1. © 2013 by Cengage Learning Inc. All Rights Reserved.
Lamb, Hair, McDaniel
Chapter 10 Product Concepts
CHAPTER 10
Product Concepts
© Felipe Dupouy/Stone/Getty Images
© 2013 by Cengage Learning Inc. All Rights Reserved.

2. © 2013 by Cengage Learning Inc. All Rights Reserved.
Chapter 10 Product Concepts
Learning Outcomes 1
Define the term product
Classify consumer products
Define the terms product item, product line, and product mix
Describe marketing uses of branding 2 3 4
© 2013 by Cengage Learning Inc. All Rights Reserved.

3. © 2013 by Cengage Learning Inc. All Rights Reserved.
Chapter 10 Product Concepts
Learning Outcomes
Describe marketing uses of packaging and labeling
Discuss global issues in branding and packaging
Describe how and why product warranties are important marketing tools 5 6 7
© 2013 by Cengage Learning Inc. All Rights Reserved.

4. © 2013 by Cengage Learning Inc. All Rights Reserved.
Chapter 10 Product Concepts
What Is a Product?
Product
Everything, both favorable and unfavorable, that a person receives in an exchange.
Tangible Good
Service
Idea 1
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5. Types of Consumer Products
Chapter 10 Product Concepts
Types of Consumer Products
Unsought
Products
Specialty
Shopping
Convenience
Consumer
Business 2
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6. Product Items, Lines, and Mixes
Chapter 10 Product Concepts
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. 3
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7. Adjustments Adjustments to Product Items, Lines, and Mixes
Chapter 10 Product Concepts
Adjustments
Product Modification
Product Repositioning
Product Line
Extension or Contraction
Adjustments to Product Items, Lines, and Mixes 3
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8. Types of Product Modifications
Chapter 10 Product Concepts
Types of Product Modifications
Functional Modification
Style Modification
Quality Modification
Planned Obsolescence: The practice of modifying products so those that have already been sold become obsolete before they actually need replacement. 3
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9. Repositioning Changing Demographics Declining Sales
Chapter 10 Product Concepts
Repositioning
Changing Demographics
Declining Sales
Changes in Social Environment
Why reposition established brands? 3
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10. Product Line Extension
Chapter 10 Product Concepts
Adding additional products to an existing product line in order to compete more broadly in the industry.
Symptoms of Overextension
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 3
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11. The elements of a brand that The value of company and brand names
Chapter 10 Product Concepts
Branding
Brand
Name
Mark
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 value of company and brand names
Global Brand
A brand where at least a third of the earnings come from outside its home country 4
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12. © 2013 by Cengage Learning Inc. All Rights Reserved.
Chapter 10 Product Concepts
Branding Strategies
Brand
No Brand
Manufacturer’s Brand
Private Brand
Individual Brand
Family Brand
Combi- nation 4
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13. Complementary Branding
Chapter 10 Product Concepts
Cobranding
Ingredient Branding
Cooperative Branding
Complementary Branding
Types of Cobranding 4
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14. A Trademark is the exclusive right to use a brand.
Trademarks
Chapter 10 Product Concepts
A Trademark is the exclusive right to use a brand.
Many parts of a brand and associated symbols qualify for trademark protection.
Trademark right comes from use rather than registration.
To renew the trademark, the company must prove use of the mark.
Rights continue for as long as the mark is used.
Trademark law applies to the online world. 4
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15. Functions of Packaging
Chapter 10 Product Concepts
Functions of Packaging
Contain and Protect
Promote
Facilitate Storage, Use,
and Convenience
Facilitate Recycling 5
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16. © 2013 by Cengage Learning Inc. All Rights Reserved.
Chapter 10 Product Concepts
Labeling
Persuasive
Focuses on promotional theme
Consumer information is secondary
Informational
Helps make proper selections
Lowers cognitive dissonance
Greenwashing
Attempting to give the impression of environmental friendliness whether or not it is environmentally friendly. 5
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17. Universal Product Codes
Chapter 10 Product Concepts
Universal Product Codes
Universal Product Codes (UPCs)
A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products. 5
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18. Global Issues in Branding
Chapter 10 Product Concepts
Global Issues in Branding
Adaptations & Modifications
Global Options for Branding
One Brand Name Everywhere
Different Brand Names in Different Markets 6
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19. Global Issues in Packaging
Chapter 10 Product Concepts
Global Issues in Packaging
Aesthetics
Global Considerations for Packaging
Climate Considerations
Labeling 6
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20. A confirmation of the quality or performance of a good or service.
Chapter 10 Product Concepts
Product Warranties
Warranty
Express
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. 7
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