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Product Concepts

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Title: Product Concepts


1
Chapter 9
Product Concepts
2
Chapter 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.
3
What is a Product?
A Product iseverything that a persons receives

in an exchange
tangible good
idea
service
4
What is a Product?
Product isthe heart ofMarketing Mix
Promotion
Price
Place (Distribution)
5
Types of Consumer Products
Consumer Products
Business Products
Unsought Products
Specialty Products
Shopping Products
Convenience Products
6
Types of Consumer Products
7
Product Line and Product Mix
Width of the product mix
Depth of the product lines
Gillettes Product Lines and Mix
http//www.gillette.com/

8
Product Lines a group of closely related product
items
Why Form Product Lines?
9
Product Lines and Product Mix
Product Mix Width
  • Spreads risk across multiple lines
  • Capitalizes on established reputations

10
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

11
Adjustments to Products
Adjustments to Product Items,Lines, and Mixes
Product Modification
Product Line Extension or Contraction
ProductRepositioning
12
Product Modifications
Types of Product Modifications
back
13
Product Repositioning
Why reposition established brands?
back
14
Product Line Extension
Mercedes-Benz
Pantene
15
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

back
16
What 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.
17
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

18
Benefits of Branding
Purposes of Branding
  • Product Identification
  • Repeat Sales
  • New-Product Sales

19
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

20
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

21
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

22
Branding Strategies
Brand
No Brand
23
Brand 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

24
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

25
Packaging
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