Chapter 1:

Chapter 4:Product Concept1What is a Product?Product offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want

Service consists of activities, benefits or satisfaction that is essentially intangible and does not result in the ownership of anything

Nature and Characteristics of a Service

Classified by how consumers buy them Convenience products Shopping products Specialty products Unsought productsProduct and Service ClassificationsWhat is a Product?Convenience products Customers usually buy frequently, immediately, and with a minimum comparison and buying effortNewspapersCandyFast foodWhat is a Product?What is a Product?Shopping products Customers will compare carefully on suitability, quality, price, and styleFurnitureCarsAppliancesSpecialty products With unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effortMedical servicesDesigner clothesHigh-end electronicsWhat is a Product?Unsought products Consumers do not know about or know about but does not normally think of buyingLife insuranceFuneral servicesBlood donationsWhat is a Product?What is a Product?Individual Product Decisions

Product Attributes Product Quality Performance, durability, reliability, repairability High level of consistency & conformance quality Aims - Customer Satisfaction

Product Features Can be without any extras, or adding more features Competitive tools for differentiating one from competitors Should periodically survey what customers like, & improve.. 1.0 Individual Product Decisions:Product Attributes (cont) Product Design: Concept, style (describe appearance), contributes to usefulnessAttract attention, improve performance, cut cost, competitive advantage

1.0 Individual Product Decisions:

Branding Name, term, sign, or combination of these to identify products or services

Different brands BUT same products make a difference (Everything has a brand)

BuyersIdentify products, tell the quality, guarantee for benefits Sellers Legal protection, help segment mkts, eg. Toyota, J&J..2.0 Branding:Brand Name Selection Should suggest the products qualities

Easy to pronounce, recognise, & remember Eg. Makro, Carrefour, Visa vs. American Express

Should be distinctive Eg. Kodak, Fuji, Toyota, Merce

Translate easily into foreign languages Eg. Pepsi, Coca-Cola

Capable of registration NOT infringe on existing brand names2.0 Branding (cont):3.0 Brand Sponsor:Brand Name SelectionBrand SponsorBrand Strategy Selection Protection Manufacturers brand Private Brand Licensed Brand Co-branding Line Extensions Brand Extensions New Brands MultibrandsEsky - Cooler or Chilly binSpeedo Mens swimming suitJeep - On-road vehiclesCellotape or Cellophane tapeBiro - Ballpoint PenDoona - Duvet (Australian??)SuperglueVelcro Generic Terms

17 Private Brand Retailers & wholesalers create their own brands

Manufacturer Invest in R&D, bring out new things, advertise, distribute

Licensing Characters on clothing, toys, cereals, school supplies.Eg. Pooh, Shrek, Mickey, Avengers, Hello Kitty

Co-Branding Two established brand names are used on the same product3.0 Brand Sponsor:Packaging: Primary container & Secondary Package, shipping package Contain & protect a product, attract attention, sellers last chance to influence buyer Eg. Shampoo, detergent, yogurt, HL Milk, Recycle.. Process Packaging Concept, Size, shape, colour, materials... Must be consistent with products advertising, pricing, & distribution4.0 Packaging:Examples of Packaging:

20 Labeling: Identify a product & brand, describe who made it, where & when it was made its contents, how it is to be used, & how to use it safely.Affected by unit pricing, expiry date, & nutritional labeling

Product Support Services: Augment actual products (to gain Competitive Advantage) Process - Survey customers to obtain ideas, then assess the costs of providing it Eg. 1800-free lines, guarantee, training, visits

5.0 Labeling & Product Support Service: