THE PRODUCT

PRODUCT-

presence of human needs require the existence of products.

bundle of utility (satisfaction) which the buyer receives as the result of a
lease or purchase. (its form, taste, odor, color and texture). The package,
the label, the warranty.
Viewed as capable of satisfying a need or want. (object, service, activity,
person, place, organization or idea).
Set of tangible physical and chemical attributes assembled in an
identifiable form.
Not only buy or pay for the tangible attributes of the product like the
physical features but more of the intangible attributes like the benefits.

NEW CATEGORIES OF NEW PRODUCT

1. Innovative Products ex. Remote control t.v. system, intro of high density
washing machine detergent like Pride.
2. Replacement Products- ex. New models for automobiles like Honda-CityType Z.
3. Imitative Products- partial adoption of product idea.
PRODUCT PLANNING AND DEVELOPMENT
-

what products to produce? (by producers or manufacturers)

what products to sell? (wholesalers and retailers)

STEPS IN PRODUCT DEVELOPMENT PROCESS

1. Idea generation may come from external and internal sources. Suggestions
for possible development may originate from salespeople, non-marketing
employees, middlemen like distributors of dealers of goods, competitive
products, research companies, inventors and best source are the consumers
(the market) because they know what they want to satisfy their defined needs
and wants.
2. Screening of ideas- chooses the best ideas by considering whether they are
compatible with resources, objectives, demand, cost and above all,
profitability.
3. Formal business or economic analysis- further qualification of demand, risk,
investment, cost and profitability. (cost-analysis of new product development
idea).
4. Product Development- actual-developed product is now produced. (product
engineering design is prepared, prototype production, product testing, process
design, procuring patents and trademark
5. Test marketing- commercial experiments conducted in limited geographic
areas to ascertain product feasibility.
6. Commercialization- Full-scale production and product introduction can be
realized if test marketing is successful. Now, the new product is born and
enters the product life cycle.

INDIVIDUAL PRODUCT DECISIONS

PRODUCT
ATTRIBUTES

BRANDING

PACKAGING

LABELING

PRODUCT
SUPPORT
SERVICES

STAGES IN THE PRODUCT LIFE CYCLE

1. Introduction stage- when the product is launched in the market. Mkg org should
make buyers are aware of the product.
2. Growth stage- market acceptance when sales and profits increase at an
increasing rate. Tryers are now repeat buyers.
3. Maturity stage sales and profits start to decline
a. Growth maturity
b. Stable maturity
c. Decaying maturity
4. Decline and possible abandonment stage
PRODUCT CLASSIFICATION
Consumer Products
Convenience Products
Shopping Products
Specialty Products
Unsought Products
Industrial Products
Materials and parts- most are sold directly to industrial users.
Capital Items-These products aid in the buyers production or operations,
including installations and accessory equipment.
Supplies and Services- these could be operational or repair and maintenance.
Many of these services are supplied under contract.
PRODUCT ATTRIBUTES
Product quality
Product Features
Product style and design
PRODUCT LINE AND PRODUCT MIX
Product line- possesses the ff characteristics.
1. group of products closely related to each other.
2. they are intended for same uses or they function in similar manner
3. possess similar physical characteristics
4. same customer group
5. marketed through the same types of outlets with given price lines. Ex.
Home furnishings, mens accessories, appliances.
Product mix include:
1. the complete list of all products offered for sale or protruded by a
company.
2. it is a composite of all products, brand or item within each product line.
Ex. Dining table, china cabinet, belts, shoesetc.

BRANDS word, mark, symbol, or a combination of hem used to identify the marketers
product or service.
- brandname is something which can be vocalized or spoken.
- Brandmark is a non-registered design, symbol or product logo.
- Tradename is a registered company name.
- Trademark is a brand registerd under the Phil. Patent Office, given legal
protection.
BRAND EQUITY- value of brand, based on the extent to which it has high brand loyalty,
name, awareness, perceived quality, strong brand associations and other assets. Powerful
brand names command strong consumer preference.
IMPORTANCE OF BRANDING FOR SELLERS
1.
2.
3.
4.
5.
6.
7.
8.

simplifies sales promotion

encourages repeat sales.
provides protection against substitution.
minimizes comparisons.
aids In segmentation.
facilitates the introduction of a new item.
affords greater price stability.
this can be due to high level of customer acceptance as assurance of sales and
profits.

CHARACTERISTICS OF GOOD BRAND NAMES

1.
2.
3.
4.

it must be easy to remember.

it must suggest something about product benefits or use.
symbols, colors must be easily recognized and not too confusing for consumers
must be legally protected. Must be registered under the patent office. Not an
imitation.

PACKAGING- involve designing and producing container or wrapper for a product.

REASONS FOR PACKAGING
1. for product protection from producer, manufacturer to the final user, and for
storing period before assumption.
2. implements a companys marketing program through product differentiation by
customers.
3. increases profit possibilities, like customer buy the product because of the
package.
PACKAGING STRATEGIES
1. Family Packaging
2. Reuse Packaging
3. Multiple Packaging
PACKAGING AS AN INDEPENDENT SELLING TOOL
1. Self-Service
2. Consumers Affluence
3. Innovational Opportunity.
LABELS- part of a product which carries verbal information about the product or the seller.

Primary purpose should be to inform buyers by fairly representing the contents of

the package. Eye-Catching graphics are important. Copy should accurately describe the
contents of the package and guide the consumers how to use it.
Consists of printed information appearing on or with the package.
It identifies the product or brand.
It might describe several things about the product.
It might promote the product through attractive graphics.
TYPES OF LABELS
1. Brand Label
2. Grade Label
3. Descriptive Labels.
PRODUCT POSITIONING
The system of designing the companys image and value offer so that the market segment
can understand and appreciate what the company stands for in relation to its competitors.
It is also the image that the product projects in relation to competitive products or to other
products marketed by the company.
POSITIONING ERRORS FOR PRODUCTS
1. Underpositioning. Consumers have unclear perception or ideas about a company.
2. Overpositioning. They may see a company broadly in terms of product offering or
price lines.
3. Confused positioning. Buyers may have different impressions about a company or
product.
POSITIONING STRATEGIES
- POSITIONING IN RELATION TO A COMPETITOR
- POSITIONING BY PRODUCT ATTRIBUTES
- POSITIONING BASED ON PRICE AND QUALITY
- POSITIONING IN RELATION TO PRODUCT USE
- POSITIONING IN RELATIN TO A TARGET MARKET.
- POSITIONING IN RELATION TO A PRODUCT CLASS.