chapter10 product.pdf

7/29/2019 Chapter10 product.pdf

http://slidepdf.com/reader/full/chapter10-productpdf 1/13

Chapter 10

Product Concepts

What’s a Product?

Good

Service

Idea

Search

Experience

Credence

Promotion

Place(Distribution)

Price

Product

Product is the starting point of Marketing Mix

Product-Service Continuum

Soap Auto with

repair servicesRestaurant

Airline tripwith snacks

Doctor’sexam

The Product-Service Continuum



Brandname

Packaging

Design

Style

Delivery& credit

Installation

Warranty

After-sale

service

Coregood orservice

2. Actual Product

1. Core productWhat the consumer is

really buying

3. Augmented Product Additional services & benefits (unexpected)

Product is a bundle of benefits Classifying Products

Consumer

vs.

Business

Based on the purpose for which the product

is bought

Types of Products

Determined by how consumers behave

when buying an item.

Level of EFFORT expended in searching /

buying decisions.

Convenience

Shopping

Specialty

Unsought

Consumer Products - Convenience

Frequently purchased

Grocery products Staples Emergency items

Stress availability and awareness;

Margins: Per-unit margins are low for intermediaries



Consumer Products - Shopping

Less frequent purchase

Homogeneous vs.Heterogeneous

Stress differentiation from competition;

Margins: Per-unit margins are higher for

intermediaries

Consumer Products - Specialty

Special purchase effort

Principle of scarcity / uniqueness

Stress uniqueness of your brand and status

Margins: Very high

Consumer Products - Unsought

RADICAL Innovations

Personal sellingMargins: Can be very high



Product Line & Product Mix

Product Item

Product Line

Product Mix

Width

Depth

Product mix is also known as product assortment

Product Item

Specific version of the product or a distinct offering

Product Line

Closely related product itemsbecause of marketing or end-use considerations

Equivalent Quality (TRANSFER)Equivalent Quality (TRANSFER)

Efficient Sales andDistribution

Efficient Sales andDistribution

StandardizedComponentsStandardizedComponents

Package Uniformit yPackage Uniformit y

Advert is ing Economies Advert is ing Economies

Benefits of Product Lines



Product

Line 1

Product

Line 2

Product

Line 3

TABLES:

•Kitchen

•Dining Room

•End

•Coffee

•Outdoor

•Conference

•Computer

CHAIRS:

•Dining Room

•Living Room

•Bed Room

•Outdoor

•Desk

LAMPS:

•Table

•Ceiling

•Track

•Desk

Product Mix

The total group of products that an organization

makes available to customers.

Product

Line 1

Product

Line 2

Product

Line 3

TABLES:

•Kitchen

•Dining Room

•End

•Coffee

•Outdoor

•Conference

•Computer

CHAIRS:

•Dining Room

•Living Room

•Bed Room

•Outdoor

•Desk

LAMPS:

•Table

•Ceiling

•Track

•Desk

Product Depth

Attracts buyers with different preferences; market segmentation

Product

Line 1

Product

Line 2

Product

Line 3

TABLES:

•Kitchen

•Dining Room

•End

•Coffee

•Outdoor

•Conference

•Computer

CHAIRS:

•Dining Room

•Living Room

•Bed Room

•Outdoor

•Desk

LAMPS:

•Table

•Ceiling

•Track

•Desk

Product Width

Diversifies risk; Capitalizes on established reputations

Campbell’s Product Lines and Mix



Adjustments to Product Lines, Items

and Mixes

ProductModification

ProductModification

ProductRepositioning

ProductRepositioning

Product LineExtension or Contraction

Product LineExtension or Contraction

Adjustments Adjustments

Types of Product Modifications

Quality Modification(Dependability)

Quality Modification(Dependability)

FunctionalModificationFunctional

Modification

Style Modifi cation Aesthetics)

Style Modifi cation Aesthetics)

Planned Obsolescence

The practice of modifying products

so those that have already been sold

become obsolete before they

actually need replacement.

Product Line Extension

Adding additional products to an

existing product line in order to

compete more broadly in the

industry.



LINE EXTENSIONS

Brand

Name, term, sign, symbol, design, or somecombination that identifies the products of a firm.

Brand name - part of a brand that can bespoken

Brand mark - symbolic

Brand Mark 1966 Brand Mark 1969



Brand Mark (1990) Brand Mark (1996)

Branding Terms

Trademark – legal designation of the

exclusive use of brand

Trade Name – Commercial, legal name

WHAT AM I?

Value of Branding

To Buyers

Quality assurance

Rewards / Risks

To Sellers

Loyalty

Price premiums Resistance to competition



Degrees of Brand Loyalty

Recognition

Preference

Insistence

Notion of Brand Equity

Brand Equity

The value of the brand name!

Perceived

Brand

Quality

Brand

Name

Awareness

Brand

Loyalty

Brand

Associations

XEROX

THE 4

ELEMENTS

OF

BRAND

EQUITY

THE 4

ELEMENTS

OF

BRAND

EQUITY

Fast Forward to the Future…..

sometime in 2025?…

Me-too product or Commodity? Brand?



1

Establish your own micro

equivalent of the Nike swoosh

or Google.

Be a BRAND!!!!

The Brand Called You

You're every bit as much a brand as Nike,Champion or Starbucks.

Households with college graduates withundergrad degrees make 96 K comparedto 52K made by households with highschool diplomas

Households with graduate degrees make110K.

The Brand Called You

On average, you will make about$4.2 million over your lifetime

That makes you a multi-milliondollar brand.

Everyone has a chance to be a

brand.

The BRAND Called ‘YOU’



1

What does it take to become theCEO of ME Inc.? What is it that that makes ME different

from the others? “Feature-benefit model"thatYOU offer?

Give yourself the traditional 15-words-or-lesscontest challenge. Identify QUALITIES thatmake yourself stand out. Do you deliver yourwork on time, every time? Are you reliable?Unflappable under pressure? Do youanticipate and solve problems before theybecome crises?

You can’t build a good brand

if you can’t see yourself as

others see you!

How do you market YOU?

Remember, ultimately, it is a matter of substance.Work hard to master your content areas.

Everything you do -- and everything you choosenot to do -- communicates the value and characterof the brand.

Internships.

“Word-of-mouth” marketing to nurture your networkof colleagues – J oin the professional associations.

Types of Brands

Manufacturer Brands

Private OR Retailer OR Store OR

Reseller Brands

Generic Brands

Battle of the BrandsManufacturer vs Private Brands



1

Generic Brands “Genericide”

Aspirin

Cellophane

Corn flakes

Granola

Kerosene

Linoleum

Raisin bran

Shredded wheat

Thermos

Zipper

Loss of trademark protection

Individual

Brand

Family

Brand

Using different brandnames for differentproducts fr om the samecompany

Marketing several

different

products under the same

brand name.

Individual Brands Versus Family

Brands

Cobranding

IngredientBrandingIngredientBranding

CooperativeBranding

CooperativeBranding

ComplementaryBranding

ComplementaryBranding

Types o f Cobranding

JOINT USAGE



1

BRAND EXTENSIONS Packaging

Packaging Functions

Protect and MaintainFunctional Form

OfferConvenience

Marketing

UPC

Labeling

Persuasive

Focuses onpromotionaltheme

Consumer information

is secondary

Informational

Helps makeproper selections

Lowerscognitive

dissonance

Warranty

Express

Warranty

ImpliedWarranty

A conf irmation of the qual ity or performance of a good or service.

A wri tten guarantee.

An unwr it ten guarantee

Product Warranties

chapter10 product.pdf

Documents