Chapter 9 Product Concepts

1
Product Concepts
2
Product
Everything, both favorable and unfavorable, that
a person receives in an exchange.
3
What Is a Product?
4
Product Classifications
5
Types of Consumer Products
6
Types of Consumer Products
7
Product Items, Lines, and Mixes
8
Gillettes Product Lines and Mix
9
Example Retail Product Strategy

• What you offer to the consumer (product/product
  mix/core product/augmented product)
• How you offer it (packaging, pricing, range, door
  delivery, hours of operation, etc)
• From where you offer it (the shelving pattern,
  location of the product on the shelf, etc)
• Equals Sales and Profits

10
Benefits of Product Lines
11
Product Mix Width
The number of product lines an organization
offers.
12
Product Line Depth
The number of product items in a product line.
13
Adjustments
14
Types of Product Modifications
15
Planned Obsolescence
The practice of modifying products so those that
have already been sold become obsolete before
they actually need replacement.
16
Repositioning
17
Product Line Extension
Adding additional products to an existing product
line in order to compete more broadly in the
industry.
18
Product Line Contraction
19
Brand
A name, term, symbol, design, or combination
thereof that identifies a sellers products and
differentiates them from competitors products.
20
Branding
21
Benefits of Branding
22
An Effective Brand 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

23
Branding Strategies
Brand
No Brand
Manufacturers Brand
Private Brand
IndividualBrand
Family Brand
Combi-nation
IndividualBrand
Family Brand
Combi-nation
24
Generic Brand
A no-frills, no-brand-name, low-cost product that
is simply identified by its product category.
25
Manufacturers Brands VersusPrivate Brands
26
Advantages of Manufacturers Brands

• Develop customer loyalty
• Attract new customers
• Enhance prestige
• Offer rapid delivery, can carry less inventory
• Ensure dealer loyalty

27
Advantages of Private Brands

• Earn higher profits
• Less pressure to mark down prices
• Manufacturer may drop a brand or become a direct
  competitor to dealers
• Ties customer to wholesaler or retailer
• No control over distribution of manufacturers
  brands

28
Individual Brands VersusFamily Brands
29
Cobranding
30
Trademarks
TM

• 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

31
Packaging
32
Labeling
33
Universal Product Codes
A series of thick and thin vertical lines (bar
codes), readable by computerized optical
scanners, that represent numbers used to track
products.
UPCs
34
Product Warranties
35
Product Warranties