BMT506 Product and Brand Management

Session 1

PRODUCT
Core Concepts

Product

anything that can be

offered to a market
that might
satisfy a want or need

A product

in Retailing is called Merchandise

in Manufacturing is Raw Material and

Finished Goods
in Project Management is Project

Deliverable

A Product can be

A good
An idea
A process
A method
Information
An object
A service
An experience

A product is
a bundle of utilities (total product)
a bundle of attributes (features, functions, benefits
and uses)
has capabilities to satisfy customer functional as
well as psychological
has some exchange value
may be tangible or intangible or a combination of
both
is not always a single product
may be a part of another product

Product Hierarchy
Product Portfolio
Solutions or Bundles
Product Line
Product
Product Elements, Modules,
Terms
Product Platform or Base
Architecture

Product Hierarchy

Product Lines
group of related products
e.g. skin care products

Product Portfolio
group of several product lines
e.g. Cosmetics/Beauty care products

Solutions and Bundles

group of related products or services
e.g. anti-ageing

Product Hierarchy

Product Elements and Modules

black-boxes within a product
e.g. power-module/batteries

Product Platform
Underlying framework, base architecture, technology
frameworks, and interfaces upon which products are
produced
e.g. Swift platform from Maruti Suzuki

Product Levels (Philip Kotler)

Product Levels

Core Benefit
the fundamental need or want that consumers satisfy
by consuming the product or service

Generic Product
a version of the product containing only those attributes
or characteristics absolutely necessary for it to function

Expected Product
the set of attributes or characteristics that buyers
normally expect and agree to when they purchase a
product

Product Levels

Augmented Product
inclusion of additional features, benefits, attributes or
related services that serve to differentiate the
product from its competitors

Potential Product
all the augmentations and transformations a product
might undergo in the future.

Product Classification
On basis of Rate of Consumption Copeland (1923)

Non-durable
Tangible goods that are normally consumed in one or few
uses
e.g. Beer, Toothpaste, Sugar, Soap, Salt, etc.

Durable
tangible goods that normally survive many uses
e.g. Furniture, Refrigerator, Clothing, Rugs, etc.

Services
activities, benefits or satisfaction that are offered for sale

Product Classification: CONSUMER

GOODS
Edward and Richard (1971)

Convenience Products
that the consumer buys with minimum shopping effort
e.g. Biscuits, Newspaper, Toilet Soap, Cigarettes etc.

Subcategories
Staple Products bought often in a routine manner without much
thought
Impulse Products purchased without any planning or search
effort
Emergency Products circumstantially purchased when the need
is great

Product Classification: CONSUMER

GOODS

Edward and Richard (1971)

Shopping Products
selected by consumers based on certain yardsticks such as
suitability, quality, price and style
involve shopping comparison before selection
e.g. furniture, rugs, dresses, computers, shoes and household
appliances

Subcategories (Kotler, 1991)

Homogenous Products seen as basically the same
Heterogeneous Products seen as different in features

Product Classification: CONSUMER

GOODS

Edward and Richard (1971)

Specialty Products
for which consumers are habitually willing to make a special
purchasing effort.
possess unique characteristics or high degree of brand
identification.
e.g., specific brands and types of fanny foods, cars, stereo
components, photographic equipment and suits.
Do not involve buyer in making comparisons buyers invest
time only to reach the dealers of the specialty goods.

Product Classification: CONSUMER

GOODS

Edward and Richard (1971)

Unsought Products
Products consumer does not know about or know about but does not
normally think of buying
e.g. fire extinguishers, insurance, encyclopedia, novelty products
(sometimes) etc.

Subcategories (William D. P., 1996)

New Unsought Products potential customers do not know
anything about
Regularly Unsought Products customers not motivated to
satisfy need

Product Classification: INDUSTRIAL

GOODS

Foundation Products

manufacturing machines upon which production is

dependent

Subcategories
Installations buildings and fixed equipment
Accessory equipment portable factory equipment and
tools which do not become part of the finished product

Product Classification: INDUSTRIAL

GOODS

Entering Products

ingredients or components of product

These are the parts that go into the product itself

Subcategories
Raw materials usually enter the production process in
their raw/natural or non-processed state
Fabricating materials undergo some initial processing
before entering production process

Product Classification: INDUSTRIAL

GOODS

Facilitating Products

operating supplies that are used up in the operation

of the firm but do not become part of the product
purpose of such goods is to keep the foundation
goods functioning properly and to help in the
handling and supply of the entering goods.
e.g. lubricating oil, saw blades, labels, etc.

Product Mix
also called product assortment
is the set of all products and items that a particular
seller offers for sale
consists of various product lines
Product mix has a certain
Width total number of product lines
Length total number of items in the product mix
Depth number of variants offered of each product in the
line
Consistency - how closely related various product lines
are in end use, production requirements, distribution

Product Line Decisions

Line Stretching
Down Market Stretch
Up Market Stretch
Two-way Stretch

Line Filling
Line Modernization
Line Featuring
Line Trimming

Product Management: Few Reference

Books

Donal R. Lehmann and Russell S. Winer, Project Management,

TMH
Steven Haines, The Product Managers Desk Reference,
McGraw Hill
Ramanuj Majumdar, Product Management in India, PHI
C. Anandan, Product Management, TMH