Learning Objectives

1. Define an Industrial Product.

2. Understand Changes in the product
strategy.
3. Know Product Life cycle (PLC) Theory
and its application.
4. Develop Product strategies for
existing products.
5. Understand new product
development.
6. Know impact of technology and high-
tech marketing.
7. Learn Marketing of industrial
services.
• Definition : Its is a physical thing as well as a Complex set of
economic, technical, legal and personal relationship between a
buyer and a seller.

• Meaning of a Total Product Package : It includes basic

properties (with fundamental benefits), enhanced properties
(with tangible benefits), and augmented properties (with
intangible benefits).

• In a competitive market, business marketers must understand

target customers’ perceptions of a total product package and
offer the same better than competitors.
Business marketers must understand that a
product strategy is dynamic and flexible.
It changes due to changes in
(i) Customer needs.
(ii)  Technology.
(iii) Government Policies / Laws.
(iv) Product Life – Cycle.
 I n d u s t r y
S a l e s

R u p e e s

I n d u s t r y
P r o f i t s

M a t u r Di t ye c l i n e
• Introduction Stage : Marketing Strategy should
focus on market development for slowly accepted
products. For rapidly accepted products, a
competitive strategy (Competitive pricing or
Superior quality product ) should be evolved.
 
• Growth Stage :To take advantage of high
growth of sales and profits, the marketing
strategy should concentrate on (i) Improving
product design or adding product features (ii)
Improving distribution and (iii) Reducing price, as
increased sales and production reduce the costs.
• Maturity Stage: As competition increases
and profits decline, marketing strategy
should concentrate on (i) cutting costs, (ii)
keeping existing customers satisfied (iii)
entering new markets.

• Decline Stage : Since both sales and profits

decline, marketing strategy should focus on
(i) substantial reduction in costs, (ii) develop
a substitute product, (iii) withdraw the
product slowly from the market.
Business marketers should take the following
steps :
1.Evaluate the performance of existing
products by using “product evaluation
matrix”.
2.Examine the relative strengths and
weaknesses of the company’s products by
using “ perceptual mapping” technique.
3.Decide the product strategies, based on
above analysis.
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D o m i n a n t P

G r o w A t hv e r a g e

M a r g i n a l

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 H i g h P r i c e

H i g h L o w
Q u a l i t y Q u a l i t y

A * 1 *A
C

L o w P r i c e
Firm A’s product quality is perceived to be “average” by
customers, compared to its competitors B & C. Firm A
should try to move to a new position of superior
quality at a reasonable (average) price to improve its
profitability.

DECIDE PRODUCT STRATEGIES

(i)   Maintain / Continue the product and its marketing

strategy.
(ii) Modify the product & change marketing strategy.
(iii)  Drop / eliminate the product.
(iv)  Add new product. 
Classification of new products

(i)   Products that are new to the world &

innovative.
(ii)  Products that are new to the company,
but not new to the world.
(iii) Improvements / Revision to the
existing products.
(iv) Addition to the existing products.
(v)  Repositioning existing products to new
market segments
(vi) Products with substantial cost
reductions without reduction in
performance.
 
New product development
process
It consists of 7 Stages :

(i) Idea generation,

(ii) Idea Screening,
(iii) Concept development and
testing,
(iv) Business analysis,
(v) Product development,
(vi) Market testing, &
(vii) Commercialization.
Technological innovations create new products /
services that are new to the world.
Examples of these innovations, called break
through technology are :
(i)  Technological inventions of 1940s of
vacuum tube and amplifier circuit created new
products / services like radio, wireless
telegraphy, and telephone service.
(ii) Technological inventions of 1950s & 70s of
transistor, integrated circuit (IC), microprocessors
have applications in new products like TV sets,
movie Cameras, Computers, Calculators, Mobile
phones, Printers etc.,
(iii) Digital revolution of information
technology and the internet have improved
company and consumer
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