1. PRODUCT
Kotler, P. & Armstrong, G., 2006, Principles of Marketing, New Jersey: Pearson Education, Inc., Ch.8

2. What is a Product?
A Product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.
Includes:
Physical Objects
Services
Events
Persons
Places
Organizations
Ideas
Combinations of the above

3. What is a Service?
A Service is a form of product that consist of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
Examples include:
Banking
Hotels
Tax Preparation
Home Repair Services

4. Levels of Product Core Benefit or Installation Packaging Brand
Name
Quality
Level
Packaging
Design
Features
Delivery
& Credit
Installation
Warranty
After-
Sale
Service
Core
Benefit or
Actual Product
Core Product
Augmented Product

5. Product Classifications Consumer Products
Convenience Products
Buy frequently & immediately
Low priced
Mass advertising
Many purchase locations
i.e Candy, newspapers
Shopping Products
Buy less frequently
Higher price
Fewer purchase locations
Comparison shop
i.e Clothing, cars, appliances
Unsought Products
New innovations
Products consumers don’t
want to think about these products
Require much advertising & personal selling
i.e Life insurance, blood donation
Specialty Products
Special purchase efforts
High price
Unique characteristics
Brand identification
Few purchase locations
i.e Lamborghini, Rolex

6. Product Classifications Industrial Products
Materials
and Parts
Capital
Items
Supplies
and
Services

7. Product Classifications Other Marketable Entities
Activities undertaken to create, maintain, or change the attitudes and behavior toward the following:
Organizations - Profit (businesses) and nonprofit (schools and churches).
Persons – Politicians, entertainers, sports figures, doctors and lawyers.
Places - Business sites and tourism.
Ideas (social ideas marketing) – public health campaigns, environmental campaigns, and others such as family planning, or human rights.

8. Individual Product Decisions
Product Attributes
Branding
Labeling
Packaging
Product Support Services

9. Product Attributes Product Quality Product Features Product Style
Developing a Product or Service Involves Defining the Benefits that it Will Offer Such as:
Product Quality
Product Features
Product Style
& Design
Ability of a Product to Perform Its Functions; Includes Level & Consistency
Help to Differentiate the Product from Those of the Competition
Process of Designing a Product’s Style & Function

10. BRAND BRAND NAME* BRAND MARK* TRADEMARK*
A name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
BRAND NAME*
Words, letters, and/or number that can be vocalized.
BRAND MARK*
Part of the brand that appears in the form of a symbol, design, or distinctive color or lettering.
TRADEMARK*
A brand that has been adopted by a seller and given legal protection.
* Stanton, W.J., Etzel, M.J., & Walker, B.J., 1994, Fundamentals of Marketing, USA: McGraw-Hill, Inc., p. 262

11. Branding Consistency Quality & Value Attributes Identification
Advantages of
Brand Names
Brand
Equity
High Brand
Loyalty
Strong Brand
Association
Name Awareness
Perceived Quality

12. Major Branding Decisions
Brand Name Selection
Selection
Protection
Major Branding Decisions
Brand Sponsor
Manufacturer’s Brand
Private Brand
Licensed Brand
Co-branding
Brand Strategy
Line Extensions
Brand Extensions
Multibrands
New Brands

13. Packaging
Activity of designing and producing the container or wrapper for a product.
Packaging used to just contain and protect the product.
Packing now has promotional value and marketers should:
Establish a packaging concept,
Develop specific elements of the package,
Tie together elements to support the positioning and marketing strategy.

14. Labeling Printed information appearing on or with the package.
Performs several functions:
Identifies product or brand
Describes several things about the product
Promotes the product through attractive graphics.

15. PRODUCT MIX (OR PRODUCT ASSORTMENT)
PRODUCT LINE
A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.
PRODUCT MIX (OR PRODUCT ASSORTMENT)
The set of all product lines and items that a particular seller offer for sale.

16. PROCTER & GAMBLE’S PRODUCT PORTFOLIO
PRODUCT LINES
PROCTER & GAMBLE’S PRODUCT PORTFOLIO

17. Product Mix Decisions Consistency
Width - number of different product lines
Consistency
Length - total number of items
in product lines
Product Mix -
all the product
lines & items
offered
Depth - number of versions of each product

18. PRODUCT LIFE CYCLE
Sales/Profit
Sales +
Profit
Period - I II
III IV

19. PRODUCT LIFE-CYCLE SALES COSTS PER CUSTOMER PROFITS CUSTOMERS
COMPETITORS
INTRODUCTION
LOW
HIGH
NEGATIVE
INNOVATORS
FEW
GROWTH
RAPIDLY RISING
AVERAGE
RISING
EARLY ADOPTERS
GROWING NUMBER
MATURITY
PEAK
MIDDLE MAJORITY
STABLE NUMBER – BEGIN TO DECLINING
DECLINE
DECLIN-ING
DECLINING
LAGGARDS
DECLINING NUMBER

20. PRODUCT LIFE-CYCLE MARKETING OBJECTIVES PRODUCT PRICE DISTRIBUTION
INTRODUCTION
CREATE PRODUCT AWARENESS & TRAIL
OFFER BASIC PRODUCT
USE COST-PLUS
BUILD SELECTIVE DISTRIBUTION
GROWTH
MAXIMIZE MARKET SHARE
OFFER PRODUCT EXTENSIONS, SERVICE, WARRANTY
PRICE TO PENETRATE MARKET
BUILD INTENSIVE DISTRIBUTION
MATURITY
MAXIMAZE PROFIT WHILE DEFNDING MARKET SHARE
DIVERSIFY BRAND & MODELS
PRICE TO MATCH/BEAT COMPETITORS
BUILD MORE INTENSIVE DISTRIBUTION
DECLINE
REDUCE EXPENDITURE & MILK THE BRAND
PHASE OUT WEAK ITEMS
CUT PRICE
GO SELECTIVE
PHASE OUT UNPROFITABLE OUTLETS

21. PRODUCT LIFE-CYCLE ADVERTISING SALES PROMOTION INTRODUCTION GROWTH
BUILD PRODUCT AWARENESS AMONG EARLY ADAPTORS & DEALERS
USE HEAVY SALES PROMOTION TO ENTICE TRIAL
GROWTH
BUILD AWARENESS & INTEREST IN THE MASS MARKET
REDUCE THE TAKE ADVANTAGE OF HEAVY CONSUMER DEMAND
MATURITY
STRESS BRAND DIFFERENCES & BENEFITS
INCREASE TO ENCOURAGE BRAND SWITCHING
DECLINE
REDUCE THE LEVEL NEEDED TO RETAIN HARD-CORE LOYALS
REDUCE TO MINIMAL LEVEL

22. NEW PRODUCT DEVELOPMENT STAGES
IDEA GENERATION
INTERNAL IDEA SOURCES
FORMAL R&D
EXECUTIVES & EMPLOYEES
EXTERNAL IDEA SOURCES
CUSTOMERS
COMPETITORS
DISTRIBUTORS & SUPPLIERS

23. NEW PRODUCT DEVELOPMENT STAGES
IDEA SCREENING
CONCEPT DEVELOPMENT & TESTING
MARKETING STRATEGY DEVELOPMENT
BUSINESS ANALYSIS
PRODUCT DEVELOPMENT
TEST MARKETING
COMMERCIALIZATION