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1
chap
ter
Learning Objectives
99
1.1. Define the term Define the term product.product.
2. Classify consumer products.2. Classify consumer products.
3. Define the terms 3. Define the terms product item, product line, product item, product line, andand product mix product mix..
4.4. Describe marketing uses of branding.Describe marketing uses of branding.
2
chap
ter
Learning Objectives (continued)
99
5. Describe marketing uses of packaging 5. Describe marketing uses of packaging and labeling.and labeling.
6. Discuss global issues in branding 6. Discuss global issues in branding and packaging.and packaging.
7.7. Describe how and why product warranties Describe how and why product warranties are important marketing tools.are important marketing tools.
3
Learning Objective 11
Define the term Define the term product.product.
4
Product
Everything, both favorable
and unfavorable, that
a person receives
in an exchange.
11
5
What is a Product?
Promotion
Product Product is
the “heart” ofMarketing
Mix
Product Product is
the “heart” ofMarketing
Mix
Place (Distribution)
Price
11
6
Learning Objective 22
Classify consumer products.Classify consumer products.
7
Product Classifications
BusinessBusinessProductProduct
BusinessBusinessProductProduct
Consumer Consumer ProductProduct
Consumer Consumer ProductProduct
A product used to manufacture other goods or services, to facilitate an
organization’s operations, or to resell to other consumers.
A product used to manufacture other goods or services, to facilitate an
organization’s operations, or to resell to other consumers.
Product bought to satisfy an individual’s personal wants
Product bought to satisfy an individual’s personal wants
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8
Types of Consumer Products
UnsoughtProducts
UnsoughtProducts
SpecialtyProductsSpecialtyProducts
ShoppingProducts
ShoppingProducts
ConvenienceProducts
ConvenienceProducts
ConsumerProducts
ConsumerProducts
BusinessProductsBusinessProducts
PRODUCTSPRODUCTS
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9
Types of Consumer Products
22
ConvenienceProduct
ConvenienceProduct
ShoppingProduct
ShoppingProduct
SpecialtyProduct
SpecialtyProduct
UnsoughtProduct
UnsoughtProduct
A relatively inexpensive item that merits little shopping effort.A relatively inexpensive item that merits little shopping effort.
A product that requires comparison shopping, because it is usually more expensive and found in fewer stores.
A product that requires comparison shopping, because it is usually more expensive and found in fewer stores.
A particular item that consumerssearch extensively for and are reluctant to accept substitutes.
A particular item that consumerssearch extensively for and are reluctant to accept substitutes.
A product unknown to the potential buyer or a known product that the buyer does not actively seek.
A product unknown to the potential buyer or a known product that the buyer does not actively seek.
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Types of Consumer Products
SpecialtyProducts
ConvenienceProducts
ShoppingProducts
UnsoughtProducts
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11
Learning Objective
Define the terms Define the terms product item, product item, product line, product line, andand product mix product mix..
33
12
Product 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.
33
13
Gillette’s Product Lines and Mix
33
Blades and Writingrazors Toiletries instruments Lighters
Mach 3 Series Paper Mate CricketSensor Adorn Flair S.T. Dupont Trac II ToniAtra Right GuardSwivel Silkience Double-Edge Soft and Dri Lady Gillette Foamy Super Speed Dry LookTwin Injector Dry Idea Techmatic Brush Plus
Width of the product mixWidth of the product mix
De
pth
of
the
pro
du
ct
line
sD
ep
th o
f th
e p
rod
uc
t lin
es
14
Benefits of Product Lines
Equivalent QualityEquivalent Quality
Efficient Sales andDistribution
Efficient Sales andDistribution
Standardized Components
Standardized Components
Package UniformityPackage Uniformity
Advertising EconomiesAdvertising Economies
Why Form Why Form Product Lines?Product Lines?
Why Form Why Form Product Lines?Product Lines?
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15
Product Mix Width
Diversifies risk Capitalizes on established reputations
33
The number of product lines
an organization offers.
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Product Line Depth
Attracts buyers with different preferencesIncreases sales/profits by further
market segmentation Capitalizes on economies of scaleEvens out seasonal sales patterns
33
The number of product items
in a product line.
17
Adjustments
Product Modification
Product Modification
ProductRepositioning
ProductRepositioning
Product LineExtension or Contraction
Product LineExtension or Contraction
Adjustments to Adjustments to Product Items,Product Items,
Lines, and MixesLines, and Mixes
Adjustments to Adjustments to Product Items,Product Items,
Lines, and MixesLines, and Mixes
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18
Product Modifications 33
Types of Types of Product Product
ModificationsModifications
Types of Types of Product Product
ModificationsModifications
Quality Modification
Quality Modification
Functional ModificationFunctional
Modification
Style Modification
Style Modification
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Planned Obsolescence
The practice of modifying
products so those that
have already been sold
become obsolete before they
actually need replacement.
33
20
Repositioning
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?
33
21
Product Line Extension
Adding additional products to
an existing product line in
order to compete more
broadly in the industry.
33
22
Product Line Contraction
33
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
Symptoms of Symptoms of Product Line Product Line
OverextensionOverextension
Symptoms of Symptoms of Product Line Product Line
OverextensionOverextension
23
Learning Objective
Describe marketing uses of branding.Describe marketing uses of branding.
44
24
Brand
A name, term, symbol,
design, or combination
thereof that identifies a
seller’s products and
differentiates them from
competitors’ products.
44
25
Branding
Brand Name
Brand Name
BrandMark
BrandMark
Brand EquityBrand Equity
MasterBrand
MasterBrand
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.
A brand so dominant that it comes to mind immediately when a product category,
use, attribute, or benefit is mentioned.
A brand so dominant that it comes to mind immediately when a product category,
use, attribute, or benefit is mentioned.
44
26
Benefits of Branding 44
Product Identification
Product Identification
Repeat SalesRepeat Sales
New Product Sales
New Product Sales
Branding Branding distinguishes distinguishes products from products from
competitioncompetition
Branding Branding distinguishes distinguishes products from products from
competitioncompetition
27
An Effective Brand Name
Is easy to pronounce
Is easy to recognize and remember
Is short, distinctive, and unique
Describes the product, use, and benefits
Has a positive connotation
Reinforces the product image
Is legally protectable
44
28
Master Brands
Baking Soda Baking Soda
Adhesive BandagesAdhesive Bandages
RumRum
GelatinGelatin
SoupSoup
Cream CheeseCream Cheese
CrayonsCrayons
Petroleum Jelly Petroleum Jelly
Arm & Hammer Arm & Hammer
Band-AidBand-Aid
BacardiBacardi
Jell-OJell-O
Campbell’sCampbell’s
PhiladelphiaPhiladelphia
CrayolaCrayola
Vaseline Vaseline
44
29
Branding 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
44
30
Generic Brand
A no-frills, no-brand-name,
low-cost product that is simply
identified by its product
category.
44
31
Manufacturers’ Brands VersusPrivate 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.
A brand name owned by a wholesaler or a retailer.
44
32
Advantages of Manufacturers’ Brands
• Develop customer loyalty
• Attract new customers
• Enhance prestige
• Offer rapid delivery, can carry less inventory
• Ensure dealer loyalty
44
33
Advantages of Private Brands
• Earn higher profits
• Less pressure to mark down prices
• Manufacturer may drop a brand or become a direct competitor to dealers
• Ties to wholesaler or retailer
• No control over distribution of manufacturers’ brands
44
34
Individual Brands VersusFamily Brands
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.
44
35
Cobranding
IngredientBranding
IngredientBranding
Cooperative Branding
Cooperative Branding
Complementary Branding
Complementary Branding
Types of CobrandingTypes of CobrandingTypes of CobrandingTypes of Cobranding
44
36
Trademarks
Many parts of a brand and associated symbols qualify for trademark protection
The mark has to be continuously protected
Rights continue for as long as it is used
A Trademark is the exclusive A Trademark is the exclusive right to use a brandright to use a brandA Trademark is the exclusive A Trademark is the exclusive right to use a brandright to use a brand
44
37
Learning Objective
Describe marketing uses of Describe marketing uses of packaging and labeling.packaging and labeling.
55
38
Packaging
Contain and ProtectContain and Protect
FunctionsFunctionsofof
PackagingPackaging
FunctionsFunctionsofof
PackagingPackaging
PromotePromote
Facilitate Storage, Use, and Convenience
Facilitate Storage, Use, and Convenience
Facilitate RecyclingFacilitate Recycling
55
39
Labeling
PersuasivePersuasive
Focuses on promotional theme
Information is secondary
InformationalInformational
Helps make proper selections
Lowers cognitive dissonance
Includes use/care
55
40
Universal Product Codes
A series of thick and thin
vertical lines (bar codes),
readable by computerized
optical scanners, that
represent numbers used
to track products.
55
41
Learning Objective 66
Discuss global issues in Discuss global issues in branding and packaging.branding and packaging.
42
Global Issues in Branding
Adaptations & Modifications
Adaptations & Modifications
Global Options Global Options for Brandingfor Branding
One Brand NameEverywhere
One Brand NameEverywhere
Different Brand Names for
Different Markets
Different Brand Names for
Different Markets
66
43
Global Issues in Packaging
AestheticsAesthetics
Global Global Considerations Considerations for Packagingfor Packaging
Climate Considerations
Climate Considerations
LabelingLabeling
66
44
Learning Objective
Describe how and why Describe how and why product warranties are product warranties are
important marketing tools.important marketing tools.
77
45
Product Warranties
WarrantyWarranty
ExpressWarrantyExpressWarranty
Implied WarrantyImplied
Warranty
A confirmation of the quality or performance of a good or service.A confirmation of the quality or performance of a good or service.
A written guarantee.A written guarantee.
An unwritten guarantee that the good or service is fit for the purpose for which it was sold. (UCC)
An unwritten guarantee that the good or service is fit for the purpose for which it was sold. (UCC)
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46
Product Warranties
WarrantiesWarrantiesWarrantiesWarranties
Written Guarantee
Implied Implied WarrantyWarrantyImplied Implied WarrantyWarranty
Express Express WarrantyWarrantyExpress Express WarrantyWarranty
Unwritten Guarantee
77
