MARKETING MANAGEMENT II

BM5302

ASSIGNMENT NO-1

SEC-E
BATCH-2022-2024

Smruti Ranjan Palai-22202278

Sambit Swain-22202265
Debasis Panda-22202243
Mayuresh Dash-22202253
Arya Punyashlok-22202355
Q1. Different types of consumer products?
Convenience product
Convenience products are those products which a customer doesn’t want to
put much effort in buying. Most of the convenience products are non-durable
and the frequency of getting purchase of these products are high. It can be
further divided into three sub-categories.
Staple product: staple products are day to use products that a customer
plan to buy before entering into the shop. Products like milk, bread, butter etc
come under this.
Impulse products: Impulse products are those products which gets
purchased without any prior planning of doing so. It is only because of the
consumer’s Impulse he/she buys those products. These are the products which
get displayed in cash counters and billing areas. Ex: candy, soft-drink ,
newspaper etc
Emergency Products: Products in this category gets purchased only
because of a sudden certain need or because of some kind of emergency. Ex:
umbrella, Ambulance service, certain medicines etc

Shopping products:
Customer involvement in shopping products is higher in comparison to the
convenience product as the consumer compare various products , various
brands through many retailers before taking any decision.
Shopping products also divided into two types
Homogenous products: Homogenous products are similar to each other as
they might have the same values and there is not a very large difference
between them. While buying homogenous product the price factor plays a key
role. ex: Automobile tyre, Television etc
Heterogenous products: shopping products which are not alike and could have
substantial difference between them in terms of the value they impart, the
look or even the brand reputation. while buying this kind of product a
customer considers many factors other than price. ex: smartphone, computers
etc.

Speciality product:
Specialty products are those specific consumer products which is available in
very limited retail locations, also it has limited supply. Most of the high-end
products come under this category and customer has to pay a premium price
in order to get these products. Unlike standard products speciality products
get purchased less frequently.
Unsought Products:
Unsought products are those products which consumer buys because of
danger or fear of danger , a consumer buys without any desire. The consumer
does not know about or does not think about buying these kinds of
products .products like fire extinguisher , funeral service , reference books
come under unsought products.

Q2. Explain the different types of business products

Business products simply those products that a company sells in order to
generate revenue or if I could put it in another way business products gets
purchased by people for decorating their homes , run their business or to run
school, churches, stadiums .Business products in a way help the world and the
economy move forward.
It can be further divided into different parts.
Materials and parts:
It is alternately known as entering goods as it enters the manufacturing
process as raw materials ,manufacturing materials and parts in order to
produce output.

Raw materials:
It can be farm products like wheat, cotton, livestock, fruits etc which is further
processed to get the output or it can be natural products like iron ore, crude
petroleum, coal, natural gas etc.
Manufactured:
Manufacturing materials are those materials which are used as input or in the
process of getting outputs or goods and services ex-steel, chemicals, paper,
textiles, machinery, clothing, vehicles, etc.
Capital items:
Capital goods are physical assets which a company uses in the production
process to manufacture products and services that consumers will later use.
Capital goods include buildings, machinery, equipment, vehicles, and tools.
Capital goods are goods which are not finished, instead, they are used to
produce finished goods.
Installation:
Installations consist of major purchases such as buildings (factories, offices,
shops) and equipment which are fixed and need a one-time investment
(generators, drill presses, large computer systems, elevators).
Equipment: coffee machine or bread maker used by caffe and bakery are
examples of equipment that help an organization make money and run their
business.
Supplies and business services:
Supplies include lubricants, coal, paper, pencils and repair maintenance like
paint, nails brooms.
And some of the products used for maintenance and repair like lubricant and
tools and other for operation to ensure a smooth flow of the equipment and
business processes and operations.

Q3. Explain the different types of following products, classified based on

longevity, with appropriate relevant examples:
Durable goods:
Durable goods are those goods whose expected lifetime is more than three
years. spending on durable goods is much more volatile. examples of durable
goods are small and big appliances, furniture etc.
Non-Durable goods: nondurable goods are purchased for immediate or almost
immediate consumption and have a life span ranging from minutes to three
years. Common examples of these are food, beverages, clothing, shoes, and
gasoline.
Services: It can be defined as an act of labour or performance that does not
produce a tangible commodity or does not result in the consumer’s ownership
of anything ex-repairing of equipment, servicing of AC or car etc.

Q4. Explain the following terms of Product Mix with examples:

Product Mix Breadth Width:-
The width of the product mix refers to how many product lines the company
carries. For Example:-Proctor & Gamble markets a fairly wide product mix
consisting of many product lines including food, household, cleaning ,
mechanical, cosmetics and personal care products
Product Mix Depth:-
The depth of the product mix refers to how many varieties are offered of each
product in Width. The depth of the product mix refers to how many varieties
are offered of each product in the line. For example: -P&G Crest tooth paste
comes in three sizes and two formulations (past ,gel)
Length:-The length of the product mix refers to the total number of items in its
product mix. For example: P&G typically carries many brands within each line It
sells eight laundry detergents, six-hand soaps , six shampoos, & four dish
washing detergents.
Consistency: -The consistency of the product mix refers to how closely relate
the various product lines are in end-use, production requirements, distribution
channels or in some other way.
For example: -P&G product lines are consistent in so far as they are consumer
products that go through the same distribution channels. The lines are less
consistent insofar they provide different functions for buyers.
5.Product-mix of Nestle.
Nestle is a Swiss multinational food and beverage company. It is the largest
food company I the world measured by revenue. And It has a massive product
mix as it has footsteps in 187 countries around the world.

Product width of Nestle

Nestle has majorly eight product lines which are
Baby food
Bottled Water
Cereals
Chocolates and confectionary
Prepaid Dishes and Cooking aid
Dairy
Healthcare Nutrition
Petcare

PRODUCT LENGTH OF
NESTLE
It is the total no of
offerings a company has.

Product Depth of Nestle : The total no of variations for each product within a
particular segment
Example: size, flavour, Taste , etc

Prepared dish and cooking aids-----

Consistency :- Finally the consistency of a product mix completes our four
product mix decisions. It refers to how closely related the product lines are in
terms of end use, production requirements, Distribution channels or any other
way.
Nestle’s product lines are consistent as they are consumer goods that go
through the same distribution channels.

Q6.Describe the 3 fundamental criteria that help an organization make

decisions about the diversity of its Product Mix Breadth – (i) Risk
diversification
(ii) Leveraging organizational strengths (iii) Making use of
complimentary-in-use products. Substantiate your explanations with
appropriate
and relevant examples.

1. Risk diversification: Undertaking a business whose profit stream

most likely correlates negatively with the profit stream of existing
businesses- thereby reducing the overall risk of the company. Example:
General Electric was initially focused on electrical goods. Later, over the years
they have created rail, aeronautic, power plant, and kitchen appliances
industries.

2.     Leveraging organizing strengths: holding a key asset of the company that
controls the current product offerings. Example: Suppose a company uses Rs.
20,000 of its own cash and takes a loan of Rs. 80,000 to buy a new factory
worth Rs. 1,00,000. The annual profit generated by the factory is Rs. 40,000.
The company uses financial leverage to generate Rs. 40,000 on a cash
investment of Rs. 20,000. (ROI= 200%)
3) Tapping into complementary-in-use products and thus enabling the firm to
be a “total solution supplier.” For example, when we go to Mio-amore shop
when we order a patties he gives us sauce in complementary making total
solution supplies.
Q7. Describe the 2 ways of differentiating the Product Line from competitor
offering –
(i) Vertically
(ii) Horizontally. Substantiate your explanations with appropriate and
relevant examples.
Horizontal differentiation is nothing but when a company without changing the
quality or the content of the product changes the outer packaging, shape ,size
and colour of it in order to stand apart from its competitor and also have a new
look that might appeal new audiences.
For Ex- 2010 Tropicana redesigned it’s packaging to have a modern and refresh
look, and make an emotional attachment by putting the juice on spot light and
adding colour.
Vertical differentiation deals with the change in quality as well as the price of
the offerings or product . It is used by company to see how well the compete
with other companies.
Ex-Apple iPhone as it is bought by customers because of its brand value.

Q8. Describe the 9 fundamental criteria that help an organization make

decisions about the length of its Product Lines
Customer Heterogeneity
Ability to configure the offering to the target segment
Competitive impact
Legitimization
Category size impact
Net impact on own margins – will it lead to cannibalization?
 Brand Equity
Cost of variety vs Scale of opportunity
Collaborator reaction
Substantiate your explanations with appropriate and relevant
examples.

a. Customer Heterogeneity
As it is a fact that every individual is different and it is very important to
know the individual need and choice and preference in order to target
and cater the consumer in an effective manner , and not only that it can
be a source for innovation as well.so customer heterogeneity helps to
determine about how the needs can be satisfied.

b. Ability to configure the offering to the target segments:

Ability to configure the offering to the target segment depends on a
factor such as describing the customer base that is your target market.
Conduct market research, analyse your offering and asses the
competition- Horlicks sells women Horlicks to pregnant women.

c. Competitive Impact: 
If the competition is weak, then humans have to evolve their decision
making and do more research when seeking answers. More information
necessitates quick and less accurate decisions. 
Example- If Pepsi increases its price, then Coke will also do it.

d. Legitimization:  It is important to know the relation between

organization and environment. Legitimization provides a linkage
between organizational and societal level of analysis. Example –
Multidivisional firms, Electricity Generators, Newspapers.

e. Category Size Impact : Category Size means category associated with the
Planned Installed Capacity as indicated in the System Identification
Form. It is important because the larger the category, the potential for a
bigger opportunity is there on a more meaningful scale.

f. Net impact on own margins-will it lead to cannibalization? Net impact on

own margins - It leads to cannibalization since two different products
 with almost the same features of the same company compete with one
another which leads to decline in sales also decline in revenue.
Ex – Xiaomi introduce phones that compete with each other

g. Brand equity- often the product even in product line are launched with
fewer specifications but still sell because of goodwill attached with the
brand. Ex- there are few shoes sold by brands such as Adidas or puma or
any other brands which are of minimum set standard but sell due to the
name of brand attached to it.
Q9. Explain the following terms with appropriate and relevant examples:
a. Product Line Extension
b. Brand Extension

a) Product line extension

Product line extension is a marketing strategy used to introduce a whole new
product  by the existing brand in the same production line. The new product is
different than the products which are already offered by company.
This strategy attracts more customers because customers appreciate when
they have more choices. The existing strength of the brand allows the product
to be introduced more efficiently. It is a low-cost way of increasing profits.
There are basically two types of product line extension
Horizontal extension- this strategy includes maintaining same price, quality of
the product and only changing some factors like flavour, ingredients, colour
etc. Example- Colgate, lux, lays
Vertical extension- this strategy includes increasing or decreasing quality and
price to either make less quantity or create a luxury product.
Example-Honda civic R-type
b) Brand extension
Brand extension is a strategy that is used to introduce new category or product
by using the  name of that existing or established brand. The new product also
receives support from the existing loyal customers of that well-known brand
Types of brand extension Product form- it changes the form of the product
making it a completely different category Example- ice cream bars were
introduced by snickers Companion product- the products which complement
the main products of the same company. Companion products relate with
original products
Example- Colgate is famous for toothpaste decided to release toothbrush
under its brand name
Company expertise- when a company designs a new product or expand its
production under its established name Example- Fender, it is known for high
quality guitars, decided to launch earbuds

Q10. Explain the 5 product levels with examples:

a. Core Product
b. Generic Product
c. Expected Product
d. Augmented Product
e. Potential Product

·      
Core product- this shows the daily need of the customers such as food, shelter
and water Ex- a customer rents a hotel room for a core need of sleeping
Generic product- The marketer must transform the advantages that clients
consider into a fundamental product. For example- a calculator is made of
plastic, metal, electronic circuits, and a  liquid crystal display. Expected
product- The projected level is the next one. It consists of a list of qualities and
requirements that the customer expects the marketer meeting before the sale
is done. In the case of a calculator, the buyers expects that it will be
convenient, simple to use, etc.
Augmented products- it is the product that the customer is really buying which
is enhanced by its benefits. Augmented product gives more than the customer
expects. It is addition with the offered service or product. Example- while
buying a kitchen appliance you get a free recipe book
Potential product- potential products include all the improvements which will
be done to the products in the future, it means to attract customers by
constantly improving experience of the service. Example- adobe gives more
software updates with new and useful features

Q11. Create and design the 5 product levels for a category of your choice.
ANS.5 product level in a Coca Cola company
1. Core Benefit: Coca Cola core benefit of the company is to quench the
thirst of the customers.
2. Generic Product: Generic Product of Coca Cola is a black, burnt vanilla
smelling, carbonated and sweetened fizzy drink.
3. Expected Product: The Expected Product of Coca Cola is that the Coca
Cola is cold otherwise it would not meet the expectation of the
customers and wont taste good.
4. Augmented Product: Its augmented product is that it offers diet coke
which exceed customers' expectations as it provides great taste as Coca
Cola but with zero calories.
5. Potential Product: One way in which it delights the customers is by
running competitions in which it provides prize that ‘money can't buy’
such as celebrity experiences and these prizes are frequently changed
from time to time with better offers.

Q12. Explain the following Augmentation Strategies with examples:

a. Physical Augmentation
b. Service Augmentation
c. Availability Augmentation
d. Brand Augmentation
(a)Physical Augmentation : Physical Augmentation includes the functional
features that are in a product such as its form, the features it provides, its
customizations etc. It also includes Quality attributes such: • Performance
Quality • Conformance Quality • Durability • Reliability The other Physical
Augmentations are : • Design and style • Packaging. For example, before
finalizing which eyewear to buy from Lenskart, we read the product
description to understand its quality, build, its durability, choose the design,
look at its packaging and compare it to the other products available in the
market and buy it if it stands out to be the one
(b)Service Augmentation: Service Augmentation includes the brand’s
feasibility to provide pre purchase services such as easy ordering sites, flexible
online checkouts , offline trails, customer consultations etc. It also includes
post purchase services such as installations, refund and exchange, delivery, etc.
For example, while buying a fridge from LG, look for the services they provide
while buying such as all the informations about the product, easy payment
options and once the product is bought we look for the after sales service, such
as installing in at home by the associates provided by them, manuals or
booklets, easy delivery and exchange policies.
 Availability augmentation
 Place utility- it allows easy access of products or services to the
customers in their preferred locations.
 Time utility- Businesses examine the best ways to design or maximise
the time utility of their products and modify the logistics of their
manufacturing and delivery processes.
 Form utility- Form utility is the amount of value a customer obtains
from a good or service in the context of what they truly need. Therefore,
form utility is the incorporation of client needs and wants into the
features and advantages of the company's products.
 Possession utility- Possession utility is the amount of value that a
consumer perceives as deriving from owning and being able to use a
certain thing.
Brand augmentation- brand augmentation Is a strategy to decide whether to
start your own brand or engage with re-seller brand ,whether use brand
extension or go with a entirely new brand name

13. What are the possible objectives of Product Packaging? Substantiate your
explanations with
appropriate and relevant examples.
Product packaging serves several important purposes:
Protection :
- The packaging is intended to protect the product from damage during
transportation
Against transport and storage and weather influences (humidity, dust, solar
radiation, etc.).
For example, a box of chocolates has a lining or an individual wrapper.
Protect your chocolate from melting and scratching.
comfortable :
- Packaging is often designed for consumer convenience.
B. Easy to open or reseal. For example, potato chip bags have zippers
It keeps the chips fresh and allows the consumer to open and close the bag
easily.
Marketing:
- Packaging is also used as a marketing tool to attract consumers
Call attention and provide information about the product. e.g. shampoo bottle
Attract consumers' attention with colorful graphics and catchy slogans
Differentiate your product from your competitors.
sustainability :
- Packaging is designed to be more and more sustainable.
Such as the use of recycled materials and easy recyclability. For example this
brand
Bottled water uses recycled plastic bottles and can contain a message
A package about the brand's sustainability efforts.
compliance:
- Packages must also meet legal requirements such as: B. Marking
Requirements and Safety Precautions. For example, a bottle of medicine has a
label
Information about dosage, side effects and possible interactions with others
drug.
Q14. Give examples of Service Augmentation with respect to the following
services offered:
a. Pre-purchase services
a. Ordering ease
b. Trials
c. Customer consulting
b. Post-purchase services
a. Delivery
b. Installation
c. Customer training
d. Maintenance and repair
e. Returns
c. Ancillary Services
. Pre-Sales Service:
Easy ordering:

❖ Add a chatbot to your company's website to help with customer placement

allocation.
❖ Provide a mobile app for easy ordering on the go.

❖ Introduction of one-click ordering system for repeat customers.

try:

❖ Allow customers to try products for a limited time before signing a contract

buy. ❖ Money back guarantee if you are not satisfied with the product
Product after the test stage.
Customer advisory:

❖ Providing personalized product recommendations based on customer needs

I like it.
❖ Provide online tutorials or webinars to help customers self-develop
purchase decision.
b. After-sales service:
delivery :

❖ Same day delivery for an additional fee. ❖ Provide tracking information and
updates regarding the shipping process.
install:

❖ We provide installation service for an additional fee.

❖ Provide his tutorial or video online to help customer install by himself.

Customer training:
❖ Providing personal training to help you get the most out of
product.

❖ Providing online training resources such as tutorials and webinars. Repair ：

❖ Providing preventative maintenance services to extend product life.

❖ Providing repair service for defective products.

Return value :
❖ Customers can easily return or exchange if they are not satisfied.
❖ Providing a prepaid shipping label for returns.
c. Additional services:

❖ Providing gift wrap or gift cards for an additional fee.

❖ Offering loyalty programs that offer bonuses and discounts for regular
customers.
❖ Partnering with other companies to offer bundles or cross-promotions;

Q15. Give examples of Availability Augmentation with respect to the

following services offered:
a. Place Utility
b. Time Utility
c. Form Utility
d. Possession Utility
Expanding availability is an effort to improve usability and accessibility.
A product or service for a customer. Here is an example of inventory status
Extensions for each type of utility listed:

a. Location utility:
-

❖ Offering products or services in multiple locations. B. retail stores;

Online or via mobile app.
❖ Offer home delivery or curbside pickup.

❖ Providing products or services in locations easily accessible to customers;

B. Near busy shopping areas or public transportation. b. Time utility:
-
❖ We provide goods and services 24 hours a day. B. Via online platform or
phone
line.

❖ Allowing customers to place orders and reservations outside the normal

limits
business hours.

❖ Providing flexible planning options. B. Reservation Period or Extension

time
c. Form utility:

❖ Providing products or services in different formats to meet the needs of

different people
Customers such as physical copies and digital downloads.

❖ Providing Customization Options. B. PERSONALIZED OR CUSTOMIZED

PRODUCTS
service package.
Namely the benefits of ownership:
-

❖ Offer rental or lease options rather than requiring customers to buy

Product really.
❖ Offer financing or payment plan options to make it easier for your
customers

I can afford to purchase a product or service. ❖ Implementing loyalty or

reward programs to encourage repeat usage
business and customer loyalty.

Q16. According to the “Diffusion of Innovation” theory by Rogers, 5

characteristics decide the rate of
adoption of the new product. These are:
a. Relative Advantage
b. Compatibility
c. Complexity
d. Trialability
e. Observability
Explain the above mentioned product attributes with respect to a new launch
and substantiate your
explanations with appropriate and relevant examples.
of. Relative advantages:
- The first feature is the relative superiority of the new model.
product. Degree to which it is perceived as superior to existing products.
When consumers perceive new products this way, innovations are more likely
to be adopted
Relatively better than existing products. For example, "email" and "fax" were
considered
Telex was considered superior. Similarly, mobile phones have overtaken pagers
It is said that they have good communication skills. this great realization
The Relative Advantages of Using "Email" and Mobile Phones as
Communication Networks
For early adoption of the concept or new idea.
b.Compatibility:
- The extent to which potential consumers consider new products
Conformity with existing needs, values and practices is a measure of that
conformity. of
The higher the compatibility level, the more likely the innovation will be
adopted
consumer. For example, "laptop" computers are well adapted to your needs
and lifestyle.
from a businessman.
c. Complexity:
- The third characteristic is the complexity of innovation. this means
How difficult it is to understand and use a new product. The higher the
complexity, the
Product removal takes time. For example, the PC took
It's time to infiltrate the complex Indian household. This complicated problem
Very important when entering the market for high-tech consumer goods.
Facilitating divisibility or processes i.e.:
・As long as it can be tried on as a new product
limited base. In this way new products can be tested on a small scale in
advance
make full use of it. Innovation adoption increases when consumers have
innovation
Opportunity to try products and make purchasing decisions when test results
are available
Satisfied. When launching products such as shampoos, detergents, and
toothpastes,
Marketers sometimes use small trial packs (free samples) or coupons to
educate consumers.
Experience the product firsthand. Automakers such as Maruti, Hyundai, and
Ford
Offer customers a “test drive” of a new car model to experience your product
directly.
e. Transferability or Observability:
・The fifth feature is portability
innovation. the extent to which the results are observable or explainable to
others, or
The features of the new product are easy to understand. new product
If you can explain and demonstrate how the new technology will be used, the
concept will work.
product. For example, "Eureka Forbes" was easily accepted upon acquisition.
A way of observing reality such as "Aquaguard" and "Vacuum Cleaner".

Q17. Explain the following types of New Products and substantiate with
appropriate and relevant
examples:
a. Incremental improvements of existing Products
b. Expansion of existing Product Lines
c. New Product to the firm, but not to the world
d. New-to-the world products/radical innovation
a. Incremental improvements of existing products are small changes or
improvements made to an existing product. These changes are typically
designed to
make the product more effective or efficient, or to add new features that
customers
want. Examples of incremental improvements might include adding a new
color option
to a smartphone, increasing the battery life of a laptop, or improving the
performance of
a vacuum cleaner.
b. Expansion of existing product lines involves introducing new products that
are
related to or complementary to the firm's existing products. These new
products might
be variations on existing products, or they might be completely new products
that are
intended to be used alongside the firm's existing products. For example, a
company that
makes outdoor grills might expand its product line to include outdoor kitchen
appliances,
such as refrigerators and dishwashers.
c. New products to the firm, but not to the world are products that are new to
the
firm, but have already been introduced by other companies in the market.
These
products might be similar to the firm's existing products, or they might be
completely
new to the firm's product line. For example, a company that makes
headphones might
introduce a new model of wireless headphones that is similar to a model made
by a
competitor.
d. New-to-the-world products, also known as radical innovations, are
completely
new products that have never been seen before. These products are often
disruptive,
meaning that they significantly change the way that a particular market or
industry
operates. Examples of radical innovations might include the first personal
computer, the
first smartphone, or the first electric car.

Q18. Explain the following types of New Product Development processes and
substantiate with
appropriate and relevant examples:
a. Concept Testing
b. BASES
c. Spiral Development
of. Concept testing is the process used to evaluate the potential success of new
concepts.
product ideas. This is typically done through market research methods such as
Focus.
Groups, polls, online voting. The purpose of concept testing is to collect
feedback
To communicate product ideas to potential customers and to identify or
resolve potential issues
Concerns that need to be addressed before a product is developed and
brought to market.
For example, a company may conduct concept tests for a new line of eco-
friendly products.
cleaning supplies. You can ask focus group participants to review your product
Provide feedback on product desirability, pricing and potential markets.
requirement. Based on feedback gathered through concept testing, the
company can:
Decide whether to continue product development or adjust plans
Based on the knowledge gained.
b. BASES (Best, Attractive, Sustaining, Efficient, Safe) is the framework used.
Evaluate the potential success of new products. This framework helps
companies do this
Assess potential attractiveness of new product ideas based on feasibility
Customer needs, profitability potential and technical feasibility
And from a logistics point of view. For example, companies can use the BASES
framework to evaluate new product lines.
Sportswear made from recycled materials. You may consider whether the
product
"Best" in its category (e.g., in terms of performance, style, or functionality),
whether it is “attractive” to customers (price, design, brand appeal, etc.);
Whether it can be "sustainable" (e.g., in terms of environmental impact).
or the ability to respond to changing customer needs over time) whether it is
"efficient".
Is it "safe" to produce (e.g., in terms of cost and time) and for customer use?
(e.g. in relation to materials or manufacturing processes).
c. Spiral development is an iterative product development process
Creating and testing product prototypes. This process typically involves four
steps:

Planning, risk assessment, engineering and evaluation. Goal of spiral

development
To create functional and cost-effective products while minimizing costs
Risk related to product development.
THANK YOU