Chapter 30 and 31

 Overseeing the design and development of new products  Benefits to us? New and improved products on the market More choices to pick from

 1. The cost to design the product  2. Will you have a marked for the product?

 All of the different products that a company makes or sells.  Example: Nike sells clothes, shoes, sports products

 Objectives of the business –  Carry a variety of products that will make our business a profit  Image the business wants to project -  Trendsetting, fashion-conscious, expensive, low- price  Market business is trying to reach –  Kids, teens, Generation X, Baby Boomers

 A group of closely related products manufactured and/or sold by a business  Examples: Frito Lay makes Ruffles, Doritos, Tostitos Cereals produced by Kelloggs: Frosted Flakes, Corn Pops

 Is a specific model, brand, or size of a product within a product line

 Obsolescence (changing interests and technology)  Loss of appeal – consumer tastes change  Conflict with company objectives  Replace with new products – limited shelf space  Lack of profit  Conflict with other product lines – competing with own brands not good

 Product first introduced  Focus on promotion and production  Draw attention to the product  Least profitable stage of life cycle because of costs being so high to promote/make

 Increasing sales and profits  Most knows about and buys the product  Competition starts offering products to compete  Advertising focuses more on customer satisfaction

 Sales level off or slow down  Product has highest level of competition  Most of target market owns product  Most of advertising is fighting off competition  Nintendo Wii

 Sales fall  Profit may be smaller than costs  May sell or license the product  Discount the product

 Price and quality – economy line, mid-priced line, and luxury line based on how they want to be viewed  Features and benefits – Rockport positioned as comfortable shoes (features/benefits)  Competition – How is my product better than theirs  Relation to other products in line – Crayola came out with a washable marker/crayon to go along with the rest of their product line

 Can be a name, term, design, symbol that identifies a business or organization and its products  Examples are Coca Cola, McDonalds, Microsof  A brand name is the word, group of words, letters or numbers representing a brand that can be spoken  Examples are: Mountain Dew, SnackWells, Honda Accord

 A brand mark is the part of the brand that is a symbol or mark – known as a logo  Examples:  Trade name – identifies the company or division of a particular corporation  Examples are: Dell, Kellogg’s and Xerox

 Trade character is a brand mark with a human form or characteristics

A trademark is a brand name, brand mark, trade name, trade character, or a combination that is given legal protection by the federal government

 Two main purposes for protection and promotion  Promoting and selling the product – make packages attractive, colorful and artistic

 Ease of use – consider the way the consumer uses the product  Providing information: Information about its contents, calories, guarantees, nutritional value and potential hazards

 Products come in plastic containers instead of glass now  Drugs and food items are in tamper resistant containers with sealed lids and blisterpacks

 Prevent tampering while on display  Use bubble wrap/packing paper to keep product from breaking  Environmental packaging – packaging that is reusable, recyclable, safer, and less wasteful

 Also known as producer brands – owned by manufacturers  Generate the majority of sales  Identify a given product  Indicate a standard quality and price  Appeal to customers who want consistent quality, dependable performance, and status Examples: Kraft, General Electric, Heinz, Keebler

 Brand name  Logo  Ingredients  Directions  Special promotional messages  Weight  Expiration dates

 Also known as store or private brands  Owned by wholesalers and retailers  Appeal to customers who want quality and performance at a lower price  Can generate a higher profit margin  Lead to customer loyalty Examples: Sears Kenmore and Craftsman brands Kroger brand of products Great Value – Wal-Mart

 Does not carry a company or brand name  Packaging only has a description of the product  Often priced 30-50% lower than other manufacturer brands  Priced 10-15% below private distributor brands  Not heavily advertised or promoted

 Name and address of manufacturer has to be on the label  Quantity of the contents must be on label  Product weight has to be listed in traditional American weights and metric weights  Some countries require that labeling is bilingual

 State amount of calories  Percentage of daily intake of calories  Fat, carbohydrates, sodium, etc. Contents  Health warnings: Such as women who are pregnant should not drink alcoholic beverages due to increase risk of birth defects

 Care labeling rules: information about the care of garments related to washing, drying, and ironing.  Environmental information about recyclable contents  Ozone safe information

 Better Business Bureau – Help customers to work with businesses to resolve complaints (you can call them to file a complaint)  BBB of Lexington, KY - Principles for Trust BBB of Lexington, KY - Principles for Trust  Consumer Product Safety Commission – work with businesses on unsafe products in the marketplace (do recalls on products)  CPSC Home Page | cpsc.gov CPSC Home Page | cpsc.gov  Federal Trade Commission –  Prevent unfair pricing practices  Investigations of false advertising

 Warranty – is a promise or guarantee, given to a customer that a product will meet certain standards (given a time period)  6 month warranty on IPhone  Guarantees – Used in promotional phrases such as “money back guaranteed”, “satisfaction guaranteed”