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Product Concept
Professor Close

Product Planning
Product:
- Anything a customer gets in an exchange (good, bad)
Need satisfying offerings (Hallmark)
Can be a good or a service
Services are products too
Good
Tangible
In advance
Possible
Possible
Consistent

Some Characteristics
Nature
Production simultaneity
Storage/ Perishability
Transport
Quality/ Heterogeneity

Service (def) deed for another

Intangible
Close to the customer
Impossible
Impossible
Inconsistent

Product Planning
Quality (What does it mean?)
Products ability to satisfy customers
needs/requirements.
Consistency (McDonalds and what other
companies?)
Relative quality similar products
against each other

What do you think are some

quality products? Why?

Consumer Products

General classification: what types of

customers will use them?
Businesses B2B or consumers B2C
Consumer products:

For final users

Classifying consumer products
How consumers shop
How consumers think about them
Perception usage varies (among food items and
what other product categories?)

4 Types of Consumer Products

1. Convenience
Little time/effort; frequent purchase
Intense distribution
Substitutes acceptable
Low price (grocery products)
2. Shopping: time comparing alternatives; less
frequent purchase, low loyalty
Homogeneous: seen as same; want bargain
Heterogeneous: seen as different; want quality;
salespeople help desired
Marketing: fewer outlets, higher markups

4 Types of B2C Products, cont.

3. Specialty: is shopping an end, pleasurable; willingness
makes it specialty
Planned purchase: strong desire and effort
(collectors); alternatives unacceptable
Amount of search (Beanie Babies; xmas toys)
Limited availability is OK; high markups
4. Unsought (tombstones; towing; dentists)
Only want in a pinch; infrequent and no effort; lack
knowledge or desire
Promotion; sales (Dentists for phobic patients)
What are your unsought products?

What type of product?

What type of product?

B2B Products
Businesses (B2B):
Use to make other products
Bought and resold
Used for corporate or organizations use
Less shopping is involved (vs. B2C)
Classify via:
How buyers think about the product
What type of customer will use the product
How the product is used

Product Items, Lines, and Mixes

Item: version of a product (Diet Coke)
Line: group of closely related products (CocaColas soft drinks)
Mix: all the products a company offers (water,
energy drinks, soda)
Modify and reposition (Old Navy)

Should Old Navy Reposition???

Branding
Identify product via letters, terms, designs
Branding strategies:
Brand name letters associated with product
Trademark/servicemark words, symbols for
one firm (legally protected)
Co-brand (apple ipod and coach)
Family one brand, many products
(Hersheys, Campbells)
Generics no brand (signal of savings)
Dealer/private label: by store
National/manufacturer: by vendor

Hot or notWhat are the most

equitable brands?

Equitable Brands
1.
2.
3.
4.
5.
6.
7.
8.

Apple
Blackberry
Google
Amazon
Yahoo
eBay
Red Bull
Starbucks

9. Pixar
10. Coach
11. Whole Foods
12. EA Sports/Games
13. MTV
14. Samsung
15. Victorias Secret
16. Nike

Branding
Brand equity: financial value of the brand name
Value (are we just paying for the name?)
Consumer familiarity
Seller- be authentic, true to your people
Less promotion (Reeses)
Legal protection (Coke; Olympic rings)

Better Branding;
Less Promotion

Packaging

Defined as:
Container or wrapping
Elements:
1. Function (fridgepack; pill bottles)
2. Promotion (Leggs pantyhose; square Chanel)
Issues:
- UPC codes needed
Information: government guidelines (good or bad??)
Waste (kids lunches)
Size (changing??)

Labeling
Ethics (size of drink and sodium, calories)
Warrantees
Persuasive labeling (little information; focus on
logo)
Informational labeling (helps your buying
decision; lessens cognitive dissonance)
Your examples of each type of labeling?

Summary

Global branding issues

Cobranding
Trademarks/service marks
Brand equity
Branding strategies
Product packaging/labeling