Unit 5: Product

Unit 10 in the text: Product and Service Management

What product is the ad

selling?

what about this one?

Explain
If both companies are selling the same basic
product, why are their advertisements so
different?
What do these advertisements tell us about the
importance the companies place on their
distinctions (differences?)

Warm-up
Imagine you are going to open a retail business and you must determine the
types and number of products to be carried. Write down the following
1.
2.
3.

type of retail business you would like to open (ex: beauty supply)
Four general categories of merchandise you would like to carry (shampoo,
hair coloring, nail polish and cosmetic brushes)
Factors that would detrermine the type and number of products you will
carry.

Vocab
product, product, product.
While we are reading be sure to write the
definitions of these vocab words in your notes

Notes
follow the diagram given in the study organizer
section on page 634

CHROMEBOOK TIME
What to do: On your warm up paper
Find a product item that you like (something from a large,
well-known company), then find which product line this
item falls under, and finally the product mix.
Does the company which makes your product produce
something very different, or previously unknown to you, in
other countries?

30.2

The product life cycle

Introduction- product introduced,focus on
production and promotion
Growth-product successful, focus on
consumer satisfaction rather than benefits and
introduce new models or modify product

Maturity-sales level off or slow down, focus $ towards

fending off competition- decide whether to make
further improvements
Decline-sales fall (profits may be negative), focus on
decision to continue to improve and support product
(discount price, regionalize, or modernize) or
a)drop it
b)sell or license product

Discussion
You have invented a new type of computer that
allows the user to issue voice commands. There
is no keyboard. Write down how you would
spend your marketing dollars during the four
phases of the product life cycle (1:00). Discuss
with a partner new (2:00). Share with the class
(2:00).

Activity: Choose a or b
a. think of one product that is in its mature stage. list how
you think the company is managing the product ,in
terms of advertising, promotions, distribution channels,
and changes to the product
b. assume you have a line of pet foods and they have now
reached the mature stage. there is new competition in
the form of healthy pet food on the market. what
strategies would you adopt to cope with the competition.

Case Study (page 644)

The free board is an example for taking an idea
that has prove popular and extending it to
create a new product. What are some other
examples of this?

Positioning Quiz
How should you position a cheap item?
_____
How should you position a high cost item?
_____
How should you position an item which has
several competitors (duplicates)?
_____

Answers
How should you position a cheap item?
value
How should you position a high cost item?
luxury high quality
How should you position an item which has several competitors
(duplicates)?
underdog simply the best
**Now give me an example of a company which does each of these
positioning tactics well (different companies for all five is fine)**

When you go to the store...

But why?

Branding
Packaging, and Labeling
Chapter 31

Tell me about a time when you..

Went to the store to buy something specific but
when you got home and opened the package,
you were confused or disappointed because of
misleading claims on the box.
Branding, packaging, and labeling are part of the product planning
strategy to create perceived product differences or emphasize real
differences.

Get into groups of 2-3

1. pick a brand (one which you dont think another group
in the room will choose)
Answer the following:
is it selling a product, service, or idea?
is it a name, term, symbol, or combination of these
elements?
does it identify one product, a family of related products
or all products of a company?
what benefits,features, or qualities does the brand
connotate?

independently
make a list of 10 brands (first one done wins)

pairs
share your list with a partner. Cross out brands
you both listed. Circle those which were unique

Project!
looking at your combined list of brands, choose one which you feel would have a rich
history. In pairs, research the journey this brand has gone through since the early
days of its company. Create a google slide show which outlines this history.
Include:

at least 5 vocabulary words from section 31.1 used in context

at least 3 visuals (drawings, pictures, or video)
description of why the company chose specific visuals or words to connote certain
company goals or objectives
extra credit: create and insert a new and improved logo with an explanation of
how this further enhances their message of company goals or objectives- make
sure this is not one already established with the US Patent and Tradmark Office
http://www.uspto.gov/

31.1

Quiz!
1. Which of the following can be
legally protected? (select all
that apply)
a. brand mark
b. trade character
c. trademark
d. brand name
e. national brands

2. Is Great Value (found at

walmart) a generic brand or a
private distributor brand?
3. What is the difference between
mixed brands and co-branding?
Give an example of each

Elements of Branding
brand name
trade name
brand mark
trade character
trade mark

Brand name
a.k.a. a product brand
a word, group of words, letters or numbers that
represent a product or service.
Ex: Pantene pro-v, Suave, Cheerios, Dry Bar

Trade name
a.k.a. corporate brand
identifies and promotes a company or division of a
particular company.
Legal name used when doing business.
Supports the product brands offered by company
Example: Pantene pro-vs trade name is Proctor and
Gamble, Suaves trade name is Unilever, Cheerios is
General Mills, and Drybar is known as Drybar

Brand mark vs Trademark

Brand mark: unique symbol coloring, lettering or other design elements.
recognizable visually and does not need to be read.
Trademark: a word, name, symbol or device given legal protection by federal government. The
purpose of this is to prevent comapnies from using similar elements to confuse customers. Knock-off
items which use the same font, color, or symbol of the genuine brand infringe on this.

examples:

Trade character
a brand mark with human form or
characteristics
examples:

Why Brand?
1. builds product recognition and customer
loyalty
2. ensures quality and consistency
3. capitalizes on brand exposure

Generating Brand Names

lets read http://www.wsj.
com/articles/SB125328266881923153

Types of Brands
national brands
private distributors brands
generic

National Brands
a.k.a. producer brands
owned and initiated by national manufacturers or by companies that
provide services.
examples:
national manufacturers-Pepsi co, Nabisco, Target
national service providers-fedex, enterprise rent-a-car, at&t
internet brand- amazon.com, netflix, hulu, ebay.com

Importance of National
Brands
generate the majority of sales for most
consumer product categories
70% of food products
65% of appliances
80% gasoline
100% automobiles

Private Distributor Brands

a.k.a. private brands, store brands, dealer brands, or private labels

developed and owned by wholesalers and retailers

manufacturers name does not appear n the product

examples: Targets Up and Up, Massimo, and Cherokee. Macys Anne Klein, Walmarts Great Value,

Importance of Private
Distributor Brands
appeal to customers who desire the quality and
performance of national brands, but at a lower
price.
Most large grocery stores and retailers have
these brands since these products are less costly
(less need to advertise and promote) and are
popular among customers.

Generic Brands
products that carry no company identity.
Usually sold at supermarkets and discount
stores (99 cent stores)

Jewel
Grocery store in Chicago which was the first
retailer to introduce generic products in teh
1970s.

Branding Strategies
Brand Extension
Brand Licensing
Mixed Brands
Co-branding

Brand Extension
branding strategy that uses an existing brand
name to promote a new or improved product
within a companys product line.
Example:Dove started out as soap but now...

Risks:

new products are costly and often fail

over extending product can lead to brand
dilution name doesnt hold as much
weight
loss of appeal to customers

Brand Licensing
when a company
allows other
organizations to use
their brand, brand
mark, or trade
character

Mixed Brands
when a manufacturer
of a national brand
agrees to make a
product for sale under
another companys
brand.

in this case the

manufacturers name
and logo is replaced
with the retailers. the
retailer will use the
reputation of the
manufacturer to sell it
with their own logo

Co Branding
combines one or more
brands in the
manufacture of a
product or a delivery
of a service

example:
nike+

Quiz!
1. Which of the following can be
legally protected? (select all
that apply)
a. brand mark
b. trade character
c. trademark
d. brand name
e. national brands

2. Is Great Value (found at

walmart) a generic brand or a
private distributor brand?
3. What is the difference between
mixed brands and co-branding?
Give an example of each

31.2
Packaging and Labeling

Warm-up: Critical Thinking

What would happen if all products were
packaged in the same way?
What would happen to competition if all labels
looked alike?

Before we start
The purposes of packaging are
________________________________
______________________.
The main functions of labels are
________________________________
________________________________
_________________.

Package
physical container or wrapping around a
product.
* approximately 10% of a products retail price
is spent on packaging

Functions of packaging
1.
2.
3.
4.
5.
6.

promote and sell the product

define product identity
provide information
express customer needs
ensure safe use
protect product

promote and sell the product

therefore it should be colorful, attractive, and
visually appealing while promoting value and
performance, features, and benefits NBD

Why does estee lauder not have information on the

package?

Mixed Bundling
packaging different but complementary
products together

Price Bundling (twin packs)

two or more similar products are placed on sale
for one package price

container size
rethinking how the product is used can
determine new ways of packaging the product
for different consumers and situations. for
example oreos...

define product identity

packages can be used to promote an image such
as prestige, convenience, or status.

provide information
such as directions on using the product, contents, product guarantees, nutritional information, or
potential hazards (we will cover this more in-depth during labeling)
You have to plan for the lowest common denominator *someone with a lesser intellect than you* using
the product for anything but its intended purpose. Therefore you really should include instructions on
the packaging. Plus it gives Ellen Degeneres more material for her stand up...

express customer needs

different customers use the same product for
different situations or amounts.
Name three different people who would use
these products differently
mane and tale
KFC
glade air freshener products

ensure safe use

safety can be improved for the customer by changing
packaging materials (from glass to plastic, then back to
glass, again)
special packaging can prevent tampering or children from
accidentally poisoning themselves.
Blisterpack- packages with preformed plastic molds
surrounding individual items arranged on a backing. (think
luncheables and batteries)

protecting the product

through shipping, storage, and display. Should
also prevent tampering, theft, or spills. Modern
airtight containers help keep products
protected and fresh (aseptic packaging will
cover this)

protect that sandwich...after 20 assembly workers touch it first

Contemporary Issues in
Packaging
Aseptic packaging
environmental packaging
cause packaging

Aseptic Packaging
incorporates a technology and a sterile process
that keeps for fresh without refrideration for
extended periods.

Environmental Packaging
consumers have been demanding environmentally sensitive designs in
packaging. Some surveys even show cosumers are willing to pay MORE
for LESS packaging as long as it is eco-friendly. Easy ways companies
comply is by wrapping products instead of boxing them or using less
plastic.
What functional risks are companies making by packaging their
product this way?

Cause packaging
when companies use their packages to promote social or political
causes.
You do:Name three brands that have used this type of packaging for
three different causes

Labeling
no whining
dont worry, I have a project coming soon :)

Labeling
an information tag, wrapper, seal, or imprinted message that is attached to a
product or its packaging
functions:

inform customers about a products contents

give directions for use
protect a business from legal liability ifa consumer is injured during the use of
its product

You do: Create a mock up of a label for slip nslide

dont know what that is? Ive got you covered
https://www.youtube.com/watch?v=ho-UTvQmoDg

brand label
give the brand name, trademark, or logo
ex: bananas have a little sticker with the
chiquita brand label on them

descriptive label
give information about the products use, construction,
care, performance, and other features.
This can include pictures or illustrations of product and
use, weight statements, dating, and storage information,
ingredients, product guarantees, and the manufacturers
name and address.

weight statements
net weight of the entire product minus the
packaging

date and storage information

needed for perishable items (food and
cosmetics)
date info can include: packed on date, sell
by date, or best if used by date/ expiration
date

use and warranty

also generally placed on descriptive labels.

usually used for products which could pose and electrical hazard.
generally very important information like this now has symbols associated
with the words to aid the international market.

can you name three products which have these symbol labels?

manufacturers name and

address
why? usually for feedback. remember that
hotline Ellen DeGeneres talked about? well
thats a real thing. remember, companies pay a
large sum of money to get consumer opinions.
Why not stick your number and address on the
package and get customers to call you directly?

Grade label
states the quality of the product.
Things which are graded:
meat
eggs
restaurants
fruit

Labeling Laws
in an effort to ensure companies have complete
and truthful information printed on labels

The Fair Packaging and

Labeling Act of 1966
consumers were complaining about the lack of
uniformity and honesty on labeling
This act established mandatory labeling
requirements and authorized the US Food and
Drug Aminishtration and the Federal Trade
Commission to esablishs packaging regulations

Federal Food and Drug

Administration (FDA)
1990- nutrition Labeling and Education Act passed to protect
consumers from deceptive labeling.
requires that labels give nutritional information on how food fits
into an overall daily diet
clearly state the amount of calories, fat, carbohydrates, sodium,
cholesterol, and protein in each serving.
regulates health claims consistent on all products: now everyone
must use the same terms like low light or free or good source
of

FDA continued...
requires manufacturers of certain products
(Home products, food, drugs, medical
devices, vaccines, radiation-emmiting
products, cosmetics, tobacco, alcohol and
animal and veterinary products) place health
warnings on packages
currently looking into a federal regulation for
labeling GMOs

more labeling laws

http://www.fda.
gov/downloads/ForIndustry/SmallBusinessAss
istance/SmallBusinessGuidetoFDA/UCM08103
0.pdf