1. Chapter 5
Product Decision
MKT243 Fundamental Of
Marketing DHD2011 1

2.  What is product?
 Classification of product
 Level and types of product
 Product items, lines and mixes
 Branding
 Packaging
MKT243 Fundamental Of
Marketing DHD2011 2

3. MKT243 Fundamental Of
Marketing DHD2011 3

4. Product is the Product
“heart” of
Marketing Mix
Price Promotion
Place (Distribution)
MKT243 Fundamental Of
Marketing DHD2011 4

5. Product is anything that can be offered in a market
for attention, acquisition, use, or consumption that
might satisfy a need or want (Kotler and Gary)
Product is everything, both favorable and
unfavorable, that a person receives in an
exchange (McDaniel/Lamb/Hair)
MKT243 Fundamental Of
Marketing DHD2011 5

6. Levels of Product and Services
MKT243 Fundamental Of
Marketing DHD2011 6

7. PRODUCTS
PRODUCTS
Consumer
Consumer Business
Business
Products
Products Products
Products
Convenience
Convenience Shopping
Shopping Specialty
Specialty Unsought
Unsought
Products
Products Products
Products Products
Products Products
Products
MKT243 Fundamental Of
Marketing DHD2011 7

8. Convenience A relatively inexpensive item that
Product merits little shopping effort
A product that requires comparison
Shopping shopping, because it is usually
Product more expensive and found in fewer
stores
A particular item for which
Specialty
consumers search extensively and
Product
are reluctant to accept substitutes
A product unknown to the potential
Unsought
buyer or a known product that the
Product
buyer does not actively seek
MKT243 Fundamental Of
Marketing DHD2011 8

9. Product and Service Classifications (Business Product)
 Industrial products are products purchased for
further processing or for use in conducting a
business
 Classified by the purpose for which the product is
purchased
◦ Materials and parts
◦ Capital
◦ Raw materials
◦ Processed materials
◦ Supplies and service
MKT243 Fundamental Of
Marketing DHD2011 9

10. A specific version of a product
A specific version of a product
that can be designated as a
that can be designated as a
Product Item
Product Item distinct offering among an
distinct offering among an
organization’s products.
organization’s products.
A group of closely-related
A group of closely-related
Product Line
Product Line product items.
product items.
All products that an
All products that an
Product Mix
Product Mix organization sells.
organization sells.
MKT243 Fundamental Of
Marketing DHD2011 10

11. MKT243 Fundamental Of
Marketing DHD2011 11

12.  Product Mix Width
The number of Product Lines an organization
offer
e.g: Nestle-Drinks, confectionary, Instand
noodels
 Product Line Depth
The number of Product items in a product line
e.g: Nestle, In the Product Line of Junior Foods,
there are 11 Products Items+++
MKT243 Fundamental Of
Marketing DHD2011 12

13. Advertising Economies
Advertising Economies
Package Uniformity
Package Uniformity
Standardized
Standardized
Components
Components
Efficient Sales and
Efficient Sales and
Distribution
Distribution
Equivalent Quality
Equivalent Quality
3 MKT243 Fundamental Of
Marketing DHD2011 13

14. Adjustments to
Adjustments to
Product Items,
Product Items,
Lines, and Mixes
Lines, and Mixes
Product Line
Product Line
Product
Product Product
Product Extension or
Extension or
Modification
Modification Repositioning
Repositioning Contraction
Contraction
MKT243 Fundamental Of
Marketing DHD2011 14

15. Quality Modification
Quality Modification
Functional Modification
Functional Modification
Style Modification
Style Modification
MKT243 Fundamental Of
Marketing DHD2011 15

16. Is the changing consumer’s perception of a brand in
relation to competing brand
MKT243 Fundamental Of
Marketing DHD2011 16

17. Why reposition
Why reposition
established brands?
established brands?
Changes in
Changes in
Changing
Changing Declining Sales
Declining Sales Social
Social
Demographics
Demographics Environment
Environment
3 MKT243 Fundamental Of
Marketing DHD2011 17

18.  Product Line Extension
ADDING more product items to an existing
product line
 Product Line Contraction
DELETING product items in the product line
because PL over extension
-Cannibalization
-harvested product that not generate much sales
MKT243 Fundamental Of
Marketing DHD2011 18

19. Symptoms of
Symptoms of
Product Line
Product Line
Overextension
Overextension
● Some products have low sales or cannibalize
sales of other items
● Resources are disproportionately allocated to
slow-moving products
● Items have become obsolete because of new
product entries
MKT243 Fundamental Of
Marketing DHD2011 19

20. MKT243 Fundamental Of
Marketing DHD2011 20

21. That part of a brand that can be spoken, including
That part of a brand that can be spoken, including
letters, words, and numbers.
letters, words, and numbers.
Brand
Brand It’s a name, term, symbol, design or combination
It’s a name, term, symbol, design or combination
Name
Name thereof that identifies a seller’s products and
thereof that identifies a seller’s products and
differentiate them from competitor
differentiate them from competitor
Brand
Brand The elements of a brand that
The elements of a brand that
Mark
Mark cannot be spoken.
cannot be spoken.
Brand
Brand The value of company and brand names.
The value of company and brand names.
Equity
Equity
MKT243 Fundamental Of
Marketing DHD2011 21

22.  Source of brand name
Quality, Benefits, Animals, Persons, Numbers,
Things etc…
Benefits having a Brand Name:
 Product Identification
 Repeat sales
 New product sales
MKT243 Fundamental Of
Marketing DHD2011 22

23.  It refer to the value of company and brand
names.
 High Awareness + Perceived Quality + Brand
Loyalty = Brand EQUITY.
 A strong brand equity is a strong asset to the
company.
MKT243 Fundamental Of
Marketing DHD2011 23

24.  Easy to pronounce, recognize remember and
short
 Distinctive and unique
 Describe the product, use and benefits
 Has a positive connotation
 Reinforce the desired product image
 Legally protectable in home and foreign markets
of interest
MKT243 Fundamental Of
Marketing DHD2011 24

25. MKT243 Fundamental Of
Marketing DHD2011 25

26.  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
MKT243 Fundamental Of
Marketing DHD2011 26

27. Brand
Brand No Brand
No Brand
Manufacturer’s
Manufacturer’s Private Brand
Private Brand
Brand
Brand
Individual
Individual Family
Family Combi-
Combi- Individual
Individual Family
Family Combi-
Combi-
Brand
Brand Brand
Brand nation
nation Brand
Brand Brand
Brand nation
nation
MKT243 Fundamental Of
Marketing DHD2011 27

28.  Generic Product vs. Branded Products
Generic Product-no frills, no brand name and low cost, low
quality
Branded Product-Product with name
 Manufacturers’ Brands vs. Private Brands
Manufacturers’ Brand-Company/ Manufacturer name
Private Brand-Wholesaler/ retailer's name
 Individual Brands vs. Family Brands
Individual Brand-different brand names for different products
Family Brands-Same brand names for different products
 Cobranding-placing 2 or more brand names on a product or its packages
MKT243 Fundamental Of
Marketing DHD2011 28

29.  Generic products – No frills, no brand name, low
cost product and easy to identified by it’s product
category.
 What is the main appeal of generic products??
PRICE
MKT243 Fundamental Of
Marketing DHD2011 29

30.  Manufacturer’s brand – National Brand (brand’s
owner)
E.g: Kodak, Pensonic, Akira etc.
 Private brand – Private label or store brand.
E.g GIANT BRAND, FIRST CHOICE, PARKSON
etc.
MKT243 Fundamental Of
Marketing DHD2011 30

31.  Individual brand – Using different brand name for
different products.
 Use only: Products vary greatly in use and
performance.
E.g: Colgate- Kayu Sugi, Fresh, White, Active
Solution etc.
 Family Brand – marketing several different
products under the same brand.
E.g: Sony, Toshiba, NIKE, PADINI etc.
MKT243 Fundamental Of
Marketing DHD2011 31

32. Types of Cobranding
Types of Cobranding
Ingredient
Ingredient Cooperative
Cooperative Complementary
Complementary
Branding
Branding Branding
Branding Branding
Branding
e.g: Intel
e.g: Intel e.g: Air Asia and
e.g: Air Asia and e.g: Nescafe and
e.g: Nescafe and
Citybank
Citybank Creamer
Creamer
MKT243 Fundamental Of
Marketing DHD2011 32

33. MKT243 Fundamental Of
Marketing DHD2011 33

34. “The activities of designing the container or wrapper
for a product”
Package:
Container/ wrapper
MKT243 Fundamental Of
Marketing DHD2011 34

35. 1. Primary Package
A product’s Immediate container
2. Secondary Package
A container to protect primary package
3. Shipping Package
A container used to store, to ship the product
MKT243 Fundamental Of
Marketing DHD2011 35

36. Contain and Protect
Contain and Protect
Promoting Products
Promoting Products
Facilitate Storage, Use,
Facilitate Storage, Use,
and Convenience
and Convenience
Facilitate Recycling
Facilitate Recycling
MKT243 Fundamental Of
Marketing DHD2011 36

37. MKT243 Fundamental Of
Marketing DHD2011 37

38. ‘Is a printed information appearing on or with the package’
Persuasive Informational
 Focus on giving product info
 Focuses on such as ingredients,
promotional theme nutritional information, net
/ effort weight, manufacturer’s
 Emphasis on attractive address, expire date, storage
color, graphical and instruction, suggested price,
halal sign, customer info line
text service, UPC etc.
 Consumer information
is secondary  Helps make proper selections
 Lowers cognitive dissonance
 Includes use/care
MKT243 Fundamental Of
Marketing DHD2011 38

39. MKT243 Fundamental Of
Marketing DHD2011 39

40.  Universal Product Code
A series of thick and thin vertical lines (bar code),
readable by computerized optical scanners, that
represent numbers used to track products
MKT243 Fundamental Of
Marketing DHD2011 40

41. MKT243 Fundamental Of
Marketing DHD2011 41

42. MKT243 Fundamental Of
Marketing DHD2011 42

43. ‘A confirmation of the quality or
performance of a good or service’
-Written Guarantee
-Simple statement
Express
Express e.g: 100% genuine leather
Warranty
Warranty 100% COTTON
100% ORGANIC
Implied
Implied
Warranty Unwritten Guarantee
Warranty
MKT243 Fundamental Of
Marketing DHD2011 43