MKT220 Craig Martin Exam 3 - Chaps 11 & 12

2 classifications of products

Consumer products and Business Products

Consumer products are used for...

Personal use

Product

Everything both tangible and intangible that a buyer receives in exchange.

Product Examples

Good, service, or an idea

Business products are used for...

organizations to produce other products or resell

The 4 types of Consumer products

convenience, shopping, specialty, and unsought products

Convenience Products characteristics

Inexpensive, Frequently purchased, minimal mental effort, available at numerous locations. (Hint) Routinized Behavior

Convenience Products in class Example

Poptarts, you love poptarts and you get them every time you go to the store when you run out

Shopping Products characteristics

Expensive, Infrequently purchased, Comparison Shopping, Available at few locations. (Hint) Higher Per Unit Gross Margin

Shopping Products in class Example

TV, can only get one at BestBuy, Walmart, Sams, or Target; its not cheap and takes a bit of mental effort to compare and decide

Specialty Products characteristics

Has 1 or more unique characteristics, Buyers are willing to go out of their way to get, and they are less likely to accept substitutes. (Hint) only available at specific locations or some kind of seasonal product

Specialty Products in class Examples

Pumpkin Spice Latte and Local Restuarant from your hometown that people travel a ways from to get

Unsought Products Characteristics

Costumers either don't see a need for it, are unaware of it, or its only Aggressively personally sold.

Unsought Products in class Examples

Insurance or Funeral Agency :(

3 Types of Business Products

Installations, Component Parts, MRO Supplies

Installations def

Large machines and tools used for production purposes

Component Parts def

Finished items that become part of the final physical product

EX: Car manufacturing

MRO Supplies def

Items that facilitate organization operations and DONT become part of the product.

EX: office supplies

3 ways of Classifying Products via Organizational Strategy

Product Mix, Product Line, Product Item

Product Mix def

All products offered by a firm

Product Line

a group of closely related product items that have similar end use

Product Item

a specific brand of a product line

Order of the Product Life Cycle

introduction, growth, maturity, decline

Introduction Example

Meta Sunglasses

Growth Example

Tesla

Maturity Example

PlayStation 5 console

Decline Example

Home phones and Fidget Spinners

Brand

a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products

Brand Name

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

Brand Mark

the symbol associated with the brand

EX: Nike's Swoosh

Brand Loyalty

Costumers favorable attitude towards a specific brand

3 types of Brand Loyalty

brand recognition, brand preference, brand insistence

Brand Recognition

Costumer is aware brand exists and views it as an alternative

(Weakest)

Brand Preference

Costumers prefers one brand but if it is not available, they will settle for a substitute (Popular)

Brand Insistence

Costumer strongly prefers one brand and will make significant effort to get it (Extreme)

Brand Equity

the marketing and financial value associated with a brand's strength in a market

3 Types of Brands

manufacturer, private distributor, generic

Manufacture Brands

Initiated by the producer and the producer is Identified at the point of purchase (Name Brands)

EX: Nike

Private Distributor Brands

Initiated and owned by reseller, Producer not identified on product; typically cheaper than alternatives (Store Brands)

EX: Walmart's Great Value and Costco's Kirkland

Generic Products

Indicates only product category, no brand; very unpopular today

2 types of Branding Policies

Individual Branding and Family Branding

Individual branding

a firm uses a different brand for each of its products

EX: Proctor and Gamble's Tide and Gain brands

Family Branding

All of firms products are branded with same name

EX: Green Giant canned food and Automobiles like Ford

4 Things to Packaging

Packaging Functions, Packaging & Marketing Strategy, Criticisms of Packaging, and Labeling

Packaging Functions

protect and maintain functional form, offers convenience, and Promotes product

Packaging and Marketing Strategy

--Altering the package: Doritos changing the look

--Secondary-Use Packaging: Resealable packaging

--Innovative Packaging: Ketchup from glass to plastic

--Multiple Packaging: Variety pack of chips

Criticisms of Packaging

Functional Problems: Salt and sugar in paper bags

Safety Issues: glass breaking

Deceptive Packaging: Chip bags with 90% air

Cost: expensive

Labeling

Identifies, Promotes product, and informs costumers

Federal requirements: Nutrition, textiles, hazards

Universal Product Code (UPC): the bar code

Managing/Expanding Existing Products

line extension; product modification

Line Extension

development of a product that is closely related to existing products in the line but is designed specifically to meet different customer needs (ADD or KEEP)

EX: Gatorade

Product Modification

changing 1 or more characteristics from existing product and removing the original product from production (Remove)

EX: Automobile Brands like the Ford Bronco

3 Types of Modification

Quality, Functional, and Aesthetic

Quality Modification

change in a product's dependability or durability

Functional Modification

change in a product's versatility, effectiveness, convenience, or safety

Aesthetic Modification

changes to the sensory appeal of a product

(Subjective and Hardest to do)

7 steps of new product development process

1. idea generation

2. screening

3. concept testing

4. business analysis

5. product development

6. test marketing

7. commercialization

Screening

Where most product ideas are eliminated

Concept Testing

Gather feedback on new Product Idea from Costumers and employees

Business Analysis

evaluating the potential of the product's sales, costs, and profits

Product Development

Develops BASIC working model or Prototype

Test Marketing

Sample launching of entire Marketing Mix (product, price, promotion, and distribution)

Commercialization

Full $cale marketing and production; Most Expensive step

The Adoption Process' 5 categories

Innovators, Early adopters, Early Majority, Late Majority, Laggards

Innovators

High income and Education, mostly male, don't know how to use product but have a psychological drive to own it. (2.5%)

Early Adopters

Opinion Leaders, Higher income and Education, 50:50 Gender ratio, Know how to use product (13.5%)

Early Majority

White collars, General public adoption, Higher income level

Late Majority

Blue Collars, lower income level

Laggards

Mainly Elderly, only adopt when forced too