1. Chapter 10 Product Concepts

2. What is a Product? A bundle of benefits What the buyer gets…not what the seller sells Tangible items, services, ideas

3. Classifying Consumer Products Three Types of Consumer Products: Services Nondurablegoods Durablegoods

4. Goods-Services Continuum GoodServiceGood/service Restaurant’sofferingEmployment agency service Shovel

5. Classifying Products by Consumer Behavior Convenienceproducts Shoppingproducts Specialtyproducts

6. Convenience Products Inexpensive Purchased regularly Easily accessible

7. Shopping Products Make comparisons Shop around Not purchased frequently

8. Specialty Products Usually expensive Special effort to purchase

9. Unsought Goods A product that the customer doesn’t know about and/or does not actively seek

10. Classifying Business Products Three types : CapitalProducts ProductionProducts OperatingProducts

11. Product Line and Mix Product item: A specific version of the product Product line: group of products that are fairly closely related Product Mix: All the product offerings of an organization, no matter how unrelated

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

13. Dimensions of the Product Mix Breadth or width Depth or length

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

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

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

17. Expanding the Product Line Product Line Extension: An item added to the existing product line Product Category Extension: A new item or line of items for a company Brand Extension: Product category extension that uses an existing brand name

18. Branding Brand name Brand mark Logo Trademark Service Mark

19. Brand Equity Value associated with a brand Crayola Harley-Davidson Disney

20. Modifying Products for International Markets StandardizationAdaptation Globalization Strategy Customization Strategy

21. Brand Name and Brand Marks Brand name: verbal part of the brand Brand mark: unique symbol that is part of the brand Logo: brand name or company name written in a distinctive way

22. What makes a good brand name? A good brand name: Is easy to pronounce Has mnemonic quality Suggests a positive image Reinforces product concept Communicates product benefits Says something about the user Avoids linguistic traps

23. Generic Brands Carries neither a manufacturer nor a distributor brand Plain packaging Stark lettering MILK

24. Manufacturer and Distributor Brands Manufacturer brand: owned by the maker of the product World (global) brand: distributed and recognized around the world Private label/Distributor brand: owned by a retailer or wholesaler

25. Family Brands The same brand name is used in different categories of products

26. Individual Brand Example: Mar’s candies Example:P & G’s laundry detergents

27. Co-Branding Use of two brands on a single product Kleenix Mentholatum scented Kleenix

28. Trademarks and Service Marks Trademark: legally protected brand name or brand mark for goods Service mark: symbol that identifies services

29. Functions of Packaging Contain product Protects product Facilitates storage and use of product Promotes product Recycling issues

30. Labeling Label: Paper or plastic sticker attached to a container to carry product information UPC (universal product code): permits computerization of checkout and compilation of sales and inventory information