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Product Concepts

Product Concepts. 9. chapter. Prepared by Deborah Baker Texas Christian University. Learning Objectives. 1. Define the term product. 2. Classify consumer products. 3. Define the terms product item, product line, and product mix . 4. Describe marketing uses of branding. 9. chapter.

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Product Concepts

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  1. Product Concepts 9 chapter Prepared by Deborah Baker Texas Christian University Chapter 9 Version 6e

  2. Learning Objectives 1. Define the term product. 2. Classify consumer products. 3. Define the terms product item, product line, and product mix. 4. Describe marketing uses of branding. 9 chapter Chapter 9 Version 6e

  3. Learning Objectives (continued) 5. Describe marketing uses of packaging and labeling. 6. Discuss global issues in branding and packaging. 7. Describe how and why product warranties are important marketing tools. 9 chapter Chapter 9 Version 6e

  4. 1 Learning Objective Define the term product. Chapter 9 Version 6e

  5. 1 Product Everything, both favorable and unfavorable, that a person receives in an exchange. Chapter 9 Version 6e

  6. Product isthe “heart” ofMarketing Mix Price Promotion Place (Distribution) 1 What is a Product? Chapter 9 Version 6e

  7. 2 Learning Objective Classify consumer products. Chapter 9 Version 6e

  8. Business Product A product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other consumers. Consumer Product Product bought to satisfy an individual’s personal wants 2 Product Classifications Chapter 9 Version 6e

  9. PRODUCTS Consumer Products Business Products Convenience Products Shopping Products Specialty Products Unsought Products 2 Types of Consumer Products Chapter 9 Version 6e

  10. A relatively inexpensive item that merits little shopping effort. Convenience Product A product that requires comparison shopping, because it is usually more expensive and found in fewer stores. Shopping Product Specialty Product A particular item that consumers search extensively for and are reluctant to accept substitutes. Unsought Product A product unknown to the potential buyer or a known product that the buyer does not actively seek. 2 Types of Consumer Products Chapter 9 Version 6e

  11. Convenience Products Shopping Products Specialty Products Unsought Products 2 Types of Consumer Products Chapter 9 Version 6e

  12. 3 Learning Objective Define the terms product item, product line, and product mix. Chapter 9 Version 6e

  13. 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. 3 Product Items, Lines, and Mixes Chapter 9 Version 6e

  14. Width of the product mix Blades and Writing razors Toiletries instruments Lighters Mach 3 Series Paper Mate Cricket Sensor Adorn Flair S.T. Dupont Trac II Toni Atra Right Guard Swivel Silkience Double-Edge Soft and Dri Lady Gillette Foamy Super Speed Dry Look Twin Injector Dry Idea Techmatic Brush Plus Depth of the product lines 3 Gillette’s Product Lines and Mix Chapter 9 Version 6e

  15. Advertising Economies Package Uniformity Why Form Product Lines? Standardized Components Efficient Sales andDistribution Equivalent Quality 3 Benefits of Product Lines Chapter 9 Version 6e

  16. 3 Product Mix Width The number of product lines an organization offers. • Diversifies risk • Capitalizes on established reputations Chapter 9 Version 6e

  17. 3 Product Line Depth The number of product items in a product line. • Attracts buyers with different preferences • Increases sales/profits by further market segmentation • Capitalizes on economies of scale • Evens out seasonal sales patterns Chapter 9 Version 6e

  18. 3 Adjustments Adjustments to Product Items,Lines, and Mixes Product Modification Product Line Extension or Contraction ProductRepositioning Chapter 9 Version 6e

  19. Quality Modification Types of Product Modifications Functional Modification Style Modification 3 Product Modifications Chapter 9 Version 6e

  20. 3 Planned Obsolescence The practice of modifying products so those that have already been sold become obsolete before they actually need replacement. Chapter 9 Version 6e

  21. Why reposition established brands? Changing Demographics Changes in Social Environment Declining Sales 3 Repositioning Chapter 9 Version 6e

  22. 3 Product Line Extension Adding additional products to an existing product line in order to compete more broadly in the industry. Chapter 9 Version 6e

  23. 3 Product Line Contraction Symptoms of Product Line Overextension • Some products have low sales or cannibalize sales of other items • Resources are disproportionately allocated to slow-moving products • Items have become obsolete because of new product entries Chapter 9 Version 6e

  24. 4 Learning Objective Describe marketing uses of branding. Chapter 9 Version 6e

  25. 4 Brand A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products. Chapter 9 Version 6e

  26. Brand Name That part of a brand that can be spoken, including letters, words, and numbers. Brand Mark The elements of a brand that cannot be spoken. Brand Equity The value of company and brand names. Master Brand A brand so dominant that it comes to mind immediately when a product category, use, attribute, or benefit is mentioned. 4 Branding Chapter 9 Version 6e

  27. Product Identification New Product Sales Repeat Sales 4 Benefits of Branding Branding distinguishes products from competition Chapter 9 Version 6e

  28. 4 An Effective Brand Name • Is easy to pronounce • Is easy to recognize and remember • Is short, distinctive, and unique • Describes the product, use, and benefits • Has a positive connotation • Reinforces the product image • Is legally protectable Chapter 9 Version 6e

  29. Baking Soda Arm & Hammer Adhesive Bandages Band-Aid Rum Bacardi Gelatin Jell-O Soup Campbell’s Cream Cheese Philadelphia Crayons Crayola Petroleum Jelly Vaseline 4 Master Brands Chapter 9 Version 6e

  30. 4 Branding Strategies Brand No Brand Manufacturer’s Brand Private Brand IndividualBrand Family Brand Combi-nation IndividualBrand Family Brand Combi-nation Chapter 9 Version 6e

  31. 4 Generic Brand A no-frills, no-brand-name, low-cost product that is simply identified by its product category. Chapter 9 Version 6e

  32. Manufacturers’ Brand The brand name of a manufacturer. Private Brand A brand name owned by a wholesaler or a retailer. 4 Manufacturers’ Brands VersusPrivate Brands Chapter 9 Version 6e

  33. 4 Advantages of Manufacturers’ Brands • Develop customer loyalty • Attract new customers • Enhance prestige • Offer rapid delivery, can carry less inventory • Ensure dealer loyalty Chapter 9 Version 6e

  34. 4 Advantages of Private Brands • Earn higher profits • Less pressure to mark down prices • Manufacturer may drop a brand or become a direct competitor to dealers • Ties to wholesaler or retailer • No control over distribution of manufacturers’ brands Chapter 9 Version 6e

  35. Individual Brand Using different brand names for different products. Family Brand Marketing several different products under the same brand name. 4 Individual Brands VersusFamily Brands Chapter 9 Version 6e

  36. Types of Cobranding IngredientBranding Complementary Branding Cooperative Branding 4 Cobranding Chapter 9 Version 6e

  37. 4 Trademarks A Trademark is the exclusive right to use a brand • Many parts of a brand and associated symbols qualify for trademark protection • The mark has to be continuously protected • Rights continue for as long as it is used TM Chapter 9 Version 6e

  38. 5 Learning Objective Describe marketing uses of packaging and labeling. Chapter 9 Version 6e

  39. Contain and Protect Functions of Packaging Promote Facilitate Storage, Use, and Convenience Facilitate Recycling 5 Packaging Chapter 9 Version 6e

  40. Persuasive Informational • Helps make proper selections • Lowers cognitive dissonance • Includes use/care • Focuses on promotional theme • Information is secondary 5 Labeling Chapter 9 Version 6e

  41. 5 Universal Product Codes A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products. UPCs Chapter 9 Version 6e

  42. 6 Learning Objective Discuss global issues in branding and packaging. Chapter 9 Version 6e

  43. One Brand NameEverywhere Global Options for Branding Adaptations & Modifications Different Brand Names for Different Markets 6 Global Issues in Branding Chapter 9 Version 6e

  44. Labeling Global Considerations for Packaging Aesthetics Climate Considerations 6 Global Issues in Packaging Chapter 9 Version 6e

  45. 7 Learning Objective Describe how and why product warranties are important marketing tools. Chapter 9 Version 6e

  46. Warranty A confirmation of the quality or performance of a good or service. Express Warranty A written guarantee. Implied Warranty An unwritten guarantee that the good or service is fit for the purpose for which it was sold. (UCC) 7 Product Warranties Chapter 9 Version 6e

  47. 7 Product Warranties Express Warranty Written Guarantee Warranties Implied Warranty Unwritten Guarantee Chapter 9 Version 6e

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