Product Concepts

1. Product Concepts

2. Product Everything, both favorable and unfavorable, that a person receives in an exchange.

3. Product Product is the “heart” ofMarketing Mix Promotion Price Place (Distribution) What Is a Product?

4. 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 Product Classifications

5. PRODUCTS Consumer Products Business Products Convenience Products Shopping Products Specialty Products Unsought Products Types of Consumer Products

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

9. Example: Retail Product Strategy • What you offer to the consumer (product/product mix/core product/augmented product) • How you offer it (packaging, pricing, range, door delivery, hours of operation, etc) • From where you offer it (the shelving pattern, location of the product on the shelf, etc) • Equals Sales and Profits

10. Advertising Economies Package Uniformity Standardized Components Efficient Sales andDistribution Equivalent Quality Benefits of Product Lines

11. Diversifies risk • Capitalizes on established reputations Product Mix Width The number of product lines an organization offers.

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

13. Adjustments to Product Items,Lines, and Mixes Product Modification Product Line Extension or Contraction ProductRepositioning Adjustments

14. Quality Modification Functional Modification Style Modification Types of Product Modifications

15. Planned Obsolescence The practice of modifying products so those that have already been sold become obsolete before they actually need replacement.

16. Why reposition established brands? Changing Demographics Changes in Social Environment Declining Sales Repositioning

17. Product Line Extension Adding additional products to an existing product line in order to compete more broadly in the industry.

18. 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 Product Line Contraction

19. Brand A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.

20. 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. Branding

21. Product Identification Repeat Sales New Product Sales Benefits of Branding

22. 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

23. Branding Strategies Brand No Brand Manufacturer’s Brand Private Brand IndividualBrand Family Brand Combi-nation IndividualBrand Family Brand Combi-nation

24. Generic Brand A no-frills, no-brand-name, low-cost product that is simply identified by its product category.

25. Manufacturers’ Brand The brand name of a manufacturer. Private Brand A brand name owned by a wholesaler or a retailer. Also known as a private label or store brand. Manufacturers’ Brands VersusPrivate Brands

26. Advantages of Manufacturers’ Brands • Develop customer loyalty • Attract new customers • Enhance prestige • Offer rapid delivery, can carry less inventory • Ensure dealer loyalty

27. 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 customer to wholesaler or retailer • No control over distribution of manufacturers’ brands

28. Individual Brand Using different brand names for different products. Family Brand Marketing several different products under the same brand name. Individual Brands VersusFamily Brands

29. Types of Cobranding IngredientBranding Complementary Branding Cooperative Branding Cobranding

30. A Trademark is the exclusive right to use a brand Trademarks TM • 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

31. Contain and Protect Functions of Packaging Promote Facilitate Storage, Use, and Convenience Facilitate Recycling Packaging

32. Persuasive Informational • Helps make proper selections • Lowers cognitive dissonance • Includes use/care • Focuses on promotional theme • Information is secondary Labeling

33. 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

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

35. Express Warranty Written Guarantee Warranties Implied Warranty Unwritten Guarantee Product Warranties