1. 1 Product Concepts

2. 2 Product Everything, both favorable and unfavorable, that a person receives in an exchange.

3. 3 What Is a Product? Promotion Place (Distribution) PriceProduct Product is the “heart” of Marketing Mix

4. 4 Product Classifications BusinessProductBusinessProduct ConsumerProductConsumerProduct A product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other consumers. Product bought to satisfy an individual’s personal wants Product bought to satisfy an individual’s personal wants

5. 5 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

6. 6 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.

7. 7 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.

8. 8 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

9. 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. 10 Benefits of Product Lines Equivalent Quality Efficient Sales and Distribution Standardized Components Standardized Components Package Uniformity Advertising Economies

11. 11 Product Mix Width  Diversifies risk  Capitalizes on established reputations The number of product lines an organization offers.

12. 12 Product Line Depth  Attracts buyers with different preferences  Increases sales/profits by further market segmentation  Capitalizes on economies of scale  Evens out seasonal sales patterns The number of product items in a product line.

13. 13 Adjustments Product Modification Product Repositioning Product Line Extension or Contraction Product Line Extension or Contraction Adjustments to Product Items, Lines, and Mixes

14. 14 Types of Product Modifications Quality Modification Functional Modification Style Modification

15. 15 Planned Obsolescence The practice of modifying products so those that have already been sold become obsolete before they actually need replacement.

16. 16 Repositioning Changing Demographics Declining Sales Changes in Social Environment Why reposition established brands?

17. 17 Product Line Extension Adding additional products to an existing product line in order to compete more broadly in the industry.

18. 18 Product Line Contraction  Some products have low sales or cannibalize sales of other items  Resources are disproportionately allocated to slow-moving products  Items have become obsolete because of new product entries Symptoms of Product Line Overextension

19. 19 Brand A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.

20. 20 Branding 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.

21. 21 Benefits of Branding Product Identification Repeat Sales New Product Sales

22. 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. 23 Branding Strategies Brand No Brand Manufacturer’s Brand Private Brand Individual Brand Family Brand Combi- nation Individual Brand Family Brand Combi- nation

24. 24 Generic Brand A no-frills, no-brand- name, low-cost product that is simply identified by its product category.

25. 25 Manufacturers’ Brands Versus Private Brands Manufacturers’BrandManufacturers’Brand PrivateBrandPrivateBrand 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.

26. 26 Advantages of Manufacturers’ Brands  Develop customer loyalty  Attract new customers  Enhance prestige  Offer rapid delivery, can carry less inventory  Ensure dealer loyalty

27. 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. 28 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.

29. 29 Cobranding Ingredient Branding Cooperative Branding Complementary Branding Types of Cobranding

30. 30 Trademarks  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 A Trademark is the exclusive right to use a brand

31. 31 Packaging FunctionsofPackagingFunctionsofPackaging Contain and Protect Promote Facilitate Storage, Use, and Convenience Facilitate Storage, Use, and Convenience Facilitate Recycling

32. 32 Labeling Persuasive  Focuses on promotional theme  Information is secondary Informational  Helps make proper selections  Lowers cognitive dissonance  Includes use/care

33. 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.

34. 34 Product Warranties Warranty Express Warranty Express Warranty Implied Warranty A confirmation of the quality or performance of a good or service. A written guarantee. An unwritten guarantee that the good or service is fit for the purpose for which it was sold. (UCC) An unwritten guarantee that the good or service is fit for the purpose for which it was sold. (UCC)

35. 35 Product Warranties WarrantiesWarranties Written Guarantee Implied Warranty ExpressWarrantyExpressWarranty Unwritten Guarantee