2 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
3 Product, service, or brand Core productActual productAugmented ProductNikeAssociation with the best in sportsShoes, apparel, etc.Nike online allows you to personalize your trainers
4 Product PlanningDetermining what goods and services you will have to sell.Typically, companies don’t just offer ONE product. They develop a Product MIXProduct Mix: all the different products a company makes or sellsTO DETERMINE PRODUCT MIX, a business needs to identify its target market, its competitors, and the image it wants to project.
5 Product Width/Depth Width- the number of different product lines Depth- number of items offered within each product lineRetailer sells 3 brands of jeans (width)Sizes, price ranges, colors for each brand (depth)KRAFT Example
6 Product Mix Strategies Develop New Products7 steps to product developmentVERY EXPENSIVEDevelop Existing ProductsConstantly reviewing products to see if they need modifying, or extensions.Line Extension- Cheerios cereal, extended into on the go breakfast barsDeleting 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
8 Managing During the PLC Create a chart like below. As you read pages 653 to 645 fill in your chart.I did stage 1 for you.StageSales CharacteristicsMarketing StrategiesIntroductionLeast profitable stageSales are lowPromotion is key. Need to get customer attention.Informational in natureSpecial Promotions to get customers to try product.
9 Product Positioning Create a place in the mind of consumer Set product apart from the competitionProduct Positioning Video
10 Identify Product Mix Assignment Choose one of the big 4 Cereal makersCreate a list that identifies their product mixes.Identify two product extensionsIdentify two of their newest products#44 in notebook
12 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
13 Elements of a Brand Brand name Trade name Trade character Trademark Brand mark
14 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
15 Trade Name AKA- Corporate Brand Identifies or promotes a company Legal name of companyPromote Positive imageKeep free from negative connotationsExamples: Nike, Kelloggs, Disney, Proctor & Gamble
16 Brand Mark(many brands incorporate) Unique symbols, coloring, lettering, or other design elementsStrong brand mark= recognizable without words.Logos’ are a brand mark
17 Trade Character A specific type of brand mark One with human forms or characteristics
18 Trade Mark Anything that is legally protected. Prevent other companies from using similar elements that might confuse customers.You can trademark your brand, brand mark, and trade character.
19 Why are brands important? Establishes an image for companyBuilds recognition and customer loyaltyEnsures quality and consistencyHelps allows companies to extend products later
20 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.
21 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.Example – NFL has licensing agreements with Pepsi so that Pepsi can use their logo in their promotionsMixed-BrandCombination branding (enables business to maintain its brand loyalty through its national brand and reach several different target markets through private brands or store brands.Co-BrandingCombining brandsSmucker’s filling in Kellogg's Pop TartCombines one or more brands in the manufacture of a product
24 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!!!!
25 Functions of Packaging Promote and sellProvide informationProtect productEnsure safe useExpress customer needsCreate identity
26 Promote and SellAttractive, colorful, and visually appealing packages sell betterPackaging bundlingMixed bundlePrice bundle
28 Provide Information Directions for use Information about content Product guaranteesNutritional valuePotential hazards
29 Express Customer Needs Various sizesFamily packIndividual sizeOn the goGet innovative to better meetcustomers needs!!!!
30 Ensure safety Must be safe for customer Using plastic instead of glass Tamper resistant tops (child proof)Blister packaging- molds with backing
31 Protect the Product During shipping, storage, and display Prevent tampering, shopliftingPrevent spilling, breakage, spoiling
32 Trends in Packaging Aseptic Packaging Environmental Packaging Cause Packaging
33 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
34 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
35 Labeling Laws Name and Address of manufacturer, packer or distributor Quality contentsCannot be misleading or deceptiveFair Packaging and Labeling Act
36 Packaging the Science of Temptation Video with questions
37 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