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PRODUCT DECISIONS, Basis of Comparison
i) Product
ii) Price
iii) Place…
PRODUCT DECISIONS
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Product Items, Lines and Mixes
Product Items
A specific version of a product that can be designated as a distinct offering among an organization's products. For example, Maggie Sup Tulang
Product Lines
A group of closely related product items. For example, Maggi has three product lines which are instant noodles(MAGGI Hot Bowl Instant Noodle) , flavour(MAGGI Stock Cubes) and sauce(MAGGI Oyster Sauce).
Product Mix
An organization's product mix includes all the products it sells. For example, Maggi, all product of Maggi includes, instant noodle, stock cubes and sauces.
Benefits
i) Advertising economies occur when several products are advertised under the umbrella of the line.
ii) The package uniformity increases customer familiarity and the different items help to advertise one another.
iii) Product lines provide an opportunity for standardizing components thus reducing manufacturing and inventory costs.
iv) Product lines facilitate efficient sales and distribution, leading to economies of scale for managing the sales force, warehousing and transportation.
v) Product lines based on a brand name help consumers evaluate quality. Consumers usually believe all products in the line will be similar in quality.
Packaging
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Function of packaging
i) Containing and Protecting Products
ii) Promoting Products
iii) Facilitating Storage, Use and Convenience
iv) Facilitating Recycling and Reducing Environmental Damage
Branding and Benefits
Definition
A brand is a name, term, symbol, design or combination thereof that identifies a seller's products and differentiates them for competitors' products.
Objectivesi) Product Identification - The brand names help consumers identify products that might benefit them.
- Brands represent consumers' perceptions and feelings about a product and its performance.
- Brands equity is the positive differential effect that knowing the brand name has on customer response to the product or service.
- Brand valuation is the process of estimating the total financial value of a brand and measuring such value is difficult.
- High brand equity provides a company with many competitive advantages.
i) A powerful brand enjoys a high level of consumer brand awareness and loyalty.
ii) Because consumers expect stores to carry the brand , the company
Labelling
Definition- A persuasive labelling focuses on a promotional theme or logo, and consumer information is secondary.
Basis of Comparison
i) Product
ii) Price
iii) Place (distribution)
iv) Promotion
v) Brand loyalty of consumers
vi) Purchase behavior of consumers
Product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a need or want.