Unit_5_Reading - 8 OBJECTIVES 1 Understand the concept of a...

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8 Product, Branding, and Packaging Concepts OBJECTIVES 1 Understand the concept of a product and how products are classified. 2 Explain the concepts of product item, product line, and product mix, and understand how they are connected. 3 Understand the product life cycle and its impact on marketing strategies. 4 Describe the product adoption process. 5 Explain the value of branding and the major components of brand equity. 6 Recognize the types of brands and how they are selected and protected. 7 Identify two types of branding policies and explain brand extensions, co-branding, and brand licensing. 8 Describe the major packaging functions and design considerations and how packaging is used in marketing strategies. 9 Understand the functions of labeling and selected legal issues. F rom MP3 music players and an online music store to flat-screen televisions to home the- ater projectors, Dell is filling out its product mix with goods and services for the entire household. The company formerly known as Dell Computer wants to build on its dominance of the personal computer market by making inroads into the lucrative, $100 billion world of consumer electronics. Based in Austin, Texas, Dell made its name selling computers directly to customers through its website. In the future, the company expects to derive an ever- larger portion of revenues and profits from a wider mix of products for use beyond the home office. This drive for diversification started with the introduction of the Dell Axim hand- held computer—in direct competition with Palm and other established rivals—followed one year later by a second Axim model. Because the Axims are priced lower than most comparable products, Dell’s entry has forced Hewlett-Packard and other competitors to lower prices to protect their market share. The company used the same approach when it began selling printers and ink cartridges on its website, again competing directly with Hewlett-Packard. Even some Dell insiders were surprised when printer sales in the first six months were two times higher than forecasted sales. Now the stage was set for a more comprehensive move into electronics designed for the digital home. Founder Michael Dell and his team envisioned consumers using a personal computer (from Dell, of course) to control televisions, music players, and other products all around the house. They began the planning process by carefully examining electronics products made by nearly 90 manufactur- ers. They also analyzed con- sumers’ needs, buying patterns, and complaints about incom- patibility problems between new and older products. Based on all of this research, they developed an ultra-bright, flat- screen LCD television, a Dell Digital Jukebox (DJ) to store and play music files, and a home theater projector for viewing DVDs and other entertainment.
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This note was uploaded on 05/18/2010 for the course BU HRM taught by Professor Jgh during the Spring '10 term at Kaplan University.

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Unit_5_Reading - 8 OBJECTIVES 1 Understand the concept of a...

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