IB Business and Management
Marketing - Product
• Today’s objectives:
– Discuss product classification for
different companies
– Examine the process of product
development and design
Product
• The product element of the marketing mix
involves any good or service that satisfies
the needs and wants of customers.
Product Classification
By PRODUCT LINE:
• Product line refers to a variety of the same
product that a business produces for
customers of a particular market.
• Products in a product line can differ in
color, size, price, or quantity so there is a
greater chance that each product meets
the needs of different customers.
Product Classification
By PRODUCT MIX:
• Product mix describes variety of different
product lines produced by a business
• By having a wide product mix, businesses
should be able to increase overall sales to
a larger customer base.
Product Classification
By PRODUCT RANGE:
• Product range refers to all product lines in a
product mix (all products a business sells)
Apple
• One of Apple’s product lines is MP3
players. What products would be
within this product line?
• What other product lines make up
Apple’s product mix?
How might the following
businesses split their product
range into product lines?
• Heinz
• Mars
Homework….
• Use the internet to find out about the
different product lines of
• Unilever
• Procter and Gamble
• Give 5 examples of products from
each of the product lines that you
have identified
Products
Consumer
Products
Industrial
Products
FMCG’s
Consumer
durables
(Fast Moving
Consumer
Goods)
What type of products are
these?
Gillespie (2003) – Classification of
Consumer goods
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Staple items
Emergency
Durable
Non-durable
Specialty goods
New Product Design &
Development
• The drive for developing new
products comes from changing
consumer tastes and preferences.
• Design refers to the process of
adding value to a product
The Design Mix (Value Analysis
Triangle)
Looks, feel,
smell or taste
Aesthetics
Where do the
following products fit
on the design mix?
Vivienne
Nike
Ariel
Tesco
Running
washing
Westwood
Value
Volkswagen
Ipod
Mars
Big Touch
Mac
BarGolf
Toilet
Clothes
powder
Shoes
Roll
Function
Does it work, Is it
reliable?
Economic
Manufacture
Is it able to be made
quickly and efficiently?
Tom Peters Model for gaining
a competitive advantage
Raise
Eliminate
New competitive
advantage or value
added
Reduce
Create
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Sources of new product
development
Market Research
Product Extensions
Research and Development
Me-too developments
Dyson…..
New Product Development
Process
Generation of
product ideas
Decision on
viable product
Failure
Market
Prototype
Research
Test Market
Failure
Full- scale
launch
Failure
Failure
Branding
• Definition: The marketing practice of
creating a name, symbol or design
that identifies and differentiates a
product from other products
Other Branding terms
• Brand preference: customers
favour a particular brand.
• Brand leader: the brand with the
largest share of the market.
• Brand development: process of
strengthening the image of the
brand to increase sales as part of
a long term marketing strategy
Advantages of Branding
• Provides a visual representation of the
product
• Can add value
• Encourages loyalty
• Can help generate sales
• Reduces risk
• Increases barriers to entry for new
competitors
These hopefully lead to an increase in
profits
The importance of branding
• Initially good products will sell the
brand, eventually a brand will sell
the product
• Products can be copied but brands
can’t*
• The lifecycle of a brand lasts far
longer than that of a product
Except in China of course!
The difficulties of branding….
• Developing a brand is very costly
and takes a long time
• Protecting the brand can be difficult
• Need regular investment and
updating
Branding over time
Look at how these logos have
changed over time……
• Why have these logos evolved?
• Which logos do you think have
changed for the better?
The Gap Re-branding disaster
• Gap launched their
new Logo online in
2010
• Customers took to
Twitter and Facebook
to voice their
complaints
• Within a week Gap
announced they were
reverting to their
original logo
Complete re-branding
Challenge…..
• See how many of the world’s top
brands you can guess
• (The data is from 2010 and based on
the brand value)
• Write down 40 brands. 1 point for
every one that is in the top 100.
Devising a brand name
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Coined brands
Bonafide names
Acronyms
Personal names
Place Names
Coined Brands
• Completely made up words as a
brand name
• Sometimes have an implied meaning
Bona fide names
• Brand names that use real world
• Sometimes descriptive but
sometimes completely unrelated to
the nature of the company
• Can be difficult to trademark
Acronyms
• Abbreviations that stand for a name
of a business
Personal Names
• Brands named after their owners or
sometimes other people
Place Names
• Brands that are named after a
certain place, often where the
business was founded
Challenge
• Create 5 brand names for a new soft
drink
• Make sure that you include one of
each of the types of brand name that
we have looked at
HIGHER LEVEL BRANDING
CONTENT
Types of Branding
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Family Branding
Product Branding
Company Branding
Own Label Branding
Manufacturer brands
Family Branding
• A family of products are all
promoted under the same brand
name
• Eg Dairy Milk, Virgin
Product Branding
• Products are all given individual
brand names
Eg. Unilever, Proctor and Gamble
Corporate Branding
• Use of the company name to brand
products
• Is a form of family branding
Own Label Branding
• Often used by supermarkets who
create their own brands to sell
alongside other brands
Manufacturer’s brand
• Where the brands are owned and
created by the manufacturers of the
brand
Generic Branding
• Where branding is done so
successfully that the brand name
becomes synonymous with the
product