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Chapter 5          Product DecisionMKT243   Fundamental Of              Marketing   DHD2011   1
 What is product? Classification of product Level and types of product Product items, lines and mixes Branding Packa...
MKT243   Fundamental Of              Marketing   DHD2011   3
Product is the        Product  “heart” ofMarketing Mix          Price                                     Promotion       ...
Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a n...
Levels of Product and Services                       MKT243   Fundamental Of                                     Marketing...
PRODUCTS                   PRODUCTS       Consumer       Consumer                          Business                       ...
Convenience   A relatively inexpensive item that  Product     merits little shopping effort              A product that re...
Product and Service Classifications (Business Product) Industrial products are products purchased for  further processing...
A specific version of a product               A specific version of a product                that can be designated as a  ...
MKT243   Fundamental Of              Marketing   DHD2011   11
   Product Mix Width    The number of Product Lines an organization    offer    e.g: Nestle-Drinks, confectionary, Instan...
Advertising Economies    Advertising Economies     Package Uniformity     Package Uniformity        Standardized        St...
Adjustments to                Adjustments to                Product Items,                 Product Items,               Li...
Quality Modification Quality ModificationFunctional ModificationFunctional Modification  Style Modification  Style Modific...
Is the changing consumer’s perception of a brand in             relation to competing brand                          MKT24...
Why reposition                      Why reposition                   established brands?                   established bra...
   Product Line Extension    ADDING more product items to an existing    product line Product Line Contraction  DELETING...
Symptoms of      Symptoms of     Product Line      Product Line     Overextension     Overextension● Some products have lo...
MKT243   Fundamental Of              Marketing   DHD2011   20
That part of a brand that can be spoken, including         That part of a brand that can be spoken, including             ...
   Source of brand name    Quality, Benefits, Animals, Persons, Numbers,    Things etc…Benefits having a Brand Name: Pro...
 It refer to the value of company and brand  names. High Awareness + Perceived Quality + Brand  Loyalty = Brand EQUITY....
 Easy   to pronounce, recognize remember and  short Distinctive and unique Describe the product, use and benefits Has ...
MKT243   Fundamental Of              Marketing   DHD2011   25
    Trade mark     Exclusive right to use a brand or part of a     brand    (shapes, ornamental color or design, catchy  ...
Brand                  Brand               No Brand                                      No Brand         Manufacturer’s  ...
    Generic Product vs. Branded ProductsGeneric Product-no frills, no brand name and low cost, low     qualityBranded Pro...
 Generic products – No frills, no brand name, low  cost product and easy to identified by it’s product  category. What i...
   Manufacturer’s brand – National Brand (brand’s    owner)    E.g: Kodak, Pensonic, Akira etc.   Private brand – Privat...
 Individual brand – Using different brand name for  different products. Use only: Products vary greatly in use and  perf...
Types of Cobranding               Types of CobrandingIngredient Ingredient        Cooperative                    Cooperati...
MKT243   Fundamental Of              Marketing   DHD2011   33
“The activities of designing the container or wrapper                     for a product”Package:Container/ wrapper        ...
1.   Primary Package     A product’s Immediate container2.   Secondary Package     A container to protect primary package3...
Contain and Protect Contain and Protect Promoting Products Promoting ProductsFacilitate Storage, Use,Facilitate Storage, U...
MKT243   Fundamental Of              Marketing   DHD2011   37
‘Is a printed information appearing on or with the package’         Persuasive                            Informational   ...
MKT243   Fundamental Of              Marketing   DHD2011   39
   Universal Product Code    A series of thick and thin vertical lines (bar code),    readable by computerized optical sc...
MKT243   Fundamental Of              Marketing   DHD2011   41
MKT243   Fundamental Of              Marketing   DHD2011   42
‘A confirmation of the quality orperformance of a good or service’             -Written Guarantee             -Simple stat...
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Chapter 5

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Chapter 5

  1. 1. Chapter 5 Product DecisionMKT243 Fundamental Of Marketing DHD2011 1
  2. 2.  What is product? Classification of product Level and types of product Product items, lines and mixes Branding Packaging MKT243 Fundamental Of Marketing DHD2011 2
  3. 3. MKT243 Fundamental Of Marketing DHD2011 3
  4. 4. Product is the Product “heart” ofMarketing Mix Price Promotion Place (Distribution) MKT243 Fundamental Of Marketing DHD2011 4
  5. 5. Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want (Kotler and Gary)Product is everything, both favorable and unfavorable, that a person receives in an exchange (McDaniel/Lamb/Hair) MKT243 Fundamental Of Marketing DHD2011 5
  6. 6. Levels of Product and Services MKT243 Fundamental Of Marketing DHD2011 6
  7. 7. PRODUCTS PRODUCTS Consumer Consumer Business Business Products Products Products ProductsConvenienceConvenience Shopping Shopping Specialty Specialty Unsought Unsought Products Products Products Products Products Products Products Products MKT243 Fundamental Of Marketing DHD2011 7
  8. 8. Convenience A relatively inexpensive item that Product merits little shopping effort A product that requires comparison Shopping shopping, because it is usually Product more expensive and found in fewer stores A particular item for which Specialty consumers search extensively and Product are reluctant to accept substitutes A product unknown to the potential Unsought buyer or a known product that the Product buyer does not actively seek MKT243 Fundamental Of Marketing DHD2011 8
  9. 9. Product and Service Classifications (Business Product) Industrial products are products purchased for further processing or for use in conducting a business Classified by the purpose for which the product is purchased ◦ Materials and parts ◦ Capital ◦ Raw materials ◦ Processed materials ◦ Supplies and service MKT243 Fundamental Of Marketing DHD2011 9
  10. 10. A specific version of a product A specific version of a product that can be designated as a that can be designated as aProduct ItemProduct Item distinct offering among an distinct offering among an organization’s products. organization’s products. A group of closely-related A group of closely-relatedProduct LineProduct Line product items. product items. All products that an All products that anProduct MixProduct Mix organization sells. organization sells. MKT243 Fundamental Of Marketing DHD2011 10
  11. 11. MKT243 Fundamental Of Marketing DHD2011 11
  12. 12.  Product Mix Width The number of Product Lines an organization offer e.g: Nestle-Drinks, confectionary, Instand noodels Product Line Depth The number of Product items in a product line e.g: Nestle, In the Product Line of Junior Foods, there are 11 Products Items+++ MKT243 Fundamental Of Marketing DHD2011 12
  13. 13. Advertising Economies Advertising Economies Package Uniformity Package Uniformity Standardized Standardized Components Components Efficient Sales and Efficient Sales and Distribution Distribution Equivalent Quality Equivalent Quality3 MKT243 Fundamental Of Marketing DHD2011 13
  14. 14. Adjustments to Adjustments to Product Items, Product Items, Lines, and Mixes Lines, and Mixes Product Line Product Line Product Product Product Product Extension or Extension orModificationModification Repositioning Repositioning Contraction Contraction MKT243 Fundamental Of Marketing DHD2011 14
  15. 15. Quality Modification Quality ModificationFunctional ModificationFunctional Modification Style Modification Style Modification MKT243 Fundamental Of Marketing DHD2011 15
  16. 16. Is the changing consumer’s perception of a brand in relation to competing brand MKT243 Fundamental Of Marketing DHD2011 16
  17. 17. Why reposition Why reposition established brands? established brands? Changes in Changes in Changing Changing Declining Sales Declining Sales Social Social Demographics Demographics Environment Environment3 MKT243 Fundamental Of Marketing DHD2011 17
  18. 18.  Product Line Extension ADDING more product items to an existing product line Product Line Contraction DELETING product items in the product line because PL over extension-Cannibalization-harvested product that not generate much sales MKT243 Fundamental Of Marketing DHD2011 18
  19. 19. Symptoms of Symptoms of Product Line Product Line Overextension Overextension● Some products have low sales or cannibalize sales of other items● Resources are disproportionately allocated to slow-moving products● Items have become obsolete because of new product entries MKT243 Fundamental Of Marketing DHD2011 19
  20. 20. MKT243 Fundamental Of Marketing DHD2011 20
  21. 21. That part of a brand that can be spoken, including That part of a brand that can be spoken, including letters, words, and numbers. letters, words, and numbers.BrandBrand It’s a name, term, symbol, design or combination It’s a name, term, symbol, design or combinationName Name thereof that identifies a seller’s products and thereof that identifies a seller’s products and differentiate them from competitor differentiate them from competitorBrandBrand The elements of a brand that The elements of a brand thatMark Mark cannot be spoken. cannot be spoken.BrandBrand The value of company and brand names. The value of company and brand names.EquityEquity MKT243 Fundamental Of Marketing DHD2011 21
  22. 22.  Source of brand name Quality, Benefits, Animals, Persons, Numbers, Things etc…Benefits having a Brand Name: Product Identification Repeat sales New product sales MKT243 Fundamental Of Marketing DHD2011 22
  23. 23.  It refer to the value of company and brand names. High Awareness + Perceived Quality + Brand Loyalty = Brand EQUITY. A strong brand equity is a strong asset to the company. MKT243 Fundamental Of Marketing DHD2011 23
  24. 24.  Easy to pronounce, recognize remember and short Distinctive and unique Describe the product, use and benefits Has a positive connotation Reinforce the desired product image Legally protectable in home and foreign markets of interest MKT243 Fundamental Of Marketing DHD2011 24
  25. 25. MKT243 Fundamental Of Marketing DHD2011 25
  26. 26.  Trade mark Exclusive right to use a brand or part of a brand (shapes, ornamental color or design, catchy phrases, abbreviations, sounds etc). Generic Product name -Company that fail to protect their trademarks face the problem of generic product name -Consumer identifies the product by class or type and cannot be trademarked MKT243 Fundamental Of Marketing DHD2011 26
  27. 27. Brand Brand No Brand No Brand Manufacturer’s Manufacturer’s Private Brand Private Brand Brand BrandIndividual Individual Family Family Combi- Combi- Individual Individual Family Family Combi- Combi- Brand Brand Brand Brand nation nation Brand Brand Brand Brand nation nation MKT243 Fundamental Of Marketing DHD2011 27
  28. 28.  Generic Product vs. Branded ProductsGeneric Product-no frills, no brand name and low cost, low qualityBranded Product-Product with name Manufacturers’ Brands vs. Private BrandsManufacturers’ Brand-Company/ Manufacturer namePrivate Brand-Wholesaler/ retailers name Individual Brands vs. Family BrandsIndividual Brand-different brand names for different productsFamily Brands-Same brand names for different products Cobranding-placing 2 or more brand names on a product or its packages MKT243 Fundamental Of Marketing DHD2011 28
  29. 29.  Generic products – No frills, no brand name, low cost product and easy to identified by it’s product category. What is the main appeal of generic products??PRICE MKT243 Fundamental Of Marketing DHD2011 29
  30. 30.  Manufacturer’s brand – National Brand (brand’s owner) E.g: Kodak, Pensonic, Akira etc. Private brand – Private label or store brand. E.g GIANT BRAND, FIRST CHOICE, PARKSON etc. MKT243 Fundamental Of Marketing DHD2011 30
  31. 31.  Individual brand – Using different brand name for different products. Use only: Products vary greatly in use and performance. E.g: Colgate- Kayu Sugi, Fresh, White, Active Solution etc. Family Brand – marketing several different products under the same brand. E.g: Sony, Toshiba, NIKE, PADINI etc. MKT243 Fundamental Of Marketing DHD2011 31
  32. 32. Types of Cobranding Types of CobrandingIngredient Ingredient Cooperative Cooperative Complementary Complementary Branding Branding Branding Branding Branding Branding e.g: Intel e.g: Intel e.g: Air Asia and e.g: Air Asia and e.g: Nescafe and e.g: Nescafe and Citybank Citybank Creamer Creamer MKT243 Fundamental Of Marketing DHD2011 32
  33. 33. MKT243 Fundamental Of Marketing DHD2011 33
  34. 34. “The activities of designing the container or wrapper for a product”Package:Container/ wrapper MKT243 Fundamental Of Marketing DHD2011 34
  35. 35. 1. Primary Package A product’s Immediate container2. Secondary Package A container to protect primary package3. Shipping Package A container used to store, to ship the product MKT243 Fundamental Of Marketing DHD2011 35
  36. 36. Contain and Protect Contain and Protect Promoting Products Promoting ProductsFacilitate Storage, Use,Facilitate Storage, Use, and Convenience and Convenience Facilitate Recycling Facilitate Recycling MKT243 Fundamental Of Marketing DHD2011 36
  37. 37. MKT243 Fundamental Of Marketing DHD2011 37
  38. 38. ‘Is a printed information appearing on or with the package’ Persuasive Informational  Focus on giving product info Focuses on such as ingredients, promotional theme nutritional information, net / effort weight, manufacturer’s Emphasis on attractive address, expire date, storage color, graphical and instruction, suggested price, halal sign, customer info line text service, UPC etc. Consumer information is secondary  Helps make proper selections  Lowers cognitive dissonance  Includes use/care MKT243 Fundamental Of Marketing DHD2011 38
  39. 39. MKT243 Fundamental Of Marketing DHD2011 39
  40. 40.  Universal Product Code A series of thick and thin vertical lines (bar code), readable by computerized optical scanners, that represent numbers used to track products MKT243 Fundamental Of Marketing DHD2011 40
  41. 41. MKT243 Fundamental Of Marketing DHD2011 41
  42. 42. MKT243 Fundamental Of Marketing DHD2011 42
  43. 43. ‘A confirmation of the quality orperformance of a good or service’ -Written Guarantee -Simple statementExpressExpress e.g: 100% genuine leatherWarrantyWarranty 100% COTTON 100% ORGANICImplied ImpliedWarranty Unwritten GuaranteeWarranty MKT243 Fundamental Of Marketing DHD2011 43

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