marketing module 2

What are the four main areas of product decisions?

Product Attributes: Characteristics like quality, features, and design.

Branding: Identifying and differentiating the product.

Packaging: Designing the container or wrapper.

Labelling: Providing information on the product.

What are the two components of Product Quality?

Performance Quality: How well the product performs its intended functions.

Conformance Quality: Consistency in delivering the promised level of quality.

How do Product Features and Design/Style differ?

Features: Additional characteristics that add value or usefulness (e.g., multi-camera setups).

Design: Involves a product's shape, structure, aesthetics, and usefulness.

Style: Specifically refers to the product’s visual look and feel.

Why is Branding important for a company?

Identification: Helps customers recognize the product.

Loyalty: Builds trust and emotional connections.

Differentiation: Distinguishes the product from competitors.

Equity: Adds financial and market value to the company.

What are the three levels of Packaging?

Primary Package: The immediate container holding the product (e.g., a toothpaste tube).

Secondary Package: The outer covering protecting the primary package (e.g., a cardboard box).

Tertiary Package: Used for bulk handling and shipping (e.g., large cartons).

What are the four primary functions of Packaging?

Protection: Prevents damage during transport and handling.

Convenience: Makes storage and usage easier for the customer.

Promotion: Acts as a "silent salesman" through attractive design.

Information: Communicates usage instructions and ingredients.

What are the key functions of Labelling?

Identification: Identifies the brand or product.

Description: Lists ingredients, manufacturing dates, and expiry details.

Promotion: Uses graphics to attract buyers.

Legal Compliance: Meets requirements for showing net weight, MRP, and FSSAI numbers.

What is a "Product Line"?

A group of related products that function similarly.

Products sold to the same customer types.

Items sold through the same outlets or within similar price ranges.

What is "Product Line Length" and how is it managed?

Definition: The total number of products within a specific line.

Short Lines: Companies add items to increase profit.

Long Lines: Companies remove underperforming items to improve overall performance.

What is "Line Filling"?

Definition: Adding more products within the existing range of the line.

Purpose: To increase profit, use extra production capacity, or block competitors.

Risk: Can lead to "cannibalization," where new products steal sales from old ones.

What are the types of "Line Stretching"?

Downward Stretching: Adding lower-priced items to attract budget-sensitive buyers.

Upward Stretching: Adding premium items to gain higher profits or prestige.

Two-Way Stretching: Adding both high-end and low-end items simultaneously.

What are the four dimensions of a "Product Mix"?

Width: The number of different product lines the company offers.

Length: The total number of items across all lines.

Depth: The number of versions/models offered for each product (e.g., different shampoo scents).

Consistency: How closely related the various lines are in production or distribution.

What occurs during the "Development Stage" of a product?

The product is undergoing research and prototype creation.

Zero Revenue: The product has not yet been launched.

High Costs: Significant investment in market testing and innovation.

What are the characteristics of the "Introduction Stage"?

Low Sales: The market is just becoming aware of the product.

High Costs: Heavy spending on promotion to educate the market.

Strategic Focus: Building awareness and ensuring initial distribution.

What happens during the "Growth Stage"?

Rising Sales: Customer acceptance increases rapidly.

New Competitors: Competitors enter the market seeing potential.

Strategic Focus: Differentiating the product and expanding distribution.

What defines the "Maturity Stage"?

Peak Sales: The market becomes saturated.

Declining Margins: Profit drops due to heavy competition.

Strategic Focus: Innovating to sustain interest and using loyalty programs.

What is the strategy for the "Decline Stage"?

Sales Drop: Demand falls due to new technology or changing tastes.

Cost Reduction: Minimize inventory and marketing spend.

Final Decision: Choose to revamp, discontinue, or "harvest" the product.

What is the definition of a "Service"?

An activity or benefit offered for sale.

Essentially intangible.

Does not result in the ownership of anything.

What is "Service Intangibility"?

Services cannot be seen, tasted, or touched before purchase.

Customers look for "signals" of quality (price, equipment, or staff behavior).

What is "Service Inseparability"?

Services cannot be separated from their providers.

Production and consumption happen at the same time.

The quality depends on the provider-customer interaction.

What are "Service Variability" and "Perishability"?

Variability: Quality depends on who provides the service and when/where it is done.

Perishability: Services cannot be stored; a missed appointment is lost revenue.

What are the three additional Ps in the Service Marketing Mix?

People: All humans involved in the service (employees and customers).

Process: The flow of activities used to deliver the service.

Physical Evidence: Tangible cues like facilities, ambiance, and uniforms.

What elements comprise the "People" factor?

Staff appearance, behavior, and attitude.

Employee training and skills.

Interaction between customers and staff.

What are the key components of the "Process"?

The actual steps in service delivery.

Management of waiting times.

Standardization vs. customization of the service.

What is included in "Physical Evidence"?

Cleanliness, ambiance, and decor.

Tangible items like brochures, business cards, and websites.

Tools and equipment used by the service provider.

What is "Cannibalization" in the context of line filling?

It is the risk that adding too many similar products to a line will confuse customers.

It occurs when new products reduce the sales of the company's own existing items rather than stealing market share from competitors.

What are the specific reasons a company chooses "Line Filling"?

To increase overall profit margins.

To satisfy the demands of dealers and customers.

To utilize unused production capacity within the factory.

To "block" competitors by leaving no gaps in the market range.

What is "Cross-Selling" within a product line?

It is the strategy of selling related products that complement each other.

What is "Evidence Management" in Service Marketing?

It is the practice of making an intangible service feel tangible through visual and experiential cues.

How does a company "Harvest" or "Discontinue" a product?

This occurs in the Decline Stage.

Revamp: Improving the product to see if demand returns.

Harvest: Reducing all costs (marketing/inventory) to maintain a small, profitable niche until the product is fully phased out.

What are the three primary factors that affect Product Line Length?

Company Objectives: For example, to attract new customers or increase total profits.

Resources Available: The financial and production capacity of the company.

Market Demand and Competition: How much customers want the product and how rivals are behaving

What are the specific strategic focus actions for the Growth stage?

Differentiate the product from new competitors.

Invest heavily in distribution and customer service.

Expand the market into new segments or regions.

What are the specific strategic focus actions for the Maturity stage?

Innovate or improve the product to keep it interesting.

Use competitive pricing and aggressive promotions.

Focus on loyalty programs to retain existing customers.

What are the specific strategic focus actions for the Introduction stage?

Build awareness through marketing and advertising.

Use strategic pricing like penetration pricing or skimming.

Ensure the product is available in key markets.

What are the specific strategic focus actions for the Decline stages?

Decide whether to revamp, discontinue, or "harvest" (phase out) the product.

Minimize inventory and marketing costs to save money.

Focus only on the most profitable niche markets.