LABELING Flashcards
functions of labels
provides an identity to the product or brand
conveys quality
describes different functions of the product
can be used to communicate a promotion
more and more legal restrictions and guidelines regarding labels
- claims on packaging labels such as Actimel of Aanone
- information on labels: best before date, nutritional information, content/weight
product supporting services
additional services with regard to a specific product with focus on a service before/after, including maintenance, repair
important tool to differentiate, also because
it is cheaper to maintain the goodwill of actual customers than to recruit new customers
companies offering good services can charge more, leading to higher turnover and profits
companies can offer different service packages to fullfil the needs of different target groups
characteristics ( LABELING )
offer the same functions
are sold to the same customer groups
meet the same needs of customers
are distributed by the same channels
are part of the same price category
have the same production process
what is an assortment
the set of individual products, product groups, product variants and brands that a company offers
product group decisions
each product group has its own marketing strategy where decisions have to be taken with regard to
- length and depth of the product group
- core products of the product group
the length is influenced by
- positioning strategy
- profit targets
- upselling
- cross selling
length of a product group graph
Decisions regarding length product group
- reason to add new products
- still production capacity left
- resellers ask for more SKUs to satisfy consumers
- new opportunities/ segments in the market (more premium, men segment within cosmetics etc)
Costs of adding new products
development and design result in extra investments
inventory costs will increase
production switches (cleaning machines)
extra promotions (for introduction-
