Upload
cornelia-jennings
View
215
Download
0
Embed Size (px)
Citation preview
1
Product ConceptsProduct Concepts
2
Product
Everything, both favorable and
unfavorable, that
a person receives
in an exchange.
3
What Is a Product?
PromotionPromotion
Place (Distribution)Place (Distribution)
PricePrice
Product Product Product is the “heart” of
Marketing Mix
4
Product Classifications
BusinessBusinessProductProduct
BusinessBusinessProductProduct
Consumer Consumer ProductProduct
Consumer Consumer ProductProduct
A product used to manufacture other goods or services, to facilitate an
organization’s operations, or to resell to other consumers.
A product used to manufacture other goods or services, to facilitate an
organization’s operations, or to resell to other consumers.
Product bought to satisfy an individual’s personal wants
Product bought to satisfy an individual’s personal wants
5
Types of Consumer Products
UnsoughtProducts
UnsoughtProducts
SpecialtyProductsSpecialtyProducts
ShoppingProducts
ShoppingProducts
ConvenienceProducts
ConvenienceProducts
ConsumerProducts
ConsumerProducts
BusinessProductsBusinessProducts
PRODUCTSPRODUCTS
6
Types of Consumer Products
ConvenienceProduct
ConvenienceProduct
ShoppingProduct
ShoppingProduct
SpecialtyProduct
SpecialtyProduct
UnsoughtProduct
UnsoughtProduct
A relatively inexpensive item that merits little shopping effort.A relatively inexpensive item that merits little shopping effort.
A product that requires comparison shopping, because it is usually more expensive and found in fewer stores.
A product that requires comparison shopping, because it is usually more expensive and found in fewer stores.
A particular item that consumerssearch extensively for and are reluctant to accept substitutes.
A particular item that consumerssearch 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.
A product unknown to the potential buyer or a known product that the buyer does not actively seek.
7
Product Items, Lines, and Mixes
Product ItemProduct Item
Product LineProduct Line
Product MixProduct Mix
A specific version of a product that can be designated as a distinct offering among an organization’s products.
A specific version of a product that can be designated as a distinct offering among an organization’s products.
A group of closely-related product items.
A group of closely-related product items.
All products that an organization sells.
All products that an organization sells.
8
Gillette’s Product Lines and Mix
Blades and Writingrazors Toiletries instruments Lighters
Mach 3 Series Paper Mate CricketSensor Adorn Flair S.T. Dupont Trac II ToniAtra Right GuardSwivel Silkience Double-Edge Soft and Dri Lady Gillette Foamy Super Speed Dry LookTwin Injector Dry Idea Techmatic Brush Plus
Width of the product mixWidth of the product mix
De
pth
of
the
pro
du
ct
line
sD
ep
th o
f th
e p
rod
uc
t lin
es
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
Benefits of Product Lines
Equivalent QualityEquivalent Quality
Efficient Sales andDistribution
Efficient Sales andDistribution
Standardized Components
Standardized Components
Package UniformityPackage Uniformity
Advertising EconomiesAdvertising Economies
11
Product Mix Width
Diversifies risk
Capitalizes on established reputations
The number of product lines an organization
offers.
12
Product Line Depth
Attracts buyers with different preferences
Increases sales/profits by further market segmentation
Capitalizes on economies of scale
Evens out seasonal sales patterns
The number of product items in a product line.
13
Adjustments
Product Modification
Product Modification
ProductRepositioning
ProductRepositioning
Product LineExtension or Contraction
Product LineExtension or Contraction
Adjustments to Adjustments to Product Items,Product Items,
Lines, and MixesLines, and Mixes
Adjustments to Adjustments to Product Items,Product Items,
Lines, and MixesLines, and Mixes
14
Types of Product Modifications
Quality Modification
Quality Modification
Functional ModificationFunctional
Modification
Style Modification
Style Modification
15
Planned Obsolescence
The practice of modifying products so those that have already been sold become obsolete before
they actually need replacement.
16
Repositioning
Changing Demographics
Changing Demographics
Declining SalesDeclining Sales
Changes in Social
Environment
Changes in Social
Environment
Why reposition Why reposition established brands?established brands?
Why reposition Why reposition established brands?established brands?
17
Product Line Extension
Adding additional products to an existing product line in order to compete more broadly
in the industry.
18
Product Line Contraction
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
Symptoms of Symptoms of Product Line Product Line
OverextensionOverextension
Symptoms of Symptoms of Product Line Product Line
OverextensionOverextension
19
Brand
A name, term, symbol, design, or combination thereof that identifies a
seller’s products and differentiates them from competitors’ products.
20
Branding
Brand Name
Brand Name
BrandMark
BrandMark
Brand EquityBrand Equity
That part of a brand that can be spoken, including letters, words, and numbers.
That part of a brand that can be spoken, including letters, words, and numbers.
The elements of a brand that cannot be spoken.
The elements of a brand that cannot be spoken.
The value of company and brand names.The value of company and brand names.
21
Benefits of Branding
Product Identification
Product Identification Repeat SalesRepeat Sales New Product
SalesNew Product
Sales
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
BrandBrand No BrandNo Brand
Manufacturer’s Brand
Manufacturer’s Brand Private BrandPrivate Brand
IndividualBrand
IndividualBrand
Family Brand
Family Brand
Combi-nation
Combi-nation
IndividualBrand
IndividualBrand
Family Brand
Family Brand
Combi-nation
Combi-nation
24
Generic Brand
A no-frills, no-brand-name, low-cost product that is simply identified by its product category.
25
Manufacturers’ Brands VersusPrivate Brands
Manufacturers’ Manufacturers’ BrandBrand
Manufacturers’ Manufacturers’ BrandBrand
Private Private BrandBrand
Private Private BrandBrand
The brand name of a manufacturer.
The brand name of a manufacturer.
A brand name owned by a wholesaler or a retailer. Also
known as a private label or store brand.
A brand name owned by a wholesaler or a retailer. Also
known as a private label or store brand.
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 Brands VersusFamily Brands
Individual Individual BrandBrand
Individual Individual BrandBrand
Family Family BrandBrand
Family Family BrandBrand
Using different brand names for different products.
Using different brand names for different products.
Marketing several different products under the same
brand name.
Marketing several different products under the same
brand name.
29
Cobranding
IngredientBranding
IngredientBranding
Cooperative Branding
Cooperative Branding
Complementary Branding
Complementary Branding
Types of CobrandingTypes of CobrandingTypes of CobrandingTypes of Cobranding
30
Trademarks
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
A Trademark is the A Trademark is the exclusive right to exclusive right to
use a branduse a brand
A Trademark is the A Trademark is the exclusive right to exclusive right to
use a branduse a brand
31
Packaging
FunctionsFunctionsofof
PackagingPackaging
FunctionsFunctionsofof
PackagingPackaging
Contain and ProtectContain and Protect
PromotePromote
Facilitate Storage, Use, and Convenience
Facilitate Storage, Use, and Convenience
Facilitate RecyclingFacilitate Recycling
32
Labeling
PersuasivePersuasive
Focuses on promotional theme
Information is secondary
InformationalInformational
Helps make proper selections
Lowers cognitive dissonance
Includes use/care
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.
34
Product Warranties
WarrantyWarranty
ExpressWarrantyExpressWarranty
Implied WarrantyImplied
Warranty
A confirmation of the quality or performance of a good or service.A confirmation of the quality or performance of a good or service.
A written guarantee.A written guarantee.
An unwritten guarantee that the good or service is fit for the purpose for which it was sold. (UCC)
An unwritten guarantee that the good or service is fit for the purpose for which it was sold. (UCC)
35
Product Warranties
WarrantiesWarrantiesWarrantiesWarranties
Written Guarantee
Implied Implied WarrantyWarrantyImplied Implied WarrantyWarranty
Express Express WarrantyWarrantyExpress Express WarrantyWarranty
Unwritten Guarantee