PowerPoint Presentation

Chapter 1

Product ConceptsProductAnything offered for sale for the purpose of satisfying a want, need or both sides of the exchange processConsists of both tangible & intangible ones

Product Classification

DurableConsumed over a long period of timeNon DurableConsumed over a short period of time or discarded after one or more usesConsumer Products

Convenience

Shopping

Specialty

UnsoughtOrganizational Products

Raw Materials

Components

Supplies

Equipment

Installation

Business ServicesElements of a Product

Features

Branding

Packaging

Labeling

Supporting Elements

Elements of a Product

Features

Desirable and acceptableTechnically & financially sensiblePhysical form or designQuality & DurabilityEase of useEnvironmental ImpactElements of a Product

Branding

Brand NameBrand MarkLogoTrade name Trade MarkService MarkElements of a Product

Brand EquityIndicates brands overall strength in the marketplace

Comprises of 5 elements

Brand LoyaltyBrand Awareness Perceived QualityBrand AssociationsOther Brand Assets

Types of Brands:

Manufacturer brandPrivate Brand(Private Label or store brand)Generic BrandElements of a Product

Key Branding Issues:

Brand SelectionName, logo considering relativity, ease of use, recognition and recall

Brand Protection(by using or legally registering it) Assigning an existing brand name to a new productBrand Extension versus Individual Branding Family Brand Same Brand name for all product lines Individual BrandSeparate brand name for an individual product within the product line

Elements of a Product

Packaging Along with containing product, it provides a way to present it to potential buyers

Packaging Functions:Facilitating PromotionFacilitating Distribution

Packaging Considerations:SafetyEnvironmental ImpactCost

Elements of a Product

Labeling Along with containing product, it provides a way to present it to potential buyers

Labeling Functions:Promotional SupportInformation for buyers and intermediariesRegulatory Compliance

Design Considerations:Avoid trendinessBenefits in simple termsNeat & CleanConsistant

Elements of a Product

Supporting Elements Along with containing product, it provides a way to present it to potential buyers

Warranty:Compensation if product does not live up to the level of promise

Guarantee:Assurance about product performance and durabilitye.g. Money back

Supporting Product Issues

Product Safety

Standards

Compatibility

Solutions versus Products