MKTG 300 Ch.10

product

the starting point of a marketing mix, everything - favorable & unfavorable - that a person recieves in an exchange.

• tangible goods, services, or ideas

business product

a type of product used to manufacture other goods/services to help with an org’s operations or resell to other customers

consumer product

a type of product to satisfy an individual’s wants/needs, often categorized by amount of effort required to shop for them

convenience product

a type of product relatively inexpensive with little shopping effort, sometimes recognized by name and requires wide distrubution to sell sufficient quantities for profit. EX: SUPERMARKETS

shopping product

a type of product that requires comparison shopping, more expensive than a convenience product, in fewer stores, more effort.

Homogenous EX: APPLIANCES, basically similar
Heterogeneous EX: FURNITURE, essentially different

specialty product

a type of product that consumers search extensively and willing to get a dupe EX: A WATCH

• status conscious ads to maintain exclusivity

• brand names and geographic distrubition

unsought product

a type of product unknown to the potential buyer or known but not actively sought for - new or existing sold through salespeople or direct mail. EX: BURIAL PLOTS

• only until consumer awareness is increased

product item

specific ver. of a product that can be designated as a distinct offering among an org’s products

product line

a group of closely related product items

product mix

all products that an org sells EX: COKE OWNING DASANI, SIMPLY ORANGE, POWERADE, ETC

product mix width

number of product lines an org offers, often to generate sales + boost profit, spreading risk across many product lines, capitalizing on est. reputation

product line depth

number of product items in a product line, more broad competition to attract those with diff. preferences and further segmenting the market

• evens out seasonal sales patterns

benefits of product lines

1. several products advertised together

2. package uniformity

3. standardized component - reduced manufactuing + inventory costs

4. efficient sales + dist.

5. equivalent quality - percieved standard quality of org.

*shares some similarities with product mixes

product lines can be overextended when

• all products do not contribute to profits

• manufacturing/marketing resources are not allocated equally

• poor product sales or hurting other sales, obsolete

• change in demand

product line contraction

a strategy to deal with overextension - eliminate items

• concentrating resources on more important products

• no wasted resources on bad performing products

• new products more likely to be successful due to financial + human resources

product modification

changing one or more of a product’s characteristics including

• QUALITY: dependability/durability, relation to price

• FUNCTION: versatility, effectiveness, convenience, safety. OPTIONS!

• STYLE: aesthetic, color, looks, etc.

planned obsolescence

the practice of modifying products so what has been sold becomes obsolete (irrelevant) before they actually need replacement.

repositioning

changing consumer perceptions of a product or brand, happens when they

• change demographics

• decline in sales

• have competition

• change in social environment

product line extension

adding more products to an existing product line in order to compete more broadly in the industry

branding

how to distinguish their products from those of the competition through positioning (brand, name + mark)

brand equity

value of a company or brand name - awareness, quality, loyalty EX: DISNEY FOR CHILDRENS ENTERTAINMENT

global brand

a brand that gets 1/3 of its earnings from outside its home country, recognizable outside of home base customers, with publicly available marketing + financial data

product identification

what allows marketers to distinguish their products from all others through brand equity, global brand and adaptability to local culture + tastes

repeat sales

consumers identify products they wish to buy again and avoid those they do not, contributing to brand loyalty and identity EX TOOTHPASTE, PAIN MEDICATION

new-product sales

when a well-known + respected company and brand name is useful when introducing new products

manufacturer’s brand

brand name owned by manufacturer

• rapid delivery, so dealers can carry less inventory

• if they have poor quality, customer can simply switch brands but remain loyal to table

captive brand

brand manufactured by a third party for an exclusive retailer, without evidence of their affiliation EX KROGER, millenials often read sources and labels to get more out of their value.

private brand

brand name owned by wholesaler or retailer, closer ties to customer

• more preferred bc of quality EX KIRKLAND

• low overhead, no marketing costs yield 10% more profit margins

• captive brand

• no control over intensity of distrubution of manufacturer’s brands

individual branding

using different brand names for different products, varies greatly in use & performance - discrimmination between brands

family branding

marketing several different products under the same brand name - generalization

co-branding

placing 2+ brand names on a productt or its package - benefits owners and users

• a combination of brand names can enchance a products prestige

ingredient co-branding

identifies a branded part that makes up the product

cooperative co-branding

when 2 brands are treated equally

complementary co-branding

when products are advertised or marketed together to suggest usage

trademark

exclusive right to use a brand or part of a brand, lasts about 10 years

• without it a brand/product can be generic

• must be registered with an intent-to-use application that is filed to the US Patent + trademark office

• must have genuine intention and used within 3 years of grant

service mark

a trademark for a service

• parts of a brand such as sounds or designs can be protected

functions of packaging

• contain and protect products

• promote products

• facilitate storage, use and convenience of it

• facilitate recycling and reduce environmental damge.

physical packaging

• Contains products that are liquid, granular, or otherwise divisible

• Enables manufacturers, wholesalers, and retailers to market products in specific quantities

• Protects products through the many steps between production and consumption

packaging

what identifies the brand, lists ingredients, specifies features, and gives directions

• differentiates a product from competition and may associate a new product with a family of other products from the same manufacturer

• done through designs, colors, etc to influence perceptions + buying behavior

packgaging preference

wholesalers - easy to move around, long shelf life

consumers - easy to handle, childproof

informational labeling

package labeling designed to help consumers make proper product selections and lower cognitive dissonance after the purchase

persuasive loading

package labeling focusing on a promotional theme or logo, consumer info is secondary

greenwashing

when a product/company attempts to give the impression of environmental friendliness whether or not its environmentally friendly

universal product codes

bar codes read by scanners that represent numbers used to track products

• helps retailers and accurately prepare records of customer purchases, control inventory and track sales

packaging in international marketing

• properly translated labels

• aesthetics respectful to cutlural traits

• package size & climate for durability to move

warranty

confirmation of quality or performance of a good or service

• express warranty - a written guarantee

• implied warranty - unwritten gaurantee that good/service is fit for sold purpose