1. 7.1 The Product Mix

2. Objectives Define product mix, product extension, and product enhancement. List and describe the components of the product mix.

3. What is Product Mix product mix –the total assorted features associated with the product brand name various products offered under the brand product packaging

4. Products Tangible Parts: –Physical features that can be seen or touched Intangible Parts: –Non-physical service features ServiceQualityValueSatisfaction

5. Product Extensions Items added to a product to make it more attractive to the target market –Examples: GuaranteesWarranties Instructional CDs

6. Product Extensions Example: –Cars with 100,000 mile warranties

7. Product Extension Example –“Unconditional replacement or cash back warranty for the life of the product”…

8. Basic vs. Enhanced Product Enhancement: –Features added to the basic product that satisfy additional needs and wants with the same purchase

9. Product Enhancements Examples:Car –Comfortable controls, upgraded fabrics, sunroof Nike Shoes –Air cushioned soles, Lightweight fabric Stadium Seats –Back supports, AC Suites, Sky box

10. Product Enhancement Example –May be unnecessary of some, but important to others Must have both options available

11. Product Mix A products total assorted features –1. Product line –2. Packaging –3. Brand

12. 1. Product Line A group of similar products with slight variations to satisfy the different needs of customers

13. Product Line Goal: –Achieve the greatest amount of sales possible by satisfying the needs of a diverse target market

14. Product line Example –Coca Cola Meet different tastes and diets needs/wants –Coke Classic –Diet Coke –Caffeine Free Diet Coke –Coke Zero –Coke with vanilla, lime, lemon or cherry

15. 2. Packaging Ease of use Safety Consumer attraction Accessibility for stores Environmental friendliness –Influence sales!

16. Packaging Different packaging attracts different buyers…

17. 3. Brand The name symbol, word, design or combination of these elements that identifies a product, service or company

18. Brand Represents the company’s: –Reputation of quality –Reliability –Status in market place

19. Brand What do you think of each?

20. Brand Trademark: –Legal protection of words and symbols used by a company

21. Brand Illegal for other companies to use a brand name Companies receives 8-12% of merchandised sold…

22. Brand Licensed Brand –Well known name and/or symbol established by one company and sold for use by another company to promote its products College and professional teams Mascots and logos

23. Brand Licensed brand –Ex. Walt Disney Co. Sells licenses so that other companies can use character names/images on clothing and toys

24. Brand 5 Stages of brand recognition 1. Non-recognition 2. Rejection 3. Recognition 4. Preference 5. Insistence

25. Brand Non-recognition Stage –Unable to identify brands –Ex. New brand of basketball shoes –Do not trust the brand

26. Brand Rejection stage –Will not purchase product due to brand Ex. Sporting Goods –Poor quality –Safety recalls

27. Brand Recognition stage –Know of brand –Brand has little influence on their purchases

28. Brand Preference stage –Brand is valuable –Purchase brand if available –If not available, will purchase another

29. Brand Insistence stage –Value the brand –Reject other brands if not available –Go to great lengths to purchase brand –Will do without, rather than buy competitors Companies strive to reach this level.

30. Top Sports/ Entertainment Brands of 2007 1.Microsoft $55 billion 2.Apple $24.7 billion 3.Disney $22.5 billion 4.Sony $11.3 billion 5.Nike $10.3 billion