Chapter 11

Product

anything that is of value to a consumer and can be offered through a voluntary marketing exchange

Complexity

can be a good, service, idea, community, people, organization, or place

Actual product

physical attributes of a product; packaging, features/design, brand name, & quality level

Core customer value

basic problem-solving benefits that consumers are seeking

Associated services

augmented product; nonphysical attributes of the product; financing, product warranty, & product support

Types of Products: Consumers

specialty, shopping, convenience, & unsought

Specialty

those for which customers express such a strong preference that they will expend considerable effort to search for the best suppliers

Unsought

products/services that consumers either do not normally think of buying or do not know about

Product Mix

complete set of all products offered by a firm.

Product Line

group of associated items, such as those that consumers use together or think of as part of a group of similar products

Breadth

number of product lines in a mix; costly to maintain

Depth

number of categories within a product line; cannibalize brands

Cannibalize brands

negative impact on a firm’s sales, profits, or market share when on product competes too closely with a similar product offered by the same firm

Branding

increases awareness and provides a way to differentiate from competitors

Things that make a brand

name, URLs, logos/symbols, characters, slogans, jingles/sound

Value of Branding for the Customer & Firm

Facilitate purchases, establish loyalty, protect from competition & price competition, are assets, & affect market value

Brand awareness

the more aware of or familiar consumers are with a brand, the easier the decision-making process is for consumers, which improves the chances of purchase

Perceived value

relationship between a product’s benefits and its costs

Brand associations

mental & emotional links that consumers make between a brand and its key attributes

Brand loyalty

occurs when a consumer buys the same brand’s product or service repeatedly over time rather than buying from multiple suppliers within the same category

Manufacturer/national brands

owned and managed by the manufacturer; Kraft, Nike

Retailer/store brands (private label)

brand developed and marketed by a retailer and available only from the retailer; Kroger, Costco

Family brand

firm’s own corporate name used to brand its product lines and products; Kraft cheeses

Individual brands

use of individual brand names for each of a firm’s products; Kraft owns Velveeta, Jellom etc.

Brand extension

same brand name in different product line

Line extension

same brand name within the same product line

Primary packaging

packaging the consumer uses, such as toothpaste tube, from which they typically seek convenience in terms of storage, use, & consumption

Secondary packaging

wrapper or exterior carton that contains the primary package and provides the UPC label used by retailers and additional info not included on the primary package