PRODUCT

S E S S I O N   F I V E

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Mostafa Purmehdi

Define a Product

in marketing terms

O B J E C T I V E S

PRODUCT?

WHAT IS A

a Basket of Attributes

features

functions

benefits

and uses

Combines

TANGIBLE and INTANGIBLE forms

BUYING A CELL PHONE

• Battery life
• Product design
• Touch screen
• Built-in MP3 player
• Camera
• ...

CELL PHONE SERVICE PROVIDER

• Colour of antenna
• CPU power
• Reliable service
• Roaming charges
• Online biling
• High-speed data network

Dimensions of a Product

Core benefit: reason why consumers buy and use the product

Form: physical product itself, as well as other expectations consumers have

Augmented value: extra benefits that differentiate from what the competition is offering

Porsche

Core benefit: Performance, Prestige, Reward

Form: Design, Color, Brand name, Warranty

Augmented value: After sale service, Delivery, etc.

Understand the

Product Line and Mix

O B J E C T I V E S

Product Line

Set of Products in the Same Category Marketed by a Company to a Given Market

PRODUCT LINE

DEPTH

The number of products in a product line

Product Mix

Refers to All the Product Lines Offered by a Company

P R O D U C T   M I X

SOURCES   OF

ADDED VALUE

• Product design (aesthetic)

• Product packaging

  • protect, promote, transport, identify a product

  • product promotion, communicates the  benefits

• Product quality

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CREATIVE PACKAGING

Augmented Product

including the brand

O B J E C T I V E S

BRANDS

A brand is a name, a design, a symbol that identifies a product or services and distinguishes them from other products.

Helps differentiate one product from another

In some cases, the brand is

the only way to identify a product

that is often unique

and has no generic name

Types

of Brands

• Product brand

• Line brand

• Range brand

• Familly brand

• Private brand

• Designer brand

Purpose of Brands

• Symbol of belonging

• Promise to meet specific expectations

• Convenience

BRAND EQUITY

The various assets and liabilities related to a brand

It can add to or detract from

the value of a product or service

Two Sources of

Brand Equity

BRAND
 AWARENESS

IMAGE and
 ASSOCIATION

Brand Name

Existing

Line Extension

Brand Extension

Multi-Brand

New Brand

New

New

Existing

Product Category

STRATEGIC BRANDING DECISIONS

WHAT IS CO-BRANDING

Private brands and distributor brands

Product Management

Innovation and New Product Development

O B J E C T I V E S

New Product Development

IDEA

GENERATION

TESTING

LAUNCH

FANCY SOME ADVICE ON DESIGNING A PRODUCT?

Product Life Cycle

Product Management

M A R K E T I N G   P L A N   P E R   P E R I O D

INNOVATION

Relatively

Continuous

Discontinuous

Innovation

Diffusion of Innovation

Innovation

ADOPTION FACTORS

• Product’s relative advantage

• Compatibility

• Triability

• Observability

• Complexity