MRKT 140 #9

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

    • u Tangible Good
    • u Service
    • u Idea
  2. What Is a Product?
    Product is the starting point of Marketing Mix
  3. Business Product
  4. A product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other consumers.
  5. Consumer
    Product
    • A product bought to satisfy an
    • individual’s personal needs or wants
  6. Types of Consumer Products
    1. Business Products

    2. Consumer Products

    • Convenience Products
    • Shopping Products
    • Specialty Products
    • Unsought Products
  7. Convenience
    Product
    A relatively inexpensive item that merits little shopping effort
  8. Shopping
    Product
    A product that requires comparison shopping, because it is usually more expensive and found in fewer stores
  9. Specialty
    Product
    A particular item for which consumers search extensively and are reluctant to accept substitutes
  10. Unsought
    Product
    A product unknown to the potential buyer or a known product that the buyer does not actively seek
  11. Product Item
    A specific version of a product that can be designated as a distinct offering among an organization’s products.
  12. Product Line
    A group of closely-related product items
  13. Product Mix
    All products that an organization sells.
  14. Benefits of Product Lines
    Advertising Economies


    Package Uniformity


    • Standardized
    • Components

    Efficient Sales andDistribution


    Equivalent Quality
  15. Product Mix Width
    The number of product lines an organization offers.

    • Diversifies risk
    • Capitalizes on established reputations
  16. 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
  17. Adjustments to
    Product Items,Lines, and Mixes
    • Product Modification
    • ProductRepositioning
    • Product Line
    • Extension or Contraction
  18. Types of Product Modifications
    Quality Modification


    Functional Modification



    Style Modification
  19. Planned Obsolescence
    The practice of modifying products so those that have already been sold become obsolete before they actually need replacement.
  20. Why reposition established brands?
    Changing Demographics

    Declining Sales

    Changes in Social Environment
  21. Product Line Extension
    Adding additional products to an existing product line in order to compete more broadly in the industry.
  22. 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
  23. Branding
    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


    GlobalBrand


    A brand where at least 20 percent of theproduct is sold outside its home country
  24. Benefits of Branding
    Product Identification


    Repeat Sales


    New Product Sales
  25. Branding Strategies
    • Manufacturer’s Brand
    • -Individual brand
    • -Family brand
    • -Combination brand


    • Private Brand
    • -Individual brand
    • -Family brand
    • -Combination brand
  26. Generic
    Product
    A no-frills, no-brand-name, low-cost product that is simply identified by its product category.
  27. Manufacturers’ Brands VersusPrivate Brands
    • 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.
  28. Advantages of Manufacturers’ Brands
    • -Heavy consumer ads by manufacturers -Attract new customers
    • -Enhance dealer’s prestige
    • -Rapid delivery, carry less inventory
    • -If dealer carries poor quality brand, customer may simply switch brands and remain loyal to dealer
  29. Advantages of Private Brands
    • -Earn higher profits on own brand
    • -Less pressure to mark down price
    • -Manufacturer can become a direct competitor or drop a brand/reseller
    • -Ties customer to wholesaler or retailer
    • -Wholesalers and retailers have no control over the intensity of distribution of manufacturers’ brands
  30. Individual Brands Versus Family Brands
    Individual Brands

    -Using different brand names for different products.

    • Family Brands
    • -Marketing several different
    • products under the same
    • brand name
  31. Cobranding
    IngredientBranding

    Cooperative Branding


    Complementary Branding
  32. Trademarks

    Trademark is the exclusive right to use a brand.
    • -Many parts of a brand and associated symbols qualify for trademark protection.
    • -Trademark right comes from use rather than registration.
    • -The mark has to be continuously protected.
    • -Rights continue for as long as the mark is used.
    • -Trademark law applies to the online world.
  33. Functions of Packaging
    Contain and Protect

    Promote

    Facilitate Storage, Use, and Convenience

    Facilitate Recycling
  34. 100 Percent Recyclable
    Coca-Cola is building the largest recycling plant in the world. The plant will produce 100 million pounds of food-grade recycled plastic for reuse each year. That’s enough plastic to produce two billion 20-ounce Coke bottles.

    Coca-Cola’s goal is to recycle or reuse 100 percent of the company’s plastic bottles in the U.S. market. By meeting that goal over the next ten years, the Coca-Cola recycling plant will eliminate the production of one million metric tons of CO2 emissions—the equivalent of removing 215,000 cars from American highways.
  35. Labeling
    Persuasive

    • §Focuses on promotional theme
    • §Consumer information is secondary



    Informational

    • §Helps make proper selections
    • §Lowers cognitive dissonance
    • §Includes use/care
  36. Universal Product Codes


    (UPCs)
    A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products.
  37. Global Issues in Branding
    One Brand NameEverywhere

    Adaptations & Modifications


    Different Brand Names in Different Markets
  38. Global Issues in Packaging
    (Global Considerations for Packaging )
    Labeling


    Aesthetics


    Climate Considerations
  39. Global Issues in Branding and Packaging
    Branding Choices:

    • 1 name
    • Modify or adapt 1 name
    • Different names in different markets



    Packaging Considerations:

    • Labeling
    • Aesthetics
    • Climate
  40. Product Warranties
    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)
  41. Product Warranties
    Express warranty = written guarantee

    Implied warranty = unwritten guarantee

Card Set Information

Author:
pocky
ID:
12122
Filename:
MRKT 140 #9
Updated:
2010-03-27 09:18:44
Tags:
lecture
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Description:
lecture
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