1. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-1 Total Product Concept A product is a combination of tangible and intangible benefits. The decision to buy a Porsche is not based on transportation needs. You buy it to display achievement and success. You are concerned with intangibles like status and image.

2. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-2 Product Mix A company may sell one product or 500 products. The range of products is referred to as the product mix. The product mix is described in terms of items and lines and by width and depth.

3. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-3 Product Mix Item Line Width Depth A unique product offering (USP). A grouping of items with common attributes. Number of lines in mix Number of items in line

4. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-4 Product Line Width and Depth Product Line Width Product Line Depth Product Line Depth Gatorade Liquid Frost Powder Lemon Grape Orange Strawberry Etc

5. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-5 Consumer Goods “Goods purchased by consumers for personal use.”  Convenience Goods  Shopping Goods  Specialty Goods  Unsought Goods

6. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-6 Convenience Goods Staple Goods Staple Goods Emergency Goods Emergency Goods Impulse Goods Impulse Goods Marketing Considerations: Brand Name Image Reputation Performance Low Price Availability

7. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-7 Shopping Goods “Goods purchased on the basis of comparison.” Quality Price Style Suitability Dependability Service Marketing considerations:

8. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-8 Specialty Goods Goods possessing a unique characteristic. Consumers will make an effort to find. Marketing considerations include: Selective location Image Reputation Superior quality

9. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-9 Business Goods “Goods that have a direct or indirect role in the manufacture of other goods.” Parts and Materials Parts and Materials Supplies and Services Supplies and Services Capital Items Capital Items $ $ $

10. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-10 What is a Brand? “A product with a personality.” “A known entity that provides value.” “A promise that is conveyed publicly by everything a customer can observe.” “A set of product perceptions purchased by the consumer.”

11. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-11 Branding Terms Brand Brand Name Brandmark Trademark Name, term, symbol or design. Spoken part of brand. Identifiable symbol or design. Part of a brand granted legal protection. The symbol ® designates the mark.

12. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-12 Brand Name Strategies National Brand Individual Brand Multibrand Family Brand Product / Company

13. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-13 Co-branding “Using the equity of one brand name to market another brand name product.” Neilson (milk) Neilson (milk) Jersey Milk Caramilk Crispy Crunch (chocolate bars) Jersey Milk Caramilk Crispy Crunch (chocolate bars) + Neilson Caramilk milkshakes =

14. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-14 Private Label and Generic Brands Private Labels Private Labels Generic Brands Generic Brands Brands produced to distributor specifications Products without a brand name or identifying feature.

15. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-15 Other Branding Options Licensed Brands Licensed Brands Limited Brands Limited Brands Cult Brands Cult Brands Allowing someone to use your logo: NHL, NBA. Seizing the popularity of something or someone: Flutie Flakes. Fringe brand moving to mainstream: Miata, Krispy Kreme.

16. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-16 Benefits of Branding Branding provides benefits to consumers. Suggestion of quality Psychological rewards Distinguishing features allow for comparison Name, package and marketing communications present a desired image.

17. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-17 Benefits of Branding Organizations benefit from branding as well. Create and develop an image Communication of USP Customer loyalty Brands that keep their promise, keep their customers.

18. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-18 Brand Communications Communications plays a key role in building image. Apple“Think Different.” Volkswagen“Drivers Wanted.” Nike“Just Do It.”

19. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-19 Brand Loyalty The degree of customer attachment to a brand. Brand Recognition Brand Preference Brand Insistence

20. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-20 Brand Equity “The value a consumer derives from a brand over and above the value derived from the physical attributes.” Equity is measured by factors such as:  Name awareness  Loyal customer base  Perceived quality  Association with an attribute

21. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-21 Components of a Package Packaging decisions are important since a majority of buying decisions are made at point-of-sale. Primary package Secondary package Label Shipping Container

22. Canadian Marketing in Action, 6 th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 8-22 Packaging Communications start and end with the package. A good package: Protects the product Markets the product Provides convenience Meets social concerns