What We Will Discuss Today v What is a product? v Attributes v Brand v Packaging

What is a Product?

A Definition v a product is anything that can be offered to someone to satisfy a need or a want

Types of Products (Durability) v Durable Goods : tangible goods that survive many uses. v Nondurable Goods : tangible goods that normally are consumed in one or a few uses. v Services : activities, benefits or satisfactions offered for sale. Generally consumed as they are created.

Westerbrook

Types of Products (Consumer Goods 1) v Convenience Goods : goods that are purchased frequently, immediately and with a minimum of effort. – staples – impulse goods – emergency goods v Shopping Goods : goods that are compared on the basis of quality, price, style, etc.

Types of Products (Consumer Goods 2) v Specialty Goods : goods with unique characteristics or brand identifications which a group of buyers regularly seek. v Unsought Goods : goods that the consumer does not know about or does not think about buying.

Attributes v Quality v Features v Design

Barn Fresh

The Product Life Cycle (Assumptions) v Products have a limited life. v Product sales pass through distinct stages, each posing different challenges to the seller v Profits rise and fall at different stages of the life cyle.

The Product Life Cycle (Stages) v Introduction : a period of slow sales growth. Profits are low due to R&D expenses. v Growth : rapid market acceptance and profit improvement. v Maturity : sales growth slow, profits flatten, increased competition v Decline : sales decline, profits erode

The Product Life Cycle (3 types) Style Fashion Fad

Brand Decisions 1 v Brand : a name, symbol or logo intended to identify the goods or services of one seller. –Do we need one? v Brand Name : that part of the brand name which can be vocalized.

Brand Decisions 2 v Brand Equity : the differential marketing effect of the existence or absence of a brand name. –Why is there brand equity? –How much is a brand name worth?

Brand Awareness v Recognition: Have I seen it before? v Recall: What have I seen before?

Brand Image v associations linked to the brand in memory v attributes, benefits or attitudes

Brand Decisions 3 v Brand Extensions : the extension of an existing brand name onto products in a different product category. –What are the benefits and risks? v Line Extensions : the addition of products to existing products in a product category.

Brand Equity Over Time v Introductory Stage –establish brand image –increase brand awareness v Elaboration –introduce line extensions v Fortification –introduce brand extensions

Functions of Packaging v Product protection v Convenience v Promotion –Package should be u Visible u Informative u Emotionally Appealing v Change in consumption patterns

What We Discussed Today v What is a Product? v Product Decisions –Attributes –Brand –Packaging