MARKETING MIX:
PRODUCT AND PACKAGING
Chapter 19
What you will learn:Role of the product
 Product Development
 Importance of Branding
 Importance of Packaging
 Product-Life Cycle
 Extension Strategies of the
Product-Life Cycle.

Role of products in the marketing mix
After market segmentation, the product and packaging are chosen.



Most important element.
Product look, properties, etc are researched.
Product must fulfill a want /satisfy customer.
Types of product.
Different types of products. Some sold to consumers, some sold to
producers.
Products are grouped into:
Consumer goods- Bought by people.
Types of product.
Different types of products. Some sold to consumers, some sold to
producers.
Products are grouped into:
Consumer services- Services for people.
Types of product.
Different types of products. Some sold to consumers, some sold to
producers.
Products are grouped into:
Producer goodsGoods produced for other businesses.
Types of product.
Different types of products. Some sold to consumers, some sold to
producers.
Products are grouped into:
Producer servicesServices which help other businesses
*QUIZ TIME!!!
Tick where each product belongs correctly.
Product
Toothpaste
Bank accounts
Office cleaning
T.V programme
Factory building
Consumer
good
Consumer
service
Producer good Producer service
GOOD PRODUCT POINTS:

HAS TO SATISFY or will not sell.

Right quality so the price is what customers want to pay.

A substantial amount of profit should be added to the
product price.

Attractive design to aimed age group.

Appropriate quality for brand image.

Reputation should be good or else no buyers.
Product Development:
Process businesses go through when developing product:Sales department
Research & development
Customer suggestions
Competitors products
Ideas generated
Select best ideas for
further research
Some ideas abandoned, some
researched further.
Decide if it will sell
well. Product success?
Break even analysis. How
large will the sales be needed
to cover costs.
Develop a prototype
Example/ test. Defaults are
seen and taken care of.
Product launched in a small
part of the market. It’s
successfulness is determined.
Launched into main market.
Later could be exported.
Test the market.
Full launch of product
to market
BREAK-EVEN ANALYSIS
Name the Brand
Name the Brand
Name the Brand
Name the Brand
Name the Brand
Name the Brand
Name the Brand
Name the Brand
Name the Brand
Name the Brand
Name the Brand
The Importance of Branding
•
Today products aren't sold directly to customers, but to other
businesses or retailers.
•
Products are sold to by being branded.
•
Branded products  higher quality
 better consumer confidence
•
Use of brands to encourage repeat purchases
•
Creates Brand Loyalty
The role of packaging in the marketing mix





Suitable for the product.
Provide protection, doesn’t allow it to spoil.
Suitable for transporting
Should not be too delicate
Used in promoting product


Color, shape, attractiveness.
Eye-catching
Product Life Cycle (PLC)


All products DO NOT LAST FOREVER.
Like all living organisms, products also have
certain stages of their “lives” to go through.

The process of what happens to a product is
called the product life cycle.
Product Life Cycle (PLC)
Product Life Cycle (PLC)

See “light bulb video”


http://news.bbc.co.uk/1/hi/uk/7814502.stm
Questions
Define the term “product life cycle”
 Explain why the standard 100 watt light bulb is being
phased out by leading retailers
 Why are customers prepared to pay a higher price for
energy-saving light bulbs?


Extension - What method of production is used in the
manufacture of light bulbs?
Extending the product life cycle
-Ways that sales may be given a boost.
Introduce new
variations of the
original product, e.g.
a children version
Sell into new markets,
e.g. export the
product to another
country
Make small changes
to the product’s
design, colour or
packaging
EXTENDING THE
PRODUCT LIFE CYCLE
Use a new
advertising campaign
Introduce a new,
improved version of
the old product
Sell through
additional, different
retail outlets
Let’s see how much you know…
a)
b)
c)
d)
e)
Who are the customers?
What attracts them to the product?
What brand image is trying to be created?
Where it is sold?
How does the name support the brand image?
Let’s see how much you know…
a)
b)
c)
d)
e)
Who are the customers?
What attracts them to the product?
What brand image is trying to be created?
Where it is sold?
How does the name and packaging support the brand
image?
Let’s see how much you know…
a)
b)
c)
d)
e)
Who are the customers?
What attracts them to the product?
What brand image is trying to be created?
Where it is sold?
How does the name and packaging support the brand
image?
Let’s see how much you know…
a)
b)
c)
d)
e)
Who are the customers?
What attracts them to the product?
What brand image is trying to be created?
Where it is sold?
How does the name support the brand image?
*EXTENSTION QUESTIONS.
YOU HAVE CREATED A NEW MILK PRODUCT FOR KIDS. THE MARKET
SEGMENT IS AIMED FOR PARENTS TO BUY IT FOR THERE KIDS. IT IS
HEALTHY WITH VITMAINS AND MINERALS .
1) Which of the containers from above would you use for the new fruitflavored milk drink? Explain?
2) Which colours should the container be?
3) Choose a brand name for the drink. What image does this name give
the product?
4) What information would be needed to be put on the product?
THE END!!