Fundamentals of Marketing

Chapter: 05 – Product Mix

Sanjaya Jayasinghe

MCIM, Dip M (UK), MBA (PIM-SJP)

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Learning Outcome

Formulate marketing strategies for business organizations

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 Product

 Anything that is capable of satisfying customer needs.

 Can be either service or tangible product

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 Segmentation to be effective

 Features are characteristics of a

product that offer benefits to the
customer.
 Functional features – functional
features are often associated with
materials, design and production
decisions
 Psychological features - represent
certain features they perceive to
add when using the product
though these may be difficult to
measure and may vary by
customer

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 Five level of products

 Core product
This is the basic product and the focus is on the purpose for which the product is
intended.
 Generic Product
Which would include everything that would be required to make the product
practical in use.
 Expected product
Which customer might expect from a product
 Augmented product
Goes beyond customer’s expectations & receive something extra & desirable
 Potential product
Future innovations of the core product that a product might ultimately
become ,but currently does not incorporate

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Five level of products

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 Product mix

Product mix refers to the total composite of products offered

by a particular organization, consists of both product lines and
individual products

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Product mix

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Product Life Cycle (PLC)

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 Product Life Cycle characteristics

Characteristics Introduction Growth Maturity Decline

Stable, little or no
Sales Slow growth Rapid increase Negative
increase

Becomes positive
Profits Negative Maximum Loosing
& increasing

Few (innovators
Customers and opinion Rapid increase Maximum Decreasing
leaders)

Competition Nil Emerging Maximum Reducing

Positive but
Cash flow Negative Becomes positive Positive high
reducing

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Branding

A brand name is a term, sign,

and/or special design that is
intended to identify the goods or
services of one seller and
distinguish it from all others.

 Individual name
 Blanket family name/Umbrella
brand names
 National Brand
 Private Brand

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A good brand name

 Is short & simple

 Easy to spell & read
 Easy to pronounce
 Can only be pronounced one way
 Easy to recognize & remember
 Suggests product benefits
 Always timely (never goes out of
date)
 Adaptable to any advertising
medium
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Packaging

 Defined as all the activities of

designing and producing the
container or wrapping for a
product.
 Protect against damage.
 Promote convenience and
cleanliness.
 Convey important information to
consumer.

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