reusable.
2. Packaging may implement a company's marketing program. The package is an important
method of communication with the customer by identifying the brand and providing
ingredients and directions, which represent an image of the brand. Packaging may also
serve as a promotional tool; and the package is the final form of promotion the consumer
sees prior to making a purchase decision. The package differentiates a product from that
of competitors by its design, color, shape and materials. Therefore, packaging can act as a
silent sales man.
3. Well-packaged products may increase profit possibilities in that it stimulates customers to
pay more just to get the special package. Besides, an increase in ease of handling or
reduction in damages or losses again increases profit by cutting marketing costs.
Policies of Packaging

1. Changing the Package Policy

There are two important reasons for packaging- to combat a decrease in sales and to expand a
market by attracting new groups of customers. A new package may be used as a major appeal in
advertising, for it acts as a silent salesman. Sometimes packages may also be changed to take
advantage of new materials.
2. Packaging the Product Line Policy
This is also called family packaging. It involves the use of identical packages for all products of
a company, or the use of packages with some common feature. When new products are needed to
a line, promotional values associated with the old products extend to the new ones. In short,
family packaging is usually used when the products are of similar quality and the company has
goodwill.

3. Reuse Packaging Policy

Companies design and promote a package that can serve other purposes after the original
contents have been used. For example, baby food jars may be used to contain other liquid
materials such as honey and oil. Or sometimes a company may recollect the package to reuse it
for similar purpose. The Ethiopian Beverage Factories are good example.
4. Multiple Packaging

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 This refers to the packaging system in which we can place a number of quantities required for
similar purposes. It is also called quantity packaging because it is the practice of placing several
units in one container or package. Beer, motor oil, table tennis balls, and other numerous
products are packaged in multiple units.
Sometimes consumers' desire for convenience (in the form of throwaway containers) conflicts
with their desire for a clean environment. Thus, to offset these conflicting interests marketers
have developed two conditions
- development of a package system in which it shortens the decay time
- development of repurchase system of the package by the organization.
Development of a New Package
Developing the package for a new product requires a large number of decisions. The first task is
to establish the packaging concept. This is the definition of what the package should basically be
or do for the particular product. This is because a package may be introduced for either one or
more of the previously mentioned importance of packaging.
Another important decision is regarding the component elements such as package design size,
shape, materials, color, brand mark etc. Each packaging element must be harmonized with the
other packaging elements; size suggests certain things about materials, materials suggest certain
things about colors and so forth. The packaging elements also must be guided by decisions on
pricing, distribution, advertising and other marketing elements.
After a package is designed it must be put through a number of tests.
 Engineering tests- to ensure that the package stands up under normal conditions.
 Visual tests- to ensure that the script is legible and the colors harmonious
 Dealer tests- to ensure that dealers find the package attractive and easy to handle
 Consumer tests- to ensure favorable consumer response.
Labeling
Label is part of a package that carries verbal information about the product of the seller. The
essence of label is expository by nature because it expresses some features of the product such as
ingredients, weight measure, use, warning, performance, etc. Sometimes it also includes
advertising message. A label may be part of a package, or it may be a tag attached directly to the
product. Typically, there are three kinds of labels.
Brand label. Simply the brand alone applied to the product or to the package.
Grand label. A label which identifies the quality with a letter, number or word.

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 Descriptive label. It gives an objective information about the use, construction, care,
performance or other features of the product. Sometimes it is called informative label.
Product Design
The marketing significance of design has been recognized for years in the field of consumer
products, starting form big items like automobiles and refrigerators to small products like
fountain pens. A good design of a product can improve its marketability in many ways. The
typical importances of a good design are the following
 It can make the product easier to operate
 It can upgrade the quality and durability of the product
 It can improve product appearance and reduce manufacturing costs,
 It can generate new uses for a product
Color
Marketing management has to consider the psychological and sociological aspects of color and
the impact of geographical environments on color. Color is often a determinant factor in a
customer's acceptance or rejection of a product, particularly products such as a dress and an
automobile because different people have different color interpretations. The impact of color on
a firm's activities depends on knowing the right color and when to change the color. The careful
use of color can increase sales and workers’ productivity.
Product Quality
Product quality is the most important and probably the most difficult of all the image building
features to define. Quality can be expressed in many ways among which reliability and durability
are the most important. Reliability is the measure of assurance whether the intended performance
matches with the actual performance of a product and this can be expressed in terms of right or
wrong, not good or bad. Thus, reliability and product quality are directly proportional. As a
measure of quality, durability also refers to the measure of life span of a product., and is
expressed in terms of calendar time or usage time of the product.
Product Warranty
Warrant refers to the compensation the seller promises to give to the buyer in case the product is
not found to perform up to a reasonable expectation. Warranty is often given either in the form of
expressed warranty or implied warranty in which the former refers to the warranty explicitly
stated in terms of written or spoken information. This seems that it mainly protects the seller
from the buyer's claims. Consequently, the scope of warranty is broadening to cover the concept
of implied warranty. It is the idea that warranty was intended, although not stated, by the seller if

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 the product is not found to perform up to a reasonable expectation. Warranties are closely related
with the product in such a way that not only retailers or wholesalers but also manufacturers are
liable for product caused injuries. Therefore warranty is part of the bundle satisfactions a buyer
receives when buying a product.
Product Service
Service policies are important elements of marketing programs for many industrial products such
as computers. It is necessary to provide installation and repair services and training for
customers' personnel. Appropriate service policies not only facilitate initial sales, but also help in
keeping products sold, stimulating repeat sales, and build customer goodwill.

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