B

Principles of Marketing Notes

Chapter Outline

  • 9.1 Products, Services, and Experiences

  • 9.2 Product Items, Product Lines, and Product Mixes

  • 9.3 The Product Life Cycle

  • 9.4 Marketing Strategies at Each Stage of the Product Life Cycle

  • 9.5 Branding and Brand Development

  • 9.6 Forms of Brand Development, Brand Loyalty, and Brand Metrics

  • 9.7 Creating Value through Packaging and Labeling

  • 9.8 Environmental Concerns Regarding Packaging

  • 9.9 Ethical Issues in Packaging

Products, Services, and Experiences

  • Product: Tangible goods (e.g., groceries)

  • Service: Intangible offerings (e.g., haircuts)

  • Customer Experience: Interactions with products/services.

Three Levels of Product

  • Core Customer Value: Fundamental benefit

  • Actual Product: Features, design, branding

  • Augmented Product: After-sale services, support

Classifications of Consumer Products

  • Convenience: Easy to purchase, low price

  • Shopping: Price, quality comparisons, selective distribution

  • Specialty: Unique offerings, high brand loyalty

  • Unsought: Consumers are unaware, varies in price/distribution

Classifications of Business Products

  • Raw Materials: Basic input for production

  • Manufactured Parts: Used in products

  • Capital Items: Tangible assets (e.g., equipment)

  • Supplies and Services: Operating supplies without tangible value

Product Items, Lines, and Mixes

  • Product Item: Specific good offered

  • Product Line: Group of related products

  • Product Mix: All products sold by a company

  • Line Length/Depth: Number of items, variations in products

  • Line Filling/Stretching: Adding products to prevent competition

The Product Life Cycle

  • Stages:

    • Introduction: Awareness grows

    • Growth: Sales increase

    • Maturity: Sales level off

    • Decline: Sales drop significantly

Marketing Strategies

  • Introduction: Skimming or penetration pricing, high promotion

  • Growth: Focus on market share and quality improvements

  • Maturity: Modify product and market; repositioning

  • Decline: Divesting or harvesting strategies to maintain revenue

Branding and Brand Development

  • Branding: Emotional connection with customers

  • Brand Equity: Extra value a brand holds in the market

  • Strategies:

    • Line Extension: New variations of existing brands

    • Brand Extension: New products under established names

    • New Brands: Creating entirely new entities

Brand Loyalty

  • Levels:

    • Switchers

    • Shifting Loyals

    • Split Loyals

    • Hard-core Loyals

Metrics to Measure Brand Effectiveness

  • Brand Lift: Perception measurement

  • Brand Engagement: Loyalty drivers (purchases, advocacy)

  • Social Media Metrics: Engagement tracking

  • Brand Preference: Behavioral measures to predict sales

Creating Value through Packaging

  • Functions of Packaging: Protection, information, promotional tool

  • Labeling: Product identification, usage instructions, safety information

Environmental Concerns Regarding Packaging

  • Issues: Harmful materials, recycling challenges

  • Solutions: Use of recycled materials, reduced single-use products

Ethical Issues in Packaging

  • Importance of clear information and safety measures to prevent damage and tampering.