Product and Service

PRODUCTS AND SERVICES
1. PRODUCTS:
A Product is anything customers will exchange something of value for, usually

because it satisfies a need or want. But the need is on both sides of the exchange
process.
Example: A product can be anything-Soaps, biscuits, mobile phones. The need is

on both the sides as in the customer buys the product he/she wants in return for
money that the shopkeeper wants.
Reference: Courtland l. Bowee, John V.Thill, “Marketing”, McGraw Hill, USA,

1992.pp5, 292.
2. TANGIBLE PRODUCTS:
The Tangible Product indicates elements such as design, color, packaging and
other physical dimensions that provide benefit to the customer.
1
Example: When Kellogg was introduced, it was a failure since Indians do not have
the habit of eating corn flakes for breakfast. But after introducing with new color
and package the sales increased.
Reference: Czinkota Kotabe, “Marketing Management”, Thomson Asia Pte Ltd,

Singapore, 2002 Second Edition. pp 228.
3. DURABLE AND NON- DURABLE PRODUCTS:
Durable products function over an extended period. Consumers use durable goods
such as automobiles, refrigerators. . Non durable products are quickly consumed,
worn out or outdated. They are consumed in a single use or few uses. It includes
products such as chocolates and other food items.
Reference: Zikmund/D’amico, “Marketing”, Thomason Asia Pte Ltd, Singapore,

2001, Seventh Edition. pp 251.
2
4. AUGUMENTED PRODUCTS:
Augmented product is further enriched by including warranty and service benefit,

the reputation of the firm, and the psychological benefits conveyed by the product.
Example: The guarantees, warranty the company provides for their products. Tide
had a money-back challenge. This indirect service they provide and thus build a
sense of trust.

Singapore, 2002 Second Edition. pp 228
5. CLASIFICATION:
Products can be classified as consumer product and organizational product.
REFERENCE: Lamb, Hair, McDaniel, “Marketing”, Thomason Asia pte ltd,

Singapore, 2004. Pp.92
3
6. CONVENIENCE PRODUCT:
Convenience products are relatively inexpensive products that buyers or users

choose frequently with a minimum of thought and effort. The reason as to why
these products are purchased because they represent very little risk to the
consumer.
Example: Pens, Pencil. Customers usually do not pay much attention to the
stationeries they use. They go to the shop and ask for what they want. Very rarely
do they care about the brand.
Reference: Courtland L. Bowee, John V.Thill, “Marketing”, McGraw Hill, USA,

1992.pp5
7. SHOPPING PRODUCT:
A product for which consumers feel the need to make comparisons, seek out more
information, examine merchandise or otherwise reassure themselves about quality,
style or value before making a purchase.
4
Example: Sunglasses- This accessory is an important statement of style, people
while purchasing these products often try to buy the glasses in vogue.
Reference: Zikmund/D’amico, “Marketing”, Thomason Asia Pte Ltd,

Singapore,2001, Seventh Edition. PP 92.
8. TWO TYPES OF SHOPPING PRODUCT:
HOMOGENEOUS PRODUCTS – Obtaining the lowest cost is the primary reason.
Example: Washing Machines, Refrigerators. Most of the companies’ offer the

same features and the customers try to see more features at a lower cost.
HETROGENOUS SHOPPING PRODUCTS have identifiable product differences.

These products tend to be subject to the whims of fashion and are more likely to be
noticed by the shopper’s family and friends.
Example: Clothes, Shoes, Furniture, Watch.

2001, Seventh Edition. Pp 92.
5
9. SPECIALITY PRODUCT:
Specialty products are the most costly, involve significant risk, and are unique or
specialized that buyers and users are willing to expend great effort to seek out and
acquire them. Customers will even be willing to wait for week instead of accepting
a substitute to the product.
Example: Sports car, Expensive jewellery. The customers would also be ready to
wait for the product. At the same time the company people would be willing to
give the product on special demand if it for one customer. Swaroski have a book
on designs which they show it to their customers and would make it for them when
their customers ask them to.
Reference: Courtland L. Bowee, John V.Thill, “Marketing” McGraw Hill, USA,

1992. pp5
10. UNSOUGHT PRODUCTS:
Unsought product is a product unknown to the potential buyer or a known product

that the buyer does not actively seek.
New products fall into this category until advertising and distribution increase
consumer awareness among them.
6
Example: Encyclopedias. They are usually very difficult to sell because people
generally do not prefer encyclopedias.
REFERENCE: Lamb, Hair, McDaniel, “Marketing”, Thomson Asia Pte Ltd,

Singapore, 2004. Pp72.
11. CLASSIFICATION OF ORGANIZATIONAL PRODUCT:
Organizational product cab be classified as capital product, production product and

operating products.
Reference: Lamb, Hair, McDaniel, “Marketing”, Thomson Asia Pte Ltd,

Singapore, 2004. pp.92
12. ORGANIZATIONAL PRODUCT:
A product or service that is used to produce other products and/or used to operate
an organization.
7
Example: Machines, Steel. All these machines will facilitate the manufacturing of
products in the company.

2001, Seventh Edition. pp 72.
13. CAPITAL PRODUCTS:
Installations are major capital items necessary to the manufacture of a final

product.
Example: Air Conditioner system for a factory
Accessory equipment facilitates an organization’s operations. They are designed to

do a specified task.
8
Example: Pickup truck that is used in companies in order to deliver goods within
and outside organization.

2001, Seventh Edition.Pp125.
14. PRODUCTION PRODUCTS:
Raw materials are products where customers usually buy in large quantities and
the purchase price runs into thousands and millions of dollars.
Example: Manufacturing companies have to buy have to buy raw materials like
steel. These raw materials are later on transferred into finished goods.
Manufactured materials are used as basic ingredients for producing a company’s

product.
9
Example: Fabric, Thread, Yarn. These are the products that is used in the in
between process. Textile units usually buy threads and then manufacture the final
product.
Component materials, in addition to raw material, most manufactures also buy

components, which are parts that go into manufactures final product.
Example: Kenwood audio systems in Ford Ikon and Fiesta. The system comes as a
package along with the car and there are no extra prices for the system.
Boeing will buy seats, radios, serving carts, tires and other components from a
variety of manufacturers and then assemble all parts into final aircraft.

1992.Pp5
10
15. OPERATING PRODUCTS:
Operating products are the closest thing to a convenience good in the
organizational products classified scheme.
Example: Operating supplied include pencil, pens to nails to wax.
MRO items: Consumable industrial supplies categorized specifically as

maintenance, repair and operating supplies.
Reference: Zikmund/D’Amico, “Marketing”, Thomason Asia Pte Ltd, Singapore,

2001, seventh edition. Pp 89.
16. MERITS AND LIMITATIONS:
Classifying products according to customer perception and behavior helps in

developing more effective strategy.
Some products are both to the consumers and organization. Customer behavior is
not rational and hence cannot be categorized.
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Example: Pizza for $12 might look like a shopping product but in actual case it
may not seem so.
REFERENCE: COURTLAND L. BOWEE, JOHN V.THILL, “MARKETING”,

MC.GRAW HILL, USA, 1992.pp257
Customers don’t always categorize products in the same way.
Example: For one person a Nike product might be a dream product where as
another person may buy the product without thinking twice.
REFERENCE: Courtland L. Bowee, John V.Thill, “Marketing”, McGraw Hill,

USA, 1992. PP257.
12
17. ELEMENTS OF A PRODUCT:
The element applies to all categories of products, but the way the marketers treat
them can vary significantly from one product to another. The marketers try to
differentiate their products by developing unique strategy for the product element.

USA, 1992. pp5
WHAT ARE THE ELEMENTS OF A PRODUCT?
The elements of a product are features, branding, packaging, labeling, and

supporting goods and services.
Example: If cell phones are taken as a product per say. Then the brand for
example could be Nokia. The features would include Bluetooth, camera, radio and
all that come as additional features. The packaging would be how attractively the
13
phone be packaged has. All the Nokia phones have a blue and white packaging.
This gives an identity to the phone. Labeling is nothing but the positioning of the
brand name on the product. Supporting goods and services would include the
warrant, guaranty and even some models in Nokia phones come with free sim
cards.
18. FEATURES:
Successful products evolve through a process of discovering what specific features

members of the target market find desirable or acceptable, then merging that with
what makes the most sense technically and financially.
Example: Mobile Phones -Nokia initially designed the product in order to attract
the youngsters. They introduced camera, Bluetooth, audio and so on.

1992.Pp258.
19. FEATURES leads to BENEFITS
A customer expects more than the basic product. Customers expect benefit from
the features that they are paying for. The essence of a good product design
understands the benefits customers are looking for and create features that provide
those benefits.

USA, 1992. pp252. .
14
EG: Pizza Hut-Service, Offers and Ambience. The major positive of pizza hut is its
service. Its service attracts most of the customers.
20. PRODUCT DIFFERENTIATION:
Product differentiation is a positioning strategy that many firms use to distinguish

their products from that of their customers. A promotional approach in which the
marketer calls buyer’s attention to those aspects of a product or a brand that sets it
apart from its competitors.

Singapore, 2004. pp.232

2001, Seventh Edition. pp 471
15
21. UNIQUE SELLING PREPOSITION: (USP)
A Unique characteristic of a product or a brand identified by the marketer or a

brand as the one on which to base a promotional campaign.
Example: Energizer battery were the first to have a: on battery tester” which was
not there in any other batteries.

2001, Seventh Edition. pp 471
22. PRODUCT DEVELOPMENT:
Product development involves a modification of the goods or services, such as

quality, style, performance, or variety. This is also used in order to increase the use
of existing users and also to attract new users.
16
Example: Apple first introduced a 2 GB iPod. Once they knew that there iPods
were largely received and had a market they ventured into video iPods. Now Apple
has introduced its new innovation iphone with touch screen and in built iPod.

Singapore, 2002 Second Edition. pp 238
23.PRODUCT DIFFUSION:
The acceptance of new products by various segments of a market is called product

diffusion.
Customers who try the product first are called the Innovators.
Example: When i- phone was introduced in the market, there weren’t many takers.
Very few people actually looked forward for the phone and bought it immediately.
17
Closely following the innovators are the trend setters.
Example: This usually happens in the fashion industry. It is the trend setters who
bring the latest into vogue. They are not afraid to try, thus creating a benchmark.
24. EARLY ADOPTERS: They want the product but they want someone to test the
product for them. They are not willing to take risk like the innovators.
Example: When mobile phone was first introduced it took a lot of time for the rest
of the crowd to catch up. The progress was slow but steady and now it has reached
the peak.

1992. pp272.
MAJORITY- Majority of the Market Steps Forward and buy the product. They are
two types-the early majority and the late majority.
Example: When Air conditioner was first introduced in the market there weren’t
many takers. People considered it as a luxury product. But now almost every house
has an air conditioner.
Laggards are the very Last Customers to Jump on the Band Wagon.
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Example: When washing machine was introduced, it was considered as a luxury
product and everyone hesitated to buy. But now every home has a washing
machine/

1992. pp273
25. CUSTOMIZED PRODUCTS:
The customers tailor their products according to their personal preferences and
taste. No longer will companies have to build products in advance of the sale.
Example: 1. Dell computers were one of the first to allow computer buyers to
configure their ideal computer from menus at Dell’s website.
Example: 2. Customized saris. Certain shops design saris according to the colour
and design preference of the customers.
19
REFERENCE: Lamb, Hair, McDaniel, “Marketing” Thomson Asia Pte Ltd,
Singapore, 2004. Pp188.
26. PRODUCT AUDIT:
For existing goods or services, the starting point is to decide exactly what the firm
is offering.
AUDIT QUESTIONS:
What market segment does this market address?
Who are the existing and prospective customers?
What benefits are these customers and prospective customers seeking?
How does the product fulfill these customers’ needs and wants?
How does it compare with the competitive products?

Singapore, 2002 second edition. Pp 228
27. PRODUCT CLASS:
Product class is a broad group of products that differ somewhat but perform similar
functions or provide similar benefits.
20
Example: Household cleaners –subdivision of liquids, spray and powders. These
cleaners almost serve the same purpose. The customers can buy according to their
wish. Similar products are Surf excel, Vim, Goodnight

2001, Seventh EDITION.pp 27.
28.PRODUCT ADAPTATION:
Global marketers slightly alter a basic product in order to meet local conditions.
Example: Additional pizza toppings offered by Domino’s in Japan include corn,

curry, squid and spinach which are not there in India. Dominos in India has Tikka
pizza.
21
Singapore, 2004. pp118.
29. PRODUCT BUNDLING:
Customers might be offered a bundle of related products at a reduced price.
Example: Parker pen box has a roller ball pen and an ink pen along with a refill
for the roller ball. Colgate toothbrush and paste comes in a box which is usually
preferred by the customers because the brush comes free for the jumbo toothpaste
tube.
REFERENCE: Czinkota Kotabe, “Marketing Management”, Thomson Asia Pte

Ltd, Singapore, 2002 SECOND EDITION. pp 328
30. SPECIAL PRODUCT ISSUES:
PRODUCT SAFETY
Product Liability is a product’s capacity to cause damages or injury for which the
producer or manufacturer is held responsible.
22
Example: The latest Nokia Battery failure. Nokia replaced 4000 of its battery with
in a particular serial number. They advertised on TV, Websites and newspaper.
Product compatibility is when one product is compatible with other types of

products.
Example: Game Cds which are usually compatible with windows XP and other
operating systems.

1992.pp275
23
30. SPECIAL PRODUCT ISSUES:
PRODUCT SAFETY
Product Liability is a product’s capacity to cause damages or injury for which the
producer or manufacturer is held responsible.
Example: The latest Nokia Battery failure. Nokia replaced 4000 of its battery with
in a particular serial number. They advertised on TV, Websites and newspaper.
Product compatibility is when one product is compatible with other types of

products.
Example: Game Cds which are usually compatible with windows XP and other
operating systems.

1992.pp275
31.PRODUCT ORIENTATION
The tendency of firm to think that if it produces a superior product to those of its
competitors, then demand for its product will be assured .
Reference :
Proctor Tony, Marketing Management-integrating theory & practice, 1996,

ITP(International Thomson Publishing Inc.), pp,6.
24
Example: Surf excel which was superior than Tide and the rest of the products in
the market.
32.OVER ENGINEERING PRODUCT/SERVICES
Improving the product to the point where the product or service is more than what
the customers really expects or is prepared to pay for.
Refrence :
Proctor Tony, Marketing Management-integrating theory & practice, 1996,

ITP(International Thomson Publishing Inc.), pp, 8.
Example:
The Apple i-phones were more than what a customer really expects from a mobile
phone.
33.PRODUCT OBSOLESCENCE;
Due to technological advances and improvements a product becomes obsolescence

within a relatively short period of it’s introduction.
Example:
Pagers became obsolete after the introduction of the mobile phones. Pagers
remained in the market for a short while.
Reference :
25
Stanton J William, Etzel J Michael, Walker J Brule, Fundamentals of Marketing,
10th edition, Mc. Graw –Hill International editing, 1994, pp 246.
Example:
Pagers became obsolescent after the introduction of mobile phones.
Tape recorders has become walkman and now it has been evolved to ipods.
34. PRODUCT DEVELOPMENT;
The product will be under Research and development phase, and absorbs
significant resources. This stage is a complex stage and the product may be aborted
if necessary.
Reference:
Boyd, Walker, Larreche, Marketing management, second edition,1990, Library of

Publication data, pp-146
Example;
Tata’s 1 lakh car-engine is still in the R&D phase. Every product goes under this
stage before being introduced in the maket.
35. ELIMINATION BEFORE LAUNCH PHASE:
The elimination may be due to change in the external environment or due to its
higher costs or inadequate demand or even when the life cycle of the product
expected to be too short.
26
Reference :

10th edition, Mc. Graw –Hill International editing, 1994, .

Publication data.
36. PRODUCT INTRODUCTION :
In the introduction stage when the product is launched, sales and capacity of
utilization is low. There will be lack of profit as huge investment cost involved in
development and high risk is involved.
Reference :

Publication data,pp-245
Example:
Corn oil had to compete with the traditional usage of refined oil.
27
36.1. PRIMARY DEMAND:
Create desire for the product initially rather than any particular brand.
Reference ;

Publication data,pp-245
Example:
mobile phones have become a need in today’s lifestyle. It may be with any
features i,e, they may prefer to have it with camera or with MP3 player or facilities
to browse,etc. this has become a primay need.
36.2 SELECTIVE DEMAND:
To attract consumers to a specific brand of that product .
Reference :

Example:
28
Nokia mobiles- N-series, the preference for a specific brand of nokia than the
other models of its competitors or even with its own series of models.
37. GROWTH STAGE:
In this stage the market starts expanding due to the fast growing sales and attracts
competitor’s entry. The cash flow becomes positive and the unit cost falls with the
economies of scale.
Reference :

Courtland L. Bowee, John V.Thill, “MARKETING”, MC.Graw Hill,USA,1992,

pp-268
Example :
Tropicana drink of different flavours is still in the growth stage.
37.1 REPEAT CUSTOMERS:
29
The repeat customers are the people who tried the product, were satisfied and buy
them again. The firm usually tries to increase the number of repeat customers to
the trial customers
Reference :

pp-268
Example :
Soaps and many FMCG preferably have repeat customers.
38. MATURITY STAGE:
This stage is characterized by total industry sales revenue, slow down in rate of
growth and profit declines due to fierce competition. There might be slight increase
in sales as last buyers enter the market.
Reference:

pp-268
Berhardt & Kinnear, Marketing Management, 7th edition,pp-178
Example :
Cadbury-Dairy Milk reached its maturity stage which was the reason
for its repositioning.
30
38.1 PROMOTIONAL EXPENSES:
When the product is in the maturity stage in order to enter new segments and
intensify distribution persuasive advertising is done by conducting contests and
games, and also develop new uses for the product. The various expenditures
involved to promote the product further are known as promotional expenses.
Reference :
Berman Bany Joel Evans, Marketing , 8th Edition, Atomic Dog Publications, pp
255
Example:
Parry’s pure sugar when customers return 5 covers of their product they get one
more packet of Parry’s pure sugar packet free
39. DECLINE STAGE:
It is difficult to address this stage as sales and profit drops steadily. The reason
may be due to technological advancement or change in taste and behavior or the
consumers switching to substitute products.
Reference :

Publication data, pp256
Example:
31
Mobile phones with black and white display is now in the decline stage.
39.1 DELETION:
Deletion refers to a drastic action to remove the product in the decline stage
especially.
Reference :

Publication data, pp- 256
Example:
Nokia 3310 is now not available in the market.
39.2 HARVESTING:
Harvesting retains product but reduces support costs i.e,sales and advertisement
Reference:

Example:
Maruthi Zen, which is still remaining in the market but the firm spends no more
for its promotion.
32
39.3 CONTRACTING:
When financially unwise to continue the production of the product, the firm
contracts with smaller company.
Reference:

Example:
contract marketing done for the product’s marketing or for its production and
sales.
39.4 DIVESTMENT:
The business is sold out to some other firm early in its decine stage or even at the
end of maturity phase if the symptoms are accurately detected.
Reference :

Publication data, pp258
Example:
Thomson sold to TCL before its product reached the decline stage.
33
40. LIFE CYCLE EXTENSION:
Firms introduce new and improved version to extend it’s cycle and they also go
international in search of new users and also uses. Many products mature rapidly
and may decline without careful marketing effort.
Reference :
Czinkota Kotabe,“Marketing Management”, Thomson Asia PTE LTD, Singapore,

2002 Second Edition, pp-176
Example:
Colgate introduced “colgate –active salt” as it’s extended and also the “New and
Improve” version of Colgate is a simple extension of its life cycle.
41. THE NEW PRODUCT:
The technical innovation leads to new, profitable products and it’s
cost of production is high.
Reference :
Michael J Etzel, Bruce J Walker, William J Stanton – Marketing -13th

Edition, pp- 14
Example:
34
The apple i-phones is a new product and its cost of production is high initially.
42.THE MATURING PRODUCT:
For the maturing product the production expands, the process –increasingly
standardized and the production costs are of increasing concern here.
Reference :
Michael J Etzel, Bruce J Walker, William J Stanton – Marketing -13th Edition
Kerin, Rudelius, Berkowitz, Marketing -2nd Edition, 1989, Library of Congress,pp-

18
Example:
Cadbury-Dairy Milk which was initially targeting the children, when reached the
maturity stage, had to reposition their product as to all the generation people.
Microsoft X P has also reached the maturity stage.
43. THE STANDARDISED PRODUCT:
The product manufacturing is completely standardized and competition is fierce,

thus profit margin is thin.
Reference :
35
Kerin, Rudelius, Berkowitz, Marketing -2nd Edition, 1989, Library of Congress,
pp-224
Example;
Nike shoes has become a standard product for the sportsperson and has a
competition from ADIDAS and other brands.
44.THE NEW PRODUCT FAILURE:
44.1 ABSOLUTE FAILURE:
When the product is unable to regain it’s production and marketing costs, then the
product is said to be an absolute failure.
Reference :
Kotabe Czinkota, Marketing Management, 2nd Edition, Vikas Publishing Home,

pp289
Example ;
The “new coke” introduced by Coke, which was a major failure and it was deleted
from the market.
44.2 RELATIVE FAILURE:
The firm make a profit on the product, but that product does not reach it’s profit
goals.
36
Reference :
Kotabe Czinkota, Marketing Management, 2nd Edition, Vikas Publishing Home,

pp289
Example :
Hyundai- Verna is a relatively failured product which is still available in the

market.
45.A HIGH LEARNING PRODUCT:
The product involves higher learning by it’s users and thus it’s introductory period
is extended.
Reference:

Example:
Micro wave owens requires higher learning of the whole recipe of the product has
to be changed.
46. A LOW LEARNING PRODUCT:
The sales begin immediately as the benefits of the product are readily understood.
The marketing strategy is to gain strong distribution outlets.
37
Reference :

ereExample :
Water proof watches from Swatch does not require any learning from the user and
thus easy to use.
47. FASHION PRODUCT:
It re-enters after it’s decline stage initially. It enters after a period of time.
Reference:
Berman Barry, Evans Joel, Marketing, 8th Edition, Atomic Dog Publications, pp-
225
Example:
Trendy clothes are a good example as they remain famous for a particular period in
the market.
48. FAD PRODUCT:
A fad product is a product which is indicated by rapid sales when introduced and
has an equal rapid decline.
38
Reference :
Berman Barry, Evans Joel, Marketing, 8th Edition, Atomic Dog Publications, pp-
225
Example:
Live strong bands, which they introduced for cancer patients. These are hand bands
which was very famous at the time of introduction.
49. PRODUCT MIX:
It is the set of all products offered for sale by the company. This is also called as
“Product Assortment”.
Reference:
Henry Assael - Marketing Principles and Strategies, Year - 1990
Page no - 305
Example:
Avon products have the five major types:
• Beauty products.
• Wellness products.
• Jewelry & accessories.
• Inspirational products.
• Gifts.
All together Avon products mix has 1300 Items.
39
50. PRODUCT DEPTH:
Product depth refers to the variety of sizes , colour of products offered within each
product line.
Reference:
Page no – 199
Example:
Pantene shampoo’s have 5 different kinds (long black, lively clean etc...) in
3 different quantities (200ml, 100ml, sachets) so it totally has depth of 15.
51. PRODUCT BREATH:
Product breath is measured by number of product lines. The mix can have lines and
the lines are taken for breath.
Reference:
40
Page no – 298
Example:
P&G has totally 250 products in 5 product lines like personal and beauty, house
and home, health, baby and family etc…
52. PRODUCT LENGTH:
The length of a product is the total number of items in the mix. The mix can have
any number of products in its line.
Reference:
Page no - 298
Example:
P&G in its house and home line has 7 laundry detergents, 6 hand soaps, 5
shampoos & 4 dish washing detergents.
53. PRODUCT CONSISTENCY:
41
Product consistency means how closely related the product lines are in the end use.
Reference:
Michael J Etzel, Bruce J Walker, William J Stanton – Marketing -13th Edition page
no- 279
Example:
Kellogs has a very consistent product mix for virtually all of its products are
cereals.
54. PRODUCT ALTERATION:
Improving an established product. Redesigning the product itself can sustain its
appeal or irritate. Packages can be altered to enhance appearance or to improve
products usability.
Reference:
no- 186
Examples:
42
The substitute of NutraSweet for saccharin in diet sodas increased the sales of
those drinks.
55. PRODUCT MIX CONTRACTION:
Is carried out by either eliminating the entire line or by simplifying an assortment

within a line. The intended result of product mix contraction is higher profits and
fewer products
Reference:
no- 257
Example:
Procter and Gamble pruned its food business by selling the Jiff brand to Peanut
butter and the Crisco brand of cooking oils to J.M. Smucker Co . The sale would
help the company concentrate on building big brands in core categories.
56. PRODUCT MIX EXPANSION:
Accomplished by increasing the depth within the particular line or number of lines
a firm offer to customer.
Reference:
43
no- 390
Example:
The Gillette series ahs brought in the offer of bringing in the shaving cream,
shaving razer, shaving brush in one kit… so if it brings in the shaving foam within
the bundle then it becomes the product mix expansion.
57. PRODUCT MIX EXTENSION:
To add a new product line to company’s present assortment. The new line should
relate to the existing product mix coz the company wants to capitalize on its
strength and experience.
Reference:
no- 186
Examples:
J&J introduced line of Acuvue disposable contact lens that’s mix extension coz it
added another product to the company’s product mix
44
58. PRODUCT LINE EXTENSION:
When a company adds a similar item to the existing product line with the same
brand name.
Reference:
no- 214
Examples:
Pillsbury promoting about 10 variations of its well known biscuts, rolls etc…
45
59. TRADING-UP
Adding a higher price product to the line in order to attract a broader marker. The
seller intends that the new product’s prestige will help the sale of existing low
priced products.
Reference:
no- 127
Example:
To its line of inexpensive sports watches, Swatch added an $80 Chrono stopwatch
and other upgraded watches.
60. TRADING-DOWN:
Adding a lower price product to the company’s product line. The firm expects the
people who cannot afford high priced can go buy the low priced ones. The lower
46
priced product carries some of the status and some other more substantive benefits
of high price item
Reference:
no- 165
Examples:
The Marriott Corp followed a trading down strategy when it started
1. Courtyard by Marriott Hotels, targeted at the midprice market long dominated

by chains such as Holiday Inn and Ramada Inn
2. Fairfield Inns to compete in a economy price market.
61. PRODUCT LINE
A broad group of products intended for essentially similar uses and having
similar characteristics.
Reference:
Carl MC Daniel J R, William R Darden – Marketing – 4th Edition Page no – 114
Example:
Nike produces several lines of athletic shoes and apparel. They have shoes, eye
gears and t-shirts.
47
62. LINE EXTENSION:
Line extension refers to the additions to the lines in the same product category.
Reference:
Carl MC Daniel J R, William R Darden – Marketing – 4th Edition Page no – 239
Examples:
Arrow shirts strategy of extending its line beyond the traditional, conservative
white shirt.
63. LINE PRUNING
Line pruning refers to reducing or deleting the depth of the product line by cutting
back the no of offerings on a particular category.
Reference:
Carl MC Daniel J R, William R Darden – Marketing – 4th Edition Page no - 114
Example:
Coke introduced different colors in their product fanta but that was not that
successful.
48
64. BRAND LEVERAGING
Instead of deepening the product line, a company may broaden it by leveraging a

successful brand through the introduction of additional forms or types of product
under the same brand name. This works best if the brand name has values and well
known for the trust.
Reference:
Philip Kotler, Gray Amstrong - Principles of Marketing 7th Edition –
Page no - 343
Examples:
Eastman Kodak found that kodak name easily transferred into batteries. Consumers
thought that the company sold batteries even before it started to.
65. LINE RETRENCHMENT
This reduces the breath of the line by cutting back the diversity of items offered.
Reference:
Page no - 34
49
Examples:
Cadbury introduced picnic as its brand line extension, but it deleted the product as
it was not upto expectation.
66. PRODUCT DESIGN:
Refers to the arrangement of elements that collectively form a product or service.

Good design can improve the marketability of the product.
Reference:
Page no - 343
Example:
Computer programmers are suppose to assure that any new software is user
friendly.
67. PRODUCT COLOR
The determining factor in the customer’s acceptance or rejection of a product.

Color is important for packaging and as well as the product itself.
Reference:
50
Page no - 343
Example:
Apple Computers used fruit inspired colors such as grape and tangerine, for its
IMac PC. Bright colors probably be a disadvantage for high tech products.
68. PACKAGING
All activities of designing and producing the container of the product.
Reference:
Kotler and Keller,Marketing management,12e
51
69.PRIMARY PACKAGING
It is the essential container enveloping the product which remains with the product
from the time it is manufactured or preparation at least through distribution to
retailers,and very often continues throughout the life.
Reference:
Michael j Baker,Marketig Strategy and management, 3e, pg.no 363.
Example:
packaging of cigarettes
70.SECONDARY PACKAGING
This refers to the additional containers that are added for protecting or marketing
requirements.
Reference:
Michael j Baker,Marketig Strategy and management,3e,pg.no 363.
Example :
Cartons in which cigarettes come.
71.SHIPPING PACKAGING
It is intended primarily for protecting goods in transit and storage.
Reference:
52
Michael j Baker,Marketig Strategy and management,3e,pg.no 363
72. PACKAGING THE PRODUCT LINE.
Uses highly similar packages for all products with a common or clearly noticeable
feauters.
Example:
Lays uses almost similar packages for different flavours.
Reference:
Michael J Etzel , “Marketing”TATA MC GRAW HILL 13e
73. MULTIPLE PACKAGING
Practice of placing several units of the same product in one container.
Reference: Michael J Etzel ,marketing ,TATA MC GRAW HILL 13e.
Example:
Heineken beers in cases is a good example for multiple packaging.
74.CHANGING THE PACKAGE
For competitive reasons packaging strategies and tactics are reviewedannually

along with the rest of the marketing mix.
53
Reference:
Michael J Etzel , “Marketing” TATA MC GRAW HILL 13e.
Example:
medimix soap changed its packaging,which increased their sales.
75.LABELLING
It is a simple tag attached to the product or an elaborately designed graphic that is a

part of package.
Reference:
Michael J Etzel , “Marketing” TATA MC GRAW HILL 13e.
Example :
tag along with adidas shoes.
76.WARRANTY.
A formal statement of expected product performance and of the manufacturers

liability for replacement or repair of the defects.
Reference:
54
WarrenJ keegan , Marketing chpt 11, 2nd Edition.
Example:
Warranty given to Sony televisions.
77.GUARANTEE.
A general assurance that a product can be returned if its performance is

unsatisfactory
Reference:
WarrenJ keegan , Marketing chpt 11, 2nd Edition.
Example;
Guarantee given to Louis Phillipe shirts.
55
BRANDING
78. BRAND
A brand is any name, term, symbol, sign, design, or a unifying combination of

these.
Definition:
Brand is an identifiable entity that makes specific promises of value.
References:
Zikmund / D'Amico, The Power of marketing, 7th edition, South Western, pp-260
Brajmohan Chaturvedi, Total Brand Management an Introduction,1st edition ICFAI

University press,2004,pp-13
Example: Rolex, Nike
The Rolex brand of watches is of the highest quality and precision is what
consumers make out of the brand Rolex.
79. BRAND IMAGE
Brand image is the totality of the perceptions resulting from all experiences with
and knowledge of the brand
56
References:
Brad Van Auken, Branding, 1st edition, Jaico, 2007, pp-7
Geoffrey Randall, Branding, Kogan Page, 1997, pp-14
Example:
Bajaj Pulsar-definitely male
The pulsar brand tries to project a macho image.
80. BRAND ASSOCIATION:
Brand association is anything a consumer associates with the brand in his or her
mind.
References:
Example:
Consumers associate the Pepsi brand with Sachin Tendulkar.
57
81. BRAND MARK
Many branded goods and services rely heavily on some symbol for
identification, such unique symbols referred to as brand mark.
References:
Example: The Merrill Lynch ‘bull’.
The bull logo of Merrill Lynch is something people identify the brand with even if
the name is not specified.
82. LOGO
Definition:
Logo or Logotype is the brand name or company name written in a

distinctive way
Example:
58
References:
83. TRADE MARK
Trade mark is a legally protected brand name or brand mark. Thus the term
trademark is a legally defined term.
Example:
The Intel inside logo on the computer denotes that the computer runs on a intel
processor and computers that do not use an intel processor cannot use this symbol
References:
84. WORLD BRAND
Definition:
A world brand is a product that is widely distributed in the world with a

single individual brand name that is common to all countries and is recognized in
all of the markets.
References:
Example: coca-cola
59
85. BRAND POSITIONING
Brand positioning is the way a brand is perceived within a given competitive set in
the consumer’s mind.
References:
Czinkota & Kotabe, Marketing Management, Thomson Learning, 2ndedition, 2002,

pp- 206
Example: Tata Indica-“more car per car”
Tata Indica is positioned as a car that provides value for money
86. BRAND PERSONALITY:
Brand personality refers to the adjectives that describe the brand.
Reference:
Example:
Rugged and macho with spirit of adventure and freedom
An Authoritative Passion for Sports, knowledgeable with a bit of

Irreverence. Approach Sports Coverage from All Angles.
60
87. FAMILY BRANDING OR MULTI-PRODUCT BRANDING
Family branding or multi-product branding involves using a single brand name

over a whole line of fairly closely related items.
References:
Kerin, Rudelius, Berkowitz, Marketing -2nd Edition, 1989, Library of Congress, pp-
260
Example: Gillette fusion series of shaving razor gel and cream.
The Gillette fusion series of shaving products use the same brand for the different
products in the product line such as shaving cream shaving gel and shaving razor.
88. INDIVIDUAL BRAND
Individual brand is a brand that is assigned to a product in the product line and is
not shared by other products in the line.
References:
Kerin, Rudelius, Berkowitz, Marketing -2nd Edition, 1989, Library of Congress, pp-
260
V.S.Ramaswamy S.Namakumari, Marketing Management Planning

Implementation & Control, 3rd Edition, Macmillan, 2002, pp-316
Example: Nestlé’s MILO & KIT-KAT
61
Nestlé’s Milo chocolate drink and Kit-Kat chocolates are individual products in
Nestlé’s product line.
89. CO BRANDING
Co branding is the use of two individual brands on a single product.
References:
Kerin, Rudelius, Berkowitz, Marketing -2nd Edition, 1989, Library of Congress,

pp-261
Czinkota & Kotabe, Marketing Management, Thomson Learning, 2ndedition, 2002,

pp-219
Example: Airtel and blackberry, Kingfisher & ICICI bank
Kingfisher airlines and ICICI bank have developed co-branded credit cards.
90. MIXED BRANDING STRATEGY
It’s a compromise between manufacturer branding and re-seller branding.
References:

Implementation & Control, 3rd Edition, Macmillan, 2002, pp- 316-17
Example: Michelin & Sears.
Michelin manufactures tyres and Sears are retailers of tyres. Sears tyres using both
the Michelin brand and at the same time use the Sears brand on the tyres from
Michelin.
62
91. BRAND EXTENSION
It is strategy where we extend a successful brand name to more products in

the same product line, in a related product line or in a unrelated product line.
References:

Implementation & Control, 3rd Edition, Macmillan, 2002, pp- 318-22
Example: Maggi & Hyundai
Hyundai initially entered the Indian market as a car manufacturer and later on
extended brand to consumer electronics products.
92. BRAND PROLIFERATION
It is the opposite of brand extension. In brand proliferation more items are

brought in with new brand names. In other words the firm has several brands in the
same product/product category.
References:

Implementation & Control, 3rd Edition, Macmillan, 2002, pp-324
Geoffrey Randall, Branding, Kogan Page, 1997, pp-34
Example: REXONA & AXE brands of HUL
HUL has two brands Rexona and Axe for the same product-body spray.
63
93. BRAND REJUVENATION
Brand rejuvenation involves adding value to an existing brand by improving

product attributes and enhancing its overall appeal.
References:

Implementation & Control, 3rd Edition, Macmillan, 2002, pp - 322-23
Example: Pulsar dtsi (now dts-fi), 5star crunchy
When the Bajaj Pulsar brand was saturating the market. Bajaj came up with a
brand rejuvenation strategy and introduced the Bajaj Pulsar-dtsi
94. BRAND EQUITY
Brand equity is the Sum total of all the different values people attach to the brand.
References:

Implementation & Control, 3rd Edition, Macmillan, 2002, pp - 327-30
Example: Harley Davidson,
The brand Harley Davidson does not just denote a bike, consumers believe that it is
a statement of your personality and lifestyle.
64
95. SERVICES
Any activity or benefit that one party can offer to another that is essentially
intangible and does not result in the ownership of anything.
Reference:
Philip Kotler ,Marketing Management, Eleventh Edition, Pg.443
Example:
Massaging centres giving services.
96.PURE TANGIBLE GOODS.
The offering consists of a tangible good and no services accompany the product.
Marketing Management, Eleventh Edition, Philip Kotler.
Example:
All FMCG goods like toothpaste.
97.TANGIBLE GOODS ACCOMPANYING SERVICES
The offering consist of a tangible good , accompanied by one or more services.
Reference:
Philip Kotler and Kevin keller. Marketing Management, Eleventh Edition,
65
Example:
General motors is service intensive than manufacturing intensive.
98.HYBRID
Offering consists of equal parts of goods and services is called a hybrid service.
Reference:
Philip Kotler ,Marketing Management, Eleventh Edition, ,11e
Example:
Restaurants for both food and services.
99.MAJOR SERVICES WITH ACCOMPANYING MINOR GOODS AND

SERVICES.
The offer consists of major services along with additional services or supporting
goods
Reference:
Philip Kotler.Marketing Management, Eleventh Edition,
Example.
Taj hotels pick the executive customers from where they are.
66
100.PURE SERVICES.
The offering primarily consists of a service.
Reference:
Philip Kotler.Marketing Management, Eleventh Edition.
Example:
Ayurvedic health spa.
101.INTANGIBILITY OF SERVICES.
Services cannot be seen,felt,tasted,heard or smelled before being consumed.
Reference:
Petre mudie and Angela pirrie,Services marketing management,3e,pg no 4
Example:
Car services cannot be seen,for example changing of spare parts in the car.
102.INSEPERABILITY.
Services are first sold then produced and consumed simultaneously.
Reference:
Example:
Councelling,museum,concerts etc.
67
103.VARIABILITY
The quality of service may depend varying upon who provides it,as well as when
and how it is provided.
Reference:
Example:
Variations in fast and efficient services in a hotel depends upon the waiters
104.PERISHABILITY
Services cannot be stored for later sales for use.That is services are not perishable.
Reference:
Example:
hotel rooms not occupied cannot be reclaimed.
105.DIFFERENTIAL PRICING
Differential pricing will shift demand from peak to off peak periods.
Reference:
Philip Kotler ,Marketing Management, Eleventh Edition,.pg no:344
68
Example:
Week end discount prices of car rentals.
106.NON PEAK DEMAND.
Gives the services at a cheaper rate furing off peak hours.
Reference:
Marketing Management, Eleventh Edition, Philip Kotler.pg.no 344.
Example:
McDonalds offers cheaper rates during off peak hours,eg:breakfast services.
107.COMPLEMENTARY SERVICES.
Complementary services can be developed to provide alternatives to waiting

customers.
Reference:
Philip Kotler .Marketing Management, Eleventh Edition,.pg.no 344.
Eample:
Cocktail lounges in restaurants.
108.RESERVATIONS SYSTEMS
69
Reservation systems are a way to manage the demand level.
Reference:
Philip Kotler.Marketing Management, Eleventh Edition, pg no 344.
Example:
Reservations in airlines,hotel etc.
70
BIBLIOGRAPHY:
1. Berman Banny Joel Evans, Marketing , 8th Edition, Atomic Dog Publications
2. Boyd, Walker, Larreche, Marketing management, second edition,1990, Library

of Publication data
3. Brad Van Auken, Branding, 1st edition, Jaico, 2007
4. Carl MC Daniel J R, William R Darden – Marketing – 4th Edition
5. Courtland L. Bowee, John V.Thill, “MARKETING”, MC.Graw Hill,USA,1992
6. Czinkota Kotabe,“Marketing Management”, Thomson Asia PTE LTD,

Singapore, 2002 Second Edition.
7. Geoffrey Randall, Branding, Kogan Page, 1997
8. Kerin, Rudelius, Berkowitz, Marketing -2nd Edition, 1989, Library of Congress.
9. Lamb, Hair, McDaniel, “Marketing”, Thomson Asia Pte Ltd, Singapore, 2004.
10. Michael J Etzel, Bruce J Walker, William J Stanton – Marketing -13 th

Edition
11. Proctor Tony, Marketing Management-integrating theory & practice, 1996,

ITP(International Thomson Publishing Inc.)
12. Philip Kotler, Gray Amstrong - Principles of Marketing 7th Edition
13. Philip Kotler .Marketing Management, Eleventh Edition
71
14. Stanton J William, Etzel J Michael, Walker J Brule, Fundamentals of
Marketing, 10th edition, Mc. Graw –Hill International editing, 1994
15.V.S.Ramaswamy S.Namakumari, Marketing Management Planning

Implementation & Control, 3rd Edition, Macmillan, 2002
16. WarrenJ keegan , Marketing chpt 11, 2nd Edition.
17. Zikmund/D’amico, “Marketing”, Thomason Asia Pte Ltd,Singapore,2001,

Seventh Edition
72

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PRODUCTS AND SERVICES

A Product is anything customers will exchange something of value for, usually

Example: A product can be anything-Soaps, biscuits, mobile phones. The need is

Reference: Courtland l. Bowee, John V.Thill, “Marketing”, McGraw Hill, USA,

Reference: Czinkota Kotabe, “Marketing Management”, Thomson Asia Pte Ltd,

3. DURABLE AND NON- DURABLE PRODUCTS:

Reference: Zikmund/D’amico, “Marketing”, Thomason Asia Pte Ltd, Singapore,

Augmented product is further enriched by including warranty and service benefit,

Reference: Czinkota Kotabe, “Marketing Management”, Thomson Asia Pte Ltd,

Products can be classified as consumer product and organizational product.

REFERENCE: Lamb, Hair, McDaniel, “Marketing”, Thomason Asia pte ltd,

Convenience products are relatively inexpensive products that buyers or users

Reference: Courtland L. Bowee, John V.Thill, “Marketing”, McGraw Hill, USA,

Reference: Zikmund/D’amico, “Marketing”, Thomason Asia Pte Ltd,

8. TWO TYPES OF SHOPPING PRODUCT:

HOMOGENEOUS PRODUCTS – Obtaining the lowest cost is the primary reason.

Example: Washing Machines, Refrigerators. Most of the companies’ offer the

HETROGENOUS SHOPPING PRODUCTS have identifiable product differences.

Example: Clothes, Shoes, Furniture, Watch.

Reference: Zikmund/D’amico, “Marketing”, Thomason Asia Pte Ltd, Singapore,

Reference: Courtland L. Bowee, John V.Thill, “Marketing” McGraw Hill, USA,

10. UNSOUGHT PRODUCTS:

Unsought product is a product unknown to the potential buyer or a known product

REFERENCE: Lamb, Hair, McDaniel, “Marketing”, Thomson Asia Pte Ltd,

11. CLASSIFICATION OF ORGANIZATIONAL PRODUCT:

Organizational product cab be classified as capital product, production product and

Reference: Lamb, Hair, McDaniel, “Marketing”, Thomson Asia Pte Ltd,

12. ORGANIZATIONAL PRODUCT:

Reference: Zikmund/D’amico, “Marketing”, Thomason Asia Pte Ltd, Singapore,

13. CAPITAL PRODUCTS:

Installations are major capital items necessary to the manufacture of a final

Example: Air Conditioner system for a factory

Accessory equipment facilitates an organization’s operations. They are designed to

Reference: Zikmund/D’amico, “Marketing”, Thomason Asia Pte Ltd, Singapore,

14. PRODUCTION PRODUCTS:

Manufactured materials are used as basic ingredients for producing a company’s

Component materials, in addition to raw material, most manufactures also buy

Reference: Courtland L. Bowee, John V.Thill, “Marketing”, McGraw Hill, USA,

Example: Operating supplied include pencil, pens to nails to wax.

MRO items: Consumable industrial supplies categorized specifically as

Reference: Zikmund/D’Amico, “Marketing”, Thomason Asia Pte Ltd, Singapore,

16. MERITS AND LIMITATIONS:

Classifying products according to customer perception and behavior helps in

REFERENCE: COURTLAND L. BOWEE, JOHN V.THILL, “MARKETING”,

Customers don’t always categorize products in the same way.

REFERENCE: Courtland L. Bowee, John V.Thill, “Marketing”, McGraw Hill,

REFERENCE: Courtland L. Bowee, John V.Thill, “Marketing”, McGraw Hill,

WHAT ARE THE ELEMENTS OF A PRODUCT?

The elements of a product are features, branding, packaging, labeling, and

Successful products evolve through a process of discovering what specific features

Reference: Courtland L. Bowee, John V.Thill, “Marketing”, McGraw Hill, USA,

19. FEATURES leads to BENEFITS

REFERENCE: Courtland L. Bowee, John V.Thill, “Marketing”, McGraw Hill,

20. PRODUCT DIFFERENTIATION:

Product differentiation is a positioning strategy that many firms use to distinguish

Reference: Lamb, Hair, McDaniel, “Marketing”, Thomson Asia Pte Ltd,

Reference: Zikmund/D’amico, “Marketing”, Thomason Asia Pte Ltd, Singapore,

A Unique characteristic of a product or a brand identified by the marketer or a

Reference: Zikmund/D’amico, “Marketing”, Thomason Asia Pte Ltd, Singapore,

22. PRODUCT DEVELOPMENT:

Product development involves a modification of the goods or services, such as

Reference: Czinkota Kotabe, “Marketing Management”, Thomson Asia Pte Ltd,

The acceptance of new products by various segments of a market is called product