Principle of Marketing- Product Anatomy

8/3/2019 Principle of Marketing- Product Anatomy

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PPRINCIPLESRINCIPLES OFOF MMARKETINGARKETING

Product Anatomy

Prof. Rushen Chahal

Prof. Rushen Chahal 1


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Learning ContentsLearning Contents

1. Appreciate the anatomy of a product

2. Describe about the product-based classifications

3. Describe about the user-based classifications4. Understand about the product mix / range

5. Elaborate on the different components of

branding



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1. The anatomy of a product1. The anatomy of a product

A product is a physical good, merchandise,

service, idea, person or place or anything

that is capable of offering tangible and

intangible attributes that satisfy individuals

or organisations and they are prepared to

exchange money to acquire it



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a. Core product:- core benefits of a product;

the reason for a products existence and

purchase

b. Tangible product:- real product that

clearly represents and communicates the

offer of the core benefits, e.g. design,specification, product features, quality level,

branding and packaging



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c. Augmented product:- add-on extras thatare used by producers or retailers to increasethe products benefits or attractiveness, e.g.

such as after-sale services, user training forpurchase of PC

d. Potential product:- possible growth and

evolution of the product in the future



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2. Product2. Product--basedbased

classificationsclassificationsProducts that serve different purpose/markets

Durable products - last long and for many uses

before having to be replaced, e.g. fridge, cars etc

Non-durable products - can be used once or a

few times before being replaced, e.g. FMCG or

office consumables

Service products - intangible products entailing

activities or benefits that are not part of the

physical products, e.g. financial services, etc



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3. User3. User--based classifications:based classifications:Consumer goods/servicesConsumer goods/services

Convenience goods - relatively inexpensive,

frequent purchases which respond to routine

response buying situations

Shopping goods - represent more of a risk and an

adventure to consumers

Speciality goods - high risk, expensive and

infrequently purchased products

Unsought goods goods that are not often

thought about



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3. User3. User--based classifications:based classifications:

B2B goods/servicesB2B goods/services Capital goods - buildings and fixed equipment

that contribute to production.

Accessory goods - items that give peripheral

support to the production process.

Raw materials products in their natural state

Semi-finished goods, e.g. cloth still needs cutting

Components and parts, e.g. finished goods as

part of another product

Supplies and services maintenance, repairs,

operations Prof. Rushen Chahal 9


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4. The product mix4. The product mix

The product is the sum of all the products and

variants offered by an organisation according to:-

a. Product lines groups of closely-related products

b. Product items individual products in a line

c. Product line length range of products in a line;

may upward or downward stretch later

d. Product line depth has many variants of product

lines

e. Product mix width the number of products lines

in a company Prof. Rushen Chahal 10


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5. Branding5. Branding What is a brand?What is a brand?

A brand is any name, design, style,

words or symbols, singly or in

combination that distinguish a

companys product from itscompetitors

Brands are used by people or

organizations to establish theirstatus far more than religion or

political party



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5. Branding5. Branding What is a brand?What is a brand?

1. Attributes:-. brings to mind certain productfeatures or traits, e.g. Mercedess attributes are

well design; strong; expensive/prestigious.

2.Benefits:- Customers also buy functional oremotional benefits, e.g. strong means no need tochange cars; Expensive means feel important.

3.Values:- Consumers values coincide with the

attributes/benefits of the product.

4.Personality:- brand projects a personality. If this

car were a person, what kind of car would I be



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5. Branding5. Branding Brand benefitsBrand benefits

Tells the buyer something about the product

Increases the shopper's confidence and efficiency,

e.g. imagine finding thousands of generic rice

products

Brings attention and reminder to customers, which

stories about the products can be told

Protects the product through trademarks orbrandmarks

Helps companies to segment markets and develop

new brands/products



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Manufacturer brands or Store brands ?


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5. Branding5. Branding -- The rules forThe rules for

good brand naminggood brand naming Distinctive short and sharp, e.g. Shell, kodak. Supportive, i.e. remaining consistent with other

media or message

Acceptable, i.e. easy to pronounce, remember,

translate, etc

Available; to register and protect

Repositioning; to allow for brand, image or

perceptual changes



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5. Branding5. Branding Types of strategyTypes of strategy

a. Line extensions:- occurs when additionalproduct items are introduced under the samebrand name such as new flavours, forms,colours

b. Multibrand:- different brand names in a sameproduct category. For managing andsegmenting

c. Brand extension:- use a successful brand nameto launch new or modified product categories

d. New Brands:- Create a new brand todifferentiate a new product category



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5. Branding5. Branding -- PackagingPackaging

Packaging is any container or wrapping in

which the product is offered for sale and can

consists of any material to contain.

Can be 1st level, 2nd level or 3rd level

packaging



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5. Branding5. Branding -- PackagingPackaging

The purposes of packaging:-

Functional:-

- To protect a product from damage or contamination.

To keep the product together. To protect during from

transport.

Promotional:-

- To identify the product. To act as salesman

- To stack and store. To be used as labelling


Principle of Marketing- Product Anatomy

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