Chapter 9 Product Concepts

‘Product’ Essentials TOTAL MARKETING EFFORTS TOTAL MARKETING EFFORTS Idea (ambiguous) Idea (ambiguous) Product (tangible) Product (tangible) Service (intangible) Service (intangible) Product Planning Product Planning The Offering The Offering

The Goods/Services Continuum Computer diskette Computer software Computer program Systems design Please note: The above continuum should be viewed left to right. Within each row, a consistent pattern moves from pure good to pure service. When comparing different rows, less consistency exists due to the diversity of examples shown. Exercise equipment Off-the- rack furniture Self-service gasoline In-home rental of equipment Custom- made furniture Full-service gasoline Use of equipment in hotel Pure goodsPure services Health and fitness clubs Cleaning furniture Driver ed. (firm’s car) Personal trainer Interior decorator Driver ed. (consumer’s car) Reuphol- stering furniture Trans- mission overhaul

What is a Product? Promotion Product Product is the “heart” of Marketing Mix Product Product is the “heart” of Marketing Mix Place (Distribution) Price

Types of Consumer Products Unsought Products Unsought Products Specialty Products Specialty Products Shopping Products Shopping Products Convenience Products Convenience Products Consumer Products Consumer Products Business Products Business Products PRODUCTS

Types of Consumer Products Convenience Product Convenience Product Shopping Product Shopping Product Specialty Product Specialty Product Unsought Product Unsought Product A relatively inexpensive item that merits little shopping effort. A product that requires comparison shopping, because it is usually more expensive and found in fewer stores. A particular item that consumers search extensively for and are reluctant to accept substitutes. A particular item that consumers search extensively for and are reluctant to accept substitutes. A product unknown to the potential buyer or a known product that the buyer does not actively seek.

Consumer Characteristics Types of Consumer Products Convenience ConvenienceShopping Specialty Specialty HighLow High Prepurchase Knowledge High Low High MinimalModerateHigh High Effort to Acquire Minimal Moderate to High High HighModerateNone Willing to Substitute High Moderate None HighModerate Frequency of Purchase High Moderate Varies LowHighLow Information Search Low High Low Major Desire Availability Comparison Brand Loyalty Without Effort Shopping for Regardless of Best Choice Price or Availability Major Desire Availability Comparison Brand Loyalty Without Effort Shopping for Regardless of Best Choice Price or Availability Example Staple Attribute (NA) Emergency Price Example Staple Attribute (NA) Emergency Price

Product Items, Lines, and Mixes Product Item Product Line Product Mix A specific version of a product that can be designated as a distinct offering among an organization’s products. A group of closely-related product items. All products that an organization sells.

Gillette’s Product Lines and Mix Blades andWriting razorsToiletriesinstrumentsLighters Mach 3 Series Paper Mate Cricket SensorAdorn Flair S.T. Dupont Trac IIToni Atra Right Guard Swivel Silkience Double-Edge Soft and Dri Lady Gillette Foamy Super Speed Dry Look Twin Injector Dry Idea Techmatic Brush Plus Width of the product mix Depth of the product lines

Product Line Extension Adding additional products to an existing product line in order to compete more broadly in the industry.

Branding Brand Name Brand Name Brand Mark Brand Mark Brand Equity Brand Equity Master Brand Master Brand That part of a brand that can be spoken, including letters, words, and numbers. The elements of a brand that cannot be spoken. The elements of a brand that cannot be spoken. The value of company and brand names. A brand so dominant that it comes to mind immediately when a product category, use, attribute, or benefit is mentioned. A brand so dominant that it comes to mind immediately when a product category, use, attribute, or benefit is mentioned.

Master Brands Baking Soda Adhesive Bandages Rum Gelatin Soup Cream Cheese Crayons Petroleum Jelly Arm & Hammer Band-Aid Bacardi Jell-O Campbell’s Philadelphia Crayola Vaseline

Branding Strategies Brand No Brand Manufacturer’s Brand Private Brand Individual Brand Family Brand Combi- nation Individual Brand Family Brand Combi- nation

Individual Brands Versus Family Brands IndividualBrandIndividualBrand FamilyBrandFamilyBrand Using different brand names for different products. Marketing several different products under the same brand name. Marketing several different products under the same brand name.

Cobranding Ingredient Branding Cooperative Branding Complementary Branding Types of Cobranding