Product concepts
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Product Concepts. 9. chapter. Prepared by Deborah Baker Texas Christian University. Learning Objectives. 1.Define the term product. 2. Classify consumer products. 3. Define the terms product item, product line, and product mix . 4.Describe marketing uses of branding. 9. chapter.

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Product concepts

Product Concepts

9

chapter

Prepared by

Deborah Baker

Texas Christian University

Chapter 9 Version 6e


Learning objectives

Learning Objectives

1.Define the term product.

2. Classify consumer products.

3. Define the terms product item, product line, and product mix.

4.Describe marketing uses of branding.

9

chapter

Chapter 9 Version 6e


Learning objectives continued

Learning Objectives (continued)

5. Describe marketing uses of packaging and labeling.

6. Discuss global issues in branding and packaging.

7.Describe how and why product warranties are important marketing tools.

9

chapter

Chapter 9 Version 6e


Learning objective

1

Learning Objective

Define the term product.

Chapter 9 Version 6e


Product

1

Product

Everything, both favorable and unfavorable, that

a person receives

in an exchange.

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What is a product

Product isthe “heart” ofMarketing

Mix

Price

Promotion

Place (Distribution)

1

What is a Product?

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Learning objective1

2

Learning Objective

Classify consumer products.

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Product classifications

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

2

Product Classifications

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Types of consumer products

PRODUCTS

Consumer

Products

Business

Products

Convenience

Products

Shopping

Products

Specialty

Products

Unsought

Products

2

Types of Consumer Products

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Types of consumer products1

A relatively inexpensive item that merits little shopping effort.

Convenience

Product

A product that requires comparison shopping, because it is usually more expensive and found in fewer stores.

Shopping

Product

Specialty

Product

A particular item that consumers

search extensively for and are reluctant to accept substitutes.

Unsought

Product

A product unknown to the potential buyer or a known product that the buyer does not actively seek.

2

Types of Consumer Products

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Types of consumer products2

Convenience

Products

Shopping

Products

Specialty

Products

Unsought

Products

2

Types of Consumer Products

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Learning objective2

3

Learning Objective

Define the terms product item, product line, and product mix.

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Product items lines and mixes

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.

3

Product Items, Lines, and Mixes

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Gillette s product lines and mix

Width of the product mix

Blades andWriting

razorsToiletriesinstrumentsLighters

Mach 3 Series Paper Mate Cricket

SensorAdorn Flair S.T. Dupont

Trac IIToniAtra 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

3

Gillette’s Product Lines and Mix

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Benefits of product lines

Advertising Economies

Package Uniformity

Why Form Product Lines?

Standardized

Components

Efficient Sales andDistribution

Equivalent Quality

3

Benefits of Product Lines

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Product mix width

3

Product Mix Width

The number of product lines an organization offers.

  • Diversifies risk

  • Capitalizes on established reputations

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Product line depth

3

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

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Adjustments

3

Adjustments

Adjustments to Product Items,Lines, and Mixes

Product Modification

Product Line

Extension or Contraction

ProductRepositioning

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Product modifications

Quality Modification

Types of Product Modifications

Functional Modification

Style Modification

3

Product Modifications

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Planned obsolescence

3

Planned Obsolescence

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

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Repositioning

Why reposition established brands?

Changing Demographics

Changes in Social Environment

Declining Sales

3

Repositioning

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Product line extension

3

Product Line Extension

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

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Product line contraction

3

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

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Learning objective3

4

Learning Objective

Describe marketing uses of branding.

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Brand

4

Brand

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

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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.

Master

Brand

A brand so dominant that it comes to

mind immediately when a product category, use, attribute, or benefit is mentioned.

4

Branding

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Benefits of branding

Product Identification

New Product Sales

Repeat Sales

4

Benefits of Branding

Branding distinguishes products from competition

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An effective brand name

4

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

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Master brands

Baking Soda

Arm & Hammer

Adhesive Bandages

Band-Aid

Rum

Bacardi

Gelatin

Jell-O

Soup

Campbell’s

Cream Cheese

Philadelphia

Crayons

Crayola

Petroleum Jelly

Vaseline

4

Master Brands

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Branding strategies

4

Branding Strategies

Brand

No Brand

Manufacturer’s Brand

Private Brand

IndividualBrand

Family Brand

Combi-nation

IndividualBrand

Family Brand

Combi-nation

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Generic brand

4

Generic Brand

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

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Manufacturers brands versus private brands

Manufacturers’

Brand

The brand name of a manufacturer.

Private

Brand

A brand name owned by a wholesaler or a retailer.

4

Manufacturers’ Brands VersusPrivate Brands

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Advantages of manufacturers brands

4

Advantages of Manufacturers’ Brands

  • Develop customer loyalty

  • Attract new customers

  • Enhance prestige

  • Offer rapid delivery, can carry less inventory

  • Ensure dealer loyalty

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Advantages of private brands

4

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 to wholesaler or retailer

  • No control over distribution of manufacturers’ brands

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Individual brands versus family brands

Individual

Brand

Using different brand names for different products.

Family

Brand

Marketing several different

products under the same

brand name.

4

Individual Brands VersusFamily Brands

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Cobranding

Types of Cobranding

IngredientBranding

Complementary Branding

Cooperative Branding

4

Cobranding

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Trademarks

4

Trademarks

A Trademark is the exclusive right to use a brand

  • 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

TM

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Learning objective4

5

Learning Objective

Describe marketing uses of packaging and labeling.

Chapter 9 Version 6e


Packaging

Contain and Protect

Functions

of

Packaging

Promote

Facilitate Storage, Use,

and Convenience

Facilitate Recycling

5

Packaging

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Labeling

Persuasive

Informational

  • Helps make proper selections

  • Lowers cognitive dissonance

  • Includes use/care

  • Focuses on promotional theme

  • Information is secondary

5

Labeling

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Universal product codes

5

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

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Learning objective5

6

Learning Objective

Discuss global issues in branding and packaging.

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Global issues in branding

One Brand NameEverywhere

Global Options for Branding

Adaptations & Modifications

Different Brand Names for Different Markets

6

Global Issues in Branding

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Global issues in packaging

Labeling

Global Considerations for Packaging

Aesthetics

Climate Considerations

6

Global Issues in Packaging

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Learning objective6

7

Learning Objective

Describe how and why product warranties are important marketing tools.

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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)

7

Product Warranties

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Product warranties1

7

Product Warranties

Express

Warranty

Written Guarantee

Warranties

Implied Warranty

Unwritten Guarantee

Chapter 9 Version 6e


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