marketing mix: product and packaging chapter 19. what you will learn:- role of the product product...

MARKETING MIX:PRODUCT AND PACKAGING

Chapter 19

What you will learn:-

Role of the product Product Development Importance of Branding Importance of Packaging Product-Life Cycle Extension Strategies of

the Product-Life Cycle.

Role of products in the marketing mix

Most important element. Product look, properties, etc are

researched. Product must fulfill a want /satisfy

customer.

After market segmentation, the product and packaging are chosen.

Types of product.

Different types of products. Some sold to consumers, some sold to producers.

Products are grouped into:- Consumer goods- Bought by people.

Types of product.

Different types of products. Some sold to consumers, some sold to producers.

Products are grouped into:- Consumer services- Services for people.

Types of product.

Different types of products. Some sold to consumers, some sold to producers.

Products are grouped into:- Producer goods-

Goods produced for other businesses.

Types of product.

Different types of products. Some sold to consumers, some sold to producers.

Products are grouped into:- Producer services-

Services which help other businesses

*QUIZ TIME!!!

Product Consumer good

Consumer service

Producer good

Producer service

Toothpaste

Bank accounts

Office cleaning

T.V programme

Factory building

Tick where each product belongs correctly.

GOOD PRODUCT POINTS:

HAS TO SATISFY or will not sell.

Right quality so the price is what customers

want to pay.

A substantial amount of profit should be

added to the product price.

Attractive design to aimed age group.

Appropriate quality for brand image.

Reputation should be good or else no buyers.

Product Development:

Process businesses go through when developing product:-

Ideas generated

Select best ideas for further research

Decide if it will sell well. Product

success?

Develop a prototype

Test the market.

Full launch of product to

market

Sales departmentResearch &

developmentCustomer suggestionsCompetitors products

Some ideas abandoned, some researched further.Break even analysis. How large will the sales be needed to cover costs. Example/ test. Defaults are seen and taken care of. Product launched in a small part of the market. It’s successfulness is determined. Launched into main market. Later could be exported.

BREAK-EVEN ANALYSIS

Name the Brand

Name the Brand

Name the Brand

Name the Brand

Name the Brand

Name the Brand

Name the Brand

Name the Brand

Name the Brand

Name the Brand

Name the Brand

The Importance of Branding

• Today products aren't sold directly to

customers, but to other businesses or retailers.

• Products are sold to by being branded.

• Branded products higher quality

better consumer confidence

• Use of brands to encourage repeat purchases

• Creates Brand Loyalty

The role of packaging in the marketing mix

Suitable for the product. Provide protection, doesn’t allow it to

spoil. Suitable for transporting Should not be too delicate Used in promoting product

Color, shape, attractiveness. Eye-catching

Product Life Cycle (PLC)

All products DO NOT LAST FOREVER.

Like all living organisms, products also

have certain stages of their “lives” to

go through.

The process of what happens to a

product is called the product life cycle.

Product Life Cycle (PLC)

Product Life Cycle (PLC)

See “light bulb video” http://news.bbc.co.uk/1/hi/uk/7814502.stm

Questions Define the term “product life cycle” Explain why the standard 100 watt light bulb is

being phased out by leading retailers Why are customers prepared to pay a higher

price for energy-saving light bulbs?

Extension - What method of production is used in the manufacture of light bulbs?

Extending the product life cycle

Introduce new variations of the original product, e.g. a children version

-Ways that sales may be given a boost.

Sell into new markets, e.g. export the product to another country

Make small changes to the product’s design, colour or packaging

Use a new advertising campaign

Introduce a new, improved version of the old product

Sell through additional, different retail outlets

EXTENDING THE PRODUCT LIFE CYCLE

Let’s see how much you know…

a) Who are the customers?b) What attracts them to the

product?c) What brand image is trying to

be created?d) Where it is sold?e) How does the name support the

brand image?

Let’s see how much you know…

a) Who are the customers?b) What attracts them to the product?c) What brand image is trying to be

created?d) Where it is sold?e) How does the name and packaging

support the brand image?

Let’s see how much you know…

a) Who are the customers?b) What attracts them to the product?c) What brand image is trying to be

created?d) Where it is sold?e) How does the name and packaging

support the brand image?

Let’s see how much you know…

a) Who are the customers?b) What attracts them to the

product?c) What brand image is trying to

be created?d) Where it is sold?e) How does the name support the

brand image?

*EXTENSTION QUESTIONS.

1) Which of the containers from above would you use for the new fruit-flavored milk drink? Explain?

2) Which colours should the container be?3) Choose a brand name for the drink. What image does

this name give the product?4) What information would be needed to be put on the

product?

YOU HAVE CREATED A NEW MILK PRODUCT FOR KIDS. THE MARKET SEGMENT IS AIMED FOR PARENTS TO BUY IT FOR THERE KIDS. IT IS HEALTHY WITH VITMAINS AND MINERALS .

THE END!!