Chapter 9 Product Concepts
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Transcript of Chapter 9 Product Concepts
Chapter 9Product Concepts
What’s a Product?Good
Service
IdeaExperienceCredence
PromotionPromotion
Place Place (Distribution)(Distribution)
PricePrice
Product Product
Product is the starting point ofMarketing Mix
Product-Service Continuum
Soap
Auto with repair
servicesRestaur
ant
Airline trip with snacks
Doctor’s exam
The Product-Service Continuum
Brandname
Packaging
Design
Style
Delivery& credit
Installation
Warranty
After-sale
service
Coregood orservice
Coregood orservice
2. Actual Product2. Actual Product
1. Core productWhat the consumer is
really buying
1. Core productWhat the consumer is
really buying
3. Augmented ProductAdditional services &benefits (unexpected)
3. Augmented ProductAdditional services &benefits (unexpected)
Product is a bundle of benefits
Types of ProductsConsumer, BusinessConsumer productsDetermined by how consumers behave
when buying an item.1. Convenience2. Shopping3. Specialty4. Unsought
Consumer Products Convenience –frequently purchased
Grocery productsStaplesEmergency items
MM: Margins:
Consumer Products Shopping (less frequent)
Homogeneous vs. Heterogeneous
MM:Margins:
Consumer ProductsSpecialty – special purchase effort
Principle of scarcity / uniqueness
MM:Margins:
Consumer ProductsUnsought
MM:Margins:
Product Line & Product MixProduct ItemProduct LineProduct MixWidthDepth
Product mix is also known as product assortment
Item
LAMPS: LAMPS: •TableTable•CeilingCeiling•TrackTrack•DeskDesk
Product Line
Equivalent QualityEquivalent Quality
Efficient Sales andDistribution
Efficient Sales andDistribution
Standardized Components
Standardized Components
Package UniformityPackage Uniformity
Advertising EconomiesAdvertising Economies
Benefits of Product Lines
Product Product Line 1Line 1
Product Product Line 2Line 2
Product Product Line 3Line 3
TABLES:TABLES:•KitchenKitchen•Dining RoomDining Room•EndEnd•CoffeeCoffee•OutdoorOutdoor•ConferenceConference•ComputerComputer
CHAIRS:CHAIRS:•Dining RoomDining Room•Living RoomLiving Room•Bed RoomBed Room•OutdoorOutdoor•DeskDesk
LAMPS: LAMPS: •TableTable•CeilingCeiling•TrackTrack•DeskDesk
Product Mix
Product Product Line 1Line 1
Product Product Line 2Line 2
Product Product Line 3Line 3
TABLES:TABLES:•KitchenKitchen•Dining RoomDining Room•EndEnd•CoffeeCoffee•OutdoorOutdoor•ConferenceConference•ComputerComputer
CHAIRS:CHAIRS:•Dining RoomDining Room•Living RoomLiving Room•Bed RoomBed Room•OutdoorOutdoor•DeskDesk
LAMPS: LAMPS: •TableTable•CeilingCeiling•TrackTrack•DeskDesk
Product Depth
Attracts buyers with different preferences; market segmentation
Product Product Line 1Line 1
Product Product Line 2Line 2
Product Product Line 3Line 3
TABLES:TABLES:•KitchenKitchen•Dining RoomDining Room•EndEnd•CoffeeCoffee•OutdoorOutdoor•ConferenceConference•ComputerComputer
CHAIRS:CHAIRS:•Dining RoomDining Room•Living RoomLiving Room•Bed RoomBed Room•OutdoorOutdoor•DeskDesk
LAMPS: LAMPS: •TableTable•CeilingCeiling•TrackTrack•DeskDesk
Product Width
Diversifies risk; Capitalizes on established reputations
Campbell’s Product Lines and Mix
Adjustments to Product Lines, Items and Mixes
Product Modification
Product Modification
ProductRepositioning
ProductRepositioning
Product LineExtension or Contraction
Product LineExtension or Contraction
AdjustmentsAdjustments
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
What images do these brand names evoke?
Mercedes – Benz: Harley Davidson:Apple:PC jr.:Smart & Final:Listerine:Marlboro:Calvin Klein:
Name the major brands: Oatmeal: Dog food:Beer:Running Shoes:Tuna:Bananas:Lobsters:Peaches:
BrandName, term, sign, symbol, design, or some
combination that identifies the products of a firm.
Brand name - part of a brand that can be spoken (examples of brands with no names?)
Brand mark - symbolic
WHAT AM I?
Branding Terms
Trademark – legal designation of the exclusive use of brand
Trade Name – Commercial, legal name
WHAT AM I?
Value of BrandingTo Buyers
Quality assuranceRewards / Risks
To SellersLoyalty
Price premiumsResistance to competition
Brand EquityThe value of the brand name!
Types of Brands
Manufacturer BrandsPrivate OR Retailer OR Store OR
Reseller Brands Generic Brands
Battle of the Brands
“Genericide”AspirinCellophaneCorn flakesGranolaKeroseneLinoleumRaisin branShredded wheatThermosZipper
Individual Brand
Family Brand
Using different brand names for different products from the same company
Marketing several different products under the same brand name.
Individual Brands Versus Family Brands
Cobranding
IngredientBranding
IngredientBranding
Cooperative Branding
Cooperative Branding
Complementary Branding
Complementary Branding
Types of Types of CobrandingCobranding
BRAND EXTENSIONS
PackagingPackaging Functions
Protect and Maintain Functional Form
Offer Convenience
Marketing
UPC
Labeling
Persuasive Focuses on
promotional theme
Consumer information is secondary
Informational
Helps make proper selections
Lowers cognitive dissonance
Warranty
ExpressWarranty
Implied Warranty
A confirmation of the quality or performance of a good or service.
A written guarantee.
An unwritten guarantee
Product Warranties