Chapter 1

Product
Concepts

Product
Anything offered for sale for the purpose of satisfying a want, need or
both sides of the exchange process
Consists of both tangible & intangible ones
Product Classification
Durable
Consumed over a long period of time
Non Durable
Consumed over a short period of time or discarded after
one or more uses

Consumer Products

Convenience

Shopping

Specialty

Unsought

Organizational Products

Raw Materials

Components

Supplies

Equipment

Installation

Business Services

Elements of a Product

Features

Branding

Packaging

Labeling

Supporting Elements

Elements of a Product
Features

Desirable and acceptable

Technically & financially sensible
Physical form or design
Quality & Durability
Ease of use
Environmental Impact

Elements of a Product
Branding

Brand Name
Brand Mark
Logo
Trade name
Trade Mark
Service Mark

Elements of a Product
Brand Equity
Indicates brands overall strength in the marketplace
Comprises of 5 elements
1.
2.
3.
4.
5.

Brand Loyalty
Brand Awareness
Perceived Quality
Brand Associations
Other Brand Assets

Types of Brands:
6.
7.
8.

Manufacturer brand
Private Brand
(Private Label or store brand)
Generic Brand

Elements of a Product
Key Branding Issues:
1.

Brand Selection
Name, logo considering relativity, ease of use, recognition and
recall

2.

Brand Protection (by using or legally registering it)

Assigning an existing brand name to a new product

3.

Brand Extension versus Individual Branding

Family Brand
Same Brand name for all product lines
Individual Brand
Separate brand name for an individual product within the
product line

Elements of a Product
Packaging
Along with containing product, it provides a way to present it to
potential buyers
Packaging Functions:
1. Facilitating Promotion
2. Facilitating Distribution
Packaging Considerations:
3. Safety
4. Environmental Impact
5. Cost

Elements of a Product
Labeling
Along with containing product, it provides a way to present it to
potential buyers
Labeling Functions:
1. Promotional Support
2. Information for buyers and intermediaries
3. Regulatory Compliance
Design Considerations:
4. Avoid trendiness
5. Benefits in simple terms
6. Neat & Clean
7. Consistant

Elements of a Product

Supporting Elements
Along with containing product, it provides a way to present it to
potential buyers
Warranty:
Compensation if product does not live up to the level of promise
Guarantee:
Assurance about product performance and durability
e.g. Money back

Supporting Product Issues

Product Safety

Standards

Compatibility

Solutions versus Products