UNIT – 5A

MARKETING MIX
PRODUCT

Product Identification
Product Life Cycle
Packaging
 Product
Product is the most critical element of
marketing mix
It can be defined as “anything that can be
offered to a market for attention, acquisition,
use or consumption and that might satisfy a
need or want”
Product marketing refers to exchange of value
and benefit between seller and buyer
Product performance is the customers’
evaluation of product on utility parameters
Product may include physical object, service,
person, place, organization, idea etc.
 Product
 A product is more than a tangible ‘thing’.
 A product meets the needs of a consumer.
 A product has an abstract value. And for this
reason there are five product levels that can
be identified and developed.
In order to shape this abstract value, five
product levels are used in which a product is
located or seen from the perception of the
consumer.
These 5 Product Levels indicate the value that
consumers attach to a product. The customer
will only be satisfied when the specified value
is identical or higher than the expected value.
 Product Identification
Brand Name
It is a part of a brand consisting of words or
letters that form a name that identifies and
distinguishes a firm’s offering from those of its
competitors
Brand Mark
It is a symbol or pictorial design that identifies
a product
Generic Name
It refers branded name that has become a
generically descriptive term for a class of
products (e.g. Nylon, Aspirin, Kerosene,
Zipper etc.)
 Product Identification
 Trademark
This provides a legal protection which confers
the exclusive right to user brand name, trade
mark, and any slogan or product name
abbreviation
 Trade Dress
This refers to visual cues used in branding to
create an overall look
The distinctive shape of Philips light bulbs and
the McDonald’s arches provide an example of
trade dress
 Product Identification
 Copyright
Copyright is a legal concept, enacted by most
governments, that grants the creator of an original
work exclusive rights
 ISO (International Organization for
Standardization)
It is the world’s largest developer of voluntary
International Standards. International Standards
give state of the art specifications for products,
services and good practice, helping to make
industry more efficient and effective. Developed
through global consensus, they help to break
down barriers to international trade.
Product Life Cycle
 Marketing Strategy through PLC
KEY POINTS
 During the Introduction Stage, the product is
promoted to create awareness and develop a
market for the product.
 In the Growth Stage, the firm seeks to build brand
preference and make efforts to increase market
share.
 The primary objective during the Maturity Stage is
to defend market share while maximizing profit.
 Firms have several options when deciding how to
deal with a product in the Decline Stage.
 Marketers must take care not to miss opportunities
by applying strategies based on the product life
cycle model too closely.
 Marketing Strategy through PLC
INTRODUCTION STAGE
 New product is launched into a market
 Takes time for the market to accept product.
 Sales often remains low
 Marketing concentrates on product promotion and
awareness
 Product branding and quality level is to establish
 Intellectual property protection, such as patents
and trademarks are obtained
 Either low penetration pricing strategy to build
market share rapidly or high skim pricing strategy
is adopted to recover development costs
 Marketing Strategy through PLC
INTRODUCTION STAGE
 Distribution is selective until consumers show
acceptance of the product.
 Promotion is aimed at innovators and early
adopters.
 Marketing communications seeks to build product
awareness and educate potential consumers about
the product.
 Convenient location for easy access to the service
 Well trained and service oriented people
 Emphasis on one stop solution for all the possible
offerings
 Prompt and effective service to establish customer
satisfaction
 Marketing Strategy through PLC
GROWTH STAGE
 Competitors are attracted into the market with very
similar offerings.
 The firm seeks to build brand preference and
increase market share
 Product quality is maintained and additional
features and support services can be added
 Pricing is maintained as the firm enjoys increasing
demand with little competition
 Distribution channels (multi location) are added as
demand increases and customers accept the
product
 Promotion is aimed at a broader audience
 Marketing Strategy through PLC
MATURITY STAGE
 Those products that survive the earlier stages tend to
spend longest in this phase.
 At maturity, the strong growth in sales diminishes.
 Competition may appear with similar products. The
primary objective at this point is to defend market share
while maximizing profit.
 Product features may be enhanced to differentiate the
product from that of competitors.
 Pricing may be lower because of the new competition.
 Distribution becomes more intensive, and incentives
may be offered to encourage preference over competing
products.
 Promotion emphasizes product differentiation.
 Marketing Strategy through PLC
DECLINE STAGE
 There is a downturn in the market.
 More innovative products alternatives are available in
the market
 Consumer tastes have changed
 Intense price cutting, and many more products are
withdrawn from the market
 Profits can be improved by reducing marketing
spending and cost cutting
 It is possible to revive product by adding new features
and finding new uses
 Harvest the product and reduce costs and continue to
offer it, possibly to a loyal niche segment
 To sell the brand or product to another firm that is
willing to continue the product.
 PACKAGING
 Packaging is the technology of enclosing or
protecting products for distribution, storage, sale,
and us`e.
 Packaging also refers to the process of design,
evaluation and production of packages.
 Packaging is a coordinated system of preparing
goods for transportation, warehousing, logistics,
sale, and end use.
 Packaging contains, protects, preserves,
transports, informs, and sells.
 Labelling is any written, electronic, or graphic
communication on the package or on a separate
but associated label on the product.
 PURPOSE OF PACKAGING
 Physical Protection – Against damage, spoilage,
mechanical shock, vibration, electrostatic discharge,
compression, temperature etc.
 Marketing Assistance – To impress potential buyer
 Cost Effectiveness
 Barrier Protection– From oxygen, humidity, dust,
etc.
 Product Handling – Small objects are typically
grouped together in one package for reasons of
efficiency in handling
 Information Transmission – To communicate use,
transport, recycle, or dispose of the package or
product
 Security – In reducing the security risks of
shipment. Packages can be made with use of
improved tamper resistance materials
 PURPOSE OF PACKAGING
 Anti - Counterfeiting Packaging – To reduce the
risks of theft and resale of products unauthorized
sales
 Loss Prevention - Surveillance tags that can be
activated or detected by devices at exit points and
require specialized tools to deactivate
 Convenience – convenience in distribution, handling,
stacking, display, sale, opening, reclosing, use,
dispensing, reuse, recycling, and ease of disposal
 Inventory Control – Selling sealed one-liter-bottles of
milk, rather than having people bring their own bottles
to fill themselves
 Control Use – Product in scarcity can be controlled by
introducing single dosage packaging
 LABELLING
 Display of information about a product on its container,
packaging, or on the product itself
 It helps in imparting the information for different types
of consumer and industrial customers
 The type and extent of information must be imparted
as per the government law to ensure the abide of
relevant safety norms for product and transportation
 They play a vital role in developing product and brand
image by way attention, visibility and attractiveness
 It can contribute for more product sales by explaining
the benefits, value, competitive advantages etc.
 It also helps in developing brand goodwill and
consumer confidence
 It helps in product categorization such as nutritional
information in food products such as “low-fat” or
“reduced cholesterol”