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Lamb, Hair, McDaniel

Lamb, Hair, McDaniel. CHAPTER 10. Product Concepts. Everything, both favorable and unfavorable, that a person receives in an exchange. Tangible Good Service Idea. What Is a Product?. Product. Core and Augmented Components of a Product. SUPPORT SERVICES COMPONENT. PACKAGING

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Lamb, Hair, McDaniel

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  1. Lamb, Hair, McDaniel CHAPTER 10 Product Concepts

  2. Everything, both favorable and unfavorable, that a person receives in an exchange. • Tangible Good • Service • Idea What Is a Product? Product

  3. Core and Augmented Components of a Product SUPPORT SERVICESCOMPONENT PACKAGING COMPONENT  Repair and maintenance  Deliveries CORE COMPONENT  Trademark  Price  Product platform  Design features  Functional features  Legal  Warranty  Installation  Quality  Brand name  Package  Instructions  Spare parts  Legal  Styling  Other related services  Legal

  4. Products Consumer Products Business Products Convenience Products Shopping Products Specialty Products Unsought Products Types of Products(Goods)

  5. Increase market share among existing customers Convenience Product A relatively inexpensive item that merits little shopping effort Shopping Product A product that requires comparison shopping, because it is usually more expensive and found in fewer stores Attract new customers to existing products Specialty Product A particular item for which consumers search extensively and are reluctant to accept substitutes Create new products for present markets Market Development Diversification A product unknown to the potential buyer or a known product that the buyer does not actively seek Unsought Product Introduce new products into new markets Types of Consumer Products

  6. Distinguishing Consumer Products

  7. Product Item A specific version of a product that can be designated as a distinct offering among an organization’s products. Product Line A group of closely-related product items. Product Mix All products that an organization sells. Product Items, Lines, and Mixes

  8. Campbell’sProduct Lines and Mix { }

  9. Factors Affecting the Optimum Product Mix Decision of Company • Level of market/economic development • Sales/Profit • Competition • Market characteristics • Product characteristics • Legal considerations

  10. Product Modification, Repositioning, and Extension • Product Modification: quality modification, functional modification, style modification • Product Repositioning • Product Line Extension or Deletion/Contraction • Planned Obsolescence

  11. Branding Concepts • A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products. • Why branding-benefits of branding • Manufacturer’s vs. Private Brands • Individual vs. Family Brands • Co-branding • Trademark, Patent • Brand Equity • Warranties-benefits of warranties • Global Branding

  12. Branding Concepts and Use

  13. Packaging and Labeling • Why packaging-Functions/benefits of packaging: • containing and protecting products • facilitating storage, use, convenience • facilitating recycling and reducing environmental damage • Why labeling-benefits of labeling • Information and persuasion issue • Government regulations

  14. Universal Product Codes (UPCs) A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products. Universal Product Codes

  15. One Brand NameEverywhere Global Options for Branding Adaptations & Modifications Different Brand Names in Different Markets Global Issues in Branding

  16. Warranty A confirmation of the quality or performance of a good or service. Express Warranty A written guarantee. ImpliedWarranty An unwritten guarantee that the good or service is fit for the purpose for which it was sold. (UCC) Product Warranties

  17. Ch 10: Discussion Questions • What is a product? How marketers define Core and Augmented Product? • Define the four types of consumer products. How can we classify them using various criteria? Explain. • Explain the concept of product item, product line, and product mix. • What is an optimum product mix? Explain the factors affecting optimum product mix of a company. • Define branding and explain the rationale for branding.

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