Marketing Chapter 1: Product Mix
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Questions and Answers

What are shopping goods?

Shopping goods are goods that a customer purchases with considerable time and effort.

What are unsought products?

Unsought products are those goods that the consumer purchases without any planning or search efforts.

Define specialty products.

Specialty products are products that are considered to be unique or non-standardized.

__________ are products that are considered to be unlike or non-standardized.

<p>Specialty products</p> Signup and view all the answers

Product represents solution to ________ problems.

<p>customers</p> Signup and view all the answers

Product is anything that can be offered to someone to satisfy a ________ or a.

<p>need &amp; want</p> Signup and view all the answers

Products have their own ________ or a.

<p>identity &amp; personality</p> Signup and view all the answers

_____ is defined as a name, term, symbol, design or a combination of them which is intended to identify the goals & services of one seller and to differentiate them.

<p>Brand</p> Signup and view all the answers

Symbols and pictures ensure ________ identifications.

<p>brand</p> Signup and view all the answers

Product is the ________ and all the marketing activities revolve around it.

<p>focal point</p> Signup and view all the answers

_______ is the unbranded and undifferentiated commodity.

<p>Generic product</p> Signup and view all the answers

The ________ is the modified product to suit to the requirement/specifications of the individual customer.

<p>customized product</p> Signup and view all the answers

The ________ aims to enhance the value of the product/offer through voluntary improvement.

<p>augmented product</p> Signup and view all the answers

The potential product is the ________ inclusive of the advancement and refinement that is possible under the existing circumstances.

<p>future product</p> Signup and view all the answers

According to Philip Kotler, what is the definition of a product?

<p>Anything that can be offered to someone to satisfy a need or a want (C)</p> Signup and view all the answers

What is the core product defined as?

<p>the basic element of the product</p> Signup and view all the answers

A brand is intended to identify the goods and services of one seller and differentiate them from those of competitors. A brand with legal protection is called a ________.

<p>trademark</p> Signup and view all the answers

What is the core benefit (product) level in the seven level product approach?

<p>Basic level representing the purpose of the product (C)</p> Signup and view all the answers

Consumers buy products solely based on the physical object rather than the benefits and satisfaction they offer.

<p>False (B)</p> Signup and view all the answers

Give an example of a branded product mentioned in the content.

<p>Nike, Adidas, Being human, Gucci, etc</p> Signup and view all the answers

What are the two kinds of products mentioned from a societal point of view?

<p>Salutary and Non-Salutary (D)</p> Signup and view all the answers

The differentiated product level focuses on making a product unique from its competitors by highlighting special attributes.

<p>True (A)</p> Signup and view all the answers

The width of a product mix refers to how many different ___________ the company carries.

<p>product lines</p> Signup and view all the answers

Match the product mix dimension with its description:

<p>Width/Breadth = Refers to how many different product lines the company carries. Depth = Refers to how many variants of each product are offered in the line. Consistency = Describes how closely related the various product lines are in end use, production requirements, etc.</p> Signup and view all the answers

What are some strategies a company can use in the decline stage?

<p>Cutting promotional expenses (A), Discontinuing the product (B), Maintaining the product with new features or uses (C)</p> Signup and view all the answers

During the decline stage, sales and profits increase rapidly.

<p>False (B)</p> Signup and view all the answers

What is packaging according to the provided content?

<p>Packaging can be defined as an art, science, and technology of preparing goods for transport and sale.</p> Signup and view all the answers

What category of buyers make up the early majority in the adoption process?

<p>average people with regard to income, occupation, age, education</p> Signup and view all the answers

What are the three levels of packaging mentioned?

<p>Transportation package (A), Secondary package (C), Primary package (D)</p> Signup and view all the answers

In the diffusion process, the normal distribution curve is also known as the _________ curve.

<p>bell shaped</p> Signup and view all the answers

According to Philip Kotler, packaging is concerned with protection, economy, convenience, and __________ considerations.

<p>promotional</p> Signup and view all the answers

Good packaging may lead to improved consumer acceptance. (True/False)

<p>True (A)</p> Signup and view all the answers

Match the following importance of packaging to its corresponding function:

<p>It provides information about the product = Product identification It helps in offering customer convenience and satisfaction = Enhanced product value It contributes to the safety of a product and protects the product = Product safety</p> Signup and view all the answers

Specialty products are goods with _________________ or ______________________ for which a sufficient number of buyers are willing to make a special purchasing effort.

<p>unique characteristics, brand identification</p> Signup and view all the answers

In the product life cycle, each product goes through stages of introduction, growth, maturity, and decline. What does PLC stand for?

<p>Product Life Cycle</p> Signup and view all the answers

According to Philip Kotler, what is the Product Life Cycle?

<p>A conceptual representation of a product's aging process</p> Signup and view all the answers

What are the stages of the Product Life Cycle?

<p>Growth (A), Maturity (B), Introduction (C), Decline (D)</p> Signup and view all the answers

All products strictly follow all four stages of the Product Life Cycle.

<p>False (B)</p> Signup and view all the answers

What is the role of labelling in marketing?

<p>Labelling provides detailed information of the products, its ingredients, usage, care to be administered, caution, batch number, manufacturing place, helpline number, date of manufacturing and expiry. It also helps to identify the product or brand and aids in product grading.</p> Signup and view all the answers

How does labelling help in identifying a product or brand?

<p>Labelling enables to identify the product amongst the multiple brands. For example, the SUNFEAST brand of biscuits can be easily identified from other brands based on their labelling.</p> Signup and view all the answers

What are the four basic functions that packaging should perform?

<p>Protection, Appeal, Performance, Packaging for convenience</p> Signup and view all the answers

Which of the following is NOT listed as a disadvantage of packaging?

<p>Adds to attractiveness of the item (A)</p> Signup and view all the answers

What information does a label typically provide about a product?

<p>A label typically provides information such as product description, ingredients, usage instructions, care instructions, caution, batch number, manufacturing place, helpline number, date of manufacturing, and expiry date.</p> Signup and view all the answers

Labelling provides customers with the requisite information about the product including quality, features, standards, grade, price, quantity, etc., which helps them make _________ decisions.

<p>better and informed</p> Signup and view all the answers

Study Notes

Product Mix

  • Product is a need-satisfying entity that represents a solution to customers' problems
  • It is a bundle of tangible and intangible benefits that can be offered to a market to satisfy a want or need

Role of Product in Marketing Mix

  • Product is the key element of the marketing program
  • The product is the heart/cornerstone of marketing mix
  • Without a product, nothing can be priced, promoted, or distributed

Components of a Product

  • Core Product: the basic element of the product that provides the main usage
  • Associated Features: features that enhance the product's personality, such as fragrance, moisturizing ability, and brand name
  • Brand Name: a name, term, symbol, design, or combination of them that identifies the goods and services of one seller
  • Logo: the brand mark or symbol that extends support to the brand
  • Package: a component of the total product personality that performs three essential roles: protection, information, and aesthetics
  • Label: part of the package that provides written information about the product

Characteristics of a Product

  • Product is one of the core elements of marketing mix
  • Various people view it differently (consumers, organizations, and society)
  • Product includes both goods and services
  • A marketer can realize their goals by manufacturing, selling, improving, and modifying the product
  • Product includes both tangible and intangible features and benefits offered
  • Product is a vehicle or medium to offer benefits and satisfaction to consumers

Importance of Product

  • Product is the core of all marketing activities
  • Product is the focal point and all marketing activities revolve around it
  • Product is an end (satisfaction of customers) and the producer must insist on the quality of the product
  • Product policies decide the other policies

Total Product

  • Consumers buy satisfaction in the form of a product (economic and mental satisfactions)
  • Product is a bundle of all kinds of satisfactions of both material and non-material kinds
  • Total Product is more than just physical products and includes related functional and aesthetic features

Product Levels

  • Core Benefit (Product): the basic level that represents the heart of the product
  • Generic Product: the unbranded and undifferentiated commodity
  • Branded Product: the product with an identity through a name
  • Differentiated Product: the product with special attributes or features
  • Customized Product: the product modified to suit the requirements of the individual customer
  • Augmented Product: the product with voluntary improvements
  • Potential Product: the "future" product inclusive of advancements and refinements

Product Mix

  • Product Mix is the composite of products offered for sale by the firm over a period of time
  • It is the entire range of products of a company for sale
  • Product Mix consists of various product lines
  • The dimensions of Product Mix are:
    • Width/Breadth: the number of different product lines the company carries
    • Depth: the number of variants of each product offered in the line
    • Consistency: how closely related the various product lines are in end use, production requirements, distribution channels, or some other way

Factors Influencing Product Mix

  • Market demand: the demand of the product determines whether the product should be manufactured or discontinued
  • Cost of product: the company can develop products that are low in costs and produce those products
  • Quantity of production: the company can add more items on its product line if the production of the new product is to be made on a large scale
  • Advertising and distribution factors: the company can add more products to its product line without incurring additional advertisement and distribution expenses### Factors Influencing Product Mix
  • Residual products: by-products generated during manufacturing can be developed or utilized to add to the product mix. Example: sugar manufacturing companies use molasses as a by-product.
  • Competitor's action: a company may decide to include or eliminate a product to compete in the market, influenced by competitor's actions.

Product Classification

  • Classification is essential for marketers and consumers as it helps in implementing suitable marketing strategies with minimum cost and effort.
  • Classification is based on durability, tangibility, and user type.
    • Durable goods: can be used for many years, require more personal selling, after-sales service, and are often supported by guarantees and warranties. Examples: LCD TVs, mobile phones, washing machines.
    • Non-durable goods: consumed in one or a couple of uses, require heavy advertising, and are widely available. Examples: food items, toiletries, daily use items.
    • Services: intangible, inseparable, and inconsistent, requiring quality control, credibility, and adaptability. Examples: hospitality, airlines, insurance, and banking services.

Consumer Goods

  • Classified based on shopping habits:
    • Convenience goods: purchased frequently with minimum effort and time, low prices, and widely available. Examples: soft drinks, soaps, bread, milk.
      • Staple goods: regularly purchased, become daily necessities. Examples: bread, milk, eggs.
      • Impulse goods: purchased without planning, often located near cash counters. Examples: chocolates, magazines, kids' toys.
      • Emergency goods: purchased to fulfill an urgent need, expensive, and have a continuous demand. Examples: toothbrushes at tourist destinations, umbrellas during rainfall, medicines during an emergency.
    • Shopping goods: products that require comparisons based on quality, price, style, and suitability. Examples: furniture, clothing, major appliances.
      • Homogeneous products: similar in quality, differ in price, and sellers engage in price wars. Examples: automobile tires, electrical appliances.
      • Heterogeneous products: differ in features and services, more important than price. Examples: designer clothes.
    • Specialty goods: unique products with strong brand identification, high prices, and limited distribution. Examples: cars, high-end watches, diamond jewelry.
    • Unsought goods: products that are available but not known or wanted by potential buyers. Examples: smoke detectors, life insurance, cemetery plots.

Industrial Products

  • Used as inputs to produce consumer products, for non-personal and business purposes.
  • Features:
    • Limited number of buyers compared to consumer goods.
    • Short length of channel for distribution.
    • Demand is concentrated in certain geographical locations and is derived from consumer goods.
    • Product purchase is based on fulfillment of technical considerations.
  • Types:
    • Materials and parts: goods that enter the manufacturer's product completely.### Industrial Goods
  • Raw materials fall into two groups:
    • Farm products (wheat, cotton, livestock, fruits, and vegetables)
    • Natural products (fish, lumber, crude petroleum, iron ore)
  • Farm products are supplied by many producers and require marketing intermediaries for assembly, grading, storage, transportation, and selling services
  • Natural products have limited supply, are bulky, and have low unit value, often requiring long-term supply contracts with industrial users
  • Price and delivery reliability are key factors in selecting suppliers

Manufactured Materials and Parts

  • Component materials (iron, yarn, cement, wires, etc.)
  • Component parts (small motors, tires, castings)
  • Component materials are fabricated further, while component parts enter finished products with no change in form
  • Price, quality, and service are major marketing considerations

Capital Items

  • Long-lasting goods that facilitate developing or managing finished products
  • Include installations (buildings, heavy equipment) and equipment (portable factory equipment, office equipment)
  • Installations are major purchases, usually bought directly from producers, and require technical personnel and after-sales services
  • Equipment has a shorter life than installations but longer than operating supplies

Supplies and Business Services

  • Short-term goods and services that facilitate developing or managing finished products
  • Include maintenance and repair items (paint, nails, brooms) and operating supplies (lubricants, coal, writing paper, pencils)
  • Usually marketed through intermediaries due to low unit value and geographic dispersion of customers
  • Price and service are important considerations

Differences between Consumer Goods and Industrial Goods

  • Meaning: Industrial goods are used to produce consumer goods, while consumer goods are used directly by consumers
  • Demand: Industrial goods have derived demand, while consumer goods have autonomous and direct demand
  • Market size and geographical concentration: Industrial goods have limited buyers concentrated in a few regions, while consumer goods have a large market with scattered buyers
  • Elasticity of demand: Industrial goods have relatively inelastic demand, while consumer goods have elastic demand
  • Type of buyers: Industrial goods are purchased by businesses, while consumer goods are purchased by individuals and households
  • Sales support: Industrial goods require after-sales services and technical support, while consumer goods may have less emphasis on after-sales services

Product Life Cycle

  • Introduction stage:
    • New product is introduced, and primary demand must be aroused
    • Low sales, high operational costs, and high promotion costs
    • Limited competition, and profits are negative
  • Growth stage:
    • Sales increase rapidly, and market expansion occurs
    • Competition increases, and profits rise
    • Focus on building brand preference and increasing market share
  • Maturity stage:
    • Sales peak and decline, and industry profits decrease
    • Heavy competition, price wars, and emphasis on product differentiation
    • Focus on extending product life through service, image marketing, and repositioning
  • Decline stage:
    • Sales decline, and profits decrease
    • Discontinuation of the product or modification to revitalize it

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Learn about the concept of product in marketing, its importance, and how it solves customer problems. Understand the tangible and intangible benefits of a product!

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