Nor Izzuddin Bin Norrahman
Lecturer of Management, Banking & Islamic Finance
• A product can be defined as – Anything that
can be offered to a market attention,
acquisition, use, or consumption that might
satisfy a want or need.
• It includes:
– Physical Objects
• Developing a product or services involves
defining the BENEFITS that it will offer.
• These benefits measured by:
• Product Quality
– Two dimensions:
– In developing product, the marketer must choose quality level
– To support the product position in market
– Conformance quality
– Freedom from defects and consistency in delivering a targeted
level of performance
• Product Features
– A product can be offered by varying features.
– Should ask question:
• How do you like the product?
• Which specific features do you like the most?
• Which features that you want us to add in the
• Product Designs
– Design is a larger concept than style
– Style – simply describe appearance of a product,
but it doesn’t necessarily make the product
– Good design contributes to a product’s
USEFULNESS as well as it’s looks.
– Good design can attract attention, improve
product performance, cut production costs and
give strong competitive advantage.
• A brand is a name, symbol, term, sign, or
design, or combination of these, that
identifies the maker or seller of a product or
• It help consumers identify the products.
• It also tell the buyer something about the
• Brand Equity
– Brands vary in the amount of power and value
– A powerful brand has high brand equity.
– High brand equity provides competitive
– It also will affected the consumer brand
awareness and loyalty.
• Brand Name Selection
– A good name can add greatly to a product’s
– Desirable qualities for a brand name includes:
• Suggest benefits and qualities (examples?)
• Easy to pronounce, recognize and remember
• Distinctive (Examples?)
• Translate easily to foreign language
• Should be capable of registration and legal protection
• Brand Sponsor
– Four sponsorship options:
• Manufacturer’s brand
• Private brand
– Hard to establish / costly
– Yield high profit – cannot be bought at other competitors
– Use well-known celebrity
– Mix the company resources with another company to create a
• Line Extension
– When company introduces ADDITIONAL items in
a given product category under the same brand
– Examples: Flavors, colors, ingredients
– It is a low cost & low risk method in introducing
the new products.
– Risk: overextended – might lose its specific
meaning (Coke vs Diet Coke, Coke Zero, Vanilla
• Brand Extensions
– Involves the use of a successful brand name to
launch a NEW or MODIFIED PRODUCTS in a NEW
– Example: Honda (Motorcycles, Cars, etc.)
– Pro: Instant recognition & faster acceptance
– Cons: if the brand extension fails, it may harm the
consumer attitude towards the brand name.
– Company often introduce additional brands in the
– Example: Watches (CASIO)
• G-Shock (Durability)
• Edifice (Low-Price)
– Why they do that? Isn’t the buyer will become more
confuse on which watch that they want to buy?
– Pro: To protect the flanks of its CASIO brand in the
– Cons: May not profitable when it only meet small
market share. (sources which they have separated is
• New brands
– A company may create a new brand name when
it enter a new category.
– Or because a company might believe that the
power of its existing brand name is waning and
need a new one.
– Example: Nestle -> MILO, HONEY STAR, NESCAFE
– Weeding out weaker brands
– Focusing the resources only on brands that can
achieve number one or two in the market
– Share positions in their categories.
• Packaging involve designing and producing the
container or wrapper for a product.
• The package may include:
– The Brands name
– The instruction manual
• Why we need it?
• Labels may range from simple tags to complex
graphic attached with the package.
• It perform several function:
– Identifies brand or product
• Sunkist -> print on an orange picture
– Describe several thing about the product
• Who made it? Where are they from? Expired Date
– Promote the product
• NEW PRODUCT! NEW FORMULA!