 Welcome learners! Today I will discuss the fourth unit of marketing management of BBS second semester program. The name of the unit is concept of product and this is the second video lecture. First we should go to the outline of the presentation. After going through this video lecture you will be able to discuss the concept of product diversification. Then you will be able to explain products standardization and describe product simplification. In the earlier presentation we have already discussed how new product can be developed. So, first we should go to the product diversification. By diversification we generally mean that something new will be added. It may be a new product or it may be new market or may be use of new technology for the existing products or even a new company. So, this newness is now considered as diversification for the product. So, what are the objective of this diversification? Some of the basic objective of this diversification are to use the existing selling and distribution facilities up to optimum level that means maximum utilization of the resources. Then to meet the changing taste and desires of the customers as the consumers requirements are changes. So, diversification can able to meet the changing requirements. Then to take the advantages of existing reputation. So, that the product does not become obsolete immediately. Then to meet new products of competitors efficiently. Then to increase the amount of sales and quantity of existing products. Then to cope up with the technological development in the process of production. Then to create new markets for the product. Again to expand the product line or the product items and to enhance the amount of profit. If a company will diversify their product then there are chances like they can earn more and more profits. So, basically there are two types of diversification. One is your related diversification and another one is your unrelated diversification. So, first we should go to the related diversification. When a product is introduced in the existing product line such diversification is known as a related diversification. For example, suppose a ballpen company they introduces gel pen. So, that is a related type of products that's why it is considered as related diversification. And what is unrelated diversification? When a product is introduced which is not similar to its earlier products or services. Suppose book publishing companies are all of a sudden they have started producing food and beverages. So, it is totally different products. So, in case of that kind of product diversification it is known as unrelated diversification. Next we will go to the standardization. So, what is product standardization? Like product standardization means the determination of the basic limits or grades in the form of specifications to which manufactured goods must conform and classes into which the industry may be stored. So, standardization is the process of formulating and applying rules for an orderly approach to a specific activity for the benefit of all concerned. So, product standardization helps us in standardizing the particular product for the market. There are different types of standardization. Some of the important standards are suppose product standards. So, when the industry sets the standard for the product then it is easier for the customers to purchase a specific product like ISOI mark or FBI certification all those things set the standard of a product. Then material standards suppose hallmarks all these gives the material standards for the product. Then quantity standard like the standard measure for different types of quantity of the product. Then process standards, safety standards all these standards helps in standardizing the quality of the product. Then we will go to the product simplification procedure. So, the product simplification procedure it consists of four steps. One is committee formation for the simplification of the product. Then design criteria which will develop and design for the product simplification. And then spell out simplification strategies for the strategy company will add up for this product simplification and then program implementation. So, all these four steps are required for simplification of a product. Now, we will discuss the product simplification strategies. Some of the important strategies for the simplification are first one is product line pruning strategy, then the run out strategy, then contract marketing strategy and then product license strategy and product abandonment strategy. So, in this video lecture we have basically discussed product diversification, product standardization and product simplification. Now, we will just sum up. So, in this video lecture we have discussed about product diversification, standardization and simplification. The efforts of developing product if increasing the scope to satisfy the needs of the customers who like a change for the product. The development of product is the way for expansion of business activities and meeting the competitors efficiently. Product diversification, standardization and simplification are the marketing strategy to keep the firm ever growing effectively and efficiently. With these strategies the firm can meet the competitors strongly. So, hope you have understood this video lecture. I have given few references. See you again in another video lecture. Thank you.