CRASH COURSE - Product strategy and services

A product is a bundle of benefits: a combination of tangible and intangible characteristic that satisfy a customers need (Iphone)

(used repeatedly over an extended period) Cars, MP3 players, dishwasher

• Material parts --> Raw materials (farm product, natural products) and Manufactured products (component parts and materials)
  
• Capital items --> Installation and Equipment
  
• Supplies and services --> Maintenance and repair    and Operating supplies
  

• Production (made in the same factory)
• Distribution (sold in the same store)
• Price (falling within a given price range)
• Marketing (targeting the same customer group)
• Consumption pattern (satisfying a similar need or used together as complimentary products)
  

The connection or relationship between the products or product line in the mix. The products may relate to each other in terms of materials used (glass), product requirements (temperature control), purchasing process (distribution channel), or consumption pattern (wine and cheese)

The price level in the product mix (average price of the item in a product line)

20/80 rule:

20% of the product items are carried by a firm account for 80% of its total sales

1. Trading up
2. Trading down
3. Line filling
4. Brand extension

Relates to the products dependability and durability: speed, durability, safety

To the overall often intangible characteristics that are important to customers and allow it to perform as expected in satisfying customer needs: taste, colour, status, warranty

Written statement of what a seller promises to do if a product turns out to be defective or fails to perform properly within a certain period after being purchased

The assurance that the product is as represented and will provide the expected performance (sales aid)

• Pre-sales (design, product demonstration,trial installation)
• During the purchase (Technical advice, credit/finance offers)
• After sales (On-time delivery, installation, inspection, training, maintenance and repairs)

A brand is a name, term, sign, symbol, or design - or a combination of them - that an orginisation uses to:

• help customers identify its products and services 
• differentiate itself from competitors
• create an attractive image
• stimulate repeat purchases
• facilitate the introduction of new products

• Family brand (most or all brands under a single brand name)
• Individual brand (each product under a separate brand name)
• Combination brand

• Store brand (eigen merk)
• Captive brand (look-a-likes)
• Generic brand (The name of the product itself is used as the brand name)

• Produce only manufacturers brands
• Produce only distributor (private) labels
• Mixed-branding strategy (frequently used)

• Protecting existing products (brand in a scandal has no negative side effects on other brands)
• Increasing sales through market segmentation (selling similar products under different brand names vis different distribution channels)
• Stimulating internal competition (unilever's detergents: OMO, Robijn, Sunil)

• Distinctive and easy to recognise (TomTom)
• Appropriate for the product and suggests its benefits (Ketel1)
• Easy to pronounce, short, positive and memorable (Amstel, Mentos, Uncle Ben's)

Benelux Trademark Act: a company can legally protects its brand against imitation by competitors through registration

How the product is conceived and produced (technically and commercially)

The physical appearance of the product (useful, functional an attractive!)

Specific design characteristics that enable a product to perform certain tasks