BRAND MANAGEMENT

Product Management
PRODUCT
 thing produced by labor or effort
 result of an act or a process

 an item that ideally satisfies a market's want or need

 Thus, for a product to be a product should have physical

and tangible attributes
 Do we buy product only on physical and tangible
attributes???
 Do all products satisfy the need???
 There are certain non-tangible and psychological
attributes attached to a product
 Psychological and non tangible attributes
 Brand name
 Brand image
 Reputation
 Packaging
 Belief
PRODUCT
 Thus, a product is defines as “anything that is capable of
satisfying customer needs”

 It includes products and services

PRODUCT CLASSIFICATION
 Consumer Products:
Products which are purchased by ultimate user or consumer
for satisfying their personal needs and desires

Shopping efforts involved

Durability of product
CONSUMER PRODUCTS
 Shopping efforts involved
 Convenience products
 Shopping Products
 Specialty products
CONVENIENCE PRODUCTS
 Products
which are purchased frequently,
immediately, with least time and effort
SHOPPING PRODUCTS
 These are products consumers purchase and
consume on a less frequent schedule compared
to convenience products.
 Consumers are willing to spend more time
locating these products since they are relatively
more expensive than convenience products and
because these may possess additional
psychological benefits for the purchaser, such as
raising their perceived status level within their
social group.
SPECIALTY
 Those goods which have certain special feature because
of which people make special efforts to purchase them
Product Convenience Shopping Specialty
Time and Effort Very low High Very high
Location Near by store Many store
survey
Demand Regular and Fluctuating Very low
continuous
Price Low High Very high
Margin Low High Very high
Shelf Life Low High Very long
Competition Very high High Low
Sales Promotion Discounts, Convincing Very aggressive
schemes
Quantity bought Less in number average Less
Type of buying Impulse Planned Long term
planning
DURABILITY OF PRODUCTS
 Non-durable : consumed in one or few uses
 Durable : survive many uses

 Services : non tangible, but offer satisfaction

 Doctor, architect, Banks
PRODUCT POLICIES
 Product item : a single product
 Product line : all items of same type

 Product mix : total group of products that an

organization markets
INDUSTRIAL PRODUCTS
 Those products which are used as inputs for producing
other products
 Properties
 Number of buyers are less
 Shorter channel of distribution
 Geographically concentrated
 Derived demand from consumer products
 Higher role of technical consideration
 Reciprocal buying
PRODUCT POLICIES
 Product line or product of an organization is not always
perfect.
 It constantly changes due to change in
 Business environment
 Taste
 Competition
PRODUCT LINE & PRODUCT MIX

• Product Line
LAMPS
•Table
•Ceiling
•Track
•Desk

Selected
Acme Furniture Co.
Products
PRODUCT LINE & PRODUCT MIX
• Product Mix
Product Product Product
Line 1 Line 2 Line 3

LAMPS TABLES CHAIRS

•Table •Kitchen •Dining Room
•Ceiling •Dining Room •Living Room
•Track •End •Bedroom
•Desk •Coffee •Outdoor
•Outdoor •Desk
•Conference
•Computer
Selected
Acme Furniture Co.
Products
PRODUCT LINE & PRODUCT MIX
• Length of Product line
Product Product Product
Line 1 Line 2 Line 3

LAMPS TABLES CHAIRS

•Table •Kitchen •Dining Room
•Ceiling •Dining Room •Living Room
•Track •End •Bedroom
•Desk •Coffee •Outdoor
•Outdoor •Desk
•Conference
•Computer
Selected
Acme Furniture Co.
Products
PRODUCT LINE & PRODUCT MIX
• Width of Product Mix

Product Product Product

Line 1 Line 2 Line 3
LAMPS TABLES CHAIRS
•Table •Kitchen •Dining Room
•Ceiling •Dining Room •Living Room
•Track •End •Bedroom
•Desk •Coffee •Outdoor
•Outdoor •Desk
•Conference
•Computer
Selected
Acme Furniture Co.
Products
PRODUCT POLICIES : APPRAISAL
 New, changed, updated products are introduced
 Old products are withdrawn
EXPANDING OR CONTRACTING
PRODUCT LINE
 Upward stretching:
 Company tries to enter higher market
 Because:
 Higher margins of profit
 Higher growth rate

 Position as full range provider

 Downward stretching
 Company tries to enter lower end market
 Because
 To counter attack an upward stretching company
 To start with higher end market then enter lower end

 Higher end market has slower growth rate

 Filling the gap at lower end

 Two way stretch

 Stretching in both ways