10 product concept
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10 Product Concept. Professor Close. Product Planning. Product: - Anything a customer gets in an exchange (good, bad) Need satisfying offerings (Hallmark) Can be a good or a service Services are “products” too. Product Planning. Quality (What does it mean?) - PowerPoint PPT PresentationTRANSCRIPT
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10Product Concept
Professor Close
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Product Planning • Product: - Anything a customer gets in an exchange (good, bad)
– Need satisfying offerings (Hallmark)– Can be a good or a service– Services are “products” too
Good
Tangible
In advance
Possible
Possible
Consistent
Some Characteristics
Nature
Production simultaneity
Storage/ Perishability
Transport
Quality/ Heterogeneity
Service (def) deed for another
Intangible
“Close” to the customer
Impossible
Impossible
Inconsistent
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Product Planning • Quality (What does it mean?)
– Product’s ability to satisfy customer’s needs/requirements.
– Consistency (McDonalds and what other companies?)
– Relative quality – similar products against each other
What do you think are some What do you think are some quality products? Why?quality products? Why?
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Consumer Products
• General classification: what types of customers will use them?
• Businesses B2B or consumers B2C• Consumer products:
• For “final” users• Classifying consumer products
• How consumers shop• How consumers think about them
– Perception usage varies (among food items and what other product categories?)
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4 Types of Consumer Products
1. Convenience– Little time/effort; frequent purchase– Intense distribution– Substitutes acceptable– Low price (grocery products)
2. Shopping: time comparing alternatives; less frequent purchase, low loyalty– Homogeneous: seen as same; want bargain – Heterogeneous: seen as different; want quality;
salespeople help desired – Marketing: fewer outlets, higher markups
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4 Types of B2C Products, cont.
3. Specialty: is shopping an end, pleasurable; willingness makes it specialty
• Planned purchase: strong desire and effort (collectors); alternatives unacceptable
• Amount of search (Beanie Babies; xmas toys)
• Limited availability is OK; high markups
4. Unsought (tombstones; towing; dentists)
• Only want “in a pinch;” infrequent and no effort; lack knowledge or desire
• Promotion; sales (Dentists for phobic patients)
• What are your unsought products? What are your unsought products?
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What type of product?
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What type of product?
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B2B Products
• Businesses (B2B):– Use to make other products– Bought and resold– Used for corporate or organization’s use– Less shopping is involved (vs. B2C)– Classify via:
• How buyers think about the product• What type of customer will use the product• How the product is used
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Product Items, Lines, and Mixes
• Item: version of a product (Diet Coke)• Line: group of closely related products (Coca-
Colas soft drinks)• Mix: all the products a company offers (water,
energy drinks, soda)• Modify and reposition (Old Navy)
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Should Old Navy Reposition???
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Branding – Identify product via letters, terms, designs– Branding strategies:
– Brand name – letters associated with product– Trademark/servicemark – words, symbols for
one firm (legally protected)– Co-brand (apple ipod and coach)– Family – one brand, many products
(Hershey’s, Campbell’s)– Generics – no brand (signal of savings)– Dealer/private label: by store– National/manufacturer: by vendor
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Hot or not…What are the most equitable brands?
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Equitable Brands
1. Apple
2. Blackberry
3. Google
4. Amazon
5. Yahoo
6. eBay
7. Red Bull
8. Starbucks
9. Pixar
10. Coach
11. Whole Foods
12. EA Sports/Games
13. MTV
14. Samsung
15. Victoria’s Secret
16. Nike
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Branding
• Brand equity: financial value of the brand name
– Value (are we just paying for the name?)• Consumer – familiarity • Seller- be authentic, true to your people
– Less promotion (Reese’s)– Legal protection (Coke; Olympic rings)
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Better Branding; Less Promotion
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Packaging
• Defined as:– Container or wrapping
• Elements:
1. Function (fridgepack; pill bottles)
2. Promotion (L’eggs pantyhose; square Chanel)• Issues:
- UPC codes needed– Information: government guidelines (good or bad??)– Waste (kids lunches)– Size (changing??)
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Labeling
• Ethics (size of drink and sodium, calories)• Warrantees• Persuasive labeling (little information; focus on
logo)• Informational labeling (helps your buying
decision; lessens cognitive dissonance)• Your examples of each type of labeling?Your examples of each type of labeling?
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Summary
• Global branding issues
• Cobranding
• Trademarks/service marks
• Brand equity
• Branding strategies
• Product packaging/labeling