PRODUCT

reading this unit, the students will be able to learn:

Meaning of Product
ponents
haracteristics and Importance of Product
roduct Levels
Product Classification
• Consumer Product
• Industrial Product

ct Life Cycle and its Stages

In Marke ting, a produ ct is an object, or system or service made

availab le for consu mer use in
accordance with the consu mer deman d. It is anythi ng that can be
offere d to satisfy the needs or desire
of consumer.
The term produ ct is mostly used as a want or need satisfying entity.
A produ ct may be define d as a
set of tangible, intang ible and associated attribu tes capabl e ofbein
g excha nged for a value. It is anythi ng
that can be offere d to a marke t to satisfy the need or wants of the
consum er.
According to Schwartz, "A produ ct is somet hing a firm marke ts,
that will satisfy a person al want
or fill a business or comm ercial need and includ es all the factors
that may contri bute to custom er's
satisfaction."

According to Philip Kotler, "Product is anything that can be offered to

someone to satisfy a need or a want".
William Stanto n, "Prod uct is a compl ex of tangib le and intang ible
attribu tes, includ ing packag ing,
colour, price, prestig e and services that satisfy needs and wants of
people ".
~MPONENTS OF A PRODUCT
The compo nents of the produ ct includ e core produ ct, associ
ated feature s, brand name, logo,
Package and label.

Product' 9
 -
The Core Product
.
It 1s the b as1.c e1em ent o f the pro du ct It is obs erv ed tha t the
. . • tot al pro du ct per son ali ty is
on basic con stit uen t o f th od uct If the pro du ct
e pr • is sub -st and ard the oth er
de pe nd en t
.. a ent iat ion pos itio nin g, bra .
fea tur es, pack age , label , d 1ue . ele me nts ass oci ate d like
r , . nd ing will no t be of any use
cor e pro du ct is essential. . He nce focus on the

For exa mple, wh e n con sum ers pu rch ase Ko dak Fil m, the
y are bu yin g a Ko dak Mo
wh en a con sum er b uys a det ergen t po wd er the y are
,
.
bu yin .
g its clean 1ng
. b'l ' All me h
nt. Similarly
fra gra nce , etc. com e later. a 1 1ty. ot er thi ngs like
Th ese associated features are
the on e tha t dis tin gui she s the
eac h other. bra nd s an d on the se the y com
pet e wit h
The Associated Features/Addition
al Features
. Th e Pro duc t inc lud es
sev era l associated
features besides the cor e
ing red i~n t. In the
exa mp le of Dove soap, the fra
gra nce of the soa p,
the moisturizing ability, the
pri stin e white col our Attractive L Soap
In Cleaning
etc., are its associated featur
es. Th e tot al pro du ct
__Sh_a_.,p_e_ _, j {Core
Fragrance
personality is mostly enh
anc ed thr ou gh the
associated features.
The Brand Name Colour

A bra nd is def ine d as a nam

e, ter m, symbol, des ign or
identify the goo ds and servic a com bin ati on of the m wh
es of on e seller an d to dif fer ich is int end ed to
ma rk is a bra nd with legal pro ent iat e the m fro m tho se of com
tec tio n, thu s ens uri ng its exc pet ito rs. A tra de
lusive use by on e seller.
Br and nam e is a ma rke tin g
ter m wh ere as tra de nam e is
nam e is an invaluable asset as a leg al ter m. Fo r a ma rke ter
tod ay we are living in the age , a go od bra nd
inspire con sum ers to go for of bra nd s. A bra nd nam e ens ure
the bra nd . Fo r exa mp le Son s quality and
y, Ko dak , LG , etc.
The Logo
It is the bra nd mark/symbol
the pro duc t, ext end ing its
and an essential asp ect of c;;)L>
sup po rt to the bra nd effectiv ffla hln dl" a
Symbols and pictures ens ely.
ure pro du ct/ bra nd identific
and recall with the ir im por ation
tan ce bei ng enh anc ed in
ma rke ts wh ere bra nd s are mo rur al
stly rec ogn ize d by the ir pic
in the logo. tur e

airtel
The Package

It is ano the r im po rta nt. com

po nen t of the tot al pro du
con sum er. ~ro duc ts. C_onve ct personality, par tic ula rly
nt1o~ally pa~kaging was use in packaged
an d to facilitate han dli ng at d to pro tec t the pro du ct fro m dam
van ous pom ts of dis trib uti on. age on rou te
sal es app eal of the pro du~ t. Cu rre ntl y pac kag ing con trib
It add s aesthetics to the pro ute s to the total
gen era te sales. An attr act ive du ct and gives eac h bra nd a
pac kag e can be tha t pow erf distinct identity and
pu rch ase . ul tha t it res ult s in on the spo
t and spo nta neo us
•
The Label
It is the pa rt an d par cel of
a package. It pro vid es wr itte
bu ye r to un de rst an d the nat n inf orm ati on abo ut the pro
ure of the pro duc t, its distinc du ct hel pin g the.
tive fea tur es, its com pos itio
n, its per for ma nce .

IMarketing-XII

:rd
 .- - I II f ~

CTERISTICS OF PRODUCT
CHARA d t is one of the core elements of marketing mix.
1• pro . ucs people view it
differently as consumers; organizations and society have different needs and
2. Vanou .
ex.pectauons. .
The product includes both good and service.
3
• keter can realize their goals by manufacturing, selling, improving and modifying the product.
4. Amar .
. ludes both tangible and non-tangible features and benefits offered.
5. It me
_ It is vehicle or medium to offer benefits and satisfaction to consumers.
6
The important lies in services rendered by the product and not ownership of product. People buy
7
• services and not the physical object.
_ Product includes total offers, including main qualities, features and services.
8
IMPORTANCE OF PRODUCT
- l. Product is the focal point and all the marketing activities revolve around it. Marketing activities
like selling, purchasing, advertising, distribution, sales promotion are all meaningless unless there
is product. It is a basic tool by which pro~tability of the firm is measured.
2. It is the starting point of planning. No marketing programme will commence if product does not
exist because planning for all marketing activities, distribution, price, sales promotion, advertising,
etc. is done on the basis of the nature, quality and the demand of the product. Product policies thus
decide the other policies.
3. Product is an end. The main purpose of all marketing activities is to satisfy the customers. Thus
product is an end (satisfaction of customers) and the producer, therefore, must insist on the quality
of the product so that it may satisfy the customers' needs. It has been observed that the life of low
quality products in the market is limited.

PRODUCT LEVELS
A product has many dimensions besides physical appearance. In fact, a product is like an "Onion"
with several layers. These layers can be referred to as Product Levels.

PRODUCT LEVELS

Productl 11

M~~-m~~:!21 ~~~~SI2~==~ ~·~~....:..-~.::. :,~"1_;_, 11111

 . h b •
1 Core Product: It ts t e aste funda menta l dimen sion of a produ ct as it repre sents a bundl e ofbenefits
• . b
to its prospecuve uyer.
It is the basic level that repre sents t h e h eart o f the produ
l ct with a focu
on the purpose cLOI. wh'tc h produ ct is inten ded. For exam p e, a car pureh ased for its .
convenience
s
. l can . l d ,
the case at wlHC 1 one go or the speed at which one can trave aroun . Trans
porta tion is the
core prod uct m . 1 • Looks Speed Safety etc. are other suppl emen tary
t us. , ' . . benefits. The easiest way
. the core produ .
of understand mg ct term can be expla med with followmg examples:
• when you buy a holiday package, core produ cts are accom .
moda uon and travel.
,. \\Then you buy a laundry deterg ent, the core produ ct
is cleanliness.
•• In a restaurant, the core produ ct is food and hygiene.
,. When you buy a mobile phone , the core produ ct is effect
ive comm unica tion.
2. Generic Product: A generic produ ct is some thing that
is sold in the name of the produ ct, i.e., what
it actually is, rather than having a brand name. It is the unbra
nded and undif ferent iated product.
They are less expensive and do not have a widely recognised
name or logo on them. When people
shop for products like bakery items, medicines, cereals,
pulses etc., they normally look for the
product rather than brand name.
3. Branded Product: The brand ed products get an identi
ty throu gh a name. It belongs to a specific
company and the marketer separates this produ ct from
the rest. For exam ple, Kellogg's Corn
Flakes, Coca-Cola, Ariel, etc.
4. The Differentiated Produ ct: All the brand ed produ cts are
suppo sed to be differentiated products.
The marketer tries to differentiate his produ ct from the
clutter create d by competitor products
by highlighting some of th~ special attributes/features /quali
ties his brand is endowed with. The
difference could be tangible or psychological.
5. The Customized Product: When the produ ct is modified
to suit to the requirements/specifications of
the individual customer, he is being offered a customized produ
ct. Many companies manufacturing
automobiles, computers, paints, shoes and garments·have
used this strategy to beat competition.
6. The Augmented Product: The augmented produ ct
aims to enhan ce the value of the product/offer
through voluntary improvements. These improvements may
be neithe r suggested by the customer
nor expected by him. The manufacturer/marketer adds the
feature/benefit on his own. The needs
of the customer are identified throu gh market research survey
s and the insights thus obtained are
used to add new features/functions to the product.
7• The Potential
Product: The potential produ ct is the 'futur e' produ ct
inclusive of the advancement
and r~~ne ~ent that is possible under the existing technologica
l, economic, competitive conditions
prevailing m that category. Potential produ ct is only limite
d by economic and technological
resources a firm can spare. Nevertheless todays' potential produ
cts can be tomorrows' real product.

The produ ct le:el~ in~ica_te the i~portance of all benefits that

are or could be passed on to consumers.
Furth er they ~elp m md1c~t1ng the importance of creati
ng differentiation by changes in the product
levels which might be required to counter competition in
the market and capture a market share.
FACTORS INFLUENCING PRODUCT MIX
1. Market Demand: The demand of the product
determines whether the product should be
manu • d • d. •
factur ed or its pro ucuon iscontmued. New products are
introduced in the mar ket after
the need of the produ ct is identified.

12 IMarketing-XII
 I Ill?"

2. Cost of Product: The company can develop products which are low in costs and produce those
products. Nirma, washing powder, a low priced product was launched to counter Surf which was
priced high.
3. Quantity of Production: The company can add more items on its product line in case the
production of the new product is to be made on a large scale.
4. Advertising and Distribution Factors: An organisation does not incur any additional efforts to
advertise and distribute when company adds one or more products to its product line.
5, Use of Residuals: In case the by-products can be developed or utilized; a company should produce
such products. For example, sugar manufacturin g company can also use molasses.
6. Competitor's Action: In order to meet the competition/m arket a firm may decide to include or
eliminate a product.
7, Full Utilization of Marketing Capacity: The company can start to produce another product to
utilise the capacity completely if the existing marketing resources are not being utilized.
8. Goodwill of the Company: When the company has good reputation in the market, new product
can be launched without much difficulty.

!IBRRIDDmIB :- · · . '. . •
Branding is defined as "A name, term, design, symbol or any other feature that identifies one seller's good or
service as distinct from those of other sellers" - American Marketing Association
Brand is defined as "A name, term, sign, symbol or a design or a combination of them, intended to identify the
goods and services of one seller or group of sellers and to differentiate them from those of competitors"
- Philip Kotler

Google

'f:}
airtel
SONY NOKIA~
Connecting People
•a
Th.e Brand Name or Brand Mark Becomes a Trade Mark if it is Registered and Legal
Trademarks are protection provided to a name, word, symbol, or words legally registered for use as
representing a company or product.

TYPES OF BRANDS

TYPES OF BRANDS

Ownership Market Area Number of Producta

Manufacturer's Brand Local Brands Family Brand

Middleman's Brand National Brand Individual Brand

Brands can be classified based on ownership, market area and number of products

Product 113

'jf
1. Ownership

(a) Manufacturer,s Brand·• When the ownership lies with the manufacturer and the producer prov·d
1 es
the brand name to the product, its called manufacturer's brand. For example, Apple, GE, Intel
and McDonald's.
(b) Middlemen Brand/Store Brand/Pr~vate Label: In cert~in cases, the manufacturers do not
undertake branding by themselves, mstead they leave thelf products to the wholesalers or retail
chains for branding. For example, Reliance Select, a brand of Reliance Retail.

2. Market Area
(a) Local Brand: When the product is available at the local area and the brand is restricted to local
markets or region, it is called local brand. The examples include restaurants, fashion boutiques,
pet shops, etc.
(b) National Brand: When a brand name is owned by the producer or distributor and is distributed
all over the nation, it is called National Brand. The examples include Amul, Parle-G etc.

3. Number of Products

(a) Family Bran~: _When multiple products of the manufacturer are marketed under the similar
brand name,
Th _ it 1s called a .Famil
. Y Bran d • For examp le, V1deocon,
· · · Johnson & Joh nson.
Bntanrna,
e tei m umbrella branding 1s also a substitute for Family Brand.
(b) Individual Brand: When diverse p d b l · d b
. ro ucts e ongmg to same category are manufacture Ya
company but have different brand h . &G
ffi ..
11
f. d' .d names, t ey are called mdividual brands. For example, P
e;s~mS~ ~Y i~_iv~ ual bran~ in each product category, some of them being Ariel, Tide, Olay,
ra - • Him al.rky m ustan Unilever offer an array of individual brand like Lux Surf Excel,
Closeup, or IC s, etc. '

PRODUCT CLASSIFICATION
Classification on the basis of Durability and Tangibility
Non-durable Goods: Non-durable goods are tangibl . d . or a
couple of uses. These are J)urchased regular! d r e goo s normally consumed in either one .
Yan a so consumed fre ti Th k h . to adveruse
heavi]y to increase the pu.rchase and build brand refi . quen Y· e mar ·eter as . .
P er ence. Examples include food items and toiletries.
Durable Goods: Durable goods are tangible goods that . These
d I 11 . c. . . can normally be used for many years.
d
pro ucts nee more persona se mg, a1ter sales service are ofit d arranty
I · t d CD · • ' en supported by guarantee an w
P rograms. Examp es me u e L TVs, mobile phones washi· . h. .
' ng mac mes and microwaves.
Services: On the basis of tangibility, products can be also b 1 .fi d h . al . ducts and
· · 'bl · bl . ' e c ass1 e as p yste pi o .
services. ServJCes are . mtang1
. e, msepara e
. and mconsistent
. prod t E . 1ude hospitality
uc s. xamp 1es me
service, airlines servJCes, msurance and bankmg services.

fMarketing-XII
\_
 Consumer goods I Industrial goods j Services _J
1-

-i '
on the basis of
shopping nature

I
1
• l
On the basis of
materials

1
Raw
goods
Foundation
_1oods
Facilitating!
and parts

t
J
Accessories

l
I
-
Durable goods Fast moving consumer goods or Installations Fixed equipment I
(cars, scooters, furniture) non-durable goods(soaps, cornflakes)

Convenience goods Shopping goods Specialty goods

(Bread & Biscuits) (Suiting shoes, Watches) (Paintings, Jewellery, Carpets)

Defence Insurance, Law enforcing, Transport Business, Distributive Hospitality

Services Banking & Civil, and Professional Trades Services
Utilities Finance 1 Administrative Communication Services

Classification of Consumer Goods

(i) Convenien ce Products

They are goods that a customer purchases frequently, with minimum effort and time to make a
buying decision. Example being soft drinks, soaps, bread, milk etc. These can be further classified into
three categories:
(a) Staple Goods: The products which are purchased on a regular basis. The decision to
buy the
product is programm ed once the customer puts the item on his list of regular purchases. Example
bread, milk, eggs
(b) Impulse Goods: The consumer purchases these without any planning or search efforts. The desire
to buy impulse is a result of the shopping trip. This is why impulse products are located where they
can be easily noticed. Example chocolates, magazines.
(c) Emergenc y Goods: They are purchased to fulfill urgent need. The consumer ends up paying
more. Examples of consumer shopping for tooth brushes or shaving blades at tourist destinations.
Main Features
They are easily available and require minimum time and effort.
They are obtainabl e at low prices.
There is a continuou s and regular demand for such products.
Both demand and competiti on for these products is high.
Products are easily substitutable.
Heavy advertisin g and sales promotio n schemes help in marketing of these products.

Marketing Strategy of Convenien ce Goods

(a) Price: These products are usually low priced and widely available
(b) Promotion: Mass promotion is done by the producer . .
(c) Place: These are widely disLributed at convenient locations. Made available through vending
machine &
checkout stands
(d) Product: Bread, Milk, Chocolates, Magazines, Tooth Brushes, Pulses, Soaps.

Productl 15

L
I
(ii) Sho ppi ng Products
The se are the goo ds whe re the cus
tom er whi le ~ele~~ing the ~ro duc
com par ison s on the bas es of quality, t for pur cha se makes due
pric e, style and suitability. Sho ppm
g pro duc ts can be hom oge nou s
or hete rog ene ous .
l. Hom oge neo us Products: The y
are pro duc ts ~re_ con side red t? be ali_ke, with
eng agin g 011 pric e war. Ma nuf actu rers the sellers
end up disu ngu ishm g on the basis
or oth er freebies. of des ign , serv ices offered
2 . Het ero gen eou s Shopping Products: They_ are products
stan dard ized . The con sum ers always _ tha t are ~on side red to unlike or
sho p for a bes t qua lity buy. Pnc e bec non-
the focus is on style or quality. ome s seco nda ry in case

Main Features
(i) The y are dur able in natu re.
(ii) The y hav e hig h uni t pric e and
pro fit mar gin .
(iii) The cus tom er spe nds ade qua te
tim e and com par es pro duc ts bef ore
mak ing the final purchase
(iv) Pur cha se of suc h pro duc ts is pla
nne d prio r.
(v) Imp orta nt role play ed by the reta
iler in the sale of sho ppi ng goo ds.
Marketing Strategy of Con ven ienc
e Goods:
(a) Price: The se prod ucts are availabl
e at mod erat e prices. The selle r mus
(b) Promotion: Hea vy adve rtisi ng and t app rais e the buy er with the price.
pers ona l selling by both prod uce rs
(c) Place: As con sum ers will spen & resellers.
d time to shop thes e goo ds, stor es that
similar stor es in active shop ping area spec ialise in them are located near
.
(d) Product: Furn itur e, Clot hes
etc.
(iii) Spe cial ity Pro duc ts
The se are goo ds with uni que cha ract
eris tic or bra nd identification for whi
buy ers are willing to mak e a special ch a sufficient number of
pur cha sing effort. Con sum ers hav e
bra nd, style, or type. For exa mpl e: stro ng convictions towards the
cars, hig h end watches, diam ond jew
elle ry etc.
Main Features
(i) The dem and for suc h pro duc
ts is relatively infr equ ent.
(ii) Pro duc ts are hig h pric ed.
(iii) Sale of suc h pro duc ts is limi
ted to few places.
(iv) Agg ress ive pro mot ion is req
uire d for suc h pro duc ts.
(v) Aft er sales service is req uire d for
thes e pro duc ts.
Mar keti ng Strategy of Spe cial ity
Goods
(a) Pric e: The y are usua lly mar ked
at high prices. As dem and for thes e
(b) Pro mot ion: Tar gete d prom otio goo ds are low and supply is also low.
n by both prod ucer and reseller. Hig
(c) Plac e: Exclusive selli ng in only h level of advertising.
one or few selected outl ets per mar ket.
dist ribu ted. Exclusively sold and exclusively
(d) Pro duc t: Jew elle ry, Role x watc
hes, fine crystals etc.
(iv) Uns oug ht Pro duc ts
The se are pro duc ts tha l are availab
·
le ·m tI1e mar ket but lhe pote ntia
· h ·
l buy ers do not k n O\,' abo ut t eir
·ste nce or they do not wan t to pur
ex.i cha se them . The re are two types of suc
h products:
1. Reg ula rly Uns oug ht Pro duc . . d not want to
ts:. Thhe pro ducts wh1ch ex1sht butE
pur cha se the m as of now, but m1g 11 the pclonsL·~•::~~sui:nce ProducLS
t eve ntua y pur e11ase t em. ~xam
or Doc tor' s services. e: 1

16 I Marketing-XII
 2. New Unsou ght Products: The marke ters task is t • fi
Product, stimulate deman d and pe d h obm orm target consumers of the existence of the
unsought initially, but heavy pro rsua
• e td en to uy. the produ ct• Example, o ra1 por10 vaccme
· was
of polio. mouon an persuasion by the government has lead to eradication

Marketing Strategy of Unsought Goods

(a) Price: Varies from produc t to produc t.
(b) Promotion: Personal selling and aggressive advertising by
produc er and seller.
(c) Place: It depend s upon the produc t.
(d) Product: Life Insura nce, Red Cross Blood Donation etc.

INDUSTRIAL PRODUCTS
The Products used as inputs to produ ce consu mer produ cts are
known as industrial products. They
are used for non-personal and business purposes. Examples
being raw materials, tools, machinery,
lubricants etc.
Features of Industrial Products
Limited numb er of buyer in compa rison to consu mer goods. Lengt
h of Chann el for distribution is
short.
Demand for the produ ct is conce ntrate d in certain geographical
locations and is derived from the
demand of consu mer goods.
•Product purchase is based on fulfillment of technical considerations.
Reciprocal buyin g is involved is a company may purchase the
raw material from a company and
may sell the finished produ ct to the same company.
Types of Industrial Products
(i) Materials and Parts: These are goods that are used
for manufacturing the product. These are
further divided into two types:
(a) Raw Material: The raw materials could be either agriculture
based products like sugar cane,
rubber, wheat etc., or they can be natura l products like iron ore,
crude petroleum etc. Farm
produ cts are renew able as they involve agricultural production.
The natural products are
very often limited and often available in great bulk and low unit
value. There are a few but
large produ cers and marke ters supplying natural products.
(b) Manufactured Materials and Parts: These ind_ude compo
nent materials like glass, iron,
plastic or compo nents like battery, bulbs or steering etc. The compo
nent materials are furthe r
fabricated from alumi nium, pig iron to steel and cloth from
yarn. Components enter the
final produ ct witho ut being chang ed.or modified. In this case-p
rice, quality and services are
impor tant factors while making a decision.
(ii) Capital Items: These are the goods used in pro~u
ci~g the ~nish: d g?ods. ~hey include tools,
machines, compu ters etc. They can be categorized mto ~nstallauons
h~e hfts, mam~rame computers
etc., and equip ment like fax machines, EPBX machmes. lnst~ll
auons ~re maJor purchase fo~
th e orgam·zanon
· . Equi'pmen t include hand tools and office equipm ent hke
person
. al compu
· etlt are not everlasting and they need to be refilled at differe . ters,
laptops. Th ese eqmpm nt periods of
time.
(iii) Suppl.ies and Busin • s ·
ess erv1ces.. They are goods which are required for developing or managing
· h d d ts They can be of two kinds namely maintenance and repair • · d
the fimis e pro uc .
· r Maintenance supplies include painting, nailing and operating • ritems
· an
l d
op~~aung supp ies. mables for compu ter lubricants and coal. supp ,es inc u e
Business services can be classified
wntm_g papers , cons_uce 11·ke copier repair ,:indow and glass cleanin
as maintenance serv1 • , g and business advisory services
• •
include consultancy, adveru smg an d legal service •

Productl 17
 PRODUCT LIFE CYCLE
The produ ct life cycle indica tes the sales and profit of the
. produ ct over a perio d of tim M
. d d . .
produ cts follow the 'S' shape d curve with certai n pro ucts ev1at mg s h owmg . e. ost of th
a sharp growt h £ ll
· · ·
a sharp declm e or rema m m the matu nty • p h ase fi l • d
t
• 0
or a ong time, an may not face a declin e Th owed b)
' · h p
Life Cycle (PLC) depic ts a produ ct sales, histor y t roug h 4 stages : • e roduc1
l. Introd uctio n
2. Grow th
3. Matu rity and
4. Decli ne
Introduction Stage
In this stage a new produ ct (from brand or categ ory) is
introd uced and it is called the introd ucto
stage. Introd ucing a new produ ct is alway s a risky propo
sition , even for a skillfu l marke ter. This phas~
is chara cteriz ed by
Induc ing accep tance and attain ing initial distri bution .
High opera tional c-0sts, arisin g out of ineffi cient produ ction
levels or bottle necks .
High prom otion costs on the expec tation of future profit
s.
Custo mers have low aware ness and those who are willin g
to try the produ ct, do so in small quantities
called trial purch ase.
Comp etitio n is limite d to few firms, and is from indire ct
or subst itute produ cts.
Negat ive profit s on accou nt of low sales volum e.
Marketing Strategy in Introd uction Stage
1. Products are promo ted to create awareness and also develo
p marke t for the produ ct.
2. The pricing of the produ ct may be low to increase penetr ation
and expan d the market share or high
priced to recover the development cost.
3. Distribution can be selective till consumers show accept
ance of the produ ct.
4. Marketing communication seeks to educate and enhan
ce the produ ct awareness.
Growth Stage
The growt h stage is the secon d stage where the produ
ct has been launc hed successfully wi th the
sales begin ning to increa se rapidl y, as new custo mers enter
the mark et and old custom ers make repeat
purch ases. This stage is chara cteriz ed by:
Costs may be reduc ed on accou nt of econo mies of scale.
Incre ase in comp etitio n with the custo mer havin g great
er choice s in form of differ ent types of
produ ct, packa ging and prices .
Mark et expan sion with new custo mers being added .
Domi nant positi on create d by focusi ng on increa sing select
ive dema nd
Marke ting Strate gy in Growth Stage:
I. Produ ct quality is maintained and additional features and suppo
rt services may be added.
2. Pricing may remai n same as the firm enjoys increasing deman
d with little competition
3. Distribution chann el are added as deman d rise and custom
ers accept the produ ct
4. Promo tion is aimed at a broad er audience.

Maturity Stage
f comp euuo and
h .· n
The lhird stage is the matur ity stage. The produ cts that
withs tand the eat O fi brand and
custom e1 s' appro val cnLer the matur ity stage. Rivals copy I
prndu ct 1eatur es 0 f success u
c
becom e more alike, The chara cteris tics of this stage are:

"""!"'~ -18 IMarketing-XII

PRODUCT LIFE CYCLE r a per iod of tim e. Mo st of
the
cyc le indicaL es the sale s ::ind pro fit of the pro duc t ove foll ow ed by
Th e pro duc t life duc ts dev iati ng show.ing a
sha rp gro wth
cur ve wit h cer tain pro
pro duc ts follow the 'S' sha ped . Th e Pro duc t
tur ity pha se for a lon g tim e, and ma y not face a dec line
the ma
a sha rp dec line , or rem ain in stage s:
le (PL C) dep icts a pro duc t sales, history thr oug h 4
Life Cyc
I. Int rod uct ion
2. GrowLh
3. Ma tur ity and
4. Decline

Introduction Stage
it is cal led the int rod uct ory
duc t (fro m bra nd or cat ego ry) is int rod uce d and
ln this stag e a new pro rke ter . Th is pha se
t is always a risk y pro pos itio n, eve n for a skilJful ma
duc
stage. Int rod uci ng a new pro
is cha rac teri zed by
inin g initial dis trib utio n.
Ind uci ng acceptance and atta els or bot tlen eck s.
rati ona l costs, aris ing out of inefficient pro duc tio n lev
Hig h ope
.
exp ect atio n of fut ure pro fits
Hig h pro mo tion costs on the so in sm all qua ntit ies
are nes s and tho se wh o are wiJling lo try the pro duc t, do
Customers have low aw
called trial purchase. sub stit ute pro duc ts.
firms, and is fro m ind irec t or
Competition is limited to few
of low sales volume.
Negative profits on acc oun t
ction Stage
Marketing Strategy in Introdu rket for the product.
mo ted to crea te awareness and also develop ma
I. Produc ts are pro and the market sha re or high
of the pro duc t may be low to increase peneLration and exp
2. T~e pricing
t cost.
pnced to recover the developmen of the product.
till consumers show acceptance
3. Dislribution can be selective the product awareness.
4. Marketing communication
seeks to educate and enhance

Growth Stage
nch ed successfuU ·th th
ge is the sec ond stag e wh ere the pro duc t has bee n lau t yk w1 e
Th e _growth sta cus tom ers ent er the ma rke t and
old
rep eat
1 inc rea se rap idly , as new cus om ers ma e
sa es beg mn ing to
rac teri zed by:
purchases. Thi s stag e is cha
oun t of economies of scale.
Costs may be red uce d on acc . .
e
with the cus tom er hav in g gr ate r cho ice s m for m of dif fer ent typ es of
Inc rea se in com pet itio n pric es.
pro duc t, pac kag ing and
cus tom ers bei ng add ed.
Ma r~e t exp ans ion with new
Do mm an t pos •mo • rea sin g selective dem and
n cre ate d by focusing on inc
Stage:
Marketing Strategy in Growth . •
and additional features and su ppo rt services may be added.
I. Pr~ uct quality is maintainedth fi . . .
2. Pna ng may remain same as e trm enJoys mcreasmg demand wit • h 1· ti
tt e competition
. . d .
3. D1stnbution channel are added as d eman nse and custom accept the pro duc t
ers
ader audience.
4. Promotion is aimed at a bro

Maturity Stage
h
tur ity stag e Th e prod ucts t at wit hst d h e h eat of com pet itio n and
Th e thi rd sta ge is the ma • an t
cus tomers ' app roval ent er the ma tur ity sta ge Ri I t fea tur es of successful bra
nd and
of th1·s s.t va s :cop y pro duc
Th e cha rac teri stic s
bec om e mo re alike. age are

IMarketing-XII
., w as * • s- 5
 ••••

volumes.
Costs would be decreased as a result of increase in production
The Sales volumes peak and market saturation is visible.
Competitors enteri ng the market increase.
There is drop in prices due to entry of competing products.
Advertising spend incurr ed on brand differentiation.
ce market share.
Product feature diversification is emphasized to maintain or enhan
The industrial profits decrease during this period.

Marketing Strategy in Maturity Stage

within a specific market segment throug h
I. Product managers have to play a vital role for carrying a niche
image and strengt hening throug h
enhanced services, image marke ting and by creating new value
repositioning.
marketing mix to fight competition and
2. They should also consid er modifying the market, produc t and
to remain in the-business.
take it closer to the custom er so as to register adequa te profits

Decline Stage
ences have chang ed in favor of
This is the phase where sales decline as the customer's prefer
enter into decline stages while produ ct
more efficient and better produ cts. Produ ct forms and brand s
titors become more cost conscious. The
categories last longer. Sales and profits decline rapidly and compe
characteristics include:
The costs per custom er are low.
The sales volume of the produ ct decreases.
The profitability of the produ cts diminishes.

Marketing Strategy in Decline Stage

s or finding new uses.
I. The products can be mainta ined by either by adding new feature
t.
2. The costs can be reduce d and it can be offered to loyal segmen
that is willing to contin ue the produc t.
3. The produc t can be discontinued or sold to anothe r firm

PRODUCT LIFE CYCLE

-
Growth Maturity Decline
Chncarlstics Introduction
Rapidly rising Peak Declining
Sales Low sales
Average cost per Low cost per customer
Low cost per customer
Costs High cost per customer customer
Rising High Declining
Profits Negative
Early adopters Middle majority Laggards
Customers Innovators
Growing Starting to decline Declining
- Competitors Few
Adopted from: Kotler Marketing Management
-
The produ ct life cycle of Colgate can be shown as follows:

I
Growtti I Matllrfty
I
Dedlne
I
-+
\
J....--
I
I

te
Colgate'T:
.
J 7.J ,..,,..-r
 Product Life Cycle of Ambassador Car

The Hind usta n Motors hnmchecl the Indi

an vers ion of a Briti s~ Car Mo_del as Amb
assa dor .
1. ;)("I. 1 -11e •\ , iil>:t
q -o ssador rnlcci the Indi an Mar ket upto 1980
, •• . Its com petl tor Prem ier Padm ini w
m:u-wnal plan 'r. So till 1980. it was in the grow
th stag e. as onlyin
a
But in l 9tt\-H4, Maruti Udy og Ltd. laun
ched Mar uti 80~ car whic h chal leng ed
pnsitinn 01 Amba~s~dor car. ~~w evcr Am? assa the lead ersh ·
dor ~ar could_ Surv ive the onsl augh t by Mar
- ,, .,., !)ref erred b, Ja 1ve fam1hes uti 800 car
I 1 n, and taxi oper ator s. But with man y othe r
• mod els of Man ni i·nt d
the :\mba:-.sador car grad ually ente red .. .
ro Uced
the matu rity and decl me stag e and ultim .
ately Amb assa dor car w '
phas ed mll of mark et in 2014.
as

Packaging can be defi ned as an art, science

and tech nolo gy of prep arin g good s for
sale. Packaging as an indu stry has two secto tran spor t and
rs - thos e who prep are the pack agin g mate
who com ·ert these mate rials into packages. rial and those
A good pack agin g conv eys the qual ity of
is distinct from the value of the prod uct. the prod uct: which
In mos t cases, mark eters defi ne pack ages
mark eting . as the fifth 'P' of

Types of Packaging/Package

(i) Primary Packaging

Pack agin g may be 'prim ary' whic h refer
s to the prod uct's imm edia te cont aine r,
botlle. tetra pack , can or a box. such as the PET

20 I Marketing-XII
 Car
Product Life Cycle of Ambassador
Ambass d .
d the Ind ian ver sio n of a British Ca r Model as
lau nc he Premier Padmini wasa on or) in
Th e Hi nd us tan Mo tor s rke t up to 1980. Its com pet ito r Ya
58
19 • Th e Am ba ssa do r rul ed the Ind ian Ma
m arg1n
·
· 1980, 1t· was m the growt
• aI p Iayer. so till
h sta ge.
nged the Jeader h1•
g Ltd . lau nc he d Ma ruti 800 car which chaJle
Bu t in 1983-84, Ma rut i
Ud yo ruti 800 car :n~
Am bas sad or car cou ld Su rvive the on sla ug ht by Ma
: Ho we ve r models of Maruti introduce
d
po sit ion ofAm bas sad or car i op era tor s. Bu t with many oth er
fam ilies an d tax sad or car w~
it was pre fer red by large ge an d ultimately Ambas
r car gra du all y en ter ed the ma tur ity an d decline sta
the Am ba ssa do
4.
ph ase d ou t of n1arket in 201

transport and
, sci enc e an d tec hn olo gy of pre pa rin g goods for
as an art material and those
Packaging can be de fin ed s - tho se who pre pa re the packaging
ust ry has two sec tor product: which
sale. Packaging as an ind A go od pac kag ing conveys the quality of the
s int o packag es.
who co nv ert these material packages as the fifth 'P' of
of the pro du ct. In mo st cases, ma rke ter s define
is distinct from the value
marketing.

Types of Packaging/Package

(i) Primary Packaging , such as the PET

' which ref ers to the pro du ct's immediate container
Packaging may be 'pr im ary
box.
bottle, tetra pack, can or a

---~ I Marketina--XII
:mttd
-.:: ...;. ,,,,; .--- -~~ "'- ::-.
:w: 'iil wa sc+~=12:&=1~
•?~$*4
±t a- •~
 •ondary Packaging
•') see l l
dd' •
(it
It refers to a 1t.1on~ ~yers of protec tion that are
ed once the produ ctls ready such as the tube of shavin g
eJJlOV . .
r which 1s covere d ma card board box or a glass bottle
ream,
c ed in cardb oard box.
cover
••') rransportation Packaging
(it'
It refers to the packa ging of the produ ct which is done to
n.
protect goods that are in transi t throu gh any mode of transp ortatio
ging.
Corrugated boxes are comm only used for transp ortatio n packa

Role of Packaging
1. Passive Salesman: Packaging is an impor tant eleme nt in
the formu lation of the marke ting plan
an, in additi on to protec ting the
as it aids with promo tion & perfor ms the role of passive salesm
to grab the eyeballs of the buyer s.
product. In the absence of salesman, the package should be able
ved consu mer acceptance.
2. Consumer Acceptance: Good packaging may lead to impro
promo tional function, establ ishing
3. Promote Sales: The produ ct package has an impor tant
the produ ct packa ge accor ding to
meaningful comm unicat ion with the consumer. Designing
ters to push the produ ct.
changing custom er prefer ences and attitudes will enable the marke
better convenience to the consu mer
4. Convenience: Consu mer packaging is also intend ed to offer
estimated that unit value realization
and protect the produ ct from pilferage and damage. It has been
can increase with good packaging.

IMPORTANCE OF PACKAGING
It provides information about the produ ct
It helps in identifying brand name
It assists in protecting the produ ct
It helps in produ ct handli ng
It aids in promoting the produ ct
It helps in offering customer convenience and satisfaction
It helps increase in the sales of the produ ct
It adds to the use of a produ ct
It contributes to the safety of the produ ct
It helps in storage of the produ ct
It helps in produ ct differentiation

Productf 21

I
PACKAGING DECISIONS
The useful packaging decisions include:
1. Packaging Design: It is not easy to design a package for various items. For example, all 'Hand
wash' come in bottles, but different brands of hand wash differ in their packaging. The high costs
of packaging lead to bringing out refill packs too.
2. Attractive Colour: Colour plays an important role for determining customer acceptance or
rejection of a product. The use of right colours in packaging also assists marketers, reap huge
advantage. Packaging colour should be attractive so that it may aid in promoting sales.
3. Packaging the Product Line: A company ~ust decide wheth~r to ?evelop a family or similar kind
of the packaging of its several products. It mvolves the use of 1dent1cal packages for all products or
the use of packages with some common feature.

FUNCTIONS OF PACKAGING
Packaging should perform the following basic functions:
1. Protection: The basic function is to protect the products from the vagaries of whether the product
can be exposed to, in transit from the manufacturer 's plant to the retailer's shelves and issues
related to handling the product while on display on the shelves.
The reasons for protection for products through packaging are:
• Control pilferage during transit or storage
• Prevent the absorption of moisture •
• Avoid breakage/damage due to rough mechanical or manual handling during transit.
• Protect liquid from evaporation
2. Appeal: The emergence of self-service outlets has forced manufacturers to have attractive
packaging. The following characteristics have been identified to help a package perform the self
selling tasks:
• It helps in attracting attention of the customer
• It helps to enhance the product image
• It helps in the product looking hygienic
3. Performance: This is the third function of a package. It should p~rform the task for which it is
designed. Bottled water has been introduced in 500 ml to 20 litre bottles. The purpose and place
of use is the deciding factor in the purchase of various packs. A package must be made to consistent
and rigid quality standards as the consumer demands uniformity each time he purchases a product.
4. Packaging for Convenience: It provides convenience to distribution channel members, such as
wholesalers, retailers and consumers. The convenience will relate to handling and stocking of
packages. It helps in the following ways:
• The package must be convenient to stock
• The package must be convenient to display
• The package must not waste shelf-space
• The package can be easily carried
• It should be easy to dispose off
5. Cost-effective~es~: ~he pack~ge finally must be cost-effective. Packaging cost as a percentage of
produc_t cost diffei s ftom one mdu stry to another. It is essential to understand that while anal zin
Packaging costs, the other costs like handl'mg, storage, msurance
· .
and transit y g
costs are also needs to
be added.
 . s of Good Packa in
nua11t1e .
1 Attracuve appe aran ce
1 Convenient for stora ge and display
1 Shield against dam age or pilferage
1 Product description displayed on the package
1 Package should be as per the specifications

TYPES Of PACKAGES
:.,.;, --
There are four types of packages:
(i) a consumer package (ii) a bulk package
(iii,) an industrial package

-
(iv) a dual usage package
are as discussed:
1. Aconsumer package is one which hold s the requ ired
volu me of a prod uct for ultim ate cons ump tion
is economical and can be easily purc hase d by the cons
umer. He has the optio n to purc hase the
pack size which he considers adeq uate for the cons ump
tion for his family over a leng th of time and
does not involve addi tiona l inve stme nt duri ng that
perio d.
2. A bulk package is eithe r for the cons ume r whose
cons ump tion is large or is boug ht to save cost.
Example: oil cans etc. The cons ume r package itself very
often requ ires an outsi de pack age in which
it is transported and which is sometimes refer red to
as trans it package or an out cont ainer .
3. An industrial package can be a bulk package for
dura ble cons ume r goods. Thes e are the basic
package types altho ugh man y sub-divisions can be
listed, e.g., strip package, mult iple pack age,
etc., which can all be broa dly listed unde r these basic
headings.
4. A dual use package is one which possesses a seco
ndary usefulness after its cont ents have been
consumed. Drin king glasses, boxes ofjewellery or cigar
ettes, plastic cont ainer s, refri gera tor dishes,
bags from flour and feed sacks are the examples.

Labelling is rega rded as part of mark eting as packaging

decisions involve the labelling requ irem ents.
It provides the customers with the requisite informati
on abou t the prod uct. It is also help ful to the sellers
as they can differentiate their prod ucts from their
competitors. Attractive labelling also assists in
encouraging the customers to pick the prod ucts off the
shelf.

Qualities of Good Labelling

. A good label is one which helps a potential buye
d •• •h l t and correct
mformation. Apart from the information which must r to take ec1s1ons wit re _ev~n
be given, the label should provide.
(i) Picture of the prod uct accurate as to size, colou
r and appearance
(ii) Description of ingre dien ts used along with
methods of processing
(iii) Directions for use, including cautions again
st misuse
(iv) Bran d names
- . . I --
 (v) Dates of manuf acture and expiry
(vi) Statuto ry warnin g, (if any)
(vii) Contra -indica tions and advers e effects, (if any)

Role of Labelling
(i) Provid es descri ption of the produ ct and specif ies its conte~
t:. The label . pro~id es detaile d
inform ation of the produc ts, its ingred ients, usage, care to be admin
istered ~auuo n, batc_h numbe r,
manuf acturin g place, helplin e numbe r in certain cases, date of manuf
actunn g and expiry etc.
(ii) Identi fies the produ ct or brand: Labeli ng ena~le~ to i~entif
y th~ produ ct among st the mult_iple
brands . SUN FEAST brand of biscuits can be easily identif ied from
the other brand s on the basis of
. their labelling.
(iii) Aids in product grading: If a compa ny manuf ~cture s diffe_rent
qualiti es of produ ct, labeli~ g aids in
finding which pack contai ns what type of quahty. The vanan ts of
tea manuf acture d by Hindu stan
Unilev er Ltd are differe ntiated by the compa ny throug h green, red
and yellow colore d labels.
(iv) Facilitates in the promo tion of products: It also helps in sales
promo tion. Consu mers are to drawn
toward s buying produc ts on accoun t of their attract ive labels.
(v) Helps in provid ing information required as per the law: The
labels provid e statut~ ry warnin gs
as requir ed by the law in case of produc ts like cigaret tes, pan masala
s. They are requ1r ed to carry
the picture and the warnin gs too. In the case of hazard ous or poison
ous produ cts too necess ary
statuto ry warnin gs are to be put on the label.

WILLIAM J. STANTON CLASSIFIES THE LABELS INTO FOUR

1. Brand Labels: They are majorl y meant to popula rize the brand
name of the produ ct. Cosme tics
manuf acture rs prefer to use this kind, for examp le Perfum e, Lipstic
ks etc.
2. Grade Labels: They empha size on standa rds or grades used
for produ ct identif ication , for
examp le, Fabrics, Tea Leaf etc.
3. Descri ptive Labels : They are descrip tive in nature , states produ
ct· feature s and explai ns the
various uses of the produc ts. The consum able items like milk etc have
descrip tive labels.
4. Informative Labels: The main objective of these labels is to provid
e maxim um possible inform ation.
In case of the medicines, detaile d labels are attache d which even specify
the side effects using them.
SOME PRODUCT TERMS/PRODUCT DECISIONS
1. Product Mix: It is the list of all produc ts offered by a compa
ny. It is define d as the compo site of
produc ts offered for sale by a firm or a business. The produ ct mix
is three dimen sional.
Breath is measu red by the numbe r or variety of produc ts manuf acture
d by a single manuf acture r
for examp le, LG produc es a variety of electrical gadget s such as
television, refrige rator, washin g
machin e etc.
Depth refers to the assortm ent of sizes, colour and model s offered
within each produ ct line, for
e":ample LG manuf acture s differe nt varieties or model s of refrige rators
and washin g machi nes etc.
Consistency refers to the close relatio nship of variou s produ ct lines
or their end use to produc tion
requir ement or to distrib ution channe ls, for examp les, LG produc
es those goods which fall under
the catego ry of electrical appliances.
2. Product Line: It is becaus e they a group of produc ts that are closely
related , either becaus e they
functio n in a similar manne r or are sold to the same custom er group
or are marke ted throug h the
same type of outlets or fall within same price range, for examp le,
Accident, health and medical
insura nce etc.
3. Produ ct Positioning: It refers to the manne r in which a produc
t is offered to a particu lar custom er
of a particu lar segme nt for the aim to meet the custom er's need for
examp le Wagon R is positio ned
as a compa ct car for the smart urban.

24 IMarketing-XI I

g, * xar ct1-iHO r
-----
4. Product Reposition ing: It refers to the manner in which a marketer changes the whole product in
order to satisfy a particular segment or customer. Mostly repositioni ng is done when a product is
changed physically.
5. Product Differentiation: It is the modificatio n of a product to make it more attractive to the target
market. It involves differentia ting it from competitor s product as well as own product offering.
Differentiation takes place in terms of product quality, product design and product support
services.
6. Product Diversification: It refers to the product expansion either in depth or in width. It refers
to adding a new product to the existing product line or ~ix for example Godrej Company used
to manufactur e cupboards , locks, safes etc. on a large scale but has now diversified into cosmetics,
soaps etc.
7. Product Modification: Product modificatio n may be defined as a deliberate alteration in the physical
attributes of a product or its packaging . It is a process by which existing products got modified
to suit the changing demand on account of changes, for example, television manufactu rers are
bringing out modificatio n to suit changing demands.
8. Product Standardization: Standardiz ation implies a limitation of the number of varieties or the
types of uniform quality that can be manufactu red so as to reduce unnecessar y varieties for example
Ready-mad e Shirts and trousers are manufactu red in standard sizes.
9. Product Eliminatio n: Products which cannot be improved or modified to suit the market, needs
to be replaced by other profit generating products, this process of withdrawa l is known as product
elimination . For Example, Maruti 800 was replaced in the market for other cars manufactu red by
Maruti Suzuki.

IUDIPLE CHOICE 8UESTIONS [1 MARK]

Read the given statements and choose the correct alternative s given below.
l. _ _ _ _ _ _ _ is the unbranded or undifferen tiated product
(a) Core product (b) Generic product
(c) Branded product (d) Customize d product
2. Which is the correct order?
(a) Branding-P ackaging-L abelling-Pr icing
(b) Pricing-Br anding-Pac kaging-Lab elling
(c) Branding-P ricing-Pack aging-Labe lling
(d) Branding-P ackaging-P ricing-Lab elling
3. In which stage of the product, life cycle is advertising and promotion aimed at retaining
existing customers and persuadin g customers to switch from competitor products?
(a) Introductio n (b) Growth
(c) Maturity (d) Saturation
4. Jewellery is a type of:
(a) Convenien ce good (b) Shopping good
(c) Speciality good (d) Unsought good
5. The product that are bought to be used in conduct of business is called
(a) Consumer products (b) Industrial products
(c) Augmented products (d) Potential products
6. Products have their own
----- - and - - - -
----
(a) Features, name (b) Brand, quality
(c) Identity, personality (d) None of the above

Product I
 s the whole produc t in
product Reposi tioning : It refers to the manne r in which a market er change
4 reposit ioning is done when a produc t is
• rder to satisfy a particu lar segme nt or custom er. Mostly
~anged physically.
attracti ve to the target
. product Di_fferentiati_on: It i~ t~e m_odification of a produc t to make it more
5 titors produc t as well as own produc t offerin g.
rnarket. It involves d1fferent1atmg It from compe
produc t design and produc t suppor t
Differentiation takes place in terms of produc t quality,
services.
or in width. It refers
Product Diversification: It refers to the produc t expans ion either in depth
6
• to adding a new produc t to the existin g produc t line or !Ilix
for examp le Godrej Compa ny used
to manufa cture cupboa rds, locks, safes etc. on a large scale but
has now diversi fied into cosmet ics,
soaps etc.
alterati on in the physica l
product Modification: Produc t modifi cation may be defined as a deliber ate
7 g produc ts got modifi ed
• attributes of a produc t or its packag ing . It is a process by which existin
on manuf acturer s are
to suit the changi ng deman d on accoun t of change s, for examp le, televisi
bringing out modific ation to suit changi ng deman ds.
numbe r of varietie s or the
8. Product Standardization: Standa rdizati on implies a limitat ion of the
varietie s for examp le
types of uniform quality that can be manuf actured so as to reduce unnece ssary
Ready-made Shirts and trouser s are manuf actured in standa rd sizes.
ed to suit the market , needs
9. Product Elimination: Produc ts which cannot be improv ed or modifi
of withdr awal is known as produc t
to be replace d by other profit genera ting produc ts, this process
cars manuf acture d by
elimination. For Examp le, Maruti 800 was replace d in the market for other
Maruti Suzuki .

MULTIPLE CHOICE 8UESTIONS [1 MARilj

t
Read the giv~ stateme nts and choose the correct alterna tives given below.
1. _ _ _ _ _ _ _ is the unbran ded or undiffe rentiat ed produc t
(a) Core produc t (b) Generi c produc t
(c) Brande d produc t (d) Custom ized produc t
2. Which is the correc t order?
(a) Brandi ng-Pac kaging -Labell ing-Pri cing
(b) Pricing -Brand ing-Pac kaging -Labell ing
(c) Brandi ng-Pric ing-Pac kaging -Labell ing
(d) Brandi ng-Pac kaging -Pricin g-Labe lling
tion aimed at retaini ng
3. In which stage of the produc t, life cycle is advert ising and promo
products?
existin g custom ers and persua ding custom ers to switch from compe titor
(a) Introdu ction (b) Growth
(c) Maturi ty (d) Saturat ion
4. Jewellery is a type of:
(a) Conven ience good (b) Shoppi ng good
(c) Speciality good (d) Unsou ght good
5. The produc t that are bought to be used in conduc t of busine ss is called
(a) Consum er produc ts (b) Industr ial produc ts
(c) Augme nted produc ts (d) Potenti al produc ts
6. Products have their own _ _ _ _ _ _ and _ _ _ _ _ _ __
(a) Feature s, name (b) Brand, quality

(c) Identity, person ality (d) None of the above

 7. In case or the medicine, detailed labels are attached which even specify the -.ide effects in [ilTiDI-IWDI 1111mo11 ---~-"-=-
11 IIAII)
using them are caUed:
(b) Grade labels Jleod. the given, stn.temenb and chooie the correct altenaati.vei ~en below.
(a) Brand labels
(c) lnfo,·mative labels (d) Descr-iptive labels (a) Bolh Assenion (A) and Reason (R) are correct and (H) (s the correct explani,tion of (A).
8. Videocon, Nestle, Johnson & Johnson are the examples of: (b) Both Assertion (A) and Reason (R) al'e correc.t and (R) Is not the correct explanation of (A).
(a) Individual Brand Name (b) National Brand Name (c) Assertion (A) is true and Rea.son (R) is fulse.
(c) Family brand name (d) Manufacturer's Brand Name (d) Asse,·tion (A) is false but Reason (I?) 1s tr'\.1e.
9. These products are usually non-standardized <;hopping good., 1. Assertion (A) Product is anything that can be 01Te1'ed to :someone to satisfy a need or a want.
(a) Homogenous shopping goods (b) Heterogeneous shopping product Reason (R) : Product is a set of tangible and int.'1ngible attributes that. satisfy the customer.
(c) Unsought product (d) All of the above 2 _ Assertion (A) The core product is the basic natural clement of the product.
10. "Sugar
. manufacturing companies can use molassei. ·•. Identify the factor affecting Prod uct Reason (R} The product includes seve1"f1l assoeL,ted fe~1turcs besides the core ingredients.
M ,x: _ Assertion (A) : A brand is a name, term, symbol or design intended to identify the good and
3
(a) Use of residuals (b) Quantity of production service of one seller.
(c) Full utilization of marketing capacity (d) Cost of product Reason (R) A brand ctistinguishes the product of one seller with other competitor.
11. With Ad campaign such as •we Miss you too' and 'Nothing like Maggi', the brand took an 4. Assertion (A) A product is one of the core element of marketing mix.
emotional route to reach out to its customers when Maggi was banned. Identify the product A marketer cm realit.e their goaJ by rrianufucturing. seUir,g or modifying the product.
Reason (R)
decision taken by the firm.
5. Assertion (A) Product modification is a deliberate aJteration in the physical attributes of a
(a) Product Positioning (b) Product Repositioning product.
(c) Product Diversification (d) Product Modification Reason (R) Products which cannot be modified needs to be replaced by another profit
12. Candles, Umbrellas, batteries, flashlights are the examples of: generating product.
(a) Staple goods (b) Impulse goods 6. Assertion (A) Milk, bread, eggs, etc., are categorised as convenience goods.
(c) Emergency goods (d) Shopping Products Reason (R) The consumer purd'la3e these goods without any planning or sCilrch efforts
13. For a luxury product, which type of price will be fixed by you? 7. Assertion (A) Specially goods are available a, every nook and coiner of the city.
(a) Low (b) Moderate Reason (R) Consumers have strong conviction towards their brand st:yle or type.
(c) High (d) As decided by the Government 8. Assertion (A) The PLC of the product category is the longest and r.hat of the brand is shortest.
14. Product that are relatively inexpensive and are purchased frequently with minimal efforts Reason (R) The PLC can be applied to a product or a brt1nd.
can be classified as _____ products. 9. Assertion (A) The growth stage is the second stage where the product has been launched
successfu II y.
(a) Shopping goods (b) Convenience goods
Reason (R) The growth sr.age shows the entry of new customers and old customers make
(c) Industrial goods (d) Speciality goods
repeat purchase.
15. This type of packaging possesses a secondary usefulness after its contents have been consumed.
(a) Consumer package (b) Dual use package
(c) Bulk package (d) Industrial package
2. (b) 3. (a) 4. (b) 5. (a} 6. (a) 7. (d) 8. (b)
16. Supplies such as lubricants, coal, paper and pencils are best classified as _ _ __
(a) Operating supplies
(b) Business advisory services
(c) Repair and maintenance supplies SHORT ANSWER (2. 3 ft 4 IIARISJ
(d) Consumer specialty products
17. 1. Define a Product.
provides written information about the product helping the buyer to understand
the nature of the product and its distinctive features. Ans. A product may be defined as a bundle of utilities, consjsr.ing of various product features and
(a) Brand (b) Logo accompanying services. It is the item offered for sale. It can be ph)'Sic:al or in virtual form in
(c) Package (d) Label marketing, a product is an object or system or sen,jce made available for consumer use as of the
18. Packaging may be ______ which refers to the product immediate container. consumer demand.
(a) Primary Package (b) Secondary Package A product may be defined as a set of tangibles. iotangible and associate au..ribuces capable of
(c) Transportation Package (d) None of these above being exchanged for a value with the ability to satisfy consumers.
Answers 2. Discuss any two components of a Product.
1. (b) Ans. The two components of a p1·oduct arc:
2. (c) 3. (c) 4. (c) 5. (b) 6. (c) 7. (d) 8. (c) (i) Core Product: It is the basic clement of che pr-oduet. It is the aetua.1 benefit the consumer
9. (c) 10. (a) 11. (a) 12. (c) 13. (c) 14. (b) 15. (b) is seeking from the purch~1se. fo_r example. A wonien bu>•ing a washfog machine is buying
17. (d) 16. (a)
18. (a) comfort of washing and not a mere collection of tubs. motors and nut bolts.

,M,..otlo,g--XII Productl 27
, !/!iiUliL

•
a collection of en gme
. a car is buying comfort of travelling and not
Similarly, a man buying
tyres or any other dung. ~CEr.
(ii) Associated Features: Along with the core product, there are some associated features al ' • According to Philip Kotler, "Product is a'nythlng that can be offered to someone to satisfy a need or
For. ~xample, whe~ some?ody buys a mobile )?hone, he/she buys its shape, _colour a want".
add1uonal apps available with phone. These associated features are the one that distinguish • Component• of a Product
the brand and on these they compete with each othe1: es o Brand Name
o Core Product o Associated Features
3. Distinguish between generic market and product market. o Package and o Label
. o Logo
Ans. A generic market is a market consisting ofbuye1·s with similar needs that are satisfied by selle1s
· d.ff. • Importance of Product
m I erent ways. o Point of planning
A product market is a place in which a final goods or service is bought and sold.
o Product is the focal point
o Product is an end
Generic Marlret I Product Market
The product market includes groups of consume;;
Product Level•
I. I Generic product markets are a group of o Generic Product 0 Branded Product
products that satisfy common needs. who share a specific need for a product. o Core Product
O Customized Product O Augmented Product
2. I The generic product market is involved in I The product market is not involved in competition. o Differentiated Product
o Potential Product
market competitjon.
3. I TI1e marker consists of buyers who have a
_e.araUel need thar is ful~lled by the sellers.
I
It is a m.. arket where products are sold for final
consumption.
facton Influencing Product Mix
o Market demand 0 Cost of product
4. What is packaging concept? State various packaging concept decisions. ') Quantity of production 0 Advertising and distribution factors
Ans. The •packaging concept can be desci-ibed as a coordinated system of preparing goods for o Use of residual 0 Competitor's action
transport, warehousing, logistics, sale and end sale, packing involves designing and producing o Full utilization of marketing capacity 0 Goodwill of the company
of container or wrapper for a product in order to prepare the product for transportation, sale Branding "A name, term, design, symbol or any other features that identifies one seller's good or service
and usage.
as distinct from those of other seller's AMA."
Various packaging concept decisions are: Types of Brands
(i) Packaging design (ii) Attractive colour o Local Brand and National Brand 9 Family Brand and Individual Brand
(iii) Packaging the produce line
5. State and explain the functions of packaging.
Ans. Packaging plays a vital role in every business. By capt~ring the attention of p~tential c~stomers,
it gives an edge over the competitions. A good packaging performs the following funcuons.
(i) Protection oftbe Product: The basic function of packaging is to protect the product from
• Breakage or damage due to mishandling
L_:-:s:
• Extremes of temperatures, i.e. too hot or cold conditions Product Life Cycle Stagea
• Prevent absorption of moisture. o Introduction Stage o Growth Stage o Maturity Stage o Decline Stage
• Protect liquid from evaporation. Packaging can be define as an Art, Science and Technology of preparing goods for transport and sale.
• Pilferage Function of Packaging
(ii) Appeal to the Consumers: A good package is an important marketing tool. A good package
helps in:
o Protection o Appeal o Performance
o Convenience o Cost effectiveness
• Attracting the customers
Labelling is regarded as part of marketing as packaging decisions involve the labelling requirements. It
• Enhancing the product image
provides the customers with the requisite information about the product.
• It also ensures that product look good and hygienic. Types of Labels
(iii) Convenience: A good design of the package would provide many advantages like: • o Brand Labels O Grade Labels o Descriptive Labels
• Convenient to stock
o Informative Labels
• Display
Product Decisions
• Not waste shelf space
o Product mix o Product differentiation o Product line
• Easy to dispose
o Product position o Product diversification o Product modification
(iv) ~ost Effective: _The package must be cost effective. The cost of package should not alarmingly
increase the pnce of the product. The cost of packaging should be minimum.

28 f
M•rfcetln,-XII

:llSI ·*¥§ff as+

 SELF-EVALUATION
1. De fin e a pro du ct.
2 •.W ha t is bra nd ing ?
3. W ha t do yo u me an by cor e pro du ct?
4. Wr ite an y thr ee characteristics of pro du
ct.
5. Di ffe ren tia te between au gn ten ted pro
du ct an d po ten tia l pro du ct.
• 6. W ha t are qualities of good labeling?
7. Sta te pro du ct decisions.
8. Differentiate between du rab le an d no
n-d ura ble co ns um er pro du ct.
9. Discuss the importance of pac kag ing as
a tool for pro du ct dif fer en tia tio n an d ma
rke t cultivation.
7. Explain the various stages of PLC of a
pro du ct wi th the he lp of a dia gra m.
8. Explain the ter m PLC. Discuss the dif
fer en t stages in the life cycle of a pro du ct.
9. "Packaging acts as a silent salesperson
.

". Co mm en t an d ex pla in the va rio us .

levels of packaging. ·
10 . Explain the functions of pa ck ag ing in
the lig ht ofpre va ilin g ma rke tin g en vir on
_ 11.. What is b~ din g? ~ Di~~~e~\tiate me nt.
betwe~n.i1,1.diyi~ual bra nd an d um bre lla
~,Q; -~ ....
,:S-.~
4 ' . ~ - ~.......
.."" .,;.,., .,... , ...... ~-- , .._ .....
bra nd ing .
. .,;

000