Marketing Management unit 2 Manisha Raj

PRODUCT MIX
PRODUCT MIX involves planning and developing the right type of product that will
satisfy fully the needs of customers ! product has several dimensions These
dimensions are collectively called product mi" Product mi" for e"ample may consist of
si#e and weight of the product$ volume of output$ product %uality$ product design$
product range$ &rand name$ pac'age$ product testing$ and warranties and after sales
services and the li'e
Product mi" is the sum total of all products that a company offers (or e"ample$ a pet
food manufacturer may offer several varieties of dog and cat food These multiple
products may serve different customers$ dog and cat owners$ &ut the products are all
part of the company)s product mi" Products within a product mi" can either &e similar or
variegated There are also four dimensions to product mix: width, length, depth
and consistency.
Width
The width of product mi" includes all the product lines that a company sells (or
e"ample$ if a vitamin company sells various vitamins$ diet products and sports drin's$ its
product width is three Upstart companies usually start with a narrower product width It
is not practical for small companies to start out with multiple product lines The company
will use enough resources producing or purchasing one line of products for sale *ome
companies may even start out with one or two products ! company can also &roaden
its product line as sales for the initial products start ta'ing off
Length
The length of a company)s product mi" pertains to the total num&er of products the
company sells$ (or e"ample$ a small consumer products company may have three
product lines+ snac's$ cereal and canned meats This consumer products company may
sell five snac' items$ four cereals and three varieties of canned meats Therefore$ the
company)s product mi" length is ,- *ome companies will also calculate an average
product length if they have numerous product lines (or e"ample$ the hypothetical
consumer products company a&ove would have an average product mi" length of four
Depth
! company)s product mi" depth pertains to the total num&er of variations for each
product$ according to Philip .otler)s te"t&oo'$ /Mar'eting Management+ !nalysis$
Planning$ Implementation and Control/ Product variation can include flavor$ fragrance$
si#e and any other salient attri&ute (or e"ample$ if a small pastry manufacturer sells
three flavors of pastries and two si#es of each flavor$ the product depth is si"
Companies will sometimes report average product depth figures for their product lines$
too
Consistency
Consistency in product mi" refers to the relationship &etween product lines$ including
use$ production and distri&ution (or e"ample$ a small fruit drin' manufacturer may use
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G. J. Patel college of Mngt & Tech
Marketing Management unit 2 Manisha Raj
similar production lines for several different types of drin's 0ence$ the production of
that company)s product mi" is highly consistent Distri&ution may also &e consistent in
that all drin's are distri&uted in grocery stores and mass merchandisers 0owever$ that
same drin' manufacturer may also produce a fruit drin' recipe maga#ine for its
consumers Therefore$ there is little consistency &etween the use of the fruit drin's and
the pu&lication
Strategy
!lmost all companies start with limited width$ length and depth in their product mi"
!dditionally$ a company)s product mi" will also &e highly consistent early on 0owever$
competition or technology may force a company to &ecome more diversified (or
e"ample$ a small lavatory manufacturer may need to sell vessels$ various styles of sin's
and faucets to gain more e"posure at a 'itchen and &ath dealership Conse%uently$ the
additional products will li'ely add to the width$ length and depth of the company)s
product mi"
Product planning
Product planning is a process used to identify and develop new products The purpose
of planning is to ma'e choices a&out which product ideas a company should invest in
Companies can approach product planning from a num&er of different perspectives
0aving a system in place &efore planning &egins is important as it helps to avoid wasted
time and creates a framewor' for decision ma'ing Consultants who speciali#e in
mar'eting and corporate decision ma'ing can &e involved in the development of
a product planning system for a company$ which will accommodate the company)s
approach to &usiness while helping it avoid e"pensive dead ends
!t any given time$ a company should have numerous ideas for new products and
services circulating These ideas come from customers$ distri&utors$ people within the
company$ and research conducted &y the company This research can include surveys$
research on competitors$ and study of the mar'et to identify emerging needs !
company must &e a&le to act %uic'ly on time1sensitive product ideas while also stopping
&ad ideas in their trac's
People responsi&le for product planning can come from diverse departments within a
company This is designed to ensure that many different perspectives are incorporated
from the start ! group can descri&e a proposed product$ e"plain why it would &e
valua&le to start selling$ and demonstrate what 'inds of costs would &e associated with
development and production Reports from individual product planning groups can &e
evaluated to single out candidates for further development
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G. J. Patel college of Mngt & Tech
Marketing Management unit 2 Manisha Raj
This process can &ecome e"tremely complicated There may &e cases in which
e"ecutives push through their own pet products$ for e"ample$ ignoring the pro&lems with
their proposals or the recommendations of people involved in product planning
Companies can also &e too slow with their development$ resulting is missing out on a
potential new mar'et They can also act too fast and end up with an unsella&le product
(or companies involved in the manufacturing of products associated with rapidly
evolving trends$ &eing a&le to act %uic'ly and efficiently is critical
One important aspect of product planning involves recogni#ing that it may &e necessary
to a&andon or temporarily halt development of a new product 0aving chec'lists in place
for various steps of the planning process allows companies to constantly review
products in development If a product appears to &e falling short$ the pro2ect can &e
stopped &efore the company loses any more money Companies determined to &ring
every single product proposal all the way through development and onto the mar'et can
wind up with costly failures
Importance of Product Planning
Product planning is a process of discussing and defining features of a product
efore its de!elopment. There are a numer of phases to product planning,
including gathering input, refining ideas, appro!ing and designating pro"ects
and tas#s, refining mar#et re$uirements and eginning product
de!elopment. Product planning is important for a numer of reasons.
Get Everyone's Input
One of the earliest stages of product planning is gathering input about a new product
idea. This step is important because it allows you to step back and look at ideas from a
number of different groups of people, including your developers, sales team, customer
support team, shareholders, management and your customers. All perspectives are
important, but pay close attention to customer feedback. You can conduct a survey to ask
existing customers about features they want and price they would pay, as well as any other
details specific to your product. This also gives everyone involved a chance to weigh in so no
one feels like their idea was not acknowledged.
Evaluate and Refine Ideas
Most of the time, there are a lot of ideas about a new product. ome are conflicting,
some are unrealistic and some !ust miss the mark, so you will need to evaluate and sort
through all ideas to find the best. "ocument and discuss each idea with your product
marketing team. #f one or more ideas for the product pop up multiple times, chances are
that is an idea worth pursuing. #t is important to acknowledge all ideas and evaluate which
ones are the best, then refine those ideas to include specific details about a product, such as
features. These refined ideas are the initial plan or design for the product.
Analyze the Market
Another part of product planning is analy$ing the market. pecifically, you must look
at the latest consumer trends and behavior in your particular industry or market. %ay
attention to what similar products are selling best, what features or product details
consumers are attracted to, and what they are spending on other similar products. Make
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G. J. Patel college of Mngt & Tech
Marketing Management unit 2 Manisha Raj
note of features or functionality that are missing from similar products but are wanted or
needed by your target customers. This information is important because it allows you to
make changes to the product before production begins, as well as helping you begin to think
about how to successfully market the product to drive sales.
Establish Time Line
%roduct planning also helps you establish a time line for the cycle of a new product,
from conception to design and production. A time line is important to give you a target
launch date. &owever, be cautious when establishing deadlines' do not be too aggressive, or
else you might set your team up for failure.
Levels of product
Customers will choose a product &ased on their perceived value of it *atisfaction is the
degree to which the actual use of a product matches the perceived value at the time of
the purchase ! customer is satisfied only if the actual value is the same or e"ceeds the
perceived value .otler defined five levels to a product+

, Core Benefit
the fundamental need or want that consumers satisfy &y consuming the product or
service

- Generic Product
a version of the product containing only those attri&utes or characteristics a&solutely
necessary for it to function

3 Expected Product
the set of attri&utes or characteristics that &uyers normally e"pect and agree to when
they purchase a product

4 Augmented Product
inclusion of additional features$ &enefits$ attri&utes or related services that serve to
differentiate the product from its competitors

5 Potential Product
all the augmentations and transformations a product might undergo in the future
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G. J. Patel college of Mngt & Tech
Marketing Management unit 2 Manisha Raj

In case of a car$ the 5 levels of a product are+
, Core product + Transportation from one place to another
- !ctual Product + 6rand of the car$ loo's and design of the car etc
3 7"pected Product + Decent mileage$ proper engine$ inflated tyres etc
4 !ugmented Product + !fter1sale services$ insurance policy etc
5 Potential Product + May run more smoothly as it wears off a little
Pac#aging%& term of 'ar#eting
Pac'aging is 'nown as creativity means when the product is going to launch or when
the product starts manufacturing it needs to &e pac'aged in a 'ind way and in a very
creative way so that it can &e prepared for good uses and the company can &enefit
good advantage with that product It is 'nown as designing$ evaluating$ production and
pac'ages Pac'aging refers to protection$ preserves$ transport$ informs and sells
Pac'aging has many o&2ectives+
(. Physical protection: pac'aging helps in protecting the goods or products which
have &een manufactured and which are ready for use and ready for delivered It helps
in the form of protection from various discharges li'e vi&ration$ shoc'$ temperature$
electrostatic discharge and many more (or e"ample+ if we are going to purchase mil'
from a very famous mother dairy then it is very well pac'aged and very much safe and
secure &ecause when we purchase the pac'et of mil' we don8t see that there is any
lea'age or there is any defect while travelling to home from the mil' shop or mil' farm
The way they do pac'aging is for its physical protection so that the entire process could
not get into under protected
). 'ar#eting: when we tal' a&out mar'eting in terms of pac'aging$ we 'now that it
encourages the potential &uyers and ma'e them feel &elief a&out our &rand and a&out
our product The way they do mar'et their goods and product$ the way they applies the
la&els and pac'aging attracts the customer (or e"ample+ if we ta'e an e"ample of
Cad&ury8s then the pac'aging we feel is so impressive and we gets impressed to
purchase the product of Cad&ury8s The part of pac'aging and la&eling is so soothing
and touching that it creates a surface of innovativeness
*. Protection of arrier: Pac'aging helps in &eing safe for the health point of view in
life of human &ecause it helps in the product to &e free from dust$ chemicals$ water
vapor$ o"ygen and other harmful chemicals !s it is pac'aged and it is free from all the
dust$ we can feel it is safe and healthy from the healthy point (or e"ample+ if we tal'
a&out 2uices and the real 2uice for e"ample+ when it is pac'ed we understand that it is
surely not going to give any harm to our health

G. J. Patel college of Mngt & Tech

Marketing Management unit 2 Manisha Raj
The creation of products with new or different characteristics that offer new or
additional &enefits to the customer
Product development may involve modification of an e"isting product or its presentation$
or formulation of an entirely new product that satisfies a newly defined
customer want or mar'et niche
The Product Life Cycle +PLC, is &ased upon the &iological life cycle (or e"ample$ a
seed is planted 9introduction:; it &egins to sprout 9growth:; it shoots out leaves and puts
down roots as it &ecomes an adult 9maturity:; after a long period as an adult the plant
&egins to shrin' and die out 9decline:
In theory it)s the same for a product !fter a period of development it is introduced or
launched into the mar'et; it gains more and more customers as it grows; eventually the
mar'et sta&ilises and the product &ecomes mature; then after a period of time the
product is overta'en &y development and the introduction of superior competitors$ it
goes into decline and is eventually withdrawn
The Product Life Cycle +PLC, is &ased upon the &iological life cycle (or e"ample$ a
seed is planted 9introduction:; it &egins to sprout 9growth:; it shoots out leaves and puts
down roots as it &ecomes an adult 9maturity:; after a long period as an adult the plant
&egins to shrin' and die out 9decline:
In theory it)s the same for a product !fter a period of development it is introduced or
launched into the mar'et; it gains more and more customers as it grows; eventually the
mar'et sta&ilises and the product &ecomes mature; then after a period of time the
product is overta'en &y development and the introduction of superior competitors$ it
goes into decline and is eventually withdrawn
0owever$ most products fail in the introduction phase Others have very cyclical maturity
phases where declines see the product promoted to regain customers
Strategies for the differing stages of the Product Life Cycle.
-ntroduction.
!
G. J. Patel college of Mngt & Tech
Marketing Management unit 2 Manisha Raj
The need for immediate profit is not a pressure The product is promoted to create
awareness If the product has no or few competitors$ a s'imming price strategy is
employed <imited num&ers of product are availa&le in few channels of distri&ution
.rowth.
Competitors are attracted into the mar'et with very similar offerings Products &ecome
more profita&le and companies form alliances$ 2oint ventures and ta'e each other over
!dvertising spend is high and focuses upon &uilding &rand Mar'et share tends to
sta&ilise
'aturity.
Those products that survive the earlier stages tend to spend longest in this phase
*ales grow at a decreasing rate and then sta&ilise Producers attempt to differentiate
products and &rands are 'ey to this Price wars and intense competition occur !t this
point the mar'et reaches saturation Producers &egin to leave the mar'et due to poor
margins Promotion &ecomes more widespread and use a greater variety of media
Decline.
!t this point there is a downturn in the mar'et (or e"ample more innovative products
are introduced or consumer tastes have changed There is intense price1cutting and
many more products are withdrawn from the mar'et Profits can &e improved &y
reducing mar'eting spend and cost cutting
Prolems with Product Life Cycle.
In reality very few products follow such a prescriptive cycle The length of each stage
varies enormously The decisions of mar'eters can change the stage$ for e"ample from
maturity to decline &y price1cutting =ot all products go through each stage *ome go
from introduction to decline It is not easy to tell which stage the product is in
Remem&er that P<C is li'e all other tools Use it to inform your gut feeling
P/0D1CT D232L0P'24T
The creation of products with new or different characteristics that offer new or
additional &enefits to the customer Product development may involve modification of an
e"isting product or its presentation$ or formulation of an entirely new product that
satisfies a newly defined customer want or mar'et niche
The product idea concept is first developed from mar'et and consumer
research &ut with consideration of the technical aspects of the product Usually$
it is a com&ination of internal company information searching com&ined with
consumer or$ in industrial mar'eting$ customer discussion groups In industrial
product development$ it has &een shown that selecting the most innovative
customers for product concept development reduces the time and improves the
"
G. J. Patel college of Mngt & Tech
Marketing Management unit 2 Manisha Raj
product concepts The product idea concept research leads to a more detailed
description of the product ideas and also includes screening of the ideas
The consumer discussion panel$ or as it is usually called the consumer focus
group$ is invalua&le for &uilding up the product concept !&out 3>1?>
consumers can ta'e part in small discussion groups of ?1@ people They are
given simple descriptions of the product ideas and are allowed free rein in their
discussions The consumers discuss their own attitudes and &ehavior towards
the products and identify their needs and wants in the products
The product idea concept developed after the discussions details the ) benefits)
that the consumers want from the product These )&enefits) can &e divided into
four types 1 &asic product &enefits$ pac'age &enefits$ use &enefits$
psychological &enefits+
6asic product &enefits include physical characteristics 9such as
si#e$ shape$ colour:$ chemical composition$ sensory %ualities$
nutritional value and safety features
Pac'age &enefits include price$ value for money$ ease of storage$
use and disposal
Use &enefits include convenience in &uying and carrying$ information
on use$ easy preparation$ attractive presentation$ recipes and
nutritional information
Psychological &enefits include prestige$ fun and friendliness$
aesthetics$ healthiness
Ahen writing product idea concepts for use in further consumer panels or consumer
surveys to &uild up the product concept$ there are five things to remem&er+
Be brief. Present a picture of the product$ with no technical details
Use simple, everyday language Use attractive$ interesting and lively descriptions to
'eep the consumer interested
Start it! t!e product category Pinpoint the 'ind of product with the first few words of
the description
Give a true picture of t!e product *tate and do not e"aggerate the product %ualities
The
idea product concept should &e &oth &elieva&le and realistic
"escribe t!e product#s reason Descri&e the uses and values of the product !nswer
the consumer)s %uestion )Ahat is in it for meB) *how it has a useful and needed advantage
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G. J. Patel college of Mngt & Tech
Marketing Management unit 2 Manisha Raj
over e"isting products
42W P/0D1CT D232L0P'24T +4PD,
Improving and updating product lines is crucial for the success for any organisation (ailure
for an organi#ation to change could result in a decline in sales and with competitors racing
ahead The process of =PD is crucial within an organisation Products go through the
stages of their lifecycle and will eventually have to &e replaced =ew product development
has eight stages These stages will &e discussed &riefly &elow+


Stage (: -dea .eneration
=ew product ideas have to come from somewhere 6ut where do organi#ations get their
ideas for =PDB *ources include+
Mar'et Research
7mployees
Consultants
Competitors
Customers
$
G. J. Patel college of Mngt & Tech
Marketing Management unit 2 Manisha Raj
Distri&utors and *uppliers
Stage ): -dea Screening
This process involves shifting through the ideas generated a&ove and selecting ones which
are feasi&le and wor'a&le to develop Pursing non feasi&le ideas can clearly &e costly for
the company
Stage *: Concept De!elopment and Testing
The organi#ation may have come across what they &elieve to &e a feasi&le idea; however$
the idea needs to &e ta'en to the target audience Ahat do they thin' a&out the ideaB Aill it
&e practical and feasi&leB Aill it offer the &enefit that the organi#ation hopes it willB Or have
they overloo'ed certain issuesB =ote the idea ta'en to the target audience is not a wor'ing
prototype at this stage$ it is 2ust a concept
Stage 5: 'ar#eting Strategy and De!elopment
0ow will the productCservice idea &e launched within the mar'etB ! proposed mar'eting
strategy will &e written laying out the mar'eting mi" strategy of the product$ the
segmentation$ targeting and positioning strategy sales and profits that are e"pected
Stage 6: 7usiness &nalysis
The company has a great idea$ the mar'eting strategy seems feasi&le$ &ut will the product
&e financially worthwhile in the long runB The &usiness analysis stage loo's more deeply
into the Cashflow the product could generate$ what the cost will &e$ how much mar'et
shares the product may achieve and the e"pected life of the product
Stage 8: Product De!elopment
!t this stage the prototype is produced The prototype will clearly run through all the desired
tests$ and presented to a selection of people made up of the the target mar'et segment to
see if changes need to &e made
Stage 9: Test 'ar#eting
Test mar'eting means testing the product within a specific area The product will &e
launched within a particular region so the mar'eting mi" strategy can &e monitored and if
needed modified &efore national launch
Stage :: Commerciali;ation
If the test mar'eting stage has &een successful the product will go for national launch
There are certain factors that need to &e ta'en into account &efore a product is launched
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G. J. Patel college of Mngt & Tech
Marketing Management unit 2 Manisha Raj
nationally These include+
timing of the launch$
how the product will &e launched$
where the product will &e launched$
will there &e a national roll out or
will it &e region &y regionB
Conclusion
The eight stages of product development may seem li'e a long process &ut they are
designed to save wasted time and resources =ew product development ideas and
prototypes are tested to ensure that the new product will meet target mar'et needs and
wants There is a test launch during the test mar'eting stage as a full mar'et launch is
e"pensive (inally the commerciali#ation stage involves careful planning to ma"imi#e
product success; a poor launch will affect product sales and could even affect the reputation
and image of the new product
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G. J. Patel college of Mngt & Tech