MKT 2210 Ch 7 Products and Brands

Product

A good, service, or idea consisting of a bundle of tangible and intangible attributes

 Tangible Attributes

Are physical characteristics such as color or sweetness.

Intangible Attributes

Include products elements that cannot be touched.

Non-durable good

Items that do not last and is consumed only once (e.g. food, shampoo)

Durable Good

Items such as appliances or cars that last for an extended period of time (e.g. a guitar, appliances)

Service

An intangible activity, benefit, or satisfaction

The Service Continuum

Most products are hybrids falling between “pure goods” (tangible) and “pure services” (intangible)

The 4 I's of Services (Uniqueness)

1. Intangibility

2. Inconsistency

3. Inseparability

4. Inventory

Intangibility

Services that generally cannot be held, touched, or seen before purchase.

Inconsistency

Services are often hampered by inconsistency. Delivery of a service varies according to the people who provide it.

Inseparability

Consumers do not usually separate the delivery of the service from the service itself.

Inventory

Inventory problems arise due to fluctuating demand for services that occur during the day.

Core Product

The underlying benefit or service (what the consumer is really buying)

Actual Product

The tangible features, design, quality, and brand name

Augmented Product

Additional features or benefits that come with the product (e.g., warranty, delivery, online FAQs, setup service)

Packaging and Labelling

Serves critical functions in protection, communication, and building brand image

Product Line

A group of similar products that satisfy a similar need and are directed at the same target market (e.g., a line of different guitar amps)

Product Mix

Consists of all the product lines marketed by a company

Product mix width

The total number of product lines a company offers.

Product line length

The total number of items within a product line.

Product line depth

The variations of each product within the line.

Consumer Products

Purchased for personal use by the ultimate consumer. Classified into four types based on consumer shopping habits

Convenience products

Bought frequently with minimum effort (e.g., toothpaste)

Shopping products

Consumers compare criteria like price, quality, and style (e.g., clothing, electronics)

Specialty products

Special effort made to search out and buy unique items (e.g., high-end instruments, designer goods)

Unsought products

Items the consumer doesn't know about or normally think of buying (e.g., life insurance)

Business Products (Industrial/Organizational)

Purchased to run a business or used as a component in another product. Driven by derived demand

Production goods

Raw materials and component parts

Support goods

Installations, accessory equipment, supplies, and services used to assist in production

Brand

A name, phrase, symbol, or design given by a company to distinguish its product from competitors. Strong marketing over time builds brand equity and brand loyalty (favorable attitudes over time)

Protecting Brands

Safeguarded legally via Patents, Copyrights, and Trademarks.

Brand Personality

The set of human characteristics associated with a brand, successful brands often connect emotionally with consumers by matching desired personality traits (e.g., creative, in control)

Types of Brands

• Manufacturer (National) Brand

• Private-Label (store) brand

• Generic Brand

Manufacturer (National) Brand

Owned and produced by the manufacturer (e.g., Crest, Sony)

Private-Label (Store) Brand

Owned by a wholesaler or retailer.

Generic Brand

Unbranded products sold at lowest possible prices

What are the four Branding Strategies?

• Individual Branding

• Family (Umbrella) Branding

• Brand Extension

• Sub-Brand

Individual Branding

Giving each product a distinct name (reduces risk if one product fails).

Family (Umbrella) Branding

Using one name for multiple products (e.g., Crest toothpaste, floss, and mouthwash under the Crest family).

Brand Extension

Using a successful brand name to launch a new product in a new category.

Sub-Brand

Combining a corporate/family brand with a new brand name to distinguish a product line.

Installations

buildings and fixed equipment.

Accessory Equipment

Tools and office equipment purchased in small order sizes by buyers.

Supplies

Smaller items used continuously to run the business, such as stationery, paper clips, and brooms

Services

Intangible activities needed to asses the business intense operations such as transportation, maintenance, and repairs.

Brand Equity

Is a term used to describe the value of a brand that results from the favorable exposure, interactions, associations, and experiences that consumer have with a brand over times.

Patents

Used to legally protect new technologies, unique processed, or specific formulations (Lasts 20 yrs & have maintenance fees)

Copyrights

Used to legally protect the written word, sound recording, or form of communication from being copied. (Covers music, literature, performances, and slogans)

Trademarks

Used to legally protect a brand name and brand marks in terms of logos, and their respective colors and fonts (Last 15 yrs can be renewed)

Brand loyalty

Refers to the degree consumers insist on purchasing a specific brand

What criteria make a good brand name?

• Suggest product benefits (clearly communicates what the product does or provides).

• Be memorable, distinctive, and positive (stands out in a consumer's mind in a good way).

• Fit the company or product image (aligns with overall positioning).

• Be legally protectable (can qualify for trademark protection).

• Be simple (easy to spell, pronounce, read, and remember)