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Prepared by Jack Gifford Miami University (Ohio)
CHAPTER TEN PRODUCT CONCEPTS Prepared by Jack Gifford Miami University (Ohio) 2000 South-Western College Publishing
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2000 South-Western College Publishing
WHAT IS A PRODUCT? The product offering, the heart of an organization’s marketing program, is usually the starting point in creating a marketing mix. A marketing manager cannot determine a price, design a promotion strategy, or create a distribution channel until the firm has a product to sell. 2000 South-Western College Publishing
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WHAT IS A PRODUCT? “A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.” “A product may be defined as everything, both favorable or unfavorable, that a person or organization receives in an exchange.” 2000 South-Western College Publishing
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What is a product? Physical objects Services People’s expertise Places Membership in an organization Ideas Baseball & Bat Barbershop Political Beliefs 2000 South-Western College Publishing
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TOTAL PRODUCT INCLUDES...
Image of the retail store Service before and after sale Color Attachments and warranties Image of the brand packaging Instructions 2000 South-Western College Publishing
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The Product Core Product Actual Product Augmented Product Potential Product 2000 South-Western College Publishing
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The Core Product Basic benefits Transportation Carrying cargo Pulling capacity Excitement Image enhancement 2000 South-Western College Publishing
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Actual Product Features Package Brand Quality Appearance Engine size Color Interior & exterior design Options available 2000 South-Western College Publishing
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Augmented Extras Warranty Maintenance/service contract Delivery Credit/Financing Dealer parts & labor department Free lubrication & oil change 2000 South-Western College Publishing
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MARKETERS SHOULD NEVER SELL PRODUCTS TO CONSUMERS
People buy holes, not drills! People buy fashion, status, reference groups approval, and warmth, but not coats! 2000 South-Western College Publishing
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TYPES OF CONSUMER PRODUCTS
Is relatively inexpensive and merits little shopping effort (combs, aspirin, tissues) Is more expensive and found in fewer stores; invest some shopping effort; compare several brands Homogeneous Heterogeneous Expensive; compare many brands; reluctant to accept substitutes New goods Convenience Shopping Specialty Unsought 2000 South-Western College Publishing
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PRODUCT ITEMS, LINES AND MIXES
A product item is a specific version of a product A product line is a group of closely related product items A product mix includes all the products a company sells Mix width (breadth) = number of product lines offered Mix depth = number of items in a product line 2000 South-Western College Publishing
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PRODUCT MIX Depth Width Consistency/Variety 2000 South-Western College Publishing
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PRODUCT ITEMS, LINES AND MIXES
Organizations derive several benefits from organizing related items into product lines, including the following: Advertising economies Package uniformity Standardized components Efficient sales and distribution Equivalent quality 2000 South-Western College Publishing
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ADJUSTMENTS TO PRODUCT ITEMS, LINES AND MIXES
Product modifications Quality or durability modifications Functional modifications Style modifications Repositioning Changing consumer perceptions of a brand May require physical changes in the product Changing target customers Product line extensions Add products to an existing product line Product line contraction 2000 South-Western College Publishing
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BRANDING Smuckers A BRAND is a name, term, symbol, design or combination that identifies a seller’s products and differentiates them from competitors’ products. A BRAND NAME is that part of a brand that can be spoken, including letters, words and numbers. If it cannot be spoken, it is called a BRAND MARK GM WD-40 2000 South-Western College Publishing
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BRANDING DEFINITIONS Logo: a brand name or company name written in a distinctive way Trademark: A legally protected brand name or brand mark. A registered trademark gives a marketer proprietary rights to a symbol or name. Service mark: provides the same identifying function for services that a trademark provides for goods. It can also be legally protected by registration Generic Name: describes a product or an item that is, or has become part of our standard vocabulary (scotch tape, kerosene, linoleum) 2000 South-Western College Publishing
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BENEFITS OF BRANDING The economic value of company and brand names because of their positive image in the minds of their consumers (MICROSOFT) Top-of-mind brand for consumers when they think of a category of products (NIKE for shoes) The creation of BRAND EQUITY The development of a MASTER BRAND 2000 South-Western College Publishing
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SELECTING A BRAND NAME Easy to remember and pronounce Short and distinctive Invokes a positive connotation Suggests product function Suggests an image Communicates attributes and benefits Communicates something about the users Avoids linguistic traps Translates globally well Jiffy Cake Mix Passion Cologne Dust Buster Soft n Silky 2000 South-Western College Publishing
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GENERIC PRODUCTS versus BRANDED PRODUCTS
A generic product is typically a no-frills, no-brand-name, low-cost product that is simply identified by its product category 2000 South-Western College Publishing
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TYPES OF BRANDS MAUFACTURER’S BRANDS = Name is owned and advertised by the manufacturer or under their guidelines DISTRIBUTOR’S OR PRIVATE BRANDS = Name is owned and controlled by a wholesaler or retailer Sears COST CUTTERS Black & Decker 2000 South-Western College Publishing
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BREADTH OF BRAND NAMES FAMILY: a single brand name for a product line (Campbell’s Soups) INDIVIDUAL: separate brand names for items within a line (Snickers, Milky Way, Three Musketeers) COMBINATION OF ABOVE: (Kellogg’s Rice Krispies) WORLD: ( Levi’s, Marlboro, Coca-Cola ) Concept of Co-branding 2000 South-Western College Publishing
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PACKAGING AND LABELING
Functions Containment Protection Promotion & aesthetics Facilitate storage, use and convenience Recycling and reduce environmental damage 2000 South-Western College Publishing
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PACKAGING AND LABELING
Functions Persuasive Informational Universal product codes Legal requirements Warranties Express Implied Warranty …………………………………………………... 2000 South-Western College Publishing
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