Page 576 - Business Principles and Management

Chapter 21 • Product Development and Distribution

and others will offer a wide variety of many
different products. Figure 21-1 Businesses build product assortment to meet
their customers’ needs.

PACKAGING PRODUCT BREADTH
More Less
Two important product mix decisions are
packaging and branding. Neither decision is More
directly related to the actual physical product
itself, but each can be an important influence A BROAD VARIETY OF A LARGE VARIETY IN
on purchase decisions. MANY PRODUCTS FEW PRODUCT CHOICES
Most companies package their products
before selling them. The package can serve
four different purposes. First, it protects the PRODUCT DEPTH
product while it is being shipped and stored.
Products can easily be damaged when they are
grouped together for shipment from the fac-
tory to the retail store. Boxes and containers MANY PRODUCTS WITH LIMITED PRODUCT CHOICES
are needed for protection. The actual con- LIMITED VARIETY AND VARIETY
tainer or wrapping in which the individual
product is packaged also offers protection on
the store shelf and may provide security to Less
keep the product from being lost or stolen.
Second, the package can provide impor-
tant information to customers on product
composition, special features, and proper use. Boxes and containers also provide
information to shippers on appropriate handling, storage, and delivery.
A package can be designed to make the product easier to use. A plastic bottle
of soda is less likely to be broken if dropped. An easy-opening lid or a container
that fits the hands of the consumer makes product handling easier. Window cleaner
that is premixed in a spray bottle is much more convenient than one that must
be poured into a bucket and applied with a sponge.
Finally, especially for consumer products, the package is often an
important promotional tool. A well-designed, attractive package calls atten-
tion to itself on the store shelf, helps the customer recall previously seen adver-
tising, and provides a reminder of the needs that the product will satisfy if What different purposes could
purchased. the packaging of this product
serve?
BRANDING
Can you name the brands of clothing, pizza, and toothpaste you prefer? Do you
and your friends regularly shop at certain stores but not others? Product and store
brands play a major role in buying decisions. A brand is a name, symbol, word, or
design that identifies a product, service, or company.
Why are brands so important to consumers? Have you ever shopped in a store
that had generic (nonbranded) products or that sold only unfamiliar brands? With
no information to guide you, it is difficult to make a product selection with which
you are comfortable. You and people you trust have had experiences with various
brands. If a particular company’s products consistently meet your needs, you will
likely buy from that company again. If you have a negative experience, however,
you are likely to avoid similar purchases in the future. If you are satisfied with one
product from a company, you are likely to have confidence in a different product PHOTO: © COMSTOCK IMAGES.
sold under the same brand. Businesses recognize that brand recognition is an
important influence in increasing sales. The levels of consumer brand awareness
are shown in Figure 21-2 (see p. 564).

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