Product

Discussion

What is a product?

Choose a product and describe it to a partner. Be sure to discuss the following questions.

1. What is the product?

2. What does it look like?

3. What is it used for?

4. What do you get when you use it?

5. How do you feel after you use it?

6. How is it packaged?

7. What do you think when you see this product?

8. Write a list of tangible and intangible attributes of this product.

   Tangible

   Intangible

9. Read the following cases and answer the questions.

Case 1: Product Idea

Many people buy products from convenience stores, such as 7-Efeven and Night Owl, even though they sell exactly the same items that can be bought from Coles or Woolworths, but they often cost more for exactly the same item.

Why?

Case 2: Product Idea

When Proctor and Gamble sells a box of laundry detergent, is it just selling a box of chemicals?

Why/Why not?

2. Package

1. What is the importance of packaging?

2. Can a service have a package?

- Think back to the product you discussed in Part 2 and describe the packaging.

What factors must producers consider when designing package for a product?

- Read the following article (Reading 2) about packaging and answer these questions.

What are some of the functions of packaging?

What decisions need to be made when developing a package for a product?

Reading 2: Packaging Originally packaging decisions were based primarily on cost and production factors. The primary function of the package was to contain and protect the product. More recently, however, numerous factors have made packaging an important marketing tool. Increased competition and clutter on retail store shelves means that packages must now perform many sales tasks, from attracting attention, to describing the product, to making the sale. Developing a good package for a new product requires making many decisions. The first task is to establish a packaging concept. The packaging concept states what the package should be or do for the product. Should the main functions of the package be to offer product protection, introduce a new dispensing method, suggest certain qualities about the product or the company or something else? Decisions then must be made on specific elements of the package such as size, shape, materials, colour, text and brand mark. These various elements must work together to support the product's position and marketing strategy. The package must be consistent with the product's advertising, pricing and distribution.

3. Read the following case and answer the question.

Case 3: V-8 Juice

Marketing managers for Campbell's V-8 Juice wondered why sales to health conscious consumers - an important target market- were weak. Research revealed that these consumers didn't specifically shop for the V-8 brand. In fact, they didn't even spend any time on the canned goods aisle of the grocery store. Instead, they usually chose one of the well-known brands of juice that was conveniently available in the refrigerated section.

What could the company do to its packaging in order to improve sales of its

V-8 juice?

Brand

1. What is a brand?

What is the purpose of branding a product?

When you see the following brand names, what do you imagine? (Hint: use adjectives to describe what you imagine)

Nike

Tim Tams

7-Up

Big Mac

2. What do the following words mean?

Word	Definition
Brand recognition
Brand image
Brand loyalty
Brand brand

Product Lifecycle

1. What is the product lifecycle?

2. Think of a product that has been in the market for a long time. How long has it been on the market? Why do you think it has stayed for so long on the market?

Think of a product that was in the market for a short time. How long did it stay in the market? Why do you think it didn't stay in the market for a long time?

There are 4 stages in the product lifecycle: the introduction stage, the growth stage, the maturity stage and the decline stage. Look at the diagram and describe sales and profit at each of the different stages. Try to offer an explanation of why sales and profits are different at each stage.

The Introduction Stage:

The Growth Stage:

The Maturity Stage:

The Decline Stage;

Diagram: The Product Lifecycle

Sales &

Profit

0	Introduction	Growth	Maturity	Decline
				Sales Time
	Profit