Presentation on theme: "Product. Product Planning Involves making decisions about those features that are needed to sell a businesss products, services, or ideas."— Presentation transcript:
Product Planning Involves making decisions about those features that are needed to sell a businesss products, services, or ideas.
ELEMENTS OF DEVELOPING A NEW PRODUCT
Things to consider Size Shape Naming Labeling Packaging Colors Quantities
Brand Extension Brand Extension is the use of an established brand name in new product categories.
Brand Extension Advantages Acceptance of new product is easy Feedback benefits Disadvantages Loss of reliability Damage the image Less awareness
Product Mix Includes all the different products that a company makes or sells.
Product Line A group of closely related products manufactured and/or sold by a business.
Product Item A specific model, brand, or size of a product within a product line.
Product Width Oral Care Blades & Razors Personal Care BatteriesAppliances Width of the Gillette Product Mix The number of different product lines a business manufactures or sells.
Product Depth Oral Care Blades & Razors Personal Care BatteriesAppliances The number of product items offered within each product line.
Product Mix Strategies The plan for how the business determines which products it will make or stock May develop completely new products May expand or modify their current product lines May drop existing products
Developing New Products The new idea takes physical shape Marketers develop a marketing strategy Testing the product with consumers
Developing New Products Introducing the Product –The product has been researched successfully –This stage also is called commercialization Evaluating Customer Acceptance –Marketers track new product performance
Developing Existing Products Companies constantly review their product mix to see if they can further expand their product lines or modify existing products. Two ways to do this: –Line extensions –Product modifications
Developing Existing Products Original Product Newer Products Line Extensions – new product lines, items, or services
Developing Existing Products Product Modifications – an alteration in a companys existing product
Features and Benefits Features are what your product enables your customers to do. Benefits are the outcomes your customers get that help them achieve business objectives.
WIIFM? Whats in it for Me? The most relevant marketing content is focused on benefits. Features are a dime a dozen from a prospect's perspective.
Product – Television Features 42 diagonal screen LED technology Full HD 1080 (resolution) 3.9 cm thick Benefits It will be like a cinema, except in my own home Will save some energy and give relief to my eyes You wont miss even the smallest detail It wont occupy much space, and it can hang on the wall
Customer Service and Warranties A warranty is an assurance by one party to the other party that specific facts or conditions are true or will happen; the other party is permitted to rely on that assurance and seek some type of remedy if it is not true or followed. How do customer service and warranties help a products success?
Packaging Functions 1.Protect a product from damage or contamination 2.Keep the product together 3.Identify the product 4.Ease of Transport 5.Stacking and Storage 6.Printed Information
Packaging Strategies Price bundling is a strategy whereby a seller bundles together many different goods/items being sold and offers the entire bundle at a single price. Mixed bundling occurs when consumers are offered a choice between purchasing the entire bundle or one of the separate parts of the bundle.
Labels Descriptions of the product Branding – a name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers Grades – quality of a product