Lesson 5.
1
Product
Principles of Marketing
Accountancy, Business, and Management
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At this point, you are already
familiar with
● the strategies to market your
brand,
● the importance of knowing
the customer’s needs
● the goal of marketing in
building profitable customer
relationship
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An essential element in this
relationship is the quality of
the product and services
you offer.
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How much does your product satisfy the needs and
wants of your target customers?
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Relaunching a Classic
Company C began the "Share a Soda" marketing campaign in 2014. The
firm replaced the company's brand on the soda cans with a label that
reads "Share a Soda with ________." The company fitted a rotation of the
250 most prevalent names for American young adults on the blank, and
people raced out to the groceries to find cans bearing the names of their
loved ones.
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Relaunching a Classic
The campaign increased the company's revenues, which was an
astounding accomplishment given that they had been stagnant for the
previous decade. Furthermore, it translated to reimagining a classic
product through a new experience. Personalized labeling has become an
annual ritual for the organization since that first summer.
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Questions to Ponder
1. What is the product’s role in marketing?
2. What did Company C offer along with their product to attract
customers?
3. What are other ways to make a product one-of-a-kind?
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Learning Objectives
In this lesson, you should be able to do the following:
● Define product.
● Explain the importance of the product in the marketing mix.
● Analyze case studies on creating a product.
● Create a product mix for your own brand.
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How important are products to
marketing success?
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Review: The Marketing Mix
● The marketing mix refers to the 4Ps of marketing:
product, price, place, and promotion.
● These are the essential components of marketing a
product or service, and they interact heavily with one
another.
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Review: The Marketing Mix
Place
Product
4Ps of Marketing
Price Promotion
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Review: The Marketing Mix
Product Price
● refers to the goods or ● refers to how much the
services being offered by customer must pay to
the business obtain a product or
● the customer must service
perceive its value ● determined by a variety
of factors
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Review: The Marketing Mix
Place Promotion
● refers to how the ● refers to all operations
product will reach the to make the product or
customers service known to the
● to make the product target market
attractive and accessible ● advertising, word-of-
to the target market mouth, newspaper
coverage, etc
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Review: The Marketing Mix
a collection of characteristics
(features, functions,
advantages, and uses) that a
person may perceive as
Product
valuable
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Review: The Marketing Mix
Product
● anything a company
supplies to provide client
happiness
● may be material or
intangible
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Review: The Marketing Mix
Services
● a form of intangible
products offered to
consumers
● purchase does not result
in an exchange of
ownership between the
provider and receiver
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Review: The Marketing Mix
Experiences
● the total benefit,
satisfaction, and value
associated with consuming
a product or service
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Levels of Products and Services
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Levels of Products and Services
Core Benefit Generic Product
the underlying need or a stripped-down version of
want that the consumer the product that has only the
meets when they purchase functionality required to
the goods function
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Levels of Products and Services
Expected Product Augmented
Product
the collection of attributes any product modifications,
extra features, or services
that buyers anticipate when that differentiate the
purchasing a product product from its rivals
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Levels of Products and Services
Potential Product
● contains all future
improvements and
adjustments to the
product
● to continue to surprise
and please customers
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The Product Mix
● also referred to as product
assortment or product portfolio
● a company's whole variety of
goods and services
● to diversify their market offerings
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The Product Mix
lenght
width
Product Mix
Dimensions
reliability depth
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The Product Mix
Width Length
the number of product lines the total number of goods in
supplied by a corporation a company's product mix
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The Product Mix
Depth Reliability
the number of variants the application, production,
within a product line and distribution routes
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The Product Mix
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Example of a Product Mix
CC is a well-known soda brand with a broad and deep product
matrix. The product mix's breadth includes products such as
MM Juice, Spirit, Fanatic, TP, and others. The CC brand handles
3500 goods in total, making up the product matrix's length.
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Example of a Product Mix
One of its products, MM Juice, comes in various flavors, such as
apple juice, mixed fruit, etc. They make up the depth of MM
Juice's product line. CC mainly sells beverages and hence has a
more consistent product mix.
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Example of a Product Mix
Many variables influence product mix, including:
● Company Age
● Financial Standing
● Area of Operation
● Brand identity, etc.
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Example of a Product Mix
Many new firms begin with a restricted breadth, length, depth,
and high consistency of the product mix. In contrast,
companies in excellent financial condition start with a broad,
long, deep, and less consistent product mix. The product mix is
also influenced by the company's location and brand identity.
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Categories of Products
Convenience
Products
● low-cost item that should
take the least amount of
work on the buyer's part to
pick and acquire
● marketing approach:
widespread distribution
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Categories of Products
Shopping Products
● more expensive and are
purchased on a sporadic
basis
● weighed by customers based
on assess quality, cost, and
features before being
purchased
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Categories of Products (Shopping Products)
Heterogeneous Homogeneous
● One-of-a-kind
● buying choice is more ● pretty comparable
likely to be focused on ● varying prices but similar
finding the correct core functionality
match for needs or ● lowest price is typically
wants than on price sought
alone
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Categories of Products
Specialty Products
● one-of-a-kind
● for customers, going to
tremendous efforts to
acquire and purchase these
is worthwhile
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Categories of Products
Unsought Products
● customer never intends or
aspires to purchase
● tend to attract aggressive
sales approaches
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Product Life Cycle
● starts when it is presented
to the consumers
● ends when it is removed
from the shelves
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Product Life Cycle
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Product Life Cycle
● developing the product
or service and its market
strategy
● to raise customer Introduction
awareness of the product
● sales tend to be slow
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Product Life Cycle
● growing demand
● increased manufacturing
and availability of the
Growth product
● branding becomes
increasingly crucial to
keep market position
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Product Life Cycle
● market saturation
● many customers will
have bought the product
● retailers will become Maturity
distributors and order
takers
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Product Life Cycle
● other companies offer
additional product
Decline features or lower pricing
● may be triggered by new
technologies
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Product Life Cycle: Typewriters
Because it made writing easier and more efficient, the
typewriter became extremely popular after its debut in the
late nineteenth century. With the introduction of the electronic
word processor, followed by computers, laptops, and
smartphones, the typewriter decreased as the industry
matured.
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Product Life Cycle: Typewriters
While typewriters are still accessible, the product is nearing the
conclusion of its decline, with few sales and minimal demand.
Meanwhile, desktop computers, laptop computers, cellphones,
and tablets are all in their product life cycle growth or maturity
stages.
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Electronics Product Life
3D Televisions: 3D has been around for a few decades, but only
after significant investment from broadcasters and innovative
groups are 3D TVs available for the house, providing a good
example of a product in the introduction stage.
Shailesh Verma, “Product Life Cycle: Case Study 2020.” [Link], (July 28, 2020), [Link]
cycle/#6-case-study-of-sony-product-life-cycle 44
Electronics Product Life
Blue Ray Players: With cutting-edge innovation delivering the
greatest review encounter, Blue Ray gear is now enjoying the
consistent increase in deals typical of the Growth Stage.
Shailesh Verma, “Product Life Cycle: Case Study 2020.” [Link], (July 28, 2020), [Link]
cycle/#6-case-study-of-sony-product-life-cycle 45
Electronics Product Life
DVD Players: Since their introduction some years ago,
manufacturers of DVDs and the equipment required to play
them have amassed a sizable share of the entire business.
Regardless, they must deal with the challenges that come with
many advancements typical of the Maturity Stage.
Shailesh Verma, “Product Life Cycle: Case Study 2020.” [Link], (July 28, 2020), [Link]
cycle/#6-case-study-of-sony-product-life-cycle 46
Electronics Product Life
Video Recorders: While it's still possible to purchase VCRs, this
is a product that is definitely in the Decline Stage since it has
proven out to be less demanding and less costly for buyers to
convert to the next, more recent configurations.
Shailesh Verma, “Product Life Cycle: Case Study 2020.” [Link], (July 28, 2020), [Link]
cycle/#6-case-study-of-sony-product-life-cycle 47
● The marketing mix encompasses the four Ps of marketing: product,
price, placement, and promotion. These are the essential
components of marketing a product or service, and they interact
heavily with one another.
● A product is generally described as a "thing created by labor or
effort." It is a collection of characteristics (features, functions,
advantages, and uses) that a person may perceive as valuable.
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● A consumer is only pleased
if the actual value equals or
surpasses the perceived
value. Products are
classified into five levels,
according to Kotler:
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● The product mix, also referred to as product assortment or product
portfolio, refers to a company's whole variety of goods and services
that aim to satisfy customer wants.
● Product life cycle refers to when a product is presented to your
consumers and when it is removed from the shelves. A product's life
cycle is split into four stages: introduction, growth, maturity, and
decline.
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