PRODUCT DECISION

Product decision refers to the strategic choices, a business makes regarding its products or
services to meet customer needs, maximize profit, and ensure long-term market success.
CLASSIFICATION
1.Consumer Products (Based on Buying Behaviour)
a) Convenience Products: These are inexpensive, routinely purchased products that
require minimal efforts or planning. They are widely available at multiple outlets. (e.g.,
toothpaste, soap)
b) Shopping Products: These products are purchased less frequently and involve
comparison of different brands or stores based on quality, features, price, and style.
(e.g., furniture, clothing)
c) Specialty Products: These are Unique, high-value products for which consumers make
special purchase efforts (e.g., luxury cars, branded watches).
d) Unsought Products: Products that consumers do not normally purchase until a specific
situation or need arises. It require aggressive advertising or personal selling. (e.g., life
insurance, funeral services).
2.Industrial Products (Based on Usage in Business)
a) Raw Materials: These are essential inputs in the production process to produce
finished goods (e.g., timber, crude oil).
b) Component Parts & Materials: Manufactured goods or materials that are integrated
into another product without further processing. (e.g., car tires)
c) Capital Equipment: Major, long-term investments in Machinery and tools used in
the production of other goods or services. (e.g., production equipment).
d) Supplies & Services: Day-to-day Consumables and maintenance services needed for
operations that support business activities (e.g., office supplies, cleaning services).

PRODUCT LINE DECISIONS

A product line is a group of related products marketed under the same brand to serve similar
needs or customer segments.
1. Line Stretching Decision: Product line stretching involves expanding the product line
beyond its current range to reach new customer segments or price points.
a) Downward Stretching: Adding a new product to the current line but at lesser price to
attract price-sensitive customers or compete with lower-end competitors.
b) Upward Stretching: It is opposite of downward stretching and involves adding a new
product to the current line but at higher price to upscale consumers or enhance brand
prestige.
c) Both-Way Stretching: Adding new product in both direction, might be higher or lesser
price to cover a wider market spectrum.
2. Line Filling Decision: Product line filling means adding a new product to the same product
range to use excess capacity, increased customer base, extra profit and keep the competitor
away.
3. Line Pruning Decision: Product line pruning means to reduce the depth of the product
line by removing unprofitable product from the market.

PRODUCT MIX DECISIONS

A product mix is the complete range of products that a company offers to its customers.
1. Width of Product Mix: It refers to the total number of product in product lines offered by
the organization.
2. Length of Product Mix: It refers to overall number of products in a product line. Under the
category of home appliances, LG is offering washing machine, refrigerator, dishwasher, etc.
This is called length of product mix.
3. Depth of Product Mix: It offeres the different variant of one product in the market. Variants
can be of any type like size, colour, shape, fragrance, etc.
4. Consistency of Product Mix: It defined as how closely the product lines are related in terms
of production, price and distribution, etc.
 PRODUCT LIFE CYCLE (PLC)
Product life cycle refers to the process in which the product enter or introduces into the
market until it start to declines from the market.
Life of product can be explained as follows;
1. Introduction stage: This is very first stage of product life, it is beginning of life of a
product when it comes in the market for the first time. At this stage, product is very
new to market. So, initially customers are unaware about the product. As a result, sales
are low and cost per unit is very high. In this stage marketers are required to create
awareness and heavy promotion in the market.
2. Growth Stage: After crossing the first stage, second phase of product life begins with
growth stage. In this stage product have become little popular among consumer, so
sales start improving. At this stage Competition also start increasing so, marketers are
required to focuses on differentiation and Expansion in product distribution.
3. Maturity Stage: Maturity stage starts when sales of product reaches its maximum
point of sales. At this, stage due to higher sales, cost per unit decreases. Popularity of
product has also attained its peak and brand loyalty also increases due to which new
and intense competition starts coming up.
4. Decline Stage: If a product cannot sustain maturity stage of product, it falls in the
decline stage. At this stage, sales decrease drastically that leads to low profit.
Competition also starts declining due to low popularity of product. Customers also
start leaving product and only loyal customer stays with the product. At this stage
marketers search for alternatives or new product, new technology or changing
customer needs.

PRODUCT PORTFOLIO ANALYSIS

Product Portfolio Analysis is an examination of each of the products manufactured or
distributed by the company to access the future marketing strategies.
• BCG Matrix( Boston Consulting Group Matrix): BCG Matrix developed by Bruce
Henderson of the Boston Consulting Group in the early 1970s. It is a graph
representing the product growth rate and market shares .
 1. STAR: It represents High Market Growth & High Market Share. These products are
leaders in a fast-growing market.
2. CASH COWS: It represents Low Market Growth & High Market Share. It includes
established and successful products that generate consistent, high cash flow with low
investment
3. QUESTION MARKS (or Problem Children): It represents High Market Growth & Low
Market Share. These products operate in growing markets but don’t have a strong
position.
4. DOGS: It represents Low Market Growth & Low Market Share. These products
typically break even or operate at a loss

PRODUCT POSITIONING
It is an important aspect of marketing plan. Product positioning refers to how a company
creates a distinct image of its product in the minds of consumers. It provide the information
that where your product is suitable in the market.
POSITIONING STRATEGIES
1. Attribute-Based Positioning: It involves highlighting specific features or attributes of
the product that are important to consumers. For example, Volvo emphasizes
"safety" as a key attribute, making it a central part of its brand image.
2. Price-Quality Positioning: It focuses on the relationship between a product's price
and the quality it delivers, emphasizing affordability or premium quality. For
example, Brands like Rolex position themselves as high-quality luxury items.
3. User-Based Positioning: It targets a specific group of consumers by aligning the
product with their identity or lifestyle. For example, Dove positions its skincare
products specifically for women skincare.
4. Competitive Positioning: It involves differentiating a product by comparing it directly
to competitors (e.g., Pepsi vs. Coke).
 5. Emotional Positioning: It taps into the feelings and emotional responses of
consumers rather than focusing on product features. Nike is a prime example, with
its "Just Do It" slogan aiming to inspire motivation, confidence, and ambition.

PRODUCT BRANDING
Product branding is the process of creating a distinct identity and value proposition for a
specific product, setting it apart from competitors and the brand's own product range.
1. Identification of Product.
2. Differentiation of Product
3. Legal Protection.
4. Improve costumer mental satisfaction
5. Creation of separate market
6. Help to promote in new market
BRAND NAME SELECTION CRETERIA
1. Brand Building
These criteria focus on creating a strong and appealing brand identity:
• Memorable: The brand name should be easy to recall and recognize.
• Meaningful: It should convey something about the product's benefits or qualities.
• Likable: The name should resonate emotionally with the target audience and be
aesthetically pleasing.
2. Brand Defensive
These focus on protecting the brand in the marketplace and ensuring it can grow:
• Transferable: The name should work across product lines and geographic regions.
• Adaptable: It should remain relevant over time and be flexible to change.
• Protectable: The name should be legally defensible (i.e., can be trademarked and
defended against imitation).

PRODUCT PACKAGING
Product Packaging is the technology of enclosing or protecting products for distribution,
storage, sale and uses.
Levels of Packaging:
1. Primary Packaging: Primary packaging is the first layer of packaging that directly
encloses the product. It keeps the product safe from contamination or damage and
provides necessary product information.
 Example: Blister packs containing tablets or capsules
2. Secondary Packaging: Secondary packaging surrounds the primary packaging and
typically combines multiple units into a single package for easier handling and
branding.
Example: A cardboard box containing multiple blister strips.
3. Tertiary Packaging: Tertiary packaging is used for bulk handling, storage, and
transportation of products, typically combining multiple secondary packages into
one large unit.
Example: Shipping cartons or boxes used for transporting multiple secondary
packages

PRODUCT LABELLING
Product labeling refers to the process of displaying information on a product's packaging or
on the product itself. It's a crucial part of both marketing and consumer protection, providing
essential details to help customers understand and use the product safely and effectively.
FUNCTIONS
1. Regulatory Requirements: Labels must comply with guidelines set by regulatory
authorities such as the FDA (USA), EMA (Europe), WHO, and other country-
specific bodies. This ensures the product is legally approved and safe for market
entry.
2. Essential Information: Labels must clearly present product details such as the
drug name, dosage, indications, warnings, and manufacturer details.
3. Patient-Centered Design: Labels should be designed with ensuring clarity,
readability, and inclusion of multilingual options. This supports better adherence
to usage instructions and avoids misuse, especially in diverse populations.
4. Serialization & Traceability: Incorporates features like barcodes, QR codes, and
other anti-counterfeiting measures to track the product through the supply
chain.
PRODUCT MANAGEMENT IN THE PHARMACEUTICAL INDUSTRY
In the pharmaceutical industry, product management focuses on overseeing the entire
product lifecycle, from initial concept through market launch and beyond, ensuring
alignment with business goals and patient needs.
1. Lifecycle Management: This involves managing every phase of the product's
life—introduction, growth, maturity, and decline.
2. Regulatory & Compliance Monitoring: Staying up to date with changing
regulations (e.g., FDA, EMA, WHO standards) is critical.
3. Supply Chain & Distribution: Focuses on ensuring product availability by
managing the logistics of manufacturing, storage, and delivery. It includes
coordinating with suppliers, distributors, and warehouses.
4. Post-Market Surveillance: Involves pharmacovigilance, tracking adverse drug
reactions, gathering feedback, and making improvements
5. Market Expansion Strategies: This includes plans for launching new product in
markets via partnerships and licensing.