Marketing (Product Strategy) - Discuss about levels of product, product classification, brand strategies, packaging and labeling of the consumer products.

1. Chapter 5
Product Strategy
Prepared by:
Nor Izzuddin Bin Norrahman
Lecturer of Management, Banking & Islamic Finance
Astin College

2. • A product can be defined as – Anything that
can be offered to a market attention,
acquisition, use, or consumption that might
satisfy a want or need.
• It includes:
– Physical Objects
– Services
– Persons
– Places
– Organizations
– Ideas

3. LEVELS OF PRODUCT

4. Core Product
• The most basic level
• Address the question: what is the buyer really
buying?
• Problem-solving benefits
• The benefit that the consumers will receive
• Example?

5. Actual Product
• Build around the core products
• Basically have 5 Characteristics:
– Quality level
– Features
– Design
– Brand name
– Packaging

6. Augmented Product
• Built around both core and actual product
• By offering additional consumer services and
benefits
• Examples?

7. Example

8. PRODUCT CLASSIFICATION
• Products and services fall into two broad
classes based on the types of consumers that
use them:
– Consumer Products
– Industrial Products

9. Consumers Product
• Are those brought by final consumers for
personal consumption.
• Marketers usually classify these goods
– Convenience Goods
– Shopping Goods
– Specialty Goods
– Unsought Goods

10. Marketing Consideration for Consumer
Products

11. Convenience Products
• Consumer products and services that the
consumer usually buys:
• FREQUENTLY,
• Immediately,
• And with a minimum of comparison and
buying effort.
• Examples?

12. Shopping Products
• Less frequently purchased.
• Customer will COMPARE carefully on:
– Suitability
– Quality
– Price
– Style
• Much time and effort needed to:
– Gather info
– Compare

13. Specialty Products
• Consumer products & services that have
UNIQUE characteristics.
• Which significant group is WILLING to buy
• Example?

14. Unsought Products
• Either:
– Consumer does not know about the products
– Consumer does not think to buy the products
• Example?

15. INDIVIDUAL PRODUCTS DECISIONS
Product
attributes
Branding Packaging Labeling
Product
support
services

16. Product Attributes
• Developing a product or services involves
defining the BENEFITS that it will offer.
• These benefits measured by:
– Quality
– Features
– Design

17. Product Attributes
• Product Quality
– Two dimensions:
• Level
– In developing product, the marketer must choose quality level
– To support the product position in market
– Examples?
• Consistencies
– Conformance quality
– Freedom from defects and consistency in delivering a targeted
level of performance
– Examples?

18. Product Attributes
• Product Features
– A product can be offered by varying features.
– Should ask question:
• How do you like the product?
• Which specific features do you like the most?
• Which features that you want us to add in the
products?

19. Product Attributes
• Product Designs
– Design is a larger concept than style
– Style – simply describe appearance of a product,
but it doesn’t necessarily make the product
perform better.
– Good design contributes to a product’s
USEFULNESS as well as it’s looks.
– Good design can attract attention, improve
product performance, cut production costs and
give strong competitive advantage.

20. Branding
• A brand is a name, symbol, term, sign, or
design, or combination of these, that
identifies the maker or seller of a product or
services.
• It help consumers identify the products.
• It also tell the buyer something about the
product

21. Branding
• Brand Equity
– Brands vary in the amount of power and value
– A powerful brand has high brand equity.
– High brand equity provides competitive
advantages.
– It also will affected the consumer brand
awareness and loyalty.

22. Branding
• Brand Name Selection
– A good name can add greatly to a product’s
success.
– Desirable qualities for a brand name includes:
• Suggest benefits and qualities (examples?)
• Easy to pronounce, recognize and remember
(examples?)
• Distinctive (Examples?)
• Translate easily to foreign language
• Should be capable of registration and legal protection

23. Branding
• Brand Sponsor
– Four sponsorship options:
• Manufacturer’s brand
• Private brand
– Hard to establish / costly
– Yield high profit – cannot be bought at other competitors
• Licensing
– Use well-known celebrity
• Co-Branding
– Mix the company resources with another company to create a
product

24. Brand Strategies

25. Brand Strategies
• Line Extension
– When company introduces ADDITIONAL items in
a given product category under the same brand
name.
– Examples: Flavors, colors, ingredients
– It is a low cost & low risk method in introducing
the new products.
– Risk: overextended – might lose its specific
meaning (Coke vs Diet Coke, Coke Zero, Vanilla
Coke)

26. Brand Strategies
• Brand Extensions
– Involves the use of a successful brand name to
launch a NEW or MODIFIED PRODUCTS in a NEW
CATEGORY]
– Example: Honda (Motorcycles, Cars, etc.)
– Pro: Instant recognition & faster acceptance
– Cons: if the brand extension fails, it may harm the
consumer attitude towards the brand name.

27. Brand Strategies
• Multi-brands
– Company often introduce additional brands in the
same category
– Example: Watches (CASIO)
• G-Shock (Durability)
• Edifice (Low-Price)
• Others?
– Why they do that? Isn’t the buyer will become more
confuse on which watch that they want to buy?
– Pro: To protect the flanks of its CASIO brand in the
watches industry
– Cons: May not profitable when it only meet small
market share. (sources which they have separated is
wasted)

28. Brand Strategies
• New brands
– A company may create a new brand name when
it enter a new category.
– Or because a company might believe that the
power of its existing brand name is waning and
need a new one.
– Example: Nestle -> MILO, HONEY STAR, NESCAFE
– Pros?
– Cons?

29. Brand Strategies
• Mega-brands
– Weeding out weaker brands
– Focusing the resources only on brands that can
achieve number one or two in the market
– Share positions in their categories.
– Examples?
– Pros?
– Cons?

30. Packaging
• Packaging involve designing and producing the
container or wrapper for a product.
• The package may include:
– The Brands name
– The instruction manual
– Ingredients
– Others?
• Why we need it?

31. Labeling
• Labels may range from simple tags to complex
graphic attached with the package.
• It perform several function:
– Identifies brand or product
• Sunkist -> print on an orange picture
– Describe several thing about the product
• Who made it? Where are they from? Expired Date
– Promote the product
• NEW PRODUCT! NEW FORMULA!

32. The End….any question? 