10 Product Concept Professor Close

Service (def) deed for another Product Planning Product: - Anything a customer gets in an exchange (good, bad) Need satisfying offerings (Hallmark) Can be a good or a service Services are “products” too Good Tangible In advance Possible Consistent Some Characteristics Nature Production simultaneity Storage/ Perishability Transport Quality/ Heterogeneity Service (def) deed for another Intangible “Close” to the customer Impossible Inconsistent

Product Planning Quality (What does it mean?) Product’s ability to satisfy customer’s needs/requirements. Consistency (McDonalds and what other companies?) Relative quality – similar products against each other What do you think are some quality products? Why?

Consumer Products General classification: what types of customers will use them? Businesses B2B or consumers B2C Consumer products: For “final” users Classifying consumer products How consumers shop How consumers think about them Perception usage varies (among food items and what other product categories?)

4 Types of Consumer Products 1. Convenience Little time/effort; frequent purchase Intense distribution Substitutes acceptable Low price (grocery products) 2. Shopping: time comparing alternatives; less frequent purchase, low loyalty Homogeneous: seen as same; want bargain Heterogeneous: seen as different; want quality; salespeople help desired Marketing: fewer outlets, higher markups

4 Types of B2C Products, cont. 3. Specialty: is shopping an end, pleasurable; willingness makes it specialty Planned purchase: strong desire and effort (collectors); alternatives unacceptable Amount of search (Beanie Babies; xmas toys) Limited availability is OK; high markups 4. Unsought (tombstones; towing; dentists) Only want “in a pinch;” infrequent and no effort; lack knowledge or desire Promotion; sales (Dentists for phobic patients) What are your unsought products?

What type of product?

What type of product?

B2B Products Businesses (B2B): Use to make other products Bought and resold Used for corporate or organization’s use Less shopping is involved (vs. B2C) Classify via: How buyers think about the product What type of customer will use the product How the product is used

Product Items, Lines, and Mixes Item: version of a product (Diet Coke) Line: group of closely related products (Coca-Colas soft drinks) Mix: all the products a company offers (water, energy drinks, soda) Modify and reposition (Old Navy)

Should Old Navy Reposition???

Branding Identify product via letters, terms, designs Branding strategies: Brand name – letters associated with product Trademark/servicemark – words, symbols for one firm (legally protected) Co-brand (apple ipod and coach) Family – one brand, many products (Hershey’s, Campbell’s) Generics – no brand (signal of savings) Dealer/private label: by store National/manufacturer: by vendor

Hot or not…What are the most equitable brands?

Equitable Brands Apple Blackberry Google Amazon Yahoo eBay Red Bull Starbucks 9. Pixar 10. Coach 11. Whole Foods 12. EA Sports/Games 13. MTV 14. Samsung 15. Victoria’s Secret 16. Nike

Branding Brand equity: financial value of the brand name Value (are we just paying for the name?) Consumer – familiarity Seller- be authentic, true to your people Less promotion (Reese’s) Legal protection (Coke; Olympic rings)

Better Branding; Less Promotion

Packaging Defined as: Container or wrapping Elements: Function (fridgepack; pill bottles) Promotion (L’eggs pantyhose; square Chanel) Issues: - UPC codes needed Information: government guidelines (good or bad??) Waste (kids lunches) Size (changing??)

Labeling Ethics (size of drink and sodium, calories) Warrantees Persuasive labeling (little information; focus on logo) Informational labeling (helps your buying decision; lessens cognitive dissonance) Your examples of each type of labeling?

Summary Global branding issues Cobranding Trademarks/service marks Brand equity Branding strategies Product packaging/labeling