Product

Question 1

What is a product?

Answer 1

• Need satisfying entity
• Anything that can be offered in the market to satisfy a want or a need and include physical goods, services , experiences , events , places , information and ideas.

Question 2

What is product according to Philip Kotler?

Answer 2

Product is anything that can be offered to someone to satisfy a need or a want.

Question 3

What is product according to William Stanton?

Answer 3

Product is a complex of ** tangible and intangible attributes** , including packaging , colour, price, prestige and services that satisfy needs and wants of people.

Question 4

What is decision to buy a product dependent on?

Answer 4

Tangible and Psychological attributes.

Psychological attributes is the brand , warranty , service , image.

Question 5

Product remains a **mere raw material ** or an intermediate till its not bought or consumed.
Who said these words?

Answer 5

PETER DRUCKER

Question 6

What are the components of a product ?

Contribute to the TOTAL PRODUCT OFFERING

Answer 6

• Core product
• Associated features
• Logo
• Label
• Package
• Brand name

CALL PB

Question 7

What is Core product?

Answer 7

Core product is the basic element of a product.
Total product personality is dependent on the basic constituent of the product.
Eg: In Dove soap the core component is the soap the generic constituent.

Question 8

What does a product include beside the core ingrediant{product}?

Answer 8

A product includes associated features beside the core product.
Associated features enhance the total product personality.
Eg: In dove soap the fragrance , moisturizing ability , the pristine white colour etc are its associated feature.

Question 9

What is brand name?

Answer 9

A Brand is a name, term , symbol, design or a combination of them which is intended to identify the goods and services of one seller and to differentiate them from competitors.

Question 10

How is brand name/image developed?

Answer 10

Brand name/image is developed through advertising and other promotional measures to remain etched in the consumers mind.

1. imprinted vividly on someone’s mind or memory

Definition of ‘etched’

Question 11

What is trade mark?

Answer 11

A Trade mark is a brand with legal protection.
It ensures exclusive use by one seller.

Question 12

What is Logo?

Answer 12

Logo is the brand mark/symbol and an essential aspect of the product which extends its support to the brand effectively.
Symbols and pictures ensure product/brand identification.
Its importance is being enhanced in rural market where brands are recognized by picture in the logo.

Question 13

What is packaging and its essential roles?

Answer 13

Packaging is the act of enclosing the product.
It performs various roles like:
* Ensures protection to the product.
- Provides information about the product.
- Contributes to the total sales appeal.
- Increases aesthetics of the product.
- Facilitates handling the product during distribution.
- Is a major tool in the promotion of the product.

Question 14

What is label?

Answer 14

Label is the *part and parcel *of packaging.
It provides written information about the product helping buyers understands the composition of the product, its nature , distinctive features and performance.

Question 15

What are the characteristics of a product?

Answer 15

-core element of marketing mix.
-various people view it differently as consumers[organization/society] have different needs and expectations.
-includes both goods and services.
-includes both tangible and non tangible features/benefits.
-is a medium to offer benefits and satisfaction to consumers.

marketing mix is the 7ps: product , price , place , promotion, people, process, physical evidence.

Question 16

Why is product important?

Answer 16

-Product is the focal point. [all marketing activities such as selling, purchasing, advertising, distribution, sales promotion revolve around the product] It is the basic tool by which profitability of the firm is measured.
-It is the starting point. [no marketing activities such as… will commence if product does not exist, everything is done on the basis of nature, quality and demand of the product]
-It is an **end. **[main purpose is satisfaction of customers]

Question 17

Why is the product enriched constantly?

Answer 17

-to create value.
-to add more customer base.
-to counter competition.

Question 18

According to________ product can be conceived at 4 levels.

Answer 18

Levitt

generic product,expected product,augmented product and potential product

Question 19

What are the different product levels?

7 levels

Answer 19

1]Core benefit[product] -main* purpose* for which the product is intended eg. car for convenience.
2]Generic product-unbranded/undifferentiated eg. rice, pulses, wheat, flour etc.
3]Branded product- identity through name eg.dove soap.
**4]Differentiated product **- differentiate from clutter by highlighting special features.
5]Customized product- modified to suit requirements of individual customer.
6]Augmented product- enhance product value through voluntary improvements.
7]Potential product - future potential product. eg.updates in phone.

Question 20

What are the factors influencing product mix?

Answer 20

1]Market demand[ determines whether the product should be manufactured or its production discontinued]
2]Cost of product[develop products which are low in costs]
3]Quantity of production
4]Advertising and distribution [An organization does not incur any additional efforts to advertise or distribute when the company adds one or more products to its product line]
5]Use of residuals [by products eg soap leftovers]
6]Competitors action
7]Goodwill of the company
8]Full utilization of marketing capacity

Question 21

What are product terms/decisions?

Answer 21

1]Product mix [4 - depth- variations of products under one product line , length-total no of products , breadth/width - no of product LINES , consistency- close relation bw various product lines eg apple comp it is electronic items ]
2]Product line [group of products that are closely related as they function in a similar manner or are sold to the same customer groups]
3]Product positioning [meet needs of a particular segment]
4]Product repositioning [whole product is changed]
5]Product differentiation [modifications in quality,design,support services to make product more attractive ]
6]Product diversification [expansion in depth or width]
7]Product modification[alterations to suit demand]
8]Product standardization [reduce varieties]
9]Product elimination [replace existing products]

Question 22

What does product mix consist of?

Answer 22

1]Depth [no of variations under a product line]
2]Length [total no of products]
3]Breadth/Width [total no of product lines]
4]Consistency [close relations bw all varieties eg. apple everything is electronic devices]

Question 23

Classify goods on the basis of durability and tangibility.

Answer 23

-Non durable goods [FMCG eg.food items , 1 or couple uses, purchased regularly ]
-Durable goods [can be used for many years eg. tv, fridge, used for many years]
-Services [intangible eg.BITWA]

Question 24

Classify consumer goods.

Answer 24

1]Convenience goods
2]Shopping goods
3]Specialty goods
4]Unsought goods

Question 25

What are convenience goods?

Answer 25

These are goods that a customer purchases frequently , with minimum effort and time.

These are further divided into 3 categories:

1. Staple goods: purchased on a regular basis. Decision to buy is once the consumer puts the item on his list. eg. bread, milk
2. Impulse goods: purchased without any planning , are placed where they are easily noticed. eg.chocolates,magazines.
3. Emergency goods: purchased to fulfil urgent needs. eg. toothbrushes or shaving blades at tourists destinations.

Question 26

What are the marketing strategies used in case of convenience goods?

Answer 26

Price: low priced and widely available.
Promotion:mass promotion by heavy advertising and sales promotion.
Place: Widely distributed at convenient locations. eg, vending machines.
eg.hand soap, toothpaste etc.
-easily available.
-require minimum time and effort.
-there is a continuous and* regular demand.*
-are easily substitutable by competitors.

Question 27

What are shopping goods?

Answer 27

These are goods where the customer while selecting the product makes comparison on the basis of price, quality, style etc.
-are durable in nature.
-prior planning to purchase the product is done.
-retailer have a important role in sale of goods.

They can be:
* homogeneous- products which are alike, sellers engage in price war.
* heterogeneous - products are unlike , price is secondary .

Question 28

What are the marketing strategies used in case of shopping goods?

Answer 28

Price: moderate prices.
Place: active shopping areas.
Promotion: heavy advertising and personal selling by both producers and sellers.
eg.furniture,cars,clothes etc.

Question 29

What are speciality goods?

Answer 29

These are goods with unique characteristic or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort. Consumers have strong convictionstowards the brand, style, or type. eg. Cars, High end Watches, Diamond jewellery etc.
i. demand for such products is *relatively infrequent. *
ii. Products are high priced.
iii. *Sale *of such products is *limited *to few places.
iv. *Aggressive promotion *is required for such products.
v. After sales service is required for these products

Question 30

What are the marketing strategies used in case of speciality goods?

Answer 30

Price: They are usually marked at high prices. As demand for these goods are low and supply is also low.
Promotion: Targeted promotion by both producer and reseller. High level of advertising is done.
Place: Exclusive selling in only one or few selected outlets per market.
Product: Jewelry, Rolex watches, fine crystals, etc

Question 31

What are unsought goods?

Answer 31

These are products that are available in the market but the potential buyers do not know about their existence or there do not want to purchase them.
These are of 2 types :

Regularly Unsought Products: The products which exist but the* consumers do not want to purchase them as of now*, but might eventually purchase them. Example: Life Insurance

New Unsought Products: The marketers task is to inform target consumers of the existence of the product, stimulate demand and persuade then to buy the product. Example: covid vaccine was unsought initially.

Question 32

What are the marketing strategies used in case of unsought goods?

Answer 32

(a) Price: It *varies *from product to product.
(b) Promotion: *Personal selling and aggressive advertising by producer and seller.
(c) Place: It depends upon the product.
(d) Product: Life insurance, Red Cross Blood Donations, etc

Question 33

What are industrial products?

Answer 33

The Products used as inputs to produce consumer products 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 number of buyers.
 Length of Channel for distribution is short.
 Demand for the product is concentrated in certain geographical locations.
* Reciprocal buying* is involved is a company may purchase the raw material from a company and may sell the finished product to the same company.
 In certain cases the companies may lease out[rent] the products rather than purchasing them due to high costs.

Question 34

What are the types of industrial products?

Answer 34

**1]Materials and parts ** -goods used for manufacturing the product.
* raw material - agri based[ renewable : sugarcane, rubber,wheat etc] or natural products [non renewable : iron ore , crude petroleum etc ]
* manufactured materials and parts - component materials [glass, iron , plastic or components like battery , bulbs etc]

2]Capital items-are the goods used in producing the finished goods.
* installations - lifts, mainframe computers etc [major purchase for the organisation]
* equipments - fax machines, EPBX, hand tools and office equipments like personal computers, laptops.
machines.[not everlasting and they need to be refilled ]

3]Supplies and Business Services- goods which are required for developing or managing the finished products.
* maintenance and repair items - include painting , nailing
* operating supplies- writing papers, lubricants, coal.
* maintenance - copier repair, window and glass cleaning
* business advisory- consultancy, advertising and legal services.

Question 35

The product life cycle indicates the ________
and ________ of the product over a period of time.

Answer 35

sales and profit

Question 36

What are the 4 stages of product life cycle?

Answer 36

1]Introduction
2]Growth
3]Maturity
4]Decline

Question 37

The life cycle of the ________________ is the longest and that of ________ is the shortest.

Answer 37

Product category = longest PLC {mostly in maturity stage}
Brand = shortest PLC {inconsistent}

Question 38

This stage marks the launch of the product in the market.

Answer 38

Introduction stage
 Inducing acceptance and attaining initial distribution.
 High operational costs, arising out of inefficient production levels .
 *High promotion costs *on the expectation of future profits.
 Customers have low awareness and those who are willing to try the product do so in
small quantities called trial purchase.
 Competition is limited to few firms.
 *Negative profits *on account of low sales volume.
 Distribution is limited and promotional *expenses are high. *

Question 39

What are the marketing strategies used in introduction stage?

Answer 39

1. Products are promoted to create awareness and also develop market for the product.
2. The pricing of the product may be low to increase penetration ie to enter the market and expand the market share or high priced to* recover the development costs.*
3. Distribution can be selective till consumers show acceptance of the product.
4. Marketing communication seeks to enhance the product awareness by Advertisement, Public relation , Personal selling , free samples etc.

Question 40

This stage marks the onset of profits and successful launching of the product.

Answer 40

Growth stage
 is the 2nd stage
 new customers enter the market[Market expansion] and old customers make repeat purchases
 Reduced costs because of economies of scale.
 Increase in competition
 Increase in profits.

Question 41

What are the marketing strategies used in growth stage?

Answer 41

There is an increase in competitors *
firm seeks to build *brand preference and increase market share.
1) Product quality is maintained and additional features and support services may be added.
2) Pricing may remain same as the firm enjoys increasing demand with little competition.
3) Distribution channels are added as demand rises and customers accept the product. [intensive distribution of the product]
4) Promotion is aimed at a broader audience through advertisements,billboards, social media etc

Question 42

The products that withstand the heat of competition and **customers approval **enter this stage.
-onset of decline in profits.

Answer 42

3rd stage is the maturity stage
* marketers are focusing effort on extending the lives of their existing brands.
 Costs would be decreased as a result of increase in production volumes.
 The Sales volumes peak and market saturation [peak sales]is visible.
 Competitors entering the market increase
 There is drop in prices due to entry of competing products.
 Advertising spend incurred on brand differentiation
 Product feature diversification is emphasized to maintain or enhance market share.
 The profits decrease during this period

Question 43

What are the marketing strategies used in maturity stage?

Answer 43

1. Product managers have to play a vital role for carving a niche [ideal position] within a specific market segment through enhanced service, image marketing and by creating new value image and strengthening through repositioning.
2. They should also consider modifying the product and marketing mix to fight competition and take it closer to the customer so as to register adequate profits to remain in the business.
3. Price will be low in order to fight competition.
4. Sales promotion methods will be used

Question 44

Stage where sales decline as the customers preferences have changed in favour of more efficient and better products.

Answer 44

This is the Decline stage
* no. of competing firms also gets reduced and generally
the industry has limited product versions available to the customer.
* Sales and profits decline rapidly and competitors become more cost conscious.
* Product forms and brands enter into decline stages while product categories last longer.

Question 45

State the marketing strategies used in decline stage.

Answer 45

1. The product can be maintained by either by adding new features or **finding new uses. **
2. The **costs can be reduced **and it can be offered to **loyal segment. **
3. The product can be discontinued or sold to another firm that is willing to continue the product.
4. Promotion expenses are reduced.

Question 46

can be defined as an art, science and technology of preparing goods for transport and
sale

Answer 46

PACKAGING
Attractive packaging is an also an efficient point of purchase (POP), and stimulates publicity for sales.

Question 47

What are the 3 **levels **of packaging?

Answer 47

A. A primary package [immediate container]
B. A secondary package [additional layer of protection]
C. The transportation package [to protect the product during transportation]

Question 48

Why is packaging known as silent salesman?

Answer 48

• Packaging is an important element in the formulation of the marketing plan as it aids with promotion & performs the role of passive salesman, in addition to protecting the product. In the absence of salesman, the package should be able to grab the eyeballs of the buyers.
• The product package has an important promotional function, *establishing communication *with the consumer.
• Designing the product package according to changing customer preferences will enable the marketers to push the product.
• Consumer packaging is also intended to offer better convenience to the consumer and protect the
  product from pilferage and damage.
• It has been estimated that* unit value realization* can increase with good packaging.

Question 49

What is the importance of packaging?

Answer 49

The following aspects highlight significance of packaging in marketing:
 It provides information about the product
 It helps in identifying brand name
 It assists in protecting the product
 It helps in product handling during transportation.
 It aids in promoting the product
 It helps in offering customer convenience and satisfaction
 It helps increase in the sales of the product.
 It contributes to the safety of a product.
 It helps in storage of the product
 It helps in *product differentiation
*

Question 50

What are the functions of packaging?

Answer 50

1. Protection
The basic function is to protect the products from the weather the product can be exposed to, in transportation from the manufacturer to the retailer’s 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
Self-service outlets have 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 and hygienic

3. Performance
It should perform the task for which it is designed.
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 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-effectiveness
The package finally must be cost-effective.

Question 51

Briefly explain the 3 packaging decisions.

Answer 51

**1. Packaging design: **
It is not easy to design a package for various items. The design of the package should be done in such a way that it attracts the customers and differentiate it from the other goods.

**2. Attractive Color: **
Colour plays an important role for determining customer acceptance or rejection of a product.
Suitable colour should be given to the package.
Colour will attract the customers.
Attractive colour will help in promoting the sales of a product.

3. Packaging the product line:
It involves the use of identical packages for all products or the use of packages with some common feature.
**

Question 52

State the qualities of good packaging.

Answer 52

 Attractive appearance
 Convenient for storage and display
 Shield against damage or pilferage
 Product description displayed on the package
 Package should be as per the specifications

Question 53

What are the** types **of packages?

Answer 53

(1) A consumer package is one which holds the required volume of a product for ultimate consumption is economical and can be easily purchased by the consumer. eg.He has the option to purchase the pack size hand wash which he considers adequate for the consumption for his family over a period of time and does not involve additional investment during that period.
1 snicker bar

(2) A bulk package is either for the consumer whose consumption is large or is bought to save
cost. eg: oil cans etc. The consumer package itself very often requires an outside package in which it is transported and which is sometimes referred to as transit package or an out container.
box of snickers

(3) An industrial package can be a* bulk package for durable consumer goods*. These are the basic package types although many sub-divisions can be listed, e.g., strip package, multiple package, etc., which can all be broadly listed under these basic headings.
for transport

(4) A dual use package is one which possesses a secondary usefulness after its contents have been consumed.
eg.Drinking glasses, boxes of jewellery, plastic containers, bags from flour and feed sacks.
cheese glass cup

Question 54

provides the customers with the requisite information about the product

Answer 54

LABELLING

Question 55

in India, all the prepackaged foods sold in the country have to comply with

Answer 55

Food and Safety Standards (Packaging and Labeling ) Regulations 2011 *issued by the Food Safety and Standards Authority of India *functioning under the Ministry of Health and Family Welfare

Question 56

The ________ is a strong sales tool and an integral part of purchase advertising.

Answer 56

label

Question 57

Environmental awareness among the consumers has promoted the introduction of ____________ awarded on the basis of a product‟s environment friendliness.

Answer 57

eco-label

Question 58

A good label is one which helps a potential buyer to help him make a decision with relevant and correct information. Give reasons.

Answer 58

Apart from the information which must be given, the label should
provide:
i. Picture of the product accurate as to size, colour and appearance.
ii. Description of ingredients used along with methods of processing.
iii. Directions for use, including cautions against misuse.
iv. Brand names
v. Dates of manufacture and expiry
vi. Statutory [set by laws ] warning, if any.
vii. Any adverse effects, if any.

• In all packaging is an important component of marketing and manufacturers are coming with innovative packaging to attract the customer and labeling enables them to comprehend the
  materials used in the product.

Question 59

Briefly explain the role of labelling.

Answer 59

Role of Labeling
(i) Provides description of the product and specifies its content:
The label provides detailed information of the products, its ingredients, usage, care to be administered, caution, batch number, manufacturing place, helpline number in certain cases, date of manufacturing and expiry etc.

**(ii) Identifies the product or brand: **
Labeling enables to identify the product amongst the multiple brands.
eg. Baskin Robbins brand of ice-cream can be easily identified from the other brands on the basis of their labeling.

(iii) Aids in product grading:
If a company manufactures different qualities of product, labeling aids in finding which pack contains what type of quality.
eg.the variants of tea manufactured by Hindustan Unilever Ltd are differentiated by the company through green, red and yellow colored labels.

(iv) Facilitates in the promotion of products:
It also helps in sales promotion. Consumers are to drawn towards buying products on account of their attractive labels.

(**v) Helps in providing information required as per the law: **
The labels provides *statutory warnings *as required by the law in case of products like cigarettes, pan masalas.
They are required to carry the picture and the warnings too. In the case of hazardous or poisonous products too necessary statutory warnings are to be put on the label.

Question 60

What are the 4 types od labels as per William J. Stanton.

Answer 60

a) Brand labels: They are majorly meant to popularize the brand name of the product.
Cosmetics manufacturers prefer to use this kind. E.g: Perfumes, Lipsticks etc
b) Grade labels: They emphasize on standards or grades used for product identification.
E.g: Fabric, Tea Leaf, etc.
c) Descriptive labels: They are descriptive in nature; state product features and explains the various uses of the products. The consumables items like milk etc have descriptive labels.
d) Informative labels: The main object of these labels is to provide maximum possible information. In case of the medicines, detailed labels are attached which even specify the side
effects in using them.