Product

Product Planning

Involves making decisions about those features that are needed to sell a business’s products, services, or ideas.

ELEMENTS OF DEVELOPING A NEW

PRODUCT

Things to consider

• Size• Shape• Naming• Labeling• Packaging• Colors• Quantities

Brand Extension

• Brand Extension is the use of an established brand name in new product categories.

Brand Extension

Advantages

• Acceptance of new product is easy

• Feedback benefits

Disadvantages

• Loss of reliability• Damage the image• Less awareness

Product Mix

Includes all the different products that a company makes or sells.

Product Line

A group of closely related products manufactured and/or sold by a business.

Product Item

A specific model, brand, or size of a product within a product line.

Product Width

Oral Care

Blades & Razors

Personal Care

Batteries Appliances

Width of the Gillette Product Mix

The number of different product lines a business manufactures or sells.

Product Depth

Oral Care

Blades & Razors

Personal Care

Batteries Appliances

The number of product items offered within each product line.

Product Mix Strategies

• The plan for how the business determines which products it will make or stock

• May develop completely new products• May expand or modify their current

product lines• May drop existing products

Developing New Products

• The new idea takes physical shape

• Marketers develop a marketing strategy

• Testing the product with consumers

Developing New Products

• Introducing the Product– The product has been researched

successfully

– This stage also is called commercialization

• Evaluating Customer Acceptance– Marketers track new product

performance

Developing Existing Products

• Companies constantly review their product mix to see if they can further expand their product lines or modify existing products.

• Two ways to do this:– Line extensions– Product modifications

Developing Existing Products

Original Product

Newer Products

Line Extensions – new product lines, items, or services

Developing Existing Products

Product Modifications – an alteration in a company’s existing product

Features and Benefits

• Features are what your product enables your customers to do.

• Benefits are the outcomes your customers get that help them achieve business objectives.

WIIFM?

• What’s in it for Me?

• The most relevant marketing content is focused on benefits.

• Features are a dime a dozen

from a prospect's perspective.

Product – Television

Features

• 42” diagonal screen

• LED technology

• Full HD 1080 (resolution)

• 3.9 cm thick

Benefits

• It will be like a cinema, except in my own home

• Will save some energy and give relief to my eyes

• You won’t miss even the smallest detail

• It won’t occupy much space, and it can hang on the wall

Customer Service and Warranties

• A warranty is an assurance by one party to the other party that specific facts or conditions are true or will happen; the other party is permitted to rely on that assurance and seek some type of remedy if it is not true or followed.

• How do customer service and warranties help a product’s success?

Packaging Functions

1. Protect a product from damage or contamination

2. Keep the product together

3. Identify the product

4. Ease of Transport

5. Stacking and Storage

6. Printed Information

Packaging Strategies

• Price bundling is a strategy whereby a seller bundles together many different goods/items being sold and offers the entire bundle at a single price.

• Mixed bundling occurs when consumers are offered a choice between purchasing the entire bundle or one of the separate parts of the bundle.

Labels

• Descriptions of the product• Branding – a name, term, design, symbol, or

any other feature that identifies one seller's good or service as distinct from those of other sellers

• Grades – quality of a product