1. BUSINESS 1 Developing Products

2. BUSINESS 2 What Is a Product?  Features are the qualities, tangible and intangible, that a company builds into its products  Benefits are what the consumer derives from the product: the want-satisfying value  Value package is a product marketed as a bundle of value-adding attributes Features? Benefits?

3. BUSINESS 3 Classifying Consumer Products  Convenience goods/services are consumed rapidly and regularly  Shopping goods/services are moderately expensive and infrequently purchased  Specialty goods/services are expensive and rarely purchased

4. BUSINESS 4 Classifying Industrial Products  Expense items are industrial products purchased and consumed rapidly and regularly for daily operations  Capital items are expensive, long- lasting, infrequently purchased industrial products

5. BUSINESS 5 The Product Mix Product mix is a group of products that a firm makes available for sale ( e.g. Nestle ) Nestle Product line is a group of similar products intended for a similar group of buyers who will use them in similar ways Pure Life

6. BUSINESS 6 The New Product Development Process  Product Mortality  Failure rates for new products are high.  Speed to market is a strategy of introducing new products to respond quickly to customer or market changes

7. BUSINESS 7 The Seven-Step Development Process 1.Product Ideas 2.Screening 3.Concept Testing 4.Business Analysis 5.Prototype Development 6.Product Testing and Test Marketing 7.Commercialization

8. BUSINESS 8 Variations in the Process for Services Steps 2, 3, 4, 6 & 7 are the same. Differences in steps 1 and 5:  Service Ideas  Service package is the tangible and intangible features that characterize a service product  Service Process Design  Service process design is three aspects (process selection, worker requirements, facilities requirements) of developing a service product

9. BUSINESS 9 What Is the Product Life Cycle (PLC)? Series of stages in a product’s profit- producing life

10. BUSINESS 10 Stages in the PLC  Introduction: This stage begins when the product reaches the marketplace.  Growth: If the new product attracts enough consumers, sales start to climb rapidly.  Maturity: Sales growth starts to slow.  Decline: Sales and profits continue to fall as new products in the introduction stage take away sales.

11. BUSINESS 11 Products in the Life Cycle: Stages, Sales, Cost and Profit

12. BUSINESS 12 Branding Products  Branding is the process of using symbols to communicate the qualities of a product made by a particular producer  Adding Value through Brand Equity  Brand equity is the degree of consumers’ loyalty to and awareness of a brand and its resultant market share  Brand awareness is the extent to which a brand name comes to mind when the consumer considers a particular product category

13. BUSINESS 13 The World’s 10 Most Valuable Brands RankBrand Value $B 2001Brand Value $ B 2007 1Coca Cola 68.9Google 66.4 2Microsoft 65.1GE (General Electric) 61.8 3IBM 52.8Microsoft 54.9 4GE 42.4Coca Cola 44.1 5Nokia 35.0China Mobile 41.2 6Intel 34.7Marlboro 39.1 7Disney 32.6Wal-Mart 36.8 8Ford 30.1Citi 33.7 9McDonalds 25.3IBM 33.5 10AT & T 22.8Toyota 33.4

14. BUSINESS 14 Types of Brand Names  National brand is a product produced by, widely distributed by, and carry the name of the manufacturer  Licensed brand is a product for whose name the seller has purchased the right from an organization or individual  Private brand (or Private label) is a product that a wholesaler or retailer has commissioned from a manufacturer Costco-Kirkland

15. BUSINESS 15 Packaging and Labeling Products  Packaging is the physical container in which a product is sold, advertised or protected  Labeling can help market the product  Label is the part of a product’s packaging that identifies its name, manufacturer and contents