Product

Products - Products are goods or services that can be offered in an exchange for the purpose of satisfying a need or want. They can be tangible or intangible.

The total product concept refers to the tangible and intangible benefits (attributes) a product possesses.

Example

A car contains a vast array of intangibles that are used to differentiate each model, such as image, reputation, style and safety record. Viewing the car in terms of a total product concept clearly shows that no two cars are exactly the same

• A brand is a name, term, symbol, design or any combination of these that identifies a specific product and distinguishes it from its competition.

• A brand name is that part of the brand that can be spoken.

• A brand symbol or logo is a graphic representation that identifies a business or product.

• A trademark signifies that the brand name or symbol is registered and the business has exclusive right of use.

Example

The top 5 most valuable brands in the world (in order) are

1. Apple

2. Google

3. Microsoft

4. Amazon

5. Facebook

Benefits of branding for consumers

• • identify the specific products that they like.

  • quality

  • reduce risk

  • increase satisfaction

Benefits of branding for Businesses

• • gain repeat sales

  • easier time to introduce new products

  • promotion made easier due to one brand banner

  • increase customer loyalty

Branding Strategies

1. Manufacturer’s brand or national brands are those owned by a manufacturer.

2. A private or house brand is one that is owned by a retailer or wholesaler

3. Generic brands are products with no brand name at all.

Examples

In 2016 Woolworths’ new CEO replaced the labels on their Homebrand products with the name Essentials. This is due to increased competition from Coles and Aldi. To improve the quality and value of their generic brand they didn’t change the products at all— just the labels — as analysts found that the red and white logo was perceived as too low quality. They also introduced a high-end home brand range called Woolworths Select.

Packaging involves the development of a container and the graphic design for a product

Well-designed packaging will give a positive impression of the product and encourage first-time customers.

Other functions

• preserves the product

• protects the product from damage or tampering

• attracts consumers’ attention

• divides the product into convenient units

• assists with the display of the product

• makes transportation and storage easier.

Consumers see certain colours and draw conclusions the shape of the packaging can become part of the product itself.

Example

One of the most easily recognised shapes in the soft-drink market is the distinctive ‘pinched in at the waist’ Coke bottle. They ran a Christmas promotion in the US, changing their cans to white instead of the usual red. Consumers revolted. They complained to Coke the soda tasted different, and the company swiftly switched back to the safety of traditional red.

A label is the presentation of information on a product or its package.

Marketers can use labels to promote other products or to encourage proper use of products and therefore greater consumer satisfaction with products. Usually the label will provide information about ingredients, operating procedures, shelf life, package size or country of origin.

2015

Q21 c) Recommend ways that packaging could be used to maximise sales of the products 4 marks

2018

5 A landscaping business includes an image of a large purple coloured tree on its website and its vehicles.

Which of the following is the most likely reason for this?

A. Sales promotion

B. Niche marketing

C. Product branding

D. Competitive positioning