1. Principles of Marketing Lecture-21

2. Summary of Lecture-20

3. Individual Product Decisions

4. Product Attributes Branding Packaging Labeling Product Support Services

5. QualityQuality FeaturesFeatures DesignDesign

6. Branding

7. Brand Development

8. Line Extension Multibrands Brand Extension New Brands Brand Name ExistingNew Product Category Existing New Four Brand Strategies

9. Today’s Topics

10. Product (cont..)

11. Short and simple Suggestive of product benefits Legally available No negative imagery Easy to spell, read, and pronounce Adaptable for international markets Adaptable to packaging/labeling needs Adaptable to any advertising medium A Good Brand Name Is... A Good Brand Name Is...

12. Generic name: A brand name that has become a generally descriptive term for a class of products. – If this occurs, the original owner loses exclusive right to the brand name (which is very bad for marketers). – Examples: nylon, aspirin, escalator, kerosene, etc.

13. Packaging

14.  Activity of designing and producing the container or wrapper for a product.  Packaging used to just contain and protect the product.

15. Goals of Packaging

16. Protection against damage, spoilage, tampering etc. Assistance in marketing the product Cost effectiveness (and good for the environment)

17. Labeling

18. Printed information appearing on or with the package. Performs several functions: – Identifies product or brand – Describes several things about the product – Promotes the product through attractive graphics.

19. Universal Product Code (UPC)  A bar code on a product’s package that provides information read by optical scanners.  UPC codes provide several advantages: labor saving, improve inventory control, and help with marketing research. 79400 80740

20. PromotesIdentifies Competitive Advantages Describes Sales Tasks Product Safety Packaging Labeling Packaging Labeling

21. Product - Support Services

22. Companies should design its support services to profitably meet the needs of target customers and gain competitive advantage.

23. How?

24. Step 1. Survey customers to assess the value of current services and to obtain ideas for new services.

25. Step 2. Assess costs of providing desired services.

26. Step 3. Develop a package of services to delight customers and yield profits to the company.

27. Product Line Strategies

28. Product Line Extensions Stretching Adding new items to line Filling Adding sizes or styles Downward Upward Contracting a Product Line Dropping items Contracting a Product Line Dropping items Two-way

29. New Product Development

30. The development of original products, product improvements, product modifications, and new brands through the firm’s own R&D efforts.

31. Major Stages in New-Product Development

32. Idea Generation Idea Screening Concept Development and Testing Marketing Strategy Business Analysis Product Development Test Marketing Commercialization

33. Stage 1: Idea Generation – Internal idea sources: R & D Sales force – External idea sources: Customers, competitors, distributors, suppliers

34. Sources of New- Product Ideas

35.  Employees  Customers  Resellers  Suppliers/ vendors  Competitors  Advertising agencies  Marketing research firms  Other manufacturers  International

36. Stage 2: Idea Screening – Product development costs increase substantially in later stages. – Ideas are evaluated against criteria; most are eliminated.

37. Stage 3: Concept Development and Testing – Product concepts provide detailed versions of new product ideas. – Concept tests ask target consumers to evaluate product concepts.

38. Stage 4: Marketing Strategy Development – Strategy statements describe: The target market, product positioning, and sales, share, and profit goals for the first few years. Product price, distribution, and marketing budget for the first year. Long-run sales and profit goals and the marketing mix strategy.

39. Stage 5: Business Analysis Sales, cost, and profit projections Stage 6: Product Development Prototype development and testing

40. Stage 7: Test Marketing – Standard test markets – Controlled test markets – Simulated test markets

41. Standard Test Market Full marketing campaign in a small number of representative cities. Standard Test Market Full marketing campaign in a small number of representative cities. Simulated Test Market Test in a simulated shopping environment to a sample of consumers. Simulated Test Market Test in a simulated shopping environment to a sample of consumers. Controlled Test Market A few stores that have agreed to carry new products for a fee. Controlled Test Market A few stores that have agreed to carry new products for a fee.

42. Stage 8 Commercialization

43. New-Product Development Management

44. Key Issues Top Level Support Market-Guided R & D Integration & Coordination Authority

45. Enough for today...

46. Summary

47. Packaging

48. Labeling

49. Companies should design its support services to profitably meet the needs of target customers and gain competitive advantage. Product - Support Services

50. Product Line Strategies

51. New Product Development

52. Idea Generation Idea Screening Concept Development and Testing Marketing Strategy Business Analysis Product Development Test Marketing Commercialization

53. Next….

54. – New Product Development (cont..) – Product Life Cycle (PLC)

55. Principles of Marketing Lecture-21