Title: Product Concepts
1Chapter 9
Product Concepts
2Chapter 10 Objectives
1. Define the term product. 2. Classify consu
mer products. 3. Define the terms product
line,and product mix. 4. Describe marketi
ng uses of branding.
3What is a Product?
A Product iseverything that a persons receives
in an exchange
tangible good
idea
service
4What is a Product?
Product isthe heart ofMarketing Mix
Promotion
Price
Place (Distribution)
5Types of Consumer Products
Consumer Products
Business Products
Unsought Products
Specialty Products
Shopping Products
Convenience Products
6Types of Consumer Products
7Product Line and Product Mix
Width of the product mix
Depth of the product lines
Gillettes Product Lines and Mix
http//www.gillette.com/
8Product Lines a group of closely related product
items
Why Form Product Lines?
9Product Lines and Product Mix
Product Mix Width
- Spreads risk across multiple lines
- Capitalizes on established reputations
10Product Lines and Product Mix
Product Line Depth
- Attracts buyers with different preferences
- Capitalizes on economies of scale
- Increases sales/profits by further market
segmentation
11Adjustments to Products
Adjustments to Product Items,Lines, and Mixes
Product Modification
Product Line Extension or Contraction
ProductRepositioning
12Product Modifications
Types of Product Modifications
back
13Product Repositioning
Why reposition established brands?
back
14Product Line Extension
Mercedes-Benz
Pantene
15Product 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
back
16What is a Brand?
The American Marketing Association defines
a brand as follows A brand is a name, term, si
gn, 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.
17What 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
18Benefits of Branding
Purposes of Branding
- Product Identification
- Repeat Sales
- New-Product Sales
19Brand 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
20Brand 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
21Brand 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
22Branding Strategies
Brand
No Brand
23Brand Strategy Decisions
- Line extensions existing brand name extended to
new sizes or flavors in existing product
category
- Nabisco Fig, Apple, Cranberry, Blueberry,
Newton
- 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
- CooperativeCitibank Aadvantage
24Trademarks
- 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
25Packaging