Products

Some terms to Remember:

• Brand• Brand name • Capital Items• Consumer Goods• Convenience Goods• Copyright• Durable Goods• Industrial Goods• Materials and Parts• Non-durable Goods

• Packaging• Product• Product line• Product Mix• Services• Shopping Goods• Specialty Goods• Trademark• Unsought Goods

What is a Product? A product is defined as anything

that can be offered in the market for attention, acquisition, use or consumption that might satisfy a want or need.

Three Levels ProductAfter-Sales Services

Insti

llatio

n

Warranty

Delivery and Credit

Packaging

Brand name

Features

Quality Styling

CoreBenefit

OrService

Augmented Product

Core Product

Actual Product

Core Products- a part of the total product that the consumer is actually buying.

Actual Product- this includes the products name, label, packaging, features, and a quality level.

Augmented Product- is the part where the seller provides additional services and privileges to consumers who bought the product.

Classification of Products

1. Consumer Products

Convenience Goods

ShoppingGoods

SpecialtyGoods

Unsought Goods

Staple Goods

Impulse Goods

Emergency Goods

Homogenous Products

Heterogeneous Products

2. Industrial Products

Characteristics of Industrial Products: Categories of Industrial Products:

-Derived Demand-Price Sensitivity- Fluctuating Demand - Limited Market- Geographic Concentration of Markets- Rational Buying Behavior-Long Negotiating Period- Infrequent Sales-Industrial Advertising and Personal Selling

-Raw materials- Major equipment-Accessory equipment- Component Parts- Process Materials- Consumable Supplies-Industrial Services

Branding

In addition to making decisions actual products, marketers must make many decisions associated with branding, such as brands, brand names, brand marks, trademarks, and trade names.

Brand is a name, term,design, symbol, or anyfeature identities onesseller’s good or servicesas distinct from those ofother seller. A brand mayIdentify one item, a family of items, or all items of that seller.

Brand name is that partof a brand which can bespoken- including letters,words and number.

Brand mark is the elementof a brand that is not made up ofwords, but is often a symbol ordesign.Trademark is a legal designationindicating that the owner hasexclusive use of a brand andthose others are prohibited by law from using it. Trade name is a full and legal name of an organization such asToyota Company, rather than thename of a specific product.

Benefits of Branding

Branding provides benefits for both buyersand sellers. Brands help buyers identify specificproducts that they do not like, which in turnfacilities the purchase of items that satisfy their needs and reduces the time required to purchase the product.

Brand DecisionsConsumers view a brand as an important

part of the product and branding can add value to the product.

1. Branding Decisions2. Brand Sponsor Decision3. Brand Quality Decisions4. Family Brand Decisions5. Brand Extension Decision6. Multi Brand Decisions7. Brand Repositioning

Packaging and LabelingPackage is a container used to protect, promote, transport, and/or identify a product.Packaging is that part of product planning, in which company researches, designs, andproduces its package(s).Label indicates the products’ brand name, thecompany logo, ingredients, promotional messages, inventory, control codes, and/orinstructions for use.

Basic Packaging Functions:

1. Containment and protection2. Usage3. Communication4. Segmentation5. Channel cooperation6. New- product planning

Factors considered in Packaging Decisions:

What image is sought?

Should family packaging be used?

What should costs be?

What size(s), color(s), and shape(s) are used?

Should items be individually wrapped?

Criticisms of Packaging:-Packaging is faulted for waste, misleading

labels.

Benefits of Packaging:Communication BenefitsFunctional BenefitsPerceptual Benefits

Packaging Decisions

Many products offered to the market have to be packaged. Most marketers treat packaging as an element of product strategy.

Packaging is the activity of designing and producing the container or wrapper of the product.

Product Line Decision- a group of productsthat are closely related, either because theyfunction in a manner or are sold to the samegroup of customer groups, are marketedthrough the same types or outlets, or fall within given prices ranges.Product Line Length Decision- more or less determines the company’s objectives or vice-versa.

Product Line Stretching Decision- occurs when a company lengthens its product linebeyond its current range.

Product Line Filling Decisions- a product linecan also be developed by introducing morenew products within the present range.

Product Mix Decisions

A product mix is the set of all product linesand items that a particular seller offers for sale to buyers. A company’s product mix willhave certain features: width, depth, length,and consistency.