Product All you need to know about products (For now :) )

Classification of Consumer Goods All consumer goods fall into one of three classifications: –Specialty goods –shopping goods –convenience goods

Specialty Goods A specialty good is any product that consumers will go out of their way to buy because they see it as having particularly unique advantages If consumers know exactly what they want, and will accept no substitutes, they view the product that will satisfy their wants as being extremely desirable

Shopping goods Shopping goods are products that consumers purchase after comparing the price, quality, and suitability of similar goods. Shopping goods can be compared in two ways: either by price, because the consumer views all of the products to be of equal quality; or by quality, with price being less important

Brands, Brand Names, and Trade marks A brand is a title, symbol, or combination of both that identifies a product in the mind of a consumer and sets it apart from it’s competitors. A brand name is the verbal portion of a brand, the part that can be spoken. A trademark is a legally protected name or symbol which is owned exclusively by the company which is represents.

Brand loyalty There are 3 levels of brand loyalty: –Brand insistence –Brand preference –Brand recognition Successful brands are worth fortunes! Brand Families vs individual Brands

Brand insistence highest level of brand loyalty A product that has achieved brand insistence requires very little promotion either to retailers or to consumers Consumers are already convinced and only need to know where the product can be purchased

Brand preference next highest level of loyalty The greatest concern…to make sure that their brand is available to all potential customers placing the product in many retail outlets and ensuring that a sufficient stock is available

Brand recognition Brand recognition is the lowest level of brand loyalty Brand loyalty does not happen all at once. First a product must be recognized; later it will be preferred and, perhaps, eventually insisted upon.

Packaging Packaging is a part of the total product and covers the following : –c–contain the product –f–facilitate storage and use –p–protect and preserve the product –i–identify and promote the product –b–be cost effective

Facilitating Storage and Use Good package makes product easy to use: –s–spouts on milk containers –o–one-at-a time bag dispensers –t–twist off caps –r–re-sealing bags for crackers, cheese, etc..

Protecting and preserving Product During transport (light bulb, Computer, chips) To prevent spoilage (food products) Increase shelf life (Aseptic juice cartons) protection against tampering (Pharmaceuticals) Protect against theft

Identify and Promote Product Brand name often appears on label Labels (Often by law) give lots of information: –ingredients and nutritional info –size, weight, two languages, bar (UPC) code, other –artistic, and aimed at target market (Cereal)

Product life cycle Product life cycle is it’s history of sales from the time it enters the market until it is no longer sold Four stages: –i–introduction –g–growth –m–maturity –d–decline

Introduction Promotion is very important to create awareness Intensive advertising, expensive Often offered at lower introductory prices People who purchase at this stage are termed “innovators” or “early adapters”and have been targeted by the marketer

Growth Sales increase rapidly sought after product money still spent on promotion Many products die here (fads) If very successful… at this stage many competitors enter the field

Maturity Sales level out competition causes prices to drop advertising shows consumers the subtle differences Consumer demand predictable so companies can plan accordingly

Decline Sales diminish producers drop product or spend more on R&D to offer consumers something new some producers “plan obsolescence” a strategy by which products are designed to become out of date (Fashion, computers, games) so that the life cycle can begin again.

New Product development To be successful must always develop new products. 2/3’s of all new products never get past the introductory stage so planning is very important.

Class Assignment You are the new owner of a glacier fed BC Rocky Mountain water company. You are to market your prestigious product in the Southern United States (California to Florida). A. Decide on a brand name for your product. Include a paragraph explaining the rational for choosing your brand name. B. Design a logo for your product (either by hand or using a graphics program) C. Design a label for your product. Include all of the information you think is important, and all that is required by Law. Hint: You may want to look at some similar products in the recycling bins.

New Product development process: Generating ideas screening ideas evaluating ideas preparing a prototype testing commercialization