Designing: Products, Brand, Packing, Services Product classification (Based on use): Products can be classified depending on who the final purchaser is and how he uses them. Based on the usage of the products, they are divided into these: (i) Consumer products (ii) industrial products 1. Consumer products: Consumer products are products that are used by the consumer for personal, family or household use. They are bought with the intention of satisfying individual or personal needs. 2. Industrial products: A product bought by individuals and organizations for further processing or for use in conducting a business. Industrial goods are classified in terms of how they enter the production process and their relative costliness and price. The three groups of industrial products are: Material & parts Capital items Supplies and business services (a) Material & parts: Material & parts include raw material, manufactured material, supplies & services. Material & parts are goods that enter the manufacturer’s product completely and become part of the finished product. In this, price and services are important then brand and advertisement. - Raw material consists of farm product. (Wheat, cotton, fruits and vegetables etc…) - Manufactured material consists of component material. (Iron, cement and wires etc…) - (b) Capital items: Capital items are industrial products that aid in the buyer production or operations. In include installation and accessory. Capital items are long lasting goods and facilitate developing or managing the finished product plant & machinery as well as tools fall in this category. - Installation consists of major purchase such as building, offices, factories etc… & fixed equipments such as generators, large computer system etc… - Portable factory tools and equipments such as lift trucks, hand tools etc… & office equipments such as fax machines and printers etc… (c) Supplies and business services: Supplies and business services are short lasting goods and services that facilitate developing or managing the finished product. Supplies and business services include operating supplies (Coal, paper and pencils etc…) and repairs and maintenance items (paint, nails and broom etc…) these are usually purchase with a minimum of efforts of comparisons. Business services include maintenance and repairs services (window cleaning, computer repair etc…) and business advisory services (legal, management, consulting and advertising etc…) Product decisions Marketers make product decisions at three levels: – individual product decisions – product line decisions – product mix decisions Individual product decisions Product decisions are focused around the development and marketing of Product attributes Define the benefits offered to the customer such as: – Product quality Product quality is one of the marketer’s major positioning tool. The characteristics of a product or services that bear on its ability to satisfy customer need. – Product features The companies can create higher levels models by adding more features. Features are comatitive tools for differentiating the company’s product from competitors product. – Product style and design Another way to add customer value is though distinctive product style & design. Design is a larger concept than style. Style simply describe the appearance of a product unlike style, design is more than skin deep. Good design contributes to products usefulness as well as to its look. Branding A brand is a name, sign, symbol, or design, or a combination of these that identifies the products or services of one seller or group of seller and differentiates them from those of competitors. Packaging The activities of designing and producing the container or wrapper for a product Labelling Labels may range from simple tags attached to products to complex graphics that are part of the package. They perform several functions. The label identifies the product or brand. Product support services. Customer service is another element of product strategy. A company's offer to the marketplace usually includes some services, which can be a minor or a major part of the total offer. Product line decisions A group of products that are closely related because they function in a similar manner are sold to the some costumer groups are marketed through the same types of outlets or fall within given price ranges. Product mix decisions The set of all product lines and items that a particular seller offers for sale to buyers Four Dimensions of the product mix There are Four Dimensions of the product mix. – Breadth or width Wide product mix containing many different product lines. Like Unilever producing cooking oil, toilet soap, cosmetics etc... – Length Total number of products in the product lines – Depth Different versions, such as size of packaging and different formulations – Consistency How closely related the various product lines are in end use, production requirements, distribution channels etc.... Product design Product design adds distinctiveness. Most powerful competitive weapon. Larger concept than style. Style simply describes appearance. Style can be eye catching. Sensational style may grab attention but may not perform better. Unlike style design is more than skin deep Goes to very heart of product. Add to its looks and usefulness also. A good design : along with appearance the product is: Easy to use Services Safe In expensive Simple & economical to produce & distribute Brand decisions Brand – an important part of product. Brand – can add value to product. e.g branded perfumes.