Busi 141: products part 2

Marketing Mix: Products Part 2Principles of Marketing BUSI-141Professor Conrad

What we will cover this

week

Defining Product

Classification of Products

New Product Development

Product or Brand Management

Product Quality

Product Life Cycle (PLC)

Branding

Packaging2

Product Quality (256 - 258)

3

Product Quality

Overall ability of the product to

satisfy customer satisfaction

Product Safety

Degree of Pleasure

Ease of Use

Precision Satisfies Needs

Versilitity

Reliability

Durability

4

5

PLC: Introductory Stage

6

Product

Goals

Sales

Profits

Pricing

MKTG Comm

Produced by a single company

Get first-time buyers to try new product

Increases at a steady but slow rate

Negative

High - recover R&D & advertising costsLow - attract large number of customers

Maximum advertising to inform consumers

PLC: Growth Stage

7

Product

Goals

Sales

Profits

Pricing

MKTG Comm

New competitors enter with variations of product

Encourage brand loyalty

Rapid increase

Increase and peak

May need to reduce because of competition

Heavy advertising to counter new competition

PLC: Maturity Stage

8

Product

Goals

Sales

Profits

Pricing

MKTG Comm

New features addedSales are mostly replacement products

Attract new users

Peak, then levels off, start of decline

Profit margins begin to narrow

Price to maintain market share

Reminder advertising

PLC: Decline Stage

9

Product

Goals

Sales

Profits

Pricing

MKTG Comm

Number of variations reduced

Remain profitableDecide whether to keep or phase out

Continue to decline

Declining

May reduce if product can remain profitable

Decreased to maintain profitability

PLC: Examples

10

Branding (262 - 271)

Give your product an identity and personality

Start with the name and logo - like naming your kid or a pet

BrandName

Term

symbol

other unique element of a product that sets it apart from the competition11

Brand Equity

Brand equity = value perceived by consumer over and above the generic version of the product, creates

Brand loyalty = helps build brand equity

Requires building relationships with customersSelf-concept attachment - establishes user’s identity

Nostalgic attachment - link with a past self

Interdependence - part of user’s daily routine

Love - elicits positive emotional bond

12

Brand Strategies

13

Brand Strategies

Licensing

Generic Cobranding

Individual vs

Family

National Vs

Store

14

15

Packaging (268 - 271)

The covering or container for a product

Creates a competitive advantage

Functional value

Communicate brand identity

Universal Product Code (UPC)

16

Packaging - Effective Design

Consider competition packaging

Make distinctive impression on shelf

Environmental impact of packaging

Shape and design of packaging

Graphics and colors

Language translation

Information supplied

Copycat packaging for store brands

Labeling regulations

17