Lecture 05 : Terminologies Associated with Product - 3

Welcome friends, welcome back to the discussion  of terminologies associated with product.

I will go on with this discussion for this session  and probably the next one also, but till then, we

would be forming the complete, almost the complete  backdrop of aspects related to a product and then

we will traverse into the management side of the  products. We will be focusing upon the concepts

related to product in depth. We will be focusing  upon the concepts which actually drive product

management. Till then just let us focus upon few  more terms, for example, product mix.

Now, you see, it is related to a set  of all products and items a particular

seller offers for sale. Please have a look at  last session again wherein, I ended with a note on

Patanjali. So, if you would have visited a store  of Patanjali for example, just look at that store,

and you will realize what I am talking about and  that is where all the products come in under one

umbrella that is product mix. And you see a mix  can be characterized by a number of dimensions

like width, length, depth and consistency. I  would be talking about this in detail. Line

we have talked about a little bit and that is a  very important part of a product mix structure.

So, several lines, then several lines  in widths and length, in terms of line.

It is interesting and we will talk about that,  because that is related to decision making, that

is related to foreseeing the type of customer,  that is related to categorizing the customer,

that is related to developing the specific  message for specific customers as well. And that

part would be interestingly once again coming  in front of us when we would be referring to

a discussion on product in relation to other Ps  of marketing which is one of the most interesting

and one of my favorite discussions with marketing  students. So, you see, till then just keep these

terms like length, depth, consistency and those  kinds of elements in mind. And in the meanwhile,

please do study those. There are several very  good chapters in Philip Kotler and Kevin Lane

Keller s book of marketing management which  we have continuously been referring to,

as of now. Then another term, which  comes into being is product design.

You see, if specifically, someone  thinks of design as a perspective,

there is a whole lot of specific course associated  with that and if not, then at least 4 or 5,

6 hours of discussion can go into product design,  because starting from the personality and personal

perspective, which we have carried forward till  now, design encompasses almost everything.

So, product design is the totality of features,  features we have talked about. Remember

the way a product looks, its appearance, how  it feels and functions for a consumer. At this

moment, I am thinking of eyeglasses for example,  I have one in my hand. Let me wear it for a while.

Although I am unable to look clearly because  it is a reading glass. I cannot look clearly

in the camera but still you can look at me. And  now you see, this eyeglass is associated with

looks, I do not know how do I look, I do not  look very good, of course, but that glass looks

good that is for sure. And how it feels? I feel  comfortable when I read through these classes.

And you see, the functionality is definitely  associated with reading glasses, and it

is comfortable when I wear it, it does  not bother me, and so on. So just a simple

example. And why I mentioned about eyeglasses,  not just because I am having it in my hand at

this moment but also eyeglasses are a part of a  very composite and integrated part of our lives.

And I have talked about this earlier as  well, probably in a different course,

I think in integrated marketing communication  I may have referred to that. But you see if

many of you or any of you is using glasses, just  think of it as a product, and then see what some

messages by Lenskart say, also go to some Lenskart  showroom, ask someone to show you an eyeglass,

and you would exactly realize what we  are referring to in terms of design.

You see, it offers functional  and aesthetic benefits.

See, even if I tell you that this particular shape  looks good at you, you might not feel happy about

it until unless you feel comfortable wearing that  particular glass in front of the mirror actually,

and that is why they always tell you to watch  yourself. For example, you are trying a pair of

shoes somewhere in a shop and then they would take  you to in front of the mirror and when you would

watch yourself wearing a pair of shoes there  and feel about, how it looks on your feet.

So, aesthetic benefits appeal both to  consumer s rational and emotional sides.

Now, that is where you see a product should be  associated with the rational side of the consumer

when she feels in terms of and we talked  about user referent benefits and then do

remember that we have referred to attributes  related to benefits of a product and so on. So,

remember that discussion when we were talking of  rationality associated with the product design and

emotional side of a product design. We have talked  about these terms earlier as well. So, we will

keep on talking about the elements of design  in due course of time when I would be talking

of product related creativity and processes, I  would be using examples like beautiful headlamps

of automotives which actually give a very  interesting look to a particular automotive.

Many times when headlamps are very simple that  look is not there when you give them a round shape

then these days, I have found that automotive  manufacturers are interestingly focusing on

the shapes of tail lamps. It was unheard of or not  so prominent earlier, but they are now focusing

extensively in detail on as far as  particular shapes of tail lamps as well.

So, we will talk about that and  automotives is a large example of wherein,

several elements of design  are focused upon intensely.

Then comes in product variety and, you see,  just to give you a clue, when you look at

marketing mix of McCarthy in the same  book, which we have been referring to,

there is a description of four Ps given in that  marketing mix chart, and these terms you will

find there in under Product Category, wherein you  would find a specific reference to product variety

which refers to the number of different  classifications of goods carried in a

particular merchandising unit. There is a plain  and simple and scientific kind of a definition.

But again, product variety and variation  is deeply associated with product line

and then subsequently family and class and  so on, because we have gone through this

kind of discussion in hierarchy as well. So, you see, whenever we talk of variety and

variation, that talks about variety in terms of  different kinds of products. I will be coming

back to the discussion on width and those kinds  of things later on. But here that is why you see

I thought that it should be pertinent for us to  look into terms before going into the strategic

perspective of product and brand management  because at that particular stage when we are

using these terms in sequence or many times  interchangeably also we do not get confused.

We can always refer to these videos and the  references which we are using so that at

that particular stage we are clear in terms of  the management perspective of this subject.

Then comes in quality and you see it is related  to the totality of features and characteristics

of a product or service that bear on its  ability to satisfy stated or implied needs,

how do you feel about the product? does  it solves the purpose? is it related to

meeting your expectations especially against what  you are paying for that in terms of direct price,

time, search time and emotional aspect and so on?  So, it is a whole lot of again an array of things

which have to be considered in terms of quality  and this is just to give you a demarcation.

For example, you go to an upmarket restaurant  and you request for let us say, a samosa.

You definitely would be expecting  the kind of freshness, the kind of

methodology or the process through which that  samosa would be prepared in consonance with that

particular restaurant, and they may put up a price

relative to that. But when you are purchasing that  samosa from a local shop, on the roadside shop,

wherein it is sold as street food, you might not  think in terms of many things. You might focus

upon the kind of taste it may offer and that  is all. So, that is what street food is known

for and most of the times it is just the taste,  and it is just what is happening around you.

So, that is the perspective when you go to an  upmarket big shopping mall, you expect different

kinds of a response from that ambience, when  you go to a big huge Mega Mall or should I say

multiplex and you watch movie there while  you are paying 300, 400 rupees per ticket.

So, then you expect several kinds of  things, you expect the sound, the clarity,

the scene, the scenario and so on. But, if you are  watching the same movie in your own home settings,

it has a relative pricing also. So, you do  not mind when distortions and disturbances

are coming from all around you because you  cannot do much about that and so on. You

see that is where quality perspective comes in. Why is it useful? It is useful, because, as I said

and I hinted upon pricing associated with quality,  and then there are several production processes

associated with producing a particular kind of a  quality. Then there are several elements of human

resources associated with producing a particular  kind of quality and so on and a whole lot of

differentiation in terms of customers and target  customers and price premiums emanates from there.

It must justify everything, also  must justify the relative quality,

which a product offers. A 5 rupees, or 10 rupees  pen, is not expected beyond writing nicely,

but if you are spending let us say 500 rupees on  a pen, you expect much more other than the looks,

and we can keep going on and on about as far  as these things go about product features.

We have already talked about slightly in  terms of when we refer to attributes.

So, you see, the features are  the marketing characteristics

of a product, features of a car, features  of eye glasses, features of shoes, how

it looks, what are the aspects associated  with it and so on. And there again as I said,

there are several stages wherein a  strong overlap between the terms would be

felt. For example, design has an intense  relationship but as far as the features go

then form, product form and structure  matters, a lot and I will keep going on

with several examples but you understand what  I wish to say here when I talk about form.

Then comes in one of the most important elements  associated with products, packaging. It is a whole

lot of a science. It is a whole lot of an art  associated with product and product management.

Just to give you a clue, IKEA furniture s  focuses upon rectangular boxes and packaging

and whole lot of production philosophy they  have is around that rectangular packaging

art, wherein they imagine their products to be  dismantled and packaged into rectangular boxes,

whichever shapes the products may  carry at the end of the day.

That is how they design their production  processes, their transportation processes, their

stacking processes, go downs and distribution  processes as well. It is a very interesting movie

or kind of a film on IKEA furniture is available  on the web, you can watch that. You will realize

that puts up a whole perspective into a different  array. And then many times packaging becomes

the statement by itself to an extent that it  actually complements advertising. Many a times

packaging is related to information. Packaging  is an infused part of product s character.

So, packaging includes all the activities of  designing and producing the container for a

product the exterior and packages might have up  to three layers for example, Tomato Ketchup comes

in a bottle which is a primary package inside  a cardboard box which is a secondary package,

shipped in a corrugated box which is a shipping  package and so on containing dozen bottles in

cardboard boxes and so on. And as you see, talking  of Tomato Ketchup, it is very important for those

ketchups to reach safely to the customer and  so on. Packaging definitely is associated

with protecting the product, like shipping and  transportation, especially, if those products are

delicate, for example, sophisticated machines,

high end electrical equipment. So, definitely that  matters too much in terms of packaging material.

Laptops, sophisticated machines when they are  shipped to you, so, that again matters a lot.

So, you see packaging holds lots of clues  in association with the product promotion,

product support, product transportation,  distribution, production processes,

whole of as far as supply chain management also.  I would not enter into that domain but there is a

clue for you, and is definitely associated  with a whole lot of a marketing exercise.

I will be going into those details with  lots of examples later on as well.

So, then comes in warranties. See these are  formal statements of expected product performance

by a manufacturer. t gives assurance. Warranties  are not just that someone is extending warranty,

this is related to the statement  that the product would stand by.

Today, if I say that there is a product  which is not available with any warranty,

you would hesitate because then what is the  commitment? Definitely the product itself is the

commitment from the side of the manufacturer but  warranties and assurance actually are required.

For example, if insurance policy as a product  does not give you an assurance of settlement at

the time of need. Would you buy that? No. So that  is the perspective associated with warranties. You

see products under warranty can be returned to  the manufacturer or designated repair center for

repair, replacement or refund whether expressed  or implied warranties are legally enforceable also

and whole lot of world surrounds, this term in  terms of product assurance, because many products

go through several kinds of teething problems in  terms of usage and the customer is assured because

he knows that there is an associated warranty. So, customer keeps on talking to the service

station about and because that is under warranty  service station is liable to serve the customer

at his will. Returns, whenever, you want to return  the product, so, there is an agreement between the

manufacturer and the customer in terms of  product returns also and you would realize

that again this is very specific marketing  exercise element, when we talk of product

and brand management. And you would realize that  warranties, returns and these elements, they

are part of brand strength also later on. So, that we will talk about because we would

not be specifically referring to these  elements, when we will be talking of

brand equity development, but for example,  you are going to a coaching institution

to get an admission for a person, young boy  or a girl and they want to get through an

entrance examination. Now, there  cannot be a warranty or guarantee,

because you see, it depends upon how hard they  would work on, but still they extend assurance.

And nowadays due to several, competitive elements  associated with these kinds of services, many a

times the coaching students say that if within 1  week or 10 days, you do not find the course up to

the mark of your expectation it does not gels with  you or you are unable to take the intensity of

the course, your fees will be refunded, and that  is fair. Returns, warranties and these kinds of

things do work. These are very important parts, we  all know that we are all consumers, we all watch

it, but now, I want you to think about these in  terms of as marketers and not just consumers.

Now, let us go towards a different slightly  collaborative side, when we talk of

product development, we have talked  about production, production line,

now, let us focus upon development, (design also  we have mentioned), so how products are developed,

conceived, developed and carried forward and this  will again be very useful for us when we will

talk about the strategic progression of a products  journey, for example, when we will be referring to

the portion of new product development. So, this  term would come back to us. So just watch it.

And you see product development is the stage  involving engineering and design of the

physical product or conceiving an experience  for a customer. For example, I was watching

this website of a well known design company. And  somewhere I read there in the description that

they have designed entertainment or let us  say play park for young kids, means, it is

a community park where in the kids staying in the  buildings around, they just go there and play.

Now, those kids are 3, 4 years, 5 years of age.  So, this design company, they not only focused

upon the material of the products, for example,  seesaw, for example, other kinds of rides or

the equipment which they put in there for  children to play, their swings for example.

Now, the material, the strength of the material,  and not only being user friendly, but safe also,

and then the gadgets associated gadgets and  looking into the behavior of those kids,

how kids do behave when they go there,  they become naughty, they become kind of,

aggressive. So, looking at that, what kind of  places they may get hurt and to avoid that what

kind of safety measures can be taken so that their  joy can enhance and the safety can be improved.

So, that is where, product development comes in.  If you look at that experience perspective through

this kind of an example, then product development  definitely is a very, very strong story in terms

of, if we will look at it with the perspective in  automotive development. For example, when Scorpio

was developed all through and several motorbikes  have been developed in due course of time.

So, we can look into those as examples. We can,  live with those stories, and we can talk about

this at length in terms of engineering  and design of the physical products.

It can broadly be seen with three perspectives  which are demonstrated here, and I am not saying

this is limited to this but pertinent, because  these perspectives would be strongly at the

backdrop of our future discussions in due course  of time. So, when first perspective is associated

with rational planning. Please remember  that successful product development

can be seen as the result of careful planning of  a superior product for an attractive market.

It can also be seen, as, the resultant of the  execution of the plan by a competent and well

coordinated, cross functional, team that operates  for example, that team, which would have developed

usage, or let us say, perspective around usage of

Lego toys or bricks, imagining and conceiving  about what kind of shapes can be made out of

those bricks. There is where I am talking  of coordinated cross functional teams.

And then, senior management, wherein they  support that with their leadership abilities

and that is how, a product is well planned,  implemented and appropriately supported,

becomes a success. So, that is where rational

planning perspective comes into being. Then the  second element, which can be seen, and you see,

this is again taken from a research paper, which  can be seen in the references given there. So,

then another very important  element, as the author says,

is related to communication web,  communication among project team members,

and with outsiders stimulates the performance  of development teams. Better the members are

connected with each other and with key outsiders,  more successful the development process will be.

And we can think about this element with reference  to developing several kinds of applications. For

example, one of my favorites is, let us say,  MS Office 365. So, they would have tried to

understand several kinds of elements, and  they would have kept associated with so many

people from outside and from within and so on.  And then the developers would have gone through

a whole journey of developing a successful  product like MS Office 365. Just watch that,

and you would realize what I am talking about. Then comes in, discipline and problem solving.

I would briefly talk about this, and then I  would come to you in the next session with

problem solving perspective first and then would  be carrying forward a discussion around the terms,

because, you see, this is one of the most  important elements from which I wish to

develop and build upon our next subsequent  discussion. You see, discipline and problem

solving is evident through and when successful  product development is seen as a balancing act

between relatively autonomous problem solving  by the project team and the discipline of a

strong leader, strong top management  and an overarching product vision,

leadership and problem-solving perspective.

And the result is a fast-productive development  process and a high-quality product concept or

a product at the end of the day. So, when  we talk of discipline and product solving;

it has to be focused upon very intensely, or  it has to be seen very intensely. So, you see,

what kind of problem we are conceiving and  how are we conceiving a problem that itself

is a process. And once we have conceived  the problem rightly, how are we trying to

put up a product as a solution for that problem  solving, that is what we would be focusing upon,

that would make our future discussion  more interesting, once, we will live up to

an aspect of conceiving a problem. So, I leave you with this word problem . And

I will come up with my next discussion starting  with this word problem . By the way, till then,

just try to find out who has told you and when,  what is your problem? Till then, goodbye.