Eli

• Cost, time, quality, and value are key characteristics of services
• Products and services should be viewed as a collection of expectations
• Customers need products and services to function as it conveniently solves their problem or desire
• Product features often meet customer needs
• Services are of greater advantage if its accessible and durable
• Product


  Anything that has a physical attribute to satisfy a need
• Service


  An organized activity rendered to satisfy clients' need for a fee
• Experience


  The effect that influences the client to undergo a certain pleasing feeling or process
• Packaging


  • Serves to contain and protect, and sometimes, identify and promote the product
• Functions of packaging


  • Contains product information
  • Protects the product
  • Stores the product
  • Presents aesthetic appeal
• Labeling


  • Display of information about a product on its container, packaging, or on the product itself
• Factors to consider in labeling

  • Legal requirements
  • Attract customer's attention
  • Marketability
• New product development


  1. Conduct SWOT analysis

  2. Defend market share

  3. Position ahead of competition

  4. Establish foothold in future market

  5. Take advantage of distribution strengths
• The Philippine Long Distance Company (PLDT) has dominated and still dominates the Philippine telecommunications market with a market share of 63.4% against its closest and fiercest competitor Globe Telecom, with 36.6% share
• Elev8 Trading and Marketing Corp. launched Freshman Masculine Wash in June 2010 to position ahead of competition in a market segment
• Metro Pacific Corporation in 1990 launched Wilkins Distilled Water, the first bottled water in the country, to establish a foothold in a future market
• San Miguel Corporation (SMC) has built and cultivated an extensive distribution network consisting of almost all of the country's supermarkets, groceries, bars. restaurants, convenience stores, and sari-sari stores, which has permitted the company to successfully develop and launch its many different coffee brands
• At the end of 2013, the Philippine bottled drinking water industry had ballooned to P66.4 billion, with 94 competing brands
• San Miguel Corporation (SMC)


  • 125-year company
  • Built and cultivated an extensive distribution network consisting of almost all of the country's supermarkets, groceries, bars, restaurants, convenience stores, and sari-sari stores
  • This product distribution strength has permitted the company to successfully develop and launch its many different coffee brands
  • SMC has lock-out arrangement with some of these retail outlets, allowing the company to restrict the distribution of many competitors' brands
• New Product Development Process

  1. Concept / Idea Generation

  2. Concept / Idea Screening

  3. Concept Testing and Verification

  4. Business Analysis

  5. Product Development

  6. Market Testing

  7. Product Commercialization
• Concept / Idea Generation


  Creative process of coming up with new product ideas using techniques like identifying and understanding the problem/need, researching established solutions, brainstorming, attribute listing, forced relationships, morphological analysis, and mind mapping
• Concept / Idea Screening

  Filtering the generated ideas using predetermined criteria to select good ones and drop unsound ones
• Concept Testing and Verification

  Making the selected product ideas available to the target market to derive data on consumer acceptability, believability and purchase intent
• Business Analysis


  Laying out probable sales forecast, relative costs and potential profitability of the new developed product
• Product Development


  Finalizing all product details and documentation, forwarding to manufacturing for production, and finalizing marketing plans for product launch
• Market Testing


  Marketing the new developed product in a particular geographical location to determine necessary attribute modifications, positioning, pricing, advertising and promotions, and incorporating customer feedback
• Product Commercialization


  Identifying reliable suppliers in the supply chain to facilitate the shipping, delivery and payment of the launched product
• Items to identify as product, service or experience

  • Haircut
  • Car repair
  • Toys
  • Furniture
  • Cozy ambiance
  • Medical check-up
  • Mail delivery
  • Original themes and decor
  • Mouthwatering presentation
  • Bicycle
• A persuasive product package provides customers with details about its features and benefits
• Product labels must communicate on how to use, transport, recycle or dispose of the product
• In the product development stage, established targets, selecting products and setting of final product specifications are accurately reflected
• The product commercialization stage is gearing up for a full-scale production, distribution, and promotion of the new product
• In concept testing stage, it is important to identify the target market for the company to direct its resources to those customers with high potential for sales growth, interest in the product and loyalty to the brand