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CHAP 3 Down- Products & services - Coggle Diagram
CHAP 3 Down-
Products & services
Packaging
:-
covering the products to protect them and make sure they are not damaged during transportation and storage
functions
wrapping products to look attractive
protect the products
to handle and store the product for customers
provide related information about the product
materials used for packaging:
= wood, metals, plastics, paper, glass, polyester
objectives
1. To provide physical protection
ensure they are protected against temperature, vibration, theft, dust
2. To enable marketing
sellers can promote the products with attractive packaging to potential buyers
3. To enable product identification
product have its own identity on the package
4. To attract customers
good packaging can attract more buyers to buy
Product Life Cycle
to serve as a conceptual base for testing product growth and development
First of the stages is
introduction
. It happens when a product is brand new and the sales just beginning to build in the market, the product is not so popular in marketplace.
Then,
growth
. It happens when the new product has been in the marketplace for some time and is becoming more accepted. The product becomes popular in market and the sales keep climbing.
Next,
maturity
. It happens when the competitors entering the market. Sales of the product increase at a slower rate.
Last,
decline
. The product is being replaced by a competing product.
Characteristics
Introduction
: high product failure rate, little competition, limited distribution, frequent product modification, company losses
Growth
: more competitors, rising sales, profitable returns, company or product acquisition by larger companies
-
Maturity
: sales increase slowly, can try to differentiate the product and widen the product line
-
Decline
: falling sales, company can decide to abandon the market or to move onto another product
Packaging level
First-level package
often called retail or consumer packaging of the item
2 purpose:
hold and protect the product
provide information and details of the products
Exp: perfume bottle
Second-level package
used for protection purpose, protects the first-level package
also used for providing information such as warranty cards
Exp: put a perfume inside another box for protection
Third-level package
provide protection during shipment and storage
provide a convenient way to move the product quickly
not usually seen by the customer
Exp: the perfume put in the wooden box for transportation used
Labelling
It provides the necessary messages such as ingredients to customer so they can know the detail about the product
Info can be found on label:
a) nutritional value
b) weight of the product
c) country of origin
d) ingredients
e) expiry date
f) toll free number 免费电话
Functions of labelling
1) as an information about the products usage:- can know when is the expiry date
2) gives recognition of the products, labelling help to identify the products:- can know which is KitKat through the label
3) help to assort and classify the products according to the different categories:- buyers can differentiate the categories of shampoo by label
4) help to promote products, attracts customer such as 10% free content will help in the promotion
5) to comply the law, :- label poison icon to the products that are harmful to human health
Types of labelling
1)
persuasive labelling
focuses on a promotional logo, info not so important to consumer
exp: M&M chocolate do the promotion in Disney theme to attract consumer
2)
information labelling
help the customer to make proper selection such as expiry date
3)
universal product codes (UPC)
as the machine-readable bar code and the human-readable 12 digit UPC number
it can be scanned to match the codes and know the related information such as price
New product development
what is a new product?
a)
innovative product
new to customer, different alternatives to existing products
b)
replacement product
replace existing product
c)
imitative product
模仿产品
new to the company but similar product already existing in the marketplace. Exp: a new version of the telephone produce by Oppo, new for Oppo company but telephone is already existing in marketplace
New product development process (NDP)
1. Idea generation
refers to the new-product ideas
2 sources of new ideas:
~ Internal idea sources: the company finds new ideas internally. Exp from R&D dept, employees
~ External idea sources: find new ideas externally. Exp: customers, suppliers, competitors
2. Idea screening 筛选
filtering the ideas to choose the best idea (profitable) after generated ideas
3. Concept development and testing
develop a clear product concept after picking the ideas
should differentiate:
~ a product idea (an idea for a possible product), concept (a detailed version of the idea stated in meaningful consumer terms), image (the way customers perceive an actual product)
4. Marketing strategy
consists 3 parts:
~ describes the target market, the planned product positioning and the sales, market share and profit goals for the first few years
~ outlines the product's planned price, distribution and marketing budget for the first year
~ describes the planned long-run sales, profit goals and marketing mix strategy
5. Business analysis
involves the financial aspect such as sales, cost and profit for the new product
estimate sales (can look at the sales history of similar products), cost and profit (including marketing)
6. Product development
develop prototype to confirm the potential in physical terms
marketing activities include concept testing
physical testing include performance, packaging
the firm can decide whether continue or give up to develop the new product at this stage
7. Test marketing
last stage before commercialisation in the new product, the product is tested in the real market
objectives:-
~ to predict the effectiveness of the proposed marketing strategy
~ obtain the reaction of the customers to the product
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