1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9 Product Concepts Prepared by Deborah Baker Texas Christian University 9

2 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9 Learning Objectives 1.Define the term product 2. Classify consumer products 3. Define the terms product item, product line, and product mix 4.Describe marketing uses of branding

3 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9 Learning Objectives (continued) 5. Describe marketing uses of packaging and labeling 6. Discuss global issues in branding and packaging 7.Describe how and why product warranties are important marketing tools

4 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9 What Is a Product? Promotion Place (Distribution) PriceProduct Product is the “heart” of Marketing Mix 1

5 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9 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 2

6 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9 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. Online 3

7 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9 Benefits of Product Lines Equivalent Quality Efficient Sales and Distribution Standardized Components Standardized Components Package Uniformity Advertising Economies 3

8 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9Adjustments Online 3 Product Modification Product Repositioning Product Line Extension or Contraction Product Line Extension or Contraction Adjustments to Product Items, Lines, and Mixes

9 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9 Types of Product Modifications Quality Modification Functional Modification Style Modification 3

10 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9Repositioning 3 Changing Demographics Declining Sales Changes in Social Environment Why reposition established brands?

11 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9Branding Brand Name Brand Name Brand Mark Brand Mark Brand Equity Brand Equity 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. 4

12 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9 Branding Strategies Brand No Brand Manufacturer’s Brand Private Brand Individual Brand Family Brand Combi- nation Individual Brand Family Brand Combi- nation 4

13 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9 Manufacturers’ Brands Versus Private Brands Manufacturers’BrandManufacturers’BrandPrivateBrandPrivateBrand The brand name of a manufacturer. A brand name owned by a wholesaler or a retailer. Also known as a private label or store brand. 4

14 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9 Individual Brands Versus Family Brands IndividualBrandIndividualBrandFamilyBrandFamilyBrand 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. 4

15 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9Cobranding Online Ingredient Branding Cooperative Branding Complementary Branding Types of Cobranding

16 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9 Functions of Packaging Contain and Protect Promote Facilitate Storage, Use, and Convenience Facilitate Storage, Use, and Convenience Facilitate Recycling 5 Online

17 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9Labeling Persuasive   Focuses on promotional theme   Consumer information is secondary Informational   Helps make proper selections   Lowers cognitive dissonance   Includes use/care 5

18 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9 Product Warranties Written Guarantee ExpressWarrantyExpressWarranty Implied Warranty Unwritten Guarantee Online 7