BSSS-Institute of Advanced Studies

Study/Reading Material

Course Name: Marketing Management

COURSE CONTENTS:

PRODUCT

Product as anything that can be offered to a market for attention, acquisition,

use, or consumption that might satisfy a want or need. Products include more than
just tangible objects, such as cars, computers, or cell phones. Broadly defined,
“products” also include services, events, persons, places, organizations, ideas, or a
mixture of these.

Product Classifications
Products fall into two broad classes based on the types of consumers that use
them:
a. Consumer products
b. Industrial products.
Broadly defined, products also include other marketable entities such as
experiences, organizations, persons, places, and ideas.
a. Consumer products
Consumer products are products and services bought by final consumers
for personal consumption. Marketers usually classify these products and
services further based on how consumers go about buying them. Consumer
products include
• Convenience products: Convenience products are consumer products
and services that customers usually buy frequently, immediately, and
with minimal comparison and buying effort.
• Shopping products: Shopping products are less frequently purchased
consumer products and services that customers compare carefully on
suitability, quality, price, and style. When buying shopping products
 and services, consumers spend much time and effort in gathering
information and making comparisons.
• Specialty products: Specialty products are consumer products and
services with unique characteristics or brand identification for which a
significant group of buyers is willing to make a special purchase effort.
Examples include specific brands of cars or designer clothes.
• Unsought products: Unsought products are consumer products that the
consumer either does not know about or knows about but does not
normally consider buying. Classic examples of known but unsought
products and services are life insurance, preplanned funeral services,
and blood donations to the Red Cross.
b. Industrial products
Industrial products are those purchased for further processing or for use in
conducting a business. Thus, the distinction between a consumer product and an
industrial product is based on the purpose for which the product is purchased.

PRODUCT DECISION

Product Decision is one of the most crucial areas of marketing management, as it

directly influences a company's market performance and customer satisfaction. It
involves determining which products a company should offer, modify, or discontinue
based on market needs, competition, and business objectives. Product decisions cover
various aspects such as identifying appropriate product attributes like quality,
features, and design to meet customer expectations and differentiate from
competitors. It also includes decisions related to product branding, where businesses
create a unique brand identity to build recognition and customer loyalty in a
competitive market. Packaging decisions play an essential role in protecting the
product, providing information, and attracting customer attention through innovative
and convenient designs. Labeling decisions ensure that all necessary details about the
product — such as ingredients, usage instructions, price, and expiry — are
communicated clearly and legally to consumers. Additionally, post-purchase services
like installation, warranty, maintenance, and customer support are vital to enhancing
customer satisfaction and building long-term relationships. Together, these product-
related decisions contribute to the overall success of a business by delivering value to
customers and achieving a sustainable market position.
 • Product Attributes
• Branding
• Packaging
• Labelling
• Support service

Product Attributes

Product attributes are the features, qualities, design, and characteristics of a product
that satisfy customer needs and differentiate it from competitors.

Key Attributes:

• Quality (durability, reliability)

• Features (functional characteristics)

• Design & Style (appearance, usability)

Product Branding Decision

Branding involves creating a unique identity (name, logo, symbol, or design) for a
product to differentiate it in the market.

Product Packaging Decision

Packaging involves designing and producing the container or wrapper for a product.
It protects the product, attracts customers, and provides information.

Functions:

• Protection during storage and transport

• Promotion and brand visibility

• Convenience and usage ease

Product Labelling Decision

Labelling involves displaying important information and branding elements on a

product package.

Functions:
 • Describes the product

• Promotes the brand

• Legal compliance (ingredients, MRP, expiry)

Post-Purchase Service

Post-purchase services are support services provided after the product is sold. These
services ensure customer satisfaction and build brand loyalty.

Types:

• Installation

• Maintenance and repair

• Customer support helplines

• Warranty and guarantee

PRODUCT LIFE CYCLE (PLC)

The course of a product’s sales and profits over its lifetime. It involves five
distinct stages: product development, introduction, growth, maturity, and decline.
After launching the new product, management wants that product to enjoy a
long and happy life. Although it does not expect that product to sell forever, the
company wants to earn a decent profit to cover all the effort and risk that went into
launching it. Management is aware that each product will have a life cycle, although
its exact shape and length is not known in advance.
• Product development begins when the company finds and develops a new-
product idea. During product development, sales are zero, and the company’s
investment costs mount.
 • Introduction is a period of slow sales growth as the product is introduced in
the market. Profits are non-existent in this stage because of the heavy expenses
of product introduction.
• Growth is a period of rapid market acceptance and increasing profits.
• Maturity is a period of slowdown in sales growth because the product has
achieved acceptance by most potential buyers. Profits level off or decline
because of increased marketing outlays to defend the product against
competition.
• Decline is the period when sales fall off and profits drop.
Not all products follow all five stages of the PLC. Some products are introduced
and die quickly; others stay in the mature stage for a long, long time. Some enter the
decline stage.

a. Introduction
The introduction stage starts when a new product is first launched.
Introduction takes time, and sales growth is apt to be slow.
• In this stage, as compared to other stages, profits are negative or low because
of the low sales and high distribution and promotion expenses.
• Much money is needed to attract distributors and build their inventories.
Promotion spending is relatively high to inform consumers of the new product
and get them to try it. Because the market is not generally ready for product
refinements at this stage, the company and its few competitors produce basic
versions of the product.
b. Growth Stage
The PLC stage in which a product’s sales start climbing quickly.
If the new product satisfies the market, it will enter a growth stage, in which
sales will start climbing quickly. The early adopters will continue to buy, and later
buyers will start following their lead, especially if they hear favorable word of mouth.
Attracted by the opportunities for profit, new competitors will enter the market. They
will introduce new product features, and the market will expand. The increase in
competitors leads to an increase in the number of distribution outlets, and sales jump
just to build reseller inventories. Prices remain where they are or decrease only
slightly. Companies keep their promotion spending at the same or a slightly higher
level.

c. Maturity Stage (The PLC stage in which a product’s sales growth slows or levels
off)
 At some point, a product’s sales growth will slow down, and it will enter
the maturity stage. This maturity stage normally lasts longer than the previous
stages, and it poses strong challenges to marketing management. Most products
are in the maturity stage of the life cycle, and therefore most of marketing
management deals with the mature product.
The slowdown in sales growth results in many producers with many
products to sell. In turn, this overcapacity leads to greater competition.
Competitors begin marking down prices, increasing their advertising and sales
promotions, and upping their product development budgets to find better
versions of the product. These steps lead to a drop in profit. Some of the weaker
competitors start dropping out, and the industry eventually contains only well-
established competitors.

d. Decline Stage (The PLC stage in which a product’s sales decline)

The sales of most product forms and brands eventually dip. The decline
may be slow, as in the cases of stamps and oatmeal cereal, or rapid, as in the cases
of cassette and VHS tapes. Sales may plunge to zero, or they may drop to a low
level where they continue for many years. This is the decline stage.
Sales decline for many reasons, including technological advances, shifts in
consumer tastes, and increased competition. As sales and profits decline, some
firms withdraw from the market. Those remaining may prune their product
offerings. They may drop smaller market segments and marginal trade channels,
or they may cut the promotion budget and reduce their prices further.
 Management may decide to maintain its brand, repositioning or
reinvigorating it in hopes of moving it back into the growth stage of the PLC or
management may decide to drop the product from its line. It can sell it to another
firm or simply liquidate it at salvage value.

e. Extension
Extension strategies are marketing techniques designed to extend a
product's life cycle and delay its decline. Company can adopt any of the following
strategies to extend the life of their product
• New formulas
• Additional features
• Lower prices to maintain interest
• Altering the channel of distribution, such as online shops
• New advertising campaigns
• Finding new markets - this may be locally, nationally or
internationally.

Example
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Annexures:

Reference Books

• Kotler, P. (2010). Principles of marketing: a South Asian perspective, 13/E.

Pearson Education India
• Kotler, P., Burton, S., Deans, K., Brown, L., & Armstrong, G. (2015).
Marketing. Pearson Higher Education AU.
• Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of
marketing. Pearson Australia.
• Kotler, P., & Armstrong, G. (2010). Principles of marketing. Pearson
education.

Case study Links

• Kotler, P. (2010). Principles of marketing: a South Asian perspective, 13/E.

Pearson Education India.

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