10Product ConceptProfessor Close

Product Planning Product: - Anything a customer gets in an exchange (good, bad) Need satisfying offerings (Hallmark)Can be a good or a serviceServices are products too

GoodTangibleIn advance PossiblePossible Consistent Some CharacteristicsNature Production simultaneity Storage/ Perishability TransportQuality/ HeterogeneityService (def) deed for anotherIntangibleClose to the customerImpossibleImpossibleInconsistent

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

Consumer ProductsGeneral classification: what types of customers will use them? Businesses B2B or consumers B2CConsumer products:For final usersClassifying consumer productsHow consumers shopHow consumers think about themPerception usage varies (among food items and what other product categories?)

4 Types of Consumer Products1. ConvenienceLittle time/effort; frequent purchaseIntense distributionSubstitutes acceptableLow price (grocery products)2. Shopping: time comparing alternatives; less frequent purchase, low loyaltyHomogeneous: seen as same; want bargain Heterogeneous: seen as different; want quality; salespeople help desired Marketing: fewer outlets, higher markups

4 Types of B2C Products, cont.3. Specialty: is shopping an end, pleasurable; willingness makes it specialtyPlanned purchase: strong desire and effort (collectors); alternatives unacceptableAmount 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 desirePromotion; sales (Dentists for phobic patients)What are your unsought products?

What type of product?

What type of product?

B2B ProductsBusinesses (B2B):Use to make other productsBought and resoldUsed for corporate or organizations useLess shopping is involved (vs. B2C)Classify via:How buyers think about the productWhat type of customer will use the productHow the product is used

Product Items, Lines, and MixesItem: 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)

Should Old Navy Reposition???

Branding Identify product via letters, terms, designsBranding strategies:Brand name letters associated with productTrademark/servicemark words, symbols for one firm (legally protected)Co-brand (apple ipod and coach)Family one brand, many products (Hersheys, Campbells)Generics no brand (signal of savings)Dealer/private label: by storeNational/manufacturer: by vendor

Hot or notWhat are the most equitable brands?

Equitable BrandsAppleBlackberryGoogleAmazonYahooeBayRed BullStarbucks9. Pixar10. Coach11. Whole Foods12. EA Sports/Games13. MTV14. Samsung15. Victorias Secret16. Nike

Branding Brand equity: financial value of the brand nameValue (are we just paying for the name?)Consumer familiarity Seller- be authentic, true to your peopleLess promotion (Reeses)Legal protection (Coke; Olympic rings)

Better Branding; Less Promotion

PackagingDefined as:Container or wrapping Elements:Function (fridgepack; pill bottles)Promotion (Leggs pantyhose; square Chanel)Issues: - UPC codes neededInformation: government guidelines (good or bad??)Waste (kids lunches)Size (changing??)

LabelingEthics (size of drink and sodium, calories)WarranteesPersuasive labeling (little information; focus on logo)Informational labeling (helps your buying decision; lessens cognitive dissonance)Your examples of each type of labeling?

SummaryGlobal branding issuesCobranding Trademarks/service marksBrand equityBranding strategiesProduct packaging/labeling

*******************