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10 Product Concept

10 Product Concept. Professor Close. Product Planning. Product: - Anything a customer gets in an exchange (good, bad) Need satisfying offerings (Hallmark) Can be a good or a service Services are “products” too. Product Planning. Quality (What does it mean?)

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10 Product Concept

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  1. 10Product Concept Professor Close

  2. Product Planning • Product: - Anything a customer gets in an exchange (good, bad) • Need satisfying offerings (Hallmark) • Can be a good or a service • Services are “products” too

  3. Product Planning • Quality (What does it mean?) • Product’s ability to satisfy customer’s needs/requirements. • Consistency (McDonalds and what other companies?) • Relative quality – similar products against each other What do you think are some quality products? Why?

  4. Consumer Products • General classification: what types of customers will use them? • Businesses B2B or consumers B2C • Consumer products: • For “final” users • Classifying consumer products • How consumers shop • How consumers think about them • Perception usage varies (among food items and what other product categories?)

  5. 4 Types of Consumer Products 1. Convenience • Little time/effort; frequent purchase • Intense distribution • Substitutes acceptable • Low price (grocery products) 2. Shopping: time comparing alternatives; less frequent purchase, low loyalty • Homogeneous: seen as same; want bargain • Heterogeneous: seen as different; want quality; salespeople help desired • Marketing: fewer outlets, higher markups

  6. 4 Types of B2C Products, cont. 3. Specialty: is shopping an end, pleasurable; willingness makes it specialty • Planned purchase: strong desire and effort (collectors); alternatives unacceptable • Amount of search (Beanie Babies; xmas toys) • Limited availability is OK; high markups 4. Unsought (tombstones; towing; dentists) • Only want “in a pinch;” infrequent and no effort; lack knowledge or desire • Promotion; sales (Dentists for phobic patients) • What are your unsought products?

  7. What type of product?

  8. What type of product?

  9. B2B Products • Businesses (B2B): • Use to make other products • Bought and resold • Used for corporate or organization’s use • Less shopping is involved (vs. B2C) • Classify via: • How buyers think about the product • What type of customer will use the product • How the product is used

  10. Product Items, Lines, and Mixes • Item: version of a product (Diet Coke) • Line: group of closely related products (Coca-Colas soft drinks) • Mix: all the products a company offers (water, energy drinks, soda) • Modify and reposition (Old Navy)

  11. Should Old Navy Reposition???

  12. Branding • Identify product via letters, terms, designs • Branding strategies: • Brand name – letters associated with product • Trademark/servicemark – words, symbols for one firm (legally protected) • Co-brand (apple ipod and coach) • Family – one brand, many products (Hershey’s, Campbell’s) • Generics – no brand (signal of savings) • Dealer/private label: by store • National/manufacturer: by vendor

  13. Hot or not…What are the most equitable brands?

  14. Apple Blackberry Google Amazon Yahoo eBay Red Bull Starbucks 9. Pixar 10. Coach 11. Whole Foods 12. EA Sports/Games 13. MTV 14. Samsung 15. Victoria’s Secret 16. Nike Equitable Brands

  15. Branding • Brand equity: financial value of the brand name • Value (are we just paying for the name?) • Consumer – familiarity • Seller- be authentic, true to your people • Less promotion (Reese’s) • Legal protection (Coke; Olympic rings)

  16. Better Branding; Less Promotion

  17. Packaging • Defined as: • Container or wrapping • Elements: • Function (fridgepack; pill bottles) • Promotion (L’eggs pantyhose; square Chanel) • Issues: - UPC codes needed • Information: government guidelines (good or bad??) • Waste (kids lunches) • Size (changing??)

  18. Labeling • Ethics (size of drink and sodium, calories) • Warrantees • Persuasive labeling (little information; focus on logo) • Informational labeling (helps your buying decision; lessens cognitive dissonance) • Your examples of each type of labeling?

  19. Summary • Global branding issues • Cobranding • Trademarks/service marks • Brand equity • Branding strategies • Product packaging/labeling

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