1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9 Product Concepts Prepared by Deborah Baker Texas Christian

1Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9

Product Concepts

Prepared byDeborah Baker

Texas Christian University

9


Learning ObjectivesLearning Objectives

1. Define the term product

2. Classify consumer products

3. Define the terms product item, product line, and product mix

4. Describe marketing uses of branding


Learning Objectives (continued)Learning Objectives (continued)

5. Describe marketing uses of packaging and labeling

6. Discuss global issues in branding and packaging

7. Describe how and why product warranties are important marketing tools


What Is a Product?What Is a Product?

PromotionPromotion

Place (Distribution)Place (Distribution)

PricePrice

Product Product Product is the “heart” of

Marketing Mix

1


Types of Consumer ProductsTypes of Consumer Products

UnsoughtProducts

UnsoughtProducts

SpecialtyProductsSpecialtyProducts

ShoppingProducts

ShoppingProducts

ConvenienceProducts

ConvenienceProducts

ConsumerProducts

ConsumerProducts

BusinessProductsBusinessProducts

PRODUCTSPRODUCTS

2


Product Items, Lines, and MixesProduct Items, Lines, and Mixes

Product ItemProduct Item

Product LineProduct Line

Product MixProduct Mix

A specific version of a product that can be designated as a distinct offering among an organization’s products.

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.

A group of closely-related product items.

All products that an organization sells.

All products that an organization sells.

Onlinehttp://www.marriott.com

3


Benefits of Product LinesBenefits of Product Lines

Equivalent QualityEquivalent Quality

Efficient Sales andDistribution

Efficient Sales andDistribution

Standardized Components

Standardized Components

Package UniformityPackage Uniformity

Advertising EconomiesAdvertising Economies

3


Adjustments Adjustments

Onlinehttp://www.unilever.com

3

Product Modification

Product Modification

ProductRepositioning

ProductRepositioning

Product LineExtension or Contraction

Product LineExtension or Contraction

Adjustments to Product Items,

Lines, and Mixes

Adjustments to Product Items,

Lines, and Mixes


Types of Product ModificationsTypes of Product Modifications

Quality Modification

Quality Modification

Functional ModificationFunctional

Modification

Style Modification

Style Modification

3


RepositioningRepositioning

3

Changing Demographics

Changing Demographics Declining SalesDeclining Sales

Changes in Social

Environment

Changes in Social

Environment

Why reposition Why reposition established brands?established brands?

Why reposition Why reposition established brands?established brands?


BrandingBranding

Brand Name

Brand Name

BrandMark

BrandMark

Brand EquityBrand Equity

That part of a brand that can be spoken, including letters, words, and numbers.

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.The value of company and brand names.

4


Branding StrategiesBranding Strategies

BrandBrand No BrandNo Brand

Manufacturer’s Brand

Manufacturer’s Brand Private BrandPrivate Brand

IndividualBrand

IndividualBrand

Family Brand

Family Brand

Combi-nation

Combi-nation

IndividualBrand

IndividualBrand

Family Brand

Family Brand

Combi-nation

Combi-nation

4


Manufacturers’ Brands VersusManufacturers’ Brands VersusPrivate BrandsPrivate Brands

Manufacturers’ Manufacturers’ BrandBrand

Manufacturers’ Manufacturers’ BrandBrand

Private Private BrandBrand

Private Private BrandBrand

The brand name of a manufacturer.

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.

A brand name owned by a wholesaler or a retailer. Also

known as a private label or store brand.

4


Individual Brands Versus Family Individual Brands Versus Family BrandsBrands

Individual Individual BrandBrand

Individual Individual BrandBrand

Family Family BrandBrand

Family Family BrandBrand

Using different brand names for different products.

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.

4


CobrandingCobranding

Onlinehttp://www.minutemaid.comhttp://www.disney.com

http://www.bose.com

4

IngredientBranding

IngredientBranding

Cooperative Branding

Cooperative Branding

Complementary Branding

Complementary Branding

Types of CobrandingTypes of CobrandingTypes of CobrandingTypes of Cobranding


Functions of PackagingFunctions of Packaging

Contain and ProtectContain and Protect

PromotePromote

Facilitate Storage, Use, and Convenience

Facilitate Storage, Use, and Convenience

Facilitate RecyclingFacilitate Recycling

5

Onlinehttp://www.levesquedesign.com/http://www.design4packaging.com


LabelingLabeling

Persuasive

Focuses on promotional theme

Consumer information is secondary

Informational

Helps make proper selections

Lowers cognitive dissonance

Includes use/care

5


Product WarrantiesProduct Warranties

Written GuaranteeExpress Express WarrantyWarrantyExpress Express WarrantyWarranty

Implied Implied WarrantyWarrantyImplied Implied WarrantyWarranty Unwritten Guarantee

Onlinehttp://www.landsend.comhttp://www.llbean.com

7

Documents

1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 9 Product Concepts Prepared by Deborah Baker Texas Christian