Lecture 6-b POM BBA 2K10

Individual Product and Service Decisions

Individual Product and Service Decisions

Product attributes are the benefits of the product or service Quality Features Style and design

Individual Product and Service Decisions

Quality in terms of the product or service is the lack of defects Quality in terms of the customer is the value and satisfaction provided by the product or service

Individual Product and Service Decisions

Product quality includes level and consistency Quality level is the level of quality that supports the products positioning Performance quality is the ability of a product to perform its functions

Individual Product and Service Decisions

Product features are a competitive tool for differentiating a product from competitors products Product features are assessed based on the value to the customer versus the cost to the company

Individual Product and Service Decisions

Product style and design add value to customer value Style describes the appearance of the product Design contributes to a products usefulness as well as to its looks

Individual Product and Service Decisions

Brand is the name, term, sign, or designor a combination of thesethat identifies the maker or seller of a product or service

Brand Name Brand Mark Brand Equity Master Brand

That part of a brand that can be spoken, including letters, words, and numbers. The elements of a brand that cannot be spoken. The value of company and brand names. A brand so dominant that it comes to mind immediately when a product category, use, attribute, or benefit is mentioned.

Baking Soda Adhesive Bandages Carpet Cleaner Gelatin Soup

Arm & Hammer Band-Aid Vaccum Cleaner Jell-O Lux

Cream Cheese
Crayons Petroleum Jelly

Philadelphia
Crayola Vaseline

Branding distinguishes products from competition

Product Identification Repeat Sales New Product Sales

Individual Product and Service Decisions

Packaging involves designing and producing the container or wrapper for a product Labels identify the product or brand, describe attributes, and provide promotion

Persuasive

Informational
Helps make proper selections Lowers cognitive dissonance Includes use/care

Focuses on promotional theme

Contain and Protect

Promote Facilitate Storage, Use, and Convenience Facilitate Recycling

Functions of Packaging

Individual Product and Service Decisions

Product support services augment actual products Companies must continually: Assess the value of current services to obtain ideas for new ones Assess the costs of providing these services Develop a package of services to satisfy customers and provide profit to the company

 Product

line:

A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.

Product

line length:

The number of items in a product line

Adjust

line length by:

Filling Stretching

Downward, upward, or in both directions

 Product
The

mix: mix dimensions include:

set of all of the product lines and items that a particular seller offers for sale.

Product
Length:

the number of items in a line. Width: the number of different product lines the company carries. Depth: the number of versions offered of each product in the line. Consistency: how closely related various lines are.

Depth of the product lines

Width of the product mix

Blades and razors
Mach 3 Sensor Trac II Atra Swivel Double-Edge Lady Gillette Super Speed Twin Injector Techmatic

Toiletries
Series Adorn Toni Right Guard Silkience Soft and Dri Foamy Dry Look Dry Idea Brush Plus

Writing instruments
Paper Mate Flair

 Downward

stretch by introducing lower range of the products e.g.

In 1989 the Shangri-La, a chain of deluxe hotels and resorts in Asia established the Traders Hotels, a sister brand to deliver high value, mid-range, quality accommodation to the business traveler Mercedes introduced the baby Merz to cater to the upper class mid-sized range of the market

Upward

stretch by entering the high end of the market e.g.

Toyota introduced the Lexus and Nissan introduced the Infiniti

 Two-way

stretch by filling the whole line e.g.

Toyota has the Starlet at the lower end; the Corolla in the executive range; the Camry in the uppermanagement range and the Lexus in the luxury range