Understanding Products

University:
California State University, Northridge
Course:
BUS 104 | Introduction to Business
Academic year:

2023
Views:

354

Pages:

1
Author:

JJIssac

UNDERSTANDING PRODUCTS A product encompasses far more than its physical attributes - it's a bundle of tangible and intangible benefits offered to satisfy consumer wants. Products can be goods or services, and are classified as either consumer or industrial based on their intended use. Consumer products serve personal or household needs, and include convenience items, shopping goods, and specialty products. Branding and Packaging Branding gives a product identity through unique naming, while packaging protects and promotes through design considerations like size, shape and colors used. Strong brands gain worldwide recognition like Coca-Cola, while packaging influences purchase decisions at the shelf. Intellectual property laws like trademarks safeguard brands from counterfeiting. Pricing Strategies Price is a critical marketing element, and objectives may include increasing sales or market share. Initial strategies for new products include skimming to recoup costs quickly, or penetration pricing for wider adoption. Other approaches utilize psychology through odd pricing or large labels. Discriminatory pricing caters to location or customer differences. Discounts also motivate trial purchases and supplementary spending. Distribution Channels Getting products to customers requires effective placement. Shorter routes involve direct manufacture-toconsumer models, while longer channels incorporate wholesalers and retailers. Manufacturers may sell through retailers alone or use agents and regional wholesalers for wider reach. Choosing the right channels impacts availability and ultimately sales. Promoting Products Advertising through various mass media generates brand awareness. Sales promotion stimulates demand through displays and offers. Personal selling by representatives directly convinces buyers through the AIDA model of attention, interest, desire and action. Publicity creates goodwill by association through sponsorships and trade events. Coordinating promotion maximizes impact of the entire marketing strategy.