Lecture 03 : Terminologies Associated with Product - 1

Hello Friends, Welcome to this third  session of Product and Brand Management.

And just to give you a glimpse of that in  last two sessions, we tried to build up

and I would not say concept,  but I would say build up a

basic philosophical perspective around a  product and a brand. To look at a product

with a view of being something wherein we can  interact with or which can respond to us.

We talked about personality and persona, and  similar kinds of concepts. We referred to

a very lively product, which has

created a very huge space for itself like Barbie.  Now, going forward, let me take you to a journey

wherein, we would be learning few terms or let  us say terminology associated with products.

I would not be specifically focusing upon brand  and branding at this stage, which would follow

subsequently after we have built up a story around  understanding products and product management.

And because we are talking of Product and Brand  Management, we must understand how do we denote

the aspects associated with product management.

Because at the end of the day, we wish  to learn how to manage a product.

So, we just do not want to limit our understanding  on what a product is. So, let us go along,

let us find out that what are the aspects which  accompany the world of a product, any product

for that matter, and at this particular stage, I  wish for you to think of a product around you with

a backdrop of our discussion we  have had in last two sessions.

So, let us begin with the terminologies associated  with products. And, when we are talking of

terminologies, I would like you to think in  terms of the definitional frame once again.

We will spend a few minutes here because  that will shape our understanding

of a product. Definitions are ways through  which we look at something, we frame something,

we can find something within a frame of  understanding, and we define something. So,

while talking about the definitional perspective  associated with a product, we will be talking

about domain of a product and actually that is  important for something for being a product.

This is a popular definition given by Professor  Philip Kotler and Professor Kevin Lane Keller

in their book called Marketing Management  15th edition, published by Pearson in 2016,

and Indian edition was published by Pearson  India Education Services Limited in 2016.

So, the definition is that product is  anything that can be offered to a market

signifying a set of customers to satisfy a want. And probably you have gone through a course of

marketing management or if you have not, I would  request you to go to some chapters of marketing

management to understand about what a want  or a need is and just to give you a glimpse.

Need is fundamental, which percolates down into  several kinds of wants basically, and very common

examples are there that hunger is need and can be  satisfied through parathas and burgers and so on.

So, that is where want traverses. So, product  is anything that can be offered to a market to

satisfy a want or need. And when I say or need  means that it reflects the satisfaction of want,

reflects on the satisfaction of need and  probably vice versa, including physical goods.

Now, mark the categorization here services,  experiences, events, person, places, properties,

organizations, information and ideas and nowhere  the authors have said that this is a specific

categorization. Here I would suggest that you may  think of adding few other elements here as well.

They have given a larger picture to us to  follow, to ponder upon and to think about. Now,

let us briefly look into all these  elements, for example, physical goods,

any physical good around you  for example, at this moment, you

probably are sitting on a chair, so, furniture,  appliances, building, vehicles, and so on.

And then we talked about IKEA furniture the  other day. Because, we have talked about

a product's persona and personality, we  may also see here that a physical good

can be observed, can be experienced as well.  Although, I should have said it at the end,

but beforehand can also be good to mention here  that all these elements which we are referring to

may coherently also be seen, and let me explain  how. For example, we are talking of experiences in

terms of a product. Physical goods may also extend  experiences, but there are specific products,

which actually bring on experiences that is why we  have categorized experiences as a separate stream

while defining a product. So, after physical  goods, there are elements of services, education,

transportation, health care, and so  on. And there are several examples.

Let s say education as a service. This morning, I  was talking to a group of academicians who want to

launch a new course, and they specifically were  mentioning that how service oriented they are

meaning thereby, that they intend to focus upon  the satisfaction of the wants of their customers.

And they were mentioning about customizing several  kinds of courses, they would offer for example,

two years program in management or let  us say a certification course and so on.

And they have this thought of bringing in the  element of satisfaction to the target customer,

the market, which we are referring to here in  this definition. And we will be talking about

this satisfaction element at a larger level in  due course of time along with several other kinds

of discussions, which we would be having in due  course of time and especially, when we would be

talking about a product getting converted into  a brand which we discussed briefly last time.

Experiences, Walt Disney: World's Magic  Kingdom. It lets customers visit a fairy

kingdom for example, a pirate ship  or a haunted house and so on. You see

a unique kind of an experience which you gain  while going through a service or a product,

whichever way, for example, you watch a movie. Now, sitting in a cinema hall can bring on

an experience to you for example you pay  for a specific seat, a premium deluxe seat,

and something is served at that particular  seat. It has a recliner wherein you can just,

lay back and watch the movie in a huge cinema hall  as if you are sitting in your own drawing room

wherever you are feeling comfortable. So, that  kind of thing basically, then comes in events.

Authors have talked about events as products.

Events bring in customers and events are  meaningful and it is a matter of exchange also.

So, there are several types of events for example,  conferences, community events, auctions and

several other kinds of live programs,  music shows and dance shows,

and film promotion shows basically lots of events  are there. India is cricket loving country.

Cricket matches are events, for example, Indian  Premier League, IPL is an event and it again has

all the components of being called as a product.  And simultaneously it can bring you satisfaction,

it can bring you experience also and so, on. Then comes in person, person can be marketed as

a product, yes, several actors are there. And  today we are in an era where in standalone and

standing comedians are making a very huge mark for  themselves. Poets are there, singers are there,

and several kinds of artists and celebrities  and professionals are there and then several

doctors can be marketed as products basically  for example a hospital specifically says that

an expert Doctor is working with  us. So, that can also be there.

We all know about many renowned names, who can  be seen as serving a particular kind of a purpose

in terms of being termed as a product. Places, for example, Haridwar is a famous city

nearby, where I am standing right now in Roorkee.  And that city can be seen with the perspective of

being a product. It is a holy city, people come  there to take a dip in the holy river Ganges,

and there are several congregations  which are organized there in

that city. Kumbh Mela, which is the largest  congregation on this earth is organized,

after a certain period of 12 years in that city. So, that is where we are talking about

a city being a product. A state, remember that  Gujarat campaign, where in whole state is being

marketed and Kerala as well. So, a state can also  be a product. Then there are several regions and

there is a term nation branding, wherein  nations are being marketed as a product

for example Malaysia being promoted as Malaysia  truly Asia. Another very important example is

Incredible India. Then come in properties,

real property, real estate, then financial  properties, stocks and bonds and so on.

Organizations can also be products, museums,  performing art organizations, nonprofit

organizations, corporate organizations,  commercial organizations and so on.

Several kinds of organizations can be seen with a  particular kind of a product perspective, because

if you have a target in mind, then an  organization can be marketed as a product itself.

And then information and in today's  era, the biggest asset is information,

and one of the most important  saleable products is information.

Whole of this world is seeking information  as of now, and it is not just to elaborate

on this element, actually we are all driven  by as far as information marketing goes. Lot

many companies are trying to buy our information  from somewhere at this moment. So, that is where,

a kind of information is essentially what  books, schools, portals, universities produce,

market and distribute at a price to the students,  to the customers and to the companies as well.

Today, when we say organizations, so, an institute  as an organization can also be seen with the

perspective of being a product and do not just  get confused on this, try and see the overlap,

because categorization has to be done with  reference to the market and satisfaction

of needs and wants. And then on the other side  information produced by the similar kind of an

organization which itself is seen as a product  can also be seen as a product at this moment.

So, that is the point here and under  information generated by the schools, that is

marketed and information bought by the schools  to further distribute that is also a product.

We have to specifically imagine that what  are the elements associated with marketing,

market, customer and satisfaction of wants and  needs, which can specify something as a product.

Now come in ideas. Some ideas can be marketed.  If you have that kind of a perspective around

wherein you can project some idea you can sell  it to someone and if you can sell that to someone

and that someone can buy that idea to propel it  further so, that idea can also be an idea of a

story for example. Now, that can be converted into  a story and that story can be marketed as a movie

or produced like a movie later on. So, that is how this categorization works,

keep pondering upon these important terms in  relation to definition, which compositively,

brings it forward to you. Now, we will be seeing  some other important terminology related to

a product, product system. You will be hearing  these things probably later on as well many

times or you would be hearing it from someone  else or on portals or you would be using it

someday. So, product system

is a group of diverse but related items that  function in a compatible manner. Sometimes you

have purchased a complete system. People also call  it echo sphere. Earlier we used to call a computer

as computer system basically. I have purchased  a system because somehow the monitor, the CPU,

and those kinds of units constituted a system. So, they can be seen as a system working in

compatibility, wherein different components work  with each other. In today's scenario, when we

carry a mobile phone that works as a computer  as well many times for our genuine needs or you

have a laptop, which works for so, many kinds  of things, form example it can be used as a

display screen for watching a movie on the other  side, you simultaneously can write a mail and

simultaneously can use it for programming also. So, that system has compositively got reduced

into one product basically and that is how  systems and products are related to each other.

For example, you have purchased a complete  audio setup or let us say a theater system

basically. Many times you would feel that  many products have been referred to with

reference to a system and later become a composite  product by themselves because technology is

enabling things to happen all around us. So,  there are several kinds of examples which can

be used further as iPod. Product system include  headphones, headsets, cables, armbands and cases,

power and car accessories and speakers and so  on. So, everything can work as a coherent system

basically with compatibility. Compatibility is the  core element of when we talk of a product system.

Now, there are elements of product  attributes. We have been talking of

product personality and persona. Now, let us look  at the elements associated with how we actually

visualize a product. So, attributes can definitely  support us in understanding this element.

Product attributes are the characteristics. We  used this word characteristics, in personality

discussion as well. So, attributes definitely  make a composite part of a product's personality,

because attributes are also referring to  characteristics, but here we are specifically

looking into few of those. So, attributes are the  characteristics by which products are identified

and differentiated. Product attributes usually  are comprised of features, benefits and usage.

Many authors have worked upon this I have  referred to very good paper here, which

explains few things and I will read those for  you. So, the classification schema as proposed

by Myers and Shocker for describing products  and services include three major categories:

one is product referent, the other is task or  outcome referent that is benefit that focuses

upon benefit and the other is  user referent that is usage.

So, that is this classification would come  along with us in many forms later on also.

When I will be discussing core and potential  product and augmented product and that kind of

a circular formation wherein we will try  to understand similar kinds of things.

So, product reference, wherein physical  characteristics, that is color, temperature, size,

texture, weight, volume, material composition,  smell, taste, etc. and please do remember

the chart where we discussed about Barbie. The  elements of the material used to make Barbie as

a doll. Those kinds of elements are also included  as far as characteristics go and then comes in

task or outcome referent, wherein perceived  benefits from using a product come up as an

outcome. What product will do for the user? The benefit which is observed and

foreseen by a user actually, for example, Ariel  selling its detergent focusing on the benefit of

washing dirtiest of the clothes. The benefit  is cleaning the clothes. And then comes in

user referent image that the consumer has of  himself or herself relative to the product

phrases such as the choice of professionals, gives  a high-tech appearance and are selected by only

the most demanding purchasing agents and so on. Attributes encompass or are encompassed by all

these elements actually, and it is wonderfully  explained by this research paper, and it will give

you a fair glimpse of how things work. You see any given product or service

often may be presented in more than one attribute  class creating a linkage among attributes.

Now, as I have been saying and just  mentioned when I was discussing

definition and elements of a definition with  you, that categorization is necessary for us.

Here we are trying to understand  attributes with no reference points,

but there always is an overlap  and that overlap is actually not

per say in terms of actually intruding from this  category to the other category. It is actually

the reference point of coherence between  the categorization which we are doing,

and that is same. So, benefit and user reference  can definitely have a coherence, for example,

characteristic and image attributes may be  linked as in the case where a gold credit card

implies an exclusive, upscale, premium image or  beneficial and image attributes may be linked

as in the case of an automobile with beneficial  attributes of fast acceleration, which, projects a

specific image. It is a kind of high-speed car or  something. Gold is premium kind of a credit card,

but definitely it has a fundamental usage  of being used as a credit card as well.

Then, when making judgments about multi-attribute  alternatives, consumers are likely to face

a mixture of characteristics, beneficial and  image attributes as such. But again, it is the

originating point of how we will expand the  target market or how we will differentiate

the same product with slightly different  characteristics for different kinds of consumers.

That is a very important element for  us to understand and you will realize

that in a short while from now or  let us say in subsequent sessions,

wherein I would be discussing product line  as well. So, there you would understand that

product may emanate through and through in a line  wherein feature differentiation can also come in.

And there is again a point of  discussion associated with that,

then, these attributes are considered  for consumer preference, evaluation

and judgments altogether. Now, again, I  will be focusing very briefly upon as far as

the elements related to product hierarchy are  concerned and would be choosing one to discuss

right now and subsequently I would be  going to others in the next sessions.

So, let us focus on product hierarchy. What  actually can be seen as product hierarchy?

Six terminologies from product need  to product variant are identified as

product hierarchy. This also explains about  how a product traverses or gets classified,

in due course of time. That stretches from basic  needs to particular items that satisfy those

needs. So, why do we wish to understand this,  and for example how to categorize a detergent

and then how to put up different sets of customers  for different variants of a detergent or let us

say one detergent to solve or satisfy the wants  of different kinds of customers all together.

Would it be possible? I think that there is  a question mark here. There are some products

which are universally used by almost everyone, but  then there are customers who want differentiation

anyhow. And that is again a very big question  or otherwise some competitors would come in

with a different kind of product and that  also would be seen when we will be talking

about competition perspective associated  with product and product management.

So, to start with, let us talk about product need.  The core need that underlies the existence of a

product family. I will be talking about family  next, but the core need that underlies the

existence of a product family is called product  need for example, need for products like laptops

or smartphones or calculators exist because of  an underlying core need of computing. You want to

compute and analyze something basically,  you want to calculate something.

Now, that need, can focus upon a particular kind  of an application which any of these devices can

resolve for you depending upon the capacity and  capability of these devices, which we are using.

Then there is or there can be another example  that you have a need for commuting or travel

and that can be satisfied by passenger cars or let  us say some other modes, which you may be using to

reach to a particular kind of a destination. And the point here is of satisfaction of that

particular need, which is fundamental in  character. You may even walk but because

as you will be walking so, that cannot be  seen as a product because it does not come

from a marketer to you. But, that can be talked  about if you pay someone to motivate you to walk

to go to your place every day, then  definitely it can be seen as a service,

but it is a complicated thought. But, still there is a scope for looking at it,

and I will be coming to this point  of alternatives and substitutions,

when I will be referring to families and classes  later on. Then there is need for a toothpaste,

which exists because of underlying core  need of dental care for example. So,

dental care is the need and it can be satisfied  by products like toothpastes and you can use

datoon as well, kind of a twig, a herbal twig. Now, I will stop this discussion here and I will

carry forward with a discussion on family classes  with the perspective of a product hierarchy

in the subsequent session. Keep thinking about  what we are discussing. Keep working upon that.

Keep watching around you. Now onwards start  looking at product hierarchy around you. I

will come back with lots of discussions and lots  of insights for you. Till next time, goodbye.