PRODUCT The role of product in the marketing mix is one of

the key components that makes the entire process of connecting

with consumers and generating sales possible. Along with price,
place, and promotion, the product provides the ultimate value to
the customer and serves as the entire reason for the marketing
effort. When the good or service involved is of high quality and
possesses the right type of features to attract the attention of
consumers, the potential for success is greatly enhanced.
There are several aspects of the product in the marketing mix that
must be considered in order to make the most of this particular
component. The function of the product is the most important
aspect. Simply put, if the product does not deliver the functionality
that is claimed, consumers will shortly turn away from the product
and no amount of promotion or competitive pricing will make an
impact in the marketability of the good or service
Consumer Goods – These are goods which are consumed by people.
Consumer Services – These are services that are produced for people
Producer Goods – These are goods that produced for other business to use
Producer Services – These are services that are produced to help other
business.

Essentials of a Successful Product

1) The product needs to satisfy consumer wants and needs. If it does not
then it will not sell
2) The product also needs to be of the right quality so the price is what
consumers are willing to pay
3) The costs of production must enable a price to be set that will produce a
reasonable profit
4) Design of the product is OBVIOUSLY very important!
 Design &
performance

Satisfying
existing Stimulate
needs of new wants
consumer

Successful
product

Must be Must be
affordable Distinctive

New product
or new
changes
before others
 Product Development:
Process businesses go through when developing product:-

Sales department
Research & development
Customer suggestions Ideas generated
Competitors products
Select best ideas for Some ideas abandoned,
further research some researched further.
Decide if it will sell Break even analysis.
well. Product How large will the sales
success?
be needed to cover costs.
Develop a Example/ test. Defaults are
prototype seen and taken care of.
Product launched in a small
Test the market. part of the market. It’s
successfulness is determined.

Full launch of Launched into main market.

Later could be exported.
product to market
Developing a new Product
• Diversification for the business, therefore
giving it a broader range of products to sell
• It allows the business to expand into new
markets
• It may allow the business to expand into
existing markets.

• The costs of carrying out market research

and analyzing the findings
• The costs of producing trial products
including The costs of wasted materials
• Lack of sales if the target market is wrong
• loss of company image if the new product
fails to meet customer needs
USP
A USP is your pre-defined "difference" ( uniqueness). its lets you to
differentiate from your competitors and tells your customers what is
special about your product or services. It is a key reason why they do
business with you rather than your competitors.
The Brand Name – is the unique name of a product that
distinguishes it from other brands i.e. A brand name is a name used
to distinguish one product from its competitors. It can apply to a single
product, an entire product range, or even a company (e.g., Virgin, Ferrari,
Bang and Olufsen)

Brand Loyalty – is when consumers keep buying the same brand again
and again instead of choosing a competitor’s brand

Brand Image – is an image or identity given to a product which gives it a

personality of its own and distinguish it from its competitors’ brands.
Advantages of Branding ( why to create a Brand)
The concept of branding and identity is to create a look and feel
immediately identifiable and recognizable in the marketplace. Good
branding can increase the value of the product and the company
itself. A company’s identity in the marketplace can easily make or
break its profitability as a whole.
ADVANTAGES OF BRANDING
ADVANTAGES OF BRANDING
 Unique
Name
Depends a Relatively
lot on higher
advertising price than
to reinforce Unbranded

Higher
Create
quality
than Branding brand
image
unbranded

Create
Same
Customer
standards
Loyalty
Unique
packing
Packaging The packaging also impacts the role of product in
the marketing mix. Typically, the packaging should be attractive so
that it will catch the eye of consumers. At the same time, the
packaging should be user-friendly, in that the shape is easy to
carry and can be opened with relatively little difficulty. The
packaging can also be crucial to the promotion aspect of the mix,
since the exterior of the package can include important
information about what the product can be used for as well as any
recommendations for storage and other important aspects.
 Packaging & its Significance
Packaging has no meaning without the product itself for which it was
designed. Its primary FUNCTION is to PRESERVE and PROTECT
the product throughout the manufacturing, transport, storage and
consumption chain furthermore it is also used in promotion and
selling appeal to the potential customers
In other words, it prevents part or the entire product from going to
waste, which would result in an economic and environmental loss.
But good packaging also guarantees the health and safety of
consumers. Currently, packaging fulfils the addition functions as it
carries information, acts as a marketing tool, and enables products
to be offered in different formats and various portions, corresponding
to the consumer's needs
 SUITABLE FOR
THE PRODUCT
APPEALING TO
EASY TO USE
THE TARGET
CONTENTS
CUSTOMER

EASY TO
PRODUCT
TRANSPORT
INFORMATION

PROTECT THE PROMOTE THE

PRODUCT PACKAGING PRODUCT
The product life cycle is an important concept in marketing.
It describes the stages that a product goes through from when it was first
thought of until it finally is removed from the market. Not all products reach
this final stage. Some continue to grow and others rise and fall.
Introduction Stage
• Product launched into the market.
• Sales grow slowly.
• Informative advertising is done.
• Firm might not earn a profit at this stage.
• Price skimming may be used if the product is new invention and has no competitors.
• Competitive pricing may be used if it already has lot of competitors.
Growth Stage
• Sales grow rapidly.
• Persuasive advertising may be used.
• Prices may be reduced if faced by stiff competition.
• Firm starts earning profits.
Maturity Stage
• Sales increase slowly and reach the highest sales figures.
• Competition is at the maximum level as many new ‘me too’ products may be in the market.
• Promotional pricing might be a good option.
• Profits are at the highest level as the firm is also getting economies of scale.
• Repetitive advertising is done to remind the consumers.
Decline Stage
• Sales start to decline.
• Profits start to come down.
• Marketing research it done to find out whether this decline is permanent or temporary. If the
decline is permanent in nature then stop the production of the product, otherwise
implement extension strategies.
• Advertising is reduced.
Possible Actual Examples
 Introduction - 3D TVs
 Growth - Blue ray discs/DVR
 Maturity - DVD
 Decline - Video cassette

 Introduction - 4K TVs
 Growth - HOVERBOARD
 Maturity - 3D TVs, self balancing scooter
 Decline - DVD
Extending Product life Cycle
 Find a new
market

Change in
design, color
Introduce a
or packaging
new variant

Extending
the product
life cycle
Use a new Increase the
advertising sale outlets
campaign Introduce a
new
improved
version of old
product