Transcript Product Concepts - Indonesian Computer University

Learning Objectives
1. Define the term product.
2. Classify consumer products.
chapter
9
3. Define the terms product item, product line,
and product mix.
4. Describe marketing uses of branding.
1
Learning Objectives
(continued)
5. Describe marketing uses of packaging
and labeling.
chapter
9
6. Discuss global issues in branding
and packaging.
7. Describe how and why product warranties
are important marketing tools.
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1
Learning Objective
Define the term product.
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Product
1
Everything, both favorable
and unfavorable, that
a person receives
in an exchange.
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1
What is a Product?
Product
is
the “heart” of
Marketing
Mix
Price
Promotion
Place (Distribution)
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2
Learning Objective
Classify consumer products.
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Product
Classifications
2
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
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Types of Consumer 2
Products
PRODUCTS
Consumer
Products
Convenience
Products
Shopping
Products
Business
Products
Specialty
Products
Unsought
Products
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Types of Consumer 2
Products
Convenience
Product
A relatively inexpensive item that
merits little shopping effort.
Shopping
Product
A product that requires comparison
shopping, because it is usually more
expensive and found in fewer stores.
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.
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Types of Consumer 2
Products
Convenience
Products
Shopping
Products
Specialty
Products
Unsought
Products
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3
Learning Objective
Define the terms product item,
product line, and product mix.
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Product Items, Lines,
3
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.
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Depth of the product lines
Gillette’s Product
Lines and Mix
3
Width of the product mix
Blades and
razors
Toiletries
Mach 3
Sensor
Trac II
Atra
Swivel
Double-Edge
Lady Gillette
Super Speed
Twin Injector
Techmatic
Series
Adorn
Toni
Right Guard
Silkience
Soft and Dri
Foamy
Dry Look
Dry Idea
Brush Plus
Writing
instruments
Lighters
Paper Mate
Flair
Cricket
S.T. Dupont
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Benefits of Product 3
Lines
Advertising Economies
Package Uniformity
Why Form
Product Lines?
Standardized
Components
Efficient Sales and
Distribution
Equivalent Quality
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3
Product Mix Width
The number of product lines
an organization offers.
 Diversifies risk
 Capitalizes on established reputations
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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 to
Product Items,
Lines, and Mixes
Product Line
Extension or
Contraction
Product
Modification
Product
Repositioning
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Product
Modifications
3
Quality
Modification
Types of
Product
Modifications
Functional
Modification
Style
Modification
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Planned
Obsolescence
3
The practice of modifying
products so those that
have already been sold
become obsolete before they
actually need replacement.
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Repositioning
3
Why reposition
established brands?
Changing
Demographics
Changes in Social
Environment
Declining Sales
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Product Line
Extension
3
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
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 Objective 4
Describe marketing uses of branding.
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Brand
4
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
4
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.
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Benefits of Branding4
Branding
distinguishes
products from
competition
Product
Identification
New Product
Sales
Repeat Sales
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An Effective Brand 4
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
Adhesive Bandages
Rum
Gelatin
Arm & Hammer
Band-Aid
Bacardi
Jell-O
Soup
Campbell’s
Cream Cheese
Philadelphia
Crayons
Petroleum Jelly
4
Crayola
Vaseline
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Branding Strategies 4
Brand
Manufacturer’s
Brand
Individual
Brand
Family
Brand
No Brand
Private Brand
Combination
Individual
Brand
Family
Brand
Combination
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Generic Brand
4
A no-frills, no-brand-name,
low-cost product that is simply
identified by its product
category.
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Manufacturers’ Brands Versus
4
Private Brands
Manufacturers’
Brand
The brand name of a manufacturer.
Private
Brand
A brand name owned by a wholesaler
or a retailer.
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Advantages of
Manufacturers’ Brands
4
• 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
• 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
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Cobranding
4
Types of Cobranding
Ingredient
Branding
Complementary
Branding
Cooperative
Branding
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Trademarks
4
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
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Learning Objective 5
Describe marketing uses of
packaging and labeling.
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Packaging
5
Contain and Protect
Promote
Facilitate Storage, Use,
and Convenience
Functions
of
Packaging
Facilitate Recycling
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Labeling
Persuasive
 Focuses on
promotional
theme
 Information is
secondary
5
Informational
 Helps make proper
selections
 Lowers cognitive
dissonance
 Includes use/care
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Universal Product
Codes
5
A series of thick and thin
vertical lines (bar codes),
readable by computerized
optical scanners, that
represent numbers used
to track products.
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6
Learning Objective
Discuss global issues in
branding and packaging.
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Global Issues in
Branding
6
One Brand Name
Everywhere
Global Options
for Branding
Adaptations &
Modifications
Different Brand
Names for
Different Markets
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Global Issues in
Packaging
6
Labeling
Global
Considerations
for Packaging
Aesthetics
Climate
Considerations
43
Learning Objective 7
Describe how and why
product warranties are
important marketing tools.
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Product Warranties 7
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)
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Product Warranties 7
Express
Warranty
Written Guarantee
Implied
Warranty
Unwritten Guarantee
Warranties
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