2 Quiz todayYou have 10 minutes to review the new product development flow chart and number in your notebook.
3 What is A Product? Anything a person receives in an exchange. Goods- tangibleServices- intangibleThree Levels to each productCore ProductThe benefit that a customer will receive from the product.This is not tangibleEx: Core product for cereal: Satisfies hungerActual ProductThe tangible, physical productColor, quality, brand, features, etc.Augmented ProductThe non physical part of the product. Adds value or extends the productWarranties, customer care, installation, services, delivery
4 Product PlanningDetermining what goods and services you will have e to sell.Typically, companies don’t just offer ONE product. They develop a Product MIXProduct Mix: all the different products a company makes or sellsProduct Lines: group of closely productsProduct item: a specific item within a line
5 Product Depth and Width Product Width: number of different product linesProduct Depth: number of items offered within each lineLet’s Look at Coca Cola and Pepsi
6 AssignmentYou will be assigned a company, you are to look at the company website determine their width and depthGraphically represent those as shown on board.
7 Product Mix StrategyA plan for determining which products a business will make and stock.3 mix strategiesDevelop new productsDevelop existing productsProduct modificationsDeleting a product or line
8 Product Mix Strategies Develop New Products7 steps to product developmentVERY EXPENSIVE
9 7 Steps of New Product Development Flow Chart Utilizing Chapter 30 in your bookCreate a flow chart to represent the 7 steps in product development.Title your Flow ChartLabel and Number each StepComplete a minimum of 3 bullets that detail what occurs in each stepUse color to visually separate each stepMake sure that you read for comprehension
10 New Product Development Generate IdeasScreen IdeasDevelop a Business ProposalDevelop the ProductTest the ProductIntroduce the ProductEvaluate Customer Acceptance
11 New Product Assignment Identify one new product that your company has introduced in the last year. Create a PowerPoint slide for the new product.Picture of productName of productWhen introducedDescription of product: (copy exactly as they word it)Create a Feature/Benefit Chart for the new product (must have at least 3)Identify the Augmented ProductRetail Price of productPromotional messages found (at least 2)Save your PowerPoint, we will be adding to it.
12 Managing During the PLC On a Blank Sheet of Computer Paper. Draw the Product Life Cycleand fill in sales characteristics and marketing strategies for each section. Make sure you label each stage and title the cycle.As you read pages 643 to 645 fill in your chart.
14 Product Mix Strategies Develop Existing ProductsConstantly reviewing products to see if they need modifying, or extensions.Line Extension- Cheerios cereal, extended into on the go breakfast barsThis is different than product extension
15 Product Mix Strategies Deleting a Product or Product LineMust pay attention to ProductSales increasing or decreasingLoss of AppealMust pay attention to Product Life CycleDecline Stage, Obsolescence stageMust pay attention to Company Objectives
16 Line Extension Cereal Line to Breakfast Bars Line Product ExtensionBeverage Line to Beverage Line
17 Group AssignmentOpen your New Product Launch PowerPoint, add the following to it.Modifying/Extending ProductsEach person in your group must identify one line extension and one product extension. Create a one slide visual display for each person’s examplesProduct DeletionIdentify one product that your company has deleted recently. Create one slide that outline the following.Identify when it was initially launchedWhen it was discontinuedA pictureDetermine why it was discontinued (research and read to find out)Save your PowerPoint and it to me at with the subject line Name(s)ProductMixStrategies
18 Presentations and Review Presentations of Product Mix StrategiesWorkbook Pages261 and 262
19 Product Positioning The image that the product projects. Set product apart from the competitionProduct Positioning VideoWays to PositionPositioning by StatementPositioning by Market SegmentPositioning based on Magic, Emotion, and StoriesPositioning by social ApprovalPositioning against competitionRepositioningPositioning by pricePositioning by namePositioning by unique attribute.
20 Positioning Challenge From Magazines find three examples of three different positioning types.Tear out the adAnswer the following questions for each adMagazineBrandType of Positioning used
22 Branding Important part of product planning Brand: Name, Term, Design, symbol or character that identifies a product or service.Like a personality to a human
23 Elements of a Brand Brand name Trade name Trade character Trademark Brand mark
24 Brand Name AKA- product name Word or group of words that represent a productShould be easy to remember and to pronounceMay be used to position a product.Positioning by name!Examples: PT Cruiser, Barbie, Big Mac, SnackHealthy
25 Trade Name AKA- Corporate Brand Identifies or promotes a company Legal name of companyPromote Positive imageKeep free from negative connotationsExamples: Nike, Kellogs, Disney
26 Brand Mark Unique symbols, coloring, lettering, or other design used Strong brand mark= recognizable without words.Logos’ are a brand markMakes shopping easierMust be suitable, creative, and memorable
27 Trade Character A specific type of brand mark One with human forms or characteristics
28 Trade Mark Anything that is legally protected. Prevent other companies from using similar elements that might confuse a customers.You can trademark your brand, brand mark, and trade character.
29 Why are brands important? Establishes an image for companyBuilds recognition and customer loyaltyEnsures quality and consistencyHelps allows companies to extend products later
30 Brand Names 75% of all companies introduce new products every year Must research to ensure name isn’t already in use.Once brand has been generated and research, companies will conduct research to gage brand effectiveness.
31 Branding Strategies Brand Extensions Brand Licensing Mixed-Brand Use an existing brand to promote a new or improved productExample- Ocean Spray Cranberry JuiceCran-Apple, Cran-Cherry, etc.Brand LicensingAllowing other companies to use your brand, brand mark, or trade character.Mixed-BrandCombination brandingCo-BrandingCombining brandsSmucker’s filled Kellogg's Pop Tart
32 Cereal Project- Stage 2New Product Development Steps 1-3 (1day)
33 Cereal Project- Stage 2 Step 4 new product development Create your brand name/logo with slogan (1 day)
36 Packaging Physical container or wrapping for a product Integral part of product planning and promotion10% of a products retail price is spent on packaging$100 pair of shoes, $10 was for the box that you throw away!!!!
37 Functions of Packaging Promote and sellProvide informationProtect productEnsure safe useExpress customer needsCreate identity
38 Promote and SellAttractive, colorful, and visually appealing packages sell betterPackaging bundlingMixed bundlePrice bundle
40 Provide Information Directions for use Information about content Product guaranteesNutritional valuePotential hazards
41 Express Customer Needs Various sizesFamily packIndividual sizeOn the goGet innovative to better meetcustomers needs!!!!
42 Ensure safety Must be safe for customer Using plastic instead of glass Tamper resistant tops (child proof)Blister packaging- molds with backing
43 Protect the Product During shipping, storage, and display Prevent tampering, shopliftingPrevent spilling, breakage, spoiling
44 Trends in Packaging Aseptic Packaging Environmental Packaging Cause Packaging
45 LabelingLabel: information tag, wrapper seal, or imprinted message that is attached to a productInform customers about product contentGives directionProtects businesses from legal liability if injury occursMcDonalds Coffee Example
46 Types of Labels Brand Label Descriptive label Grade label Gives brand name and logoDescriptive labelGives information about product use, construction, care, performance and features.Nutrition labelBest by datesGrade labelQuality labelGrade A eggs
47 Labeling Laws Name and Address of manufacturer, packer or distributor Quality contentsCannot be misleading or deceptiveFair Packaging and Labeling Act
48 Packaging the Science of Temptation Video with questions
49 WarrantiesA promise or guarantee given to a customer that a product will meet certain standardsExpress warrantyFull warrantyLimited warrantyImplied warrantyWarranty of merchantabilityWarranty for fitness for a particular productdisclamer