Transcript Marketing 333 Chapter 8 Elements of Product Planning for Goods

Marketing 333
Chapter 8
Elements of Product
Planning for Goods
and Services
What is a Product?
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A bundle of benefits
What the buyer
gets…not what the seller
sells
Tangible items, services,
ideas
The Total Product
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A wide range of tangible and intangible benefits
that a buyer might gain from a product after
purchasing it
A product might have:
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Primary characteristics
Auxiliary characteristics
Augmented
product
Primary
Core
product
Characteristics
Product Strategy
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Planning and development of a mix of the
primary and auxiliary dimensions of a product’s
attributes.
Classifying Consumer Products
Three Types of Consumer Products:
Durable
goods
Services
Nondurable
goods
Goods-Services Continuum
Shovel
Restaurant’s
offering
Employment
agency service
Good
Good/service
Service
Classifying Products by Consumer
Behavior
Convenience
products
Specialty
products
Shopping
products
Convenience Products
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Inexpensive
Purchased regularly
Easily accessible
Shopping Products
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Make comparisons
Shop around
Not purchased
frequently
Specialty Products
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Usually expensive
Special effort to
purchase
Classifying Organizational Products
Three types:
Operating
Products
Production
Products
Capital
Products
Capital Products
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Installations
Accessory equipment
Examples: buildings,
forklifts, copying
machines
Production Products
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Raw materials
Manufactured
materials
Component parts
Process materials
Operating Products
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Routinely Purchased
Used in daily operations
Services
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Instrumental Services
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Consummatory Services
Characteristics of Services
Intangibility
Inseparabilit
y
Perishability
Heterogeneity
Product Line and Mix
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Product line: group of products that are
fairly closely related
Product Mix: All the product offerings of an
organization, no matter how unrelated
Dimensions of the Product Mix
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Breadth or width
Depth or length
Branding
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Brand name
Brand mark
Logo
Trademark
Service Mark
Brand Name and Brand Marks
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Brand name: verbal part of the brand
Brand mark: unique symbol that is part of
the brand
Logo: brand name or company name written
in a distinctive way
Trademarks and Service Marks
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Trademark: legally protected brand name or
brand mark for goods
Service mark: symbol that identifies
services
What makes a good brand name?
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A good brand name:
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Is easy to pronounce
Has mnemonic quality
Suggests a positive image
Reinforces product concept
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Communicates product benefits
Says something about the user
Avoids linguistic traps
Manufacturer and
Distributor Brands
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Manufacturer brand: owned by the maker of
the product
World (global) brand: distributed and
recognized around the world
Distributor brand: owned by a retailer or
wholesaler
Generic Brands
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Carries neither a
manufacturer nor a
distributor brand
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–
Plain packaging
Stark lettering
Family Brands
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The same brand name is used in different
categories of products
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E.g. Healthy Choice
Individual Brand
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Example: Mar’s candies
Example:P & G’s laundry
detergents
Co-Branding
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Use of two brands on a single product
Pizza Hut
Tostitos
Pizza Hut
Pizza flavored
Tostitos
Brand Equity
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Value associated with a brand
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Crayola
Harley-Davidson
Disney
Functions of Packaging
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Contain product
Protects product
Facilitates storage and use of product
Promotes product
Recycling issues
Labeling
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Label: Paper or plastic sticker attached to a
container to carry product information
UPC (universal product code): permits
computerization of checkout and compilation
of sales and inventory information