Week 7 Product

Decision

Definition & nature of productProduct MGT decisionProduct life cycleNew product development

Outlines

Product

Anything that can offer to market for attention, acquisition, use or consumption & that might satisfy a want or need

Includes physical objects, services, persons, places, organizations & ideas

Product Levels

BrandName

Quality

Packaging

Styling

Features

Delivery& Credit

Installation

Warranty

After-Sale

Service

CoreBenefit

orService

CoreBenefit

orService

Actual ProductActual Product Core ProductCore Product

Augmented ProductAugmented Product

Product Classifications

Types ofConsumerProducts

Convenience

Specialty

UnsoughtGoods

Shopping

Product Management Decision

Product line decisionProduct mix decisionProduct item decision

ProductLine Decisions

Product MixDecisions

ConsistencyConsistency

LengthLength

FillingFillingStretchingStretching

FeaturingFeaturing

DepthDepthLengthLength

WidthWidth

Product Line & Mix Decision

Product Item Decision

Packaging, labelling & brandingBrand equity:

brand is the most power asset of a co. the value of a brand = the extent that it has high

brand loyalty, awareness, perceived quality, strong brand association

R & D, skillful adv., excellent trade & service

Product Life Cycle

TimeProduct

DevelopmentStage

Introduction

Profits

Sales

Growth Maturity Decline

Losses/Investments ($)

Sales andProfits ($)

Sales and Profits Overthe Product Life FromInception to Demise

New Product Development ProcessNew Product Development Process

IdeaGeneration

IdeaGeneration

IdeaScreening

IdeaScreening

ConceptDevelopmentand Testing

ConceptDevelopmentand Testing

MarketingStrategy

MarketingStrategy

BusinessAnalysisBusinessAnalysis

ProductDevelopment

ProductDevelopment

TestMarketing

TestMarketing

CommercializationCommercialization

Questions for Discussion

1) Identify one new product that is on the market. How you classify this product? What is the core product, the actual product & the augmented product? Is it part of a family of product? How is it positioned? What can you infer about the commercialization strategies of the company?

Questions for Discussion

2) Highlight examples of bad brand-names & good brand-names in HK. Justify your opinion. Suggest new names for the bad brand-names you have identified.

3) Choose two products in Hong Kong. One has a long & the other has a short product life cycle, & explain should their life be extended. Why & How?

The End ?!?