Product Concepts

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Product Concepts
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Objectives
1. Define the term product. 2. Classify
consumer products. 3. Define the terms product
line,and product mix. 4. Describe
marketing uses of branding.
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What is a Product?
A Product iseverything that a persons
receives in an exchange
tangible good
idea
service
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What is a Product?
Product
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Types of Consumer Products
Consumer Products
Business Products
Unsought Products
Specialty Products
Shopping Products
Convenience Products
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Types of Consumer Products
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Product Line and Product Mix
Width of the product mix
Depth of the product lines
Gillettes Product Lines and Mix
http//www.gillette.com/
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Product Lines a group of closely related product
items
Why Form Product Lines?
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Product Lines and Product Mix
Product Mix Width

• Spreads risk across multiple lines
• Capitalizes on established reputations

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Product Lines and Product Mix
Product Line Depth

• Attracts buyers with different preferences
• Capitalizes on economies of scale
• Increases sales/profits by further market
  segmentation

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Adjustments to Products
Adjustments to Product Items,Lines, and Mixes
Product Modification
Product Line Extension or Contraction
ProductRepositioning
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Product Modifications
Types of Product Modifications
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Product Repositioning
Why reposition established brands?
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Product Line Contraction
Symptoms of Product Line Overextension

• Some products are not contributing to profit
  because of low sales or cannibalization
• Manufacturing or marketing resources are
  disproportionately allocated to slow-moving
  products
• Items in the line have become obsolete because of
  new product entries

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What is a Brand?
The American Marketing Association defines a
brand as follows A brand is a name, term, sign,
symbol, or design, or a combination of them,
intended to identify the goods or services of one
seller or group of sellers and to differentiate
them from those of competitors.
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What is a Brand?

• A brand can convey up to six levels of meaning
• Attributes A brand brings to mind certain
  attributes
• Durable
• Benefits Attributes ? function emotional
  benefits
• I wont have to buy another car for years
• Values says something about producers values
• High performance, safety
• Culture may represent a certain culture
• German culture
• Personality can project a certain personality
• A reigning lion
• User suggests the kind of consumer who buys the
  product
• Top executive

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Brand Equityis related to the degree of
brand-name recognition, perceived brand quality,
strong mental and emotional associations, and
other assets such as patents, trademarks, and
channel relationships --David Aaker

• Five levels of attitude toward the brand
• Customer will change brands. No loyalty
• Customer is satisfied. No reason to change
• Customer is satisfied and would incur costs by
  changing
• Customer values the brand and sees it as a friend
• Customer is devoted to the brand

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Brand Equity Provides

• Reduced marketing costs
• Greater trade leverage in bargaining with
  distributors and retailers
• Ability to charge higher prices
• More easily launch extensions
• Some defense against price competition

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Branding Strategies
Brand
No Brand
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Brand Strategy Decisions

• Line extensions existing brand name extended to
  new sizes or flavors in existing product category
• Nabisco Fig, Apple, Cranberry, Blueberry
• Brand extensions brand names extended to
  new-product categories
• Virgin Group brand dilution?
• Multi-brands new brand names in same product
  category
• Flanker brands Marriott, Courtyard, Residence
  Inn, Fairfield Inn
• Cobrands brands bearing two or more well-known
  brand names
• Ingredient Betty Crockers brownie mix
  w/Hersheys syrup
• CooperativeDell Intel

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Brand Names

• Good brand names have several of these features
• Easy to pronounce, recognize, remember
• Short names help Tide, Crest, Puffs
• Should be distinctive
• Mustang, Kodak, Exxon
• Describe product benefits
• Beauty-rest, Craftsman
• Also,
• Have a positive connotation
• Reinforce the desired product image
• Legally protectable in home and foreign markets