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Attributes
             Branding
Packaging and Labeling
      Product Support
Product Decisions
  There are   4 product decisions to make;
  2. Product attributes
  3. Branding
  4. Packaging and labeling
  5. Product support




                Adapted for DWC students, HCT 2009   2
Product Decisions
  1.   Product attributes
         Features
         Design
         Quality




               Adapted for DWC students, HCT 2009   3
Product Decisions
   Product attributes
   Branding
        Generic Product or Branded Product?




              Adapted for DWC students, HCT 2009   4
Product Decisions
   Product attributes
   Branding
        Generic Products
   No brand name
   Usually cheaper than branded goods
   Sometimes lower quality




              Adapted for DWC students, HCT 2009   5
Product Decisions
   Product attributes
   Branding
        Symbol or name
        Legal protection (registration)
        Product success/Customer Loyalty
        Brand attributes and benefits
        Brand values


              Adapted for DWC students, HCT 2009   6
Product Decisions
   Product attributes
   Branding
          Advantages:
     Identify preferred products
     Uniform quality
     Trust
     Product value
     Problems/complaints

                Adapted for DWC students, HCT 2009   7
Tips for choosing brand names
   Short/Easy to remember
   Translation (other languages)
   Easy to pronounce
   Not a common word




             Adapted for DWC students, HCT 2009   8
Product Decisions
   Product attributes
   Branding
     Packaging and labeling
     Contains and protects products
     Describes products
     Provides instructions
     Attracts attention
     Gives details of other products under same brand

               Adapted for DWC students, HCT 2009        9
Product Decisions
   Product attributes
   Branding
   Packaging and labeling
   Product support
      Booklets
      Phone number to call
      Website
      Repair shop

              Adapted for DWC students, HCT 2009   10
Product Decisions
   Adapted from Marketing Fundamentals, HCT In-
    house Publication




            Adapted for DWC students, HCT 2009    11

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4 product decisions

  • 1. Attributes Branding Packaging and Labeling Product Support
  • 2. Product Decisions There are 4 product decisions to make; 2. Product attributes 3. Branding 4. Packaging and labeling 5. Product support Adapted for DWC students, HCT 2009 2
  • 3. Product Decisions 1. Product attributes Features Design Quality Adapted for DWC students, HCT 2009 3
  • 4. Product Decisions  Product attributes  Branding Generic Product or Branded Product? Adapted for DWC students, HCT 2009 4
  • 5. Product Decisions  Product attributes  Branding Generic Products  No brand name  Usually cheaper than branded goods  Sometimes lower quality Adapted for DWC students, HCT 2009 5
  • 6. Product Decisions  Product attributes  Branding Symbol or name Legal protection (registration) Product success/Customer Loyalty Brand attributes and benefits Brand values Adapted for DWC students, HCT 2009 6
  • 7. Product Decisions  Product attributes  Branding Advantages:  Identify preferred products  Uniform quality  Trust  Product value  Problems/complaints Adapted for DWC students, HCT 2009 7
  • 8. Tips for choosing brand names  Short/Easy to remember  Translation (other languages)  Easy to pronounce  Not a common word Adapted for DWC students, HCT 2009 8
  • 9. Product Decisions  Product attributes  Branding  Packaging and labeling  Contains and protects products  Describes products  Provides instructions  Attracts attention  Gives details of other products under same brand Adapted for DWC students, HCT 2009 9
  • 10. Product Decisions  Product attributes  Branding  Packaging and labeling  Product support Booklets Phone number to call Website Repair shop Adapted for DWC students, HCT 2009 10
  • 11. Product Decisions Adapted from Marketing Fundamentals, HCT In- house Publication Adapted for DWC students, HCT 2009 11

Notes de l'éditeur

  1. Having learned about the two main groups of products, consumer and industrial, and studied the categories of product within each group, we must now look at some of the strategy decisions that need to be made concerning the manufacture and marketing of products. For the remainder of this lesson, we will focus on consumer products.   Products are not just ‘made’. They are created after careful marketing research, product research and development, financial analysis and a study of the competitors. The decisions made about products will determine how successful they will be in the marketplace. Some of the key decisions which marketers must make about product include: Product attributes Product attributes include: Product features; Product design; Product quality; Branding; Packaging and labeling Product features are the attributes that make up the basic product. Consider this example. Ali and Bishr both bought new Land Cruisers last month. Both cars have many features, including airbags, anti-locking brakes, power steering, 4-wheel drive, two fuel tanks, cruise control, fridge, and powerful 4500cc engines. However, Bishr's car has a number of extra features. His Land Cruiser also has leather seats, a sunroof, CD player and a winch. Products can be offered with different levels of features, starting with the ‘basic’ product, then adding options that the customer may or may not decide to have. Cars are an excellent example of this. The product design is very important in the minds of consumers. Designs change over a period of time. Products with ‘older’ designs can look out-of-date and consumers may switch to products offering more modern, up-to-date designs. Clothes, furniture, cars and household appliances are good examples of this. Compare the design of cars in the 1950s and 1960s with today’s models! Now consider the Black & Decker example by clicking on the upper right button. The design of a product is not just how it looks to the consumer. Design also includes what it is made from and how it is assembled. When a product needs to be repaired or serviced, its design should make this a simple procedure. If a product is difficult to repair because it is difficult to reach the damaged parts, or because spare parts are expensive, then this is a poor design feature. Some cars, for example, are much easier to repair than others. The next attribute to consider would be the quality of the product. This must be studied from the consumer’s viewpoint, not just the producer’s viewpoint. It is the consumer’s perception of quality that is most important. Most consumers are not looking for the quality of products like a Rolls Royce, but they are looking for quality commensurate to the price they are willing to pay.      
  2. Having learned about the two main groups of products, consumer and industrial, and studied the categories of product within each group, we must now look at some of the strategy decisions that need to be made concerning the manufacture and marketing of products. For the remainder of this lesson, we will focus on consumer products.   Products are not just ‘made’. They are created after careful marketing research, product research and development, financial analysis and a study of the competitors. The decisions made about products will determine how successful they will be in the marketplace. Some of the key decisions which marketers must make about product include: Product attributes Product attributes include: Product features; Product design; Product quality; Branding; Packaging and labeling Product features are the attributes that make up the basic product. Consider this example. Ali and Bishr both bought new Land Cruisers last month. Both cars have many features, including airbags, anti-locking brakes, power steering, 4-wheel drive, two fuel tanks, cruise control, fridge, and powerful 4500cc engines. However, Bishr's car has a number of extra features. His Land Cruiser also has leather seats, a sunroof, CD player and a winch. Products can be offered with different levels of features, starting with the ‘basic’ product, then adding options that the customer may or may not decide to have. Cars are an excellent example of this. The product design is very important in the minds of consumers. Designs change over a period of time. Products with ‘older’ designs can look out-of-date and consumers may switch to products offering more modern, up-to-date designs. Clothes, furniture, cars and household appliances are good examples of this. Compare the design of cars in the 1950s and 1960s with today’s models! Now consider the Black & Decker example by clicking on the upper right button. The design of a product is not just how it looks to the consumer. Design also includes what it is made from and how it is assembled. When a product needs to be repaired or serviced, its design should make this a simple procedure. If a product is difficult to repair because it is difficult to reach the damaged parts, or because spare parts are expensive, then this is a poor design feature. Some cars, for example, are much easier to repair than others. The next attribute to consider would be the quality of the product. This must be studied from the consumer’s viewpoint, not just the producer’s viewpoint. It is the consumer’s perception of quality that is most important. Most consumers are not looking for the quality of products like a Rolls Royce, but they are looking for quality commensurate to the price they are willing to pay.      
  3. Not all products have a brand name. Products that do not have a brand name are called generic products . They are often cheaper than branded goods and may lack some quality compared to branded goods. Many, but not all, vegetables are generic products. Generic products are often purchased by people on lower incomes or by people looking for a bargain price.  
  4. Not all products have a brand name. Products that do not have a brand name are called generic products . They are often cheaper than branded goods and may lack some quality compared to branded goods. Many, but not all, vegetables are generic products. Generic products are often purchased by people on lower incomes or by people looking for a bargain price.  
  5. The next attribute to consider would be the product’s brand name . A brand is a name, symbol or design that identifies the products of one producer from those of another. It is designed to set one manufacturer’s brand apart from all the others. It is a name that is instantly recognizable by the consumer. Some examples include Pepsi-Cola, KFC, Kodak, Toyota, Masafi and Emarat. We have local, international and global brands.   Companies register their brand names to prevent them from being copied by others. Anyone can start a business selling fried chicken, but they cannot call it KFC. Neither can they register a name which might mislead consumers because it is similar to an existing brand. Brand names are often vital for the success of products . Many people are brand conscious. They choose certain brands as an extension or reflection of themselves. Teenagers, for example, often choose brands of clothing which enable them to ‘fit in’ with their peers. Brands help to create customer loyalty. Most customers feel safe buying a brand that they know. Brand names give information about the quality, uniformity and reliability of products. You would not expect the same quality from a Mercedes and a Hyundai for example. Brand attributes include factors like quality, durability and status for example. If you chose a Nikon camera, you would expect advanced technology, quality of manufacture, prestige, good second-hand value and durability. These are brand attributes. When customers have a choice of several leading brands, where there is little to choose between them, it is often the number of brand benefits that will influence their decision. One benefit of superior brands is the prestige and status they give the user.   Brand value : Maryam bought a new Mercedes car, and Fatma bought a Hyundai. Both are good brand names. However, the name ‘Mercedes’ tells us something about Maryam’s values. She had the opportunity to buy a Hyundai, which is a perfectly good car, but she chose Mercedes. She was looking for a certain level of product value, as well as performance and status. Buyers who value high performance, quality engineering, safety and status are more likely to choose brands such as Mercedes, BMW or Lexus. Buyers who value economy are more likely to choose cars of lower value. However, these decisions are also dependent on income, and not just on preference alone.
  6. The majority of consumers buy branded products. The main reason for this is that customers feel safe with the products they know, and the brand name gives them confidence and helps them to identify those products.   Advantages of branded products to the customer: We can easily identify our preferred brands We know the quality of the product will always be the same We feel we can trust the product Brand names help us to establish the value of a product, when we compare quality and features with price We have a company name we can complain to if anything goes wrong (warranty)
  7. Brand names should be as short as possible, as they are easier to remember and recognize e.g. Pepsi, Kodak, Persil, Colgate, Nissan. There are some exceptions, ‘Yves Saint Laurent’ for example.   Companies should always check if the brand name in one language means something different in another. For example, the Chevy Nova car was not popular in South America because ‘nova’ means ‘no go’ in Spanish.   Brand names should be easy to pronounce. If people can’t say it, they will be reluctant ask for it.   If you want to register a brand, then it should be a name, not just a common word. For example, you could not register names such as ‘ice-cream’, ‘petrol’, ‘bleach’ or ‘toothpaste’.   It is worth noting that some brand names do not appear to mean anything, yet they enjoy large sales and brand loyalty e.g. ‘WD40’ is a product used to loosen rusty screws, and locks.
  8. Just as branding is important, because it helps the consumer identify with the product, so is packaging. How a product is packaged can convey a lot about its quality and value.   Originally, the main function of packaging was to protect the product until it reached the consumer. Over the past 40 years, packaging has become more diverse.   The functions of packaging include: To contain and protect the product To describe the product contained within the packaging To contain instructions on how to use the product To attract consumer attention to the product To give details of other products under the same brand Possibly to give the product an advantage over the competitors   Some products have more than one level of packaging. For example, many perfumes are contained within a bottle, and the bottle is itself placed in an attractive box. (33% of all perfume purchases are made on the basis of the packaging.) Double packaging gives the company two chances to advertise instead of one, and keeps the products safer and clean, although it does add cost to the product.   The product labels are an important part of packaging. They help to identify the product. Some products, such as food and medicines, are required to contain information about their ingredients, and companies have to disclose this information on the labels or packaging. In the UAE, product labels must include the ingredients (for food products), place of manufacture and the product’s expiry date.          
  9. Product support is a service provided by many retailers of various products, primarily electronics , that provides the end-user with a resource for information regarding the product, and help if the product should malfunction . Product Support can be found in most manuals for products in the form of a phone number , website address , or physical location. The Internet has allowed for a new form of product support to develop. Some online communities have developed to give support where manufacturer support is lacking.