PRODUCT

A product can be either:

• A goodThis is tangible (Can be seen, felt, touched, tasted)

PRODUCTA product can be either:

• A service

PRODUCTA product can be either:

• An event

PRODUCT

A product can be either:

• An idea

PRODUCT

A product can be either:

• A person

PRODUCT

A product can be either:

• A place

TYPES OF PRODUCTS

Products can fall into the following categories:

(1)Convenience products

These are frequently bought and require minimum thought and consideration.

TYPES OF PRODUCTS

(2) Shopping products

These are bought only after a great deal of consideration and comparison of their price and quality.

TYPES OF PRODUCTS

(3) Specialty products

These are products with unique characteristics or brand identificationfor which are consumers are willing to make a special effort.

(4) Unsought products

These products do not sell themselves.The marketer has to make the public aware of them through advertising.Consumers are not interested in buying them because they do not see them asessential

Feature

Features

Activity:

You have one minute to:List the features of a digital camera

Features

Features

Possible answers:

Number of megapixels Size of memory Optical Zoom Type of lens LCD Focus Self-timer

What is a Brand?

This is a name, slogan, sign, symbol or logo that is used to distinguish between products of different companies

Branding

A recognized brand might be:

• The use of the ‘Mc’ name by Mc Donald’s in their products (Egg Mc Muffin, Chicken Mc Nugget)

• The Nike ‘swoosh’ logo

• The three stripes design on Adidas sports equipment

• The slogan ‘Finger Licking Good’

• The colour green in bmobile

Why is Branding important?

It allows manufacturers to advertise the characteristics and qualities of their products

It helps to build brand loyalty

It allows customers to easily identify brands

Some brand names are so well known that they are used to refer to the type of product.

Brand loyal customers do not simply go the store for:

Cheese Soft Drink

Coffee

Homework:

Find out theTOP 10 most valuable

brands worldwide

1. Coke2. Microsoft3. IBM4. GE 5. Intel6. Nokia7. Toyota8. Disney9. Mc Donald’s 10. Benz

The Coca-Cola Company’s image was the most valuable 8 yrs in a row

Packaging is the outer wrapping or container for goods.

Packaging

Reasons for packaging

It protects the product from damage and keeps it fresh

It enhances the appearance of the product

Reasons for packaging It preserves the life of the product

It makes it convenient for customers to handle

It gives information such as ingredients, expiry dates, correct

usage and potential hazards

Convenience

Safety

Appearance

This refers to the different stages that a product goes through during its lifetime

Product Life Cycle

PRODUCT LIFE CYCLE (PLC)

Introduction

Once a product is developed, it is launched into the market. Advertising is high in this stage to make consumers aware of the product. Sales are low in the beginning of the lifecycle.

Growth

If the product is successful, sales and profits will rise. This is the stage where most customers are persuaded to purchase the product.

Maturity

At this stage, sales begin to slow down and even decline. Companies try to improve the product or find a new one to replace it.

Decline

In this stage, it is clear that the product has lost its appeal. Companies withdraw their products if they do not want to make losses.

Examples

Flat Screen TV

I Pods

VHS

Mp4 Players

Film Cameras

Digital Cameras

Wi-Fi phones/laptops

Typewriters

Hand-written letters

Personal computers

Portable DVD players