1. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 1 Product “…everything one receives in an exchange, including all tangible and intangible attributes and expected benefits; it may be a good, service, or idea.”

2. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 2

3. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 3 Product Good- a real, physical thing that we can touch Service- the result of applying human or mechanical effort to a person or thing, a change we pay others to make for us Idea- may take form of philosophies, lessons, concepts, or advice ©2007 Microsoft PowerPoint

4. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 4 Consumer Product “…a product purchased to satisfy personal and family needs.”

5. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 5 Consumer Product Classifications  Convenience- inexpensive, frequently purchased item, buyers exert minimal effort  Shopping- buyers willing to expend considerable effort planning/making purchase  Specialty- possesses one or more unique characteristics, significant group of buyers willing to expend considerable purchasing effort

6. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 6 Business Product “…a product bought for resale, for making other products, or for use in a firm’s operations.”

7. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 7 Business Product Classifications  Raw material- becomes part of physical product  Major equipment- tools/machines used in production  Accessory equipment- standardized equipment used in production or office activities  Component- part of physical product either as finished item or needs little processing before assembly  Process material- directly in production of another product, not readily identifiable in finished product  Supply- facilitates production/operations, does not become part of finished product  Business service- intangible product used in operations

8. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 8 Product Classification Determines: Distribution Promotion Pricing “The buyer’s use of the product determines the classification of an item.”

9. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 9 Figure 13.1: Product Life Cycle

10. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 10 Stages of Product Life Cycle  Introduction  Sales- rise gradually  Profit- low or loss  Growth  Sales- increase rapidly  Profit- per unit drops  Maturity  Sales- curve peaks and declines  Profit- declines  Decline  Sales- drops sharply  Profit- continues to fall ©2007 Stockbyte/John Foxx

11. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 11 Product Line “…a group of similar products that differ only in relatively minor characteristics.”

12. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 12 Product Mix “…all the products a firm offers for sale.”

13. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 13 Dimensions Of Product Mix  Width (broad or narrow) Width  Depth Depth  Ways to improve  Change existing product  Delete a product  Develop a new product ©2007 Microsoft PowerPoint

14. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 14 Brand “…a name, term, symbol, design, or any combination of these that identifies a seller’s products as distinct from those of other sellers.”

15. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 15 Brand Name “…the part of a brand that can be spoken.” ©2007 Stockbyte

16. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 16 Brand Mark “…the part of a brand that is a symbol or distinctive design.”

17. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 17 Trademark “…a brand name or brand mark that is registered with the U.S. Patent and Trademark Office.”

18. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 18 Types of Brands Manufacturer/Producer- owned by a manufacturer (Nike) Store/Private- owned by individual wholesaler or retailer (IKEA) Generic Product/Brand- product with no brand (grocery store )

19. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 19 Percent of People Who Are Frequent Purchasers of Store-Brands Source: Design and Display, “Store-Brand Products Become More Popular with Shoppers”, Dec. 2006, http://www.ddimagazine.com/displayanddesignideas/headlines/article_display.jsp?vnu_content_id=1003493670 http://www.ddimagazine.com/displayanddesignideas/headlines/article_display.jsp?vnu_content_id=1003493670

20. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 20 Benefits of Branding Brand Loyalty- customer favorable toward specific brand  Brand Recognition  Brand Preference  Brand Insistence Brand EquityBrand Equity- marketing/financial value associated with brand’s strength

21. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 21 Choosing and Protecting a Brand Easy to say, spell, recall Suggest product’s uses, special characteristics, and major benefits Should be distinctive enough to set it apart Protect it through registration® Generic terms cannot be legally protected

22. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 22 Packaging “…all the activities involved in developing and providing a container with graphics for a product.”

23. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 23 Packaging Functions Protect Product Consumer Convenience Promote Product Design Considerations  Cost  Single/multiple units  Family packaging- consistency  Needs of intermediary  Environmental responsibility ©2007 Microsoft PowerPoint

24. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 24 Labeling “…the presentation of information on a product or its package.”

25. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 25 Federal Regulations on Labeling Garments- manufacturer, country, fabric content, cleaning instructions Food  Ingredients  Servings per container  Serving size  Calories per serving  Calories from fat  Amounts of specific ingredients  Nutritional food- nutrition labeling Nonedible items- safety precautions and instructions

26. Copyright © Houghton Mifflin Company. All rights reserved. 13 | 26 Express Warranty “…a written explanation of the responsibilities of the producer in the event that a product is found to be defective or otherwise unsatisfactory.”