What is a PRODUCT?

(product.ppt)
brands
Core product...
benefits sought
at the most fundemental level, the benefits sought are the emotional states that result from a successful product purchase --
people rarely think about their purchases in this manner, yet their future behavior depends on whether they have successfully found the benefits that have been sought.
Note how this relates to segmentation and to positioning.

Tangible product...let's get physical
features
brand name
packaging
"quality"
Augmented product... synonomous with the whole offering, including all attributes.
delivery?
installation?
flirt with sales person?
warranty
credit or terms
after sales service?
unpaid celebrity usage of product?
e.g. unpaid for celebrity visits to a partucular resort?

How does this relate to the Offering?


Brand Name

suggestive of product attributes
use, quality, benefits
easy to pronounce & remember
distinctive
easy to translate into other
language
legally protectable by registration
Some major brand companies.
Media Brands
Packaging the 5th P
primary, secondary, tertiary For some products the package is a very important aspect of the product itself. Packaging is more important because self service competition among packaging concepts affluence??? will we pay more? probably package reinforces or even creates the company or brand image.
Packages must stand the tests of
functionality
visual appeal
stocking ease for dealers
consumer response
Packaging as waste...
40 percent of solid waste is packaging!
What is the solution?
Two other P's of marketing you might run across --

People -- who does a customer interact with?
Process -- How does the interaction happen?



Service as part of the augmented product
When the service is the product
What services... the mix
How good service... the level
(check it occasionally)
What form will it take?
in house repair vs contracted
centers vs no repair
SERVICE DEPARTMENTS
Handle
complaints
credit
maintenance
technical help
information on other
products


Product Line and Mix decisions
What is a product line?
Typical pattern of grow and prune.
What is product line stretching?
Note the similarity between product line stretching and diversification... the difference is one of scale.
Products in the line should have just noticeable differences.
Featured products... loss leader or
flagship
Product mix
A set of product lines
length
width (# of lines)
depth (# of variants)
consistency (how are products
related eg .
distribution, use, promotion)
A company can grow by expanding any element of the product mix although the new sales may not be profitable.

New Products

(see also diffusion of innovations-- What speeds or slows the rate of adoption?)

The development of the Xerox machine. AVI video 63MB! ~7min
Even fatter version at 141MB
Concept testing
appropriate consumers
focus groups
questionnaires
interviews
Problems
unreal
please interviewer
Suggestion
use projective techniques
Why would anyone want?
What kind of person?
What would it have to be like for people to buy it?
Market Testing
Standard test markets
Controlled test markets
Simulated test markets
Sales wave research
Product Launch Considerations
When?
Where?
To Whom?
How?



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