Product

Levels of Product

• Levels of Product :

1. Core product :

Is the core benefit of the product.

What is the buyer really buying ?

Charles Revlon : “ In The factory, we

make cosmetics, in the store we sell

hope “

• Ritz Carlton Hotels : “memorable travel experience “

2. Actual Product :

5 Characteristics of actual product :

- a quality level

- features

- design

- a brand name

- packaging

3. Augmented Product :

Additional consumer services and

benefits, e.g : warranty on parts,

instruction on how to use, quick repair

service, toll free telephone number.

Product Classifications

• Consumer Products :

Convenience products, Shopping

products, Specialty products, Unsought

product.

• Industrial Products.

Consumer products :

are those bought by final consumers for

personal consumption.

Marketers usually classify these goods further based on how consumers go about buying them.

Convenience product :

Are product and services that the

the customer usually buys frequently,

immediately, and with a minimum

comparison and buying effort.They are

usually low priced, and marketers place them in many locations to make them readily available.E.g : soap, candy, newspapers, fast food, cigarettes,shampoo,etc.

• Shopping products :

in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price and style.

E.g : furniture, clothing,used car, major appliances, hotel and motel services.

Marketers usually distribute products through fewer outlets but provide deeper sales support to help customers in their comparison efforts.

• Specialty products : consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.E.g : lamborghini, Louis Vuiton, etc.Buyers are usually willing to travel great distances to buy one, witout comparison.

• Unsought product :

The consumer either does not know about or knows about but does not normally think of buying. E.g : life insurance , blood donations to the Red Cross.By their nature, unsought products require a lot of advertising, personal selling and marketing efforts.

• Industrial products : are those purchased for further processing or for use in conducting a business,e.g : fork lift, tractor, lawn mower, etc.

Individual Product Decisions

• Product Attributes : Product Quality,Product Features ,

Product Style and Design.• Branding:Brand Equity, Brand Name

Selection, Private Brand,Licensing, Co Branding, Brand Strategy.

• Packaging• Labeling• Product Support Services

• Product Quality :

is the ability of a product to perform its functions. It includes durability, reliability, precision, ease of operation and repair, etc.

• Product Features :

The company should periodically survey

buyers and ask these questions :

- how do you like the product ?

- Which specific feature do you like most ?

- etc

HUKUM PARETO, PARITY PRODUCT.

• Good style and design can attract attention, improve product performance, cut production costs, and give the product a strong competitive advantage in the market.

• Brand :

is a name, term, sign, symbol or design, or a combination of these, that indentifies

the maker or the seller of a product or service.E.g : XL, Sunkist Orange, Dole Pineapples, Sambal Terasi Mama Suka, etc.

• Brand Equity :

The value of a brand, based on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations,and other assets

( patents, trademarks, channel relationships ).

• Brand Name Selection :

1. It should suggest something about the

product’s benefits and qualities. E.g :

Fresh Tea, Telkomsel, Sanaflu.

2. It should be easy to pronounce,recognize, and remember. Short names help : Tip Ex, Teh Botol Sosro, New Kids On The Block,

Michael Learns To Rock.

3. The brand name should be distinctive :

Kodak, Exxon, Avanza, Xenia.

4. The name should translate easily into

foreign languages.

5. It should be capable of registration and

legal protection : Aqua.

Private Brand :

A brand created and owned by a reseller of a product or service.E.g : Sanex ( Chinese motor cycle ), Jialing, Zhong Shen, etc.

Licensing : Most manufacturer take years & spend

millions to create their own brand names. Some companies license names or symbols for a fee, any of these can provide an instant and proven brand name.E.g : Lois, Calvin Klein, Tommy Hilfiger, Gucci, etc.

Co- Branding :

The practice of using the established brand names of different companies on the same product.E.g :

- Nabisco + Pillsbury : Pillsbury Oreo.

• Brand Strategy :

1. Line Extentions

2. Brand Extentions

3. Multi Brands

4. New Brands

`

• Line Extentions :

Occur when a company introduces additional items in a given product category under the same brand name, such a new flavors, colors, ingredients, or package size.E.g : Fresh Tea (orange, apple, strawberry, etc ).

• Brand Extentions :

Using a successful brand name to launch a new or modified product in a new product category.

E.g :

- Honda : Motorcycle, automobile

- Yamaha : Motorcycle, piano.

- ABC :

• Multibrands :

Additional brands in the same category :

- Teh Botol Sosro, Fresh Tea, TEBS

- Paramex, Feminax, Afebrin

FIGHTING BRANDS.

New Brands :

A company may create a new brand name when it enters a new product category for which none of the company’s current brand names are appropriate.

• Packaging :

involves designing and producing the container or wrapper for product.

Traditionally, the primary function of the package was to contain and protect the product.In recent times, packaging is an important marketing tool.

• Labeling :

- Simple tags to complex graphic

- identifies the product

- describe several thing about the product

Product Support Services :

Services that augment actual product.

Many companies are using product support services as a major tool in gaining competitive advantage.