Fundamental Of Marketing

MKT243
Chapter 5
Product Decision

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Slides Outline

 Definition of product and types of consumer

products
 Product items, lines & mixes
 Definition of branding and benefits

◦ Trademark
 Packaging and labeling

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 What Is a Product?
Product is everything, both favorable and
unfavorable, that a person receives in an
exchange (McDaniel,Lamb,Hair)

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Types of consumer products

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Product Items, Lines, and Mixes

Product item
Refer to one
specific item in a
product line

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Product items, lines and mixes

Product mixSamsung

Product
TV and home
entertainment line Mobile
electronics

Product
TVs DVDitem
Players
Samsung
Galaxy
Samsung flip
phone
Benefits of organizing Product
items into Product Lines
Advertising
Advertising Economies
Economies

Package
Package Uniformity
Uniformity

Standardized
Standardized
Components
Components

Efficient
Efficient Sales
Sales and
and
Distribution
Distribution

Equivalent
Equivalent Quality
Quality

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Adjustments of Product Line, Product
Line and Product Mixes
Adjustments
Adjustmentsto to
Product
ProductItems,
Items,
Lines,
Lines,and
andMixes
Mixes

Product
Product Line
Line
Product
Product Product
Product Extension
Extension or
or
Modification
Modification Repositioning
Repositioning Contraction
Contraction

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Branding
That
That part
part of
of aa brand
brand that
that can
can be
be spoken,
spoken, including
including
Brand letters,
letters, words,
words, andand numbers.
numbers.
Brand It’s
It’s aa name,
name, term,
term, symbol,
symbol, design
design or
or combination
combination
Name
Name thereof
thereof that
that identifies
identifies aa seller’s
seller’s products
products and
and
differentiate
differentiate them
them from
from competitor
competitor

Brand
Brand The
The elements
elements of
of aa brand
brand that
that
Mark
Mark cannot
cannot be
be spoken.
spoken.

Brand
Brand The
The value
value of
of company
company and
and brand
brand names.
names.
Equity
Equity

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BRAND
 Source of brand name
Quality, Benefits, Animals, Persons, Numbers,
Things etc…

Benefits having a Brand Name:

 Product Identification
 Repeat sales
 New product sales

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 BRAND EQUITY
 It refer to the value of company and brand names that derives
from consumer perception of the brand name of a particular
product or service, rather than from the product or service
itself.
 High Awareness + Perceived Quality + Brand Loyalty = Brand
EQUITY.
 A strong brand equity is a strong asset to the company.

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Requirement of Effective Brand Name

Easy to pronounce, Describe the

Distinctive and
recognize remember product, use and
unique
and short benefits

Reinforce the Legally protectable

Has a positive
desired product in home and foreign
connotation
image markets of interest

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Trademark
 Trade mark
Exclusive right to use a brand or
part of a brand
(shapes, ornamental color or design,
catchy phrases, abbreviations,
sounds etc).

 Generic Product name

-Company that fail to protect their
trademarks face the problem of
generic product name
-Consumer identifies the product
by class or type and cannot be
trademarked

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 Branding strategies

Generic Product vs. Branded Products

• Generic Product-no frills, no brand name and low cost, low quality
• Branded Product-Product with original name

Manufacturers’ Brands vs. Private distributor Brands

• Manufacturers’ Brand-Company/ Manufacturer name
• Private distributor Brand-Wholesaler/ retailer's name
• Private brand – Private label or store brand. (e.g GIANT BRAND, FIRST CHOICE
etc.)

Individual Brands vs. Family Brands

Individual Brand-different brand names for different products
Family Brands-Same brand names for different products

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 Branding strategies

Ingredient
Branding
e.g: McFlurry (McD)

Co branding Cooperative Branding

placing 2 or more brand e.g: Ratna Skin care and
names on a product or Clever Girl 2017
its packages

Complementary
Branding
e.g: Nescafe and Coffee
mate

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Packaging

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 Labeling
‘Is a printed information appearing on or with the package’

Persuasive Informational
 Helps make proper selections
 Focuses on
 Lowers cognitive dissonance
promotional theme
/ effort  Includes use/care
 Emphasis on attractive
color, graphical and  Focus on giving product info
text such as ingredients,
 Consumer information nutritional information, net
is secondary weight, manufacturer’s
address, expire date, storage
instruction, suggested price,
halal sign, customer info line
service, UPC (universal
product code) etc.

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