chapter 10 product concepts. what is a product? a bundle of benefits what the buyer gets…not what...
TRANSCRIPT
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Chapter 10Product Concepts
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What is a Product?A bundle of benefitsWhat the buyer gets…
not what the seller sells
Tangible items, services, ideas
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Three Types of Consumer Products:Three Types of Consumer Products:
ServicesServices Nondurable Nondurable goodsgoods
Durable Durable goodsgoods
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GoodGood ServiceServiceGood/serviceGood/service
Restaurant’sRestaurant’sofferingoffering
EmploymentEmploymentagency serviceagency service
ShovelShovel
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ConvenienceConvenienceproductsproducts
ShoppingShoppingproductsproducts
SpecialtySpecialtyproductsproducts
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Convenience ProductsInexpensivePurchased regularlyEasily accessible
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Shopping ProductsMake comparisonsShop aroundNot purchased
frequently
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Specialty ProductsUsually expensiveSpecial effort to
purchase
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Unsought GoodsA product that the
customer doesn’t know about and/or does not actively seek
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Three typesThree types::
CapitalCapitalProductsProducts
ProductionProductionProductsProducts
OperatingOperatingProductsProducts
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Product Line and MixProduct item: A specific version of the product
Product line: group of products that are fairly closely related
Product Mix: All the product offerings of an organization, no matter how unrelated
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Benefits of Product LinesAdvertising
EconomiesPackage UniformityStandardized
ComponentsEfficient Sales and
DistributionPerceptions of
Equivalent Quality
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Dimensions of the Product Mix
Breadth or widthDepth or length
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Adjustments
Product Modification
Product Modification
ProductRepositioning
ProductRepositioning
Product LineExtension or Contraction
Product LineExtension or Contraction
Adjustments to Product Items,
Lines, and Mixes
Adjustments to Product Items,
Lines, and Mixes
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Types of Product Modifications
Quality ModificationQuality Modification
Functional ModificationFunctional Modification
Style ModificationStyle Modification
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Planned Obsolescence
PlannedObsolescence
PlannedObsolescence
The practice of modifying products so those that have already been sold become obsolete before they actually need replacement.
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Expanding the Product LineProduct Line Extension: An item added to the
existing product lineProduct Category Extension: A new item or
line of items for a companyBrand Extension: Product category extension
that uses an existing brand name
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BrandingBrand nameBrand markLogoTrademarkService Mark
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Brand EquityValue associated with a brand
CrayolaHarley-DavidsonDisney
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Standardization Adaptation
Globalization Strategy
CustomizationStrategy
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Brand Name and Brand MarksBrand name: verbal part of the brandBrand mark: unique symbol that is part of the
brandLogo: brand name or company name written
in a distinctive way
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What makes a good brand name?A good brand name:
Is easy to pronounceHas mnemonic qualitySuggests a positive imageReinforces product concept
Communicates product benefitsSays something about the userAvoids linguistic traps
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Generic BrandsCarries neither a
manufacturer nor a distributor brandPlain packagingStark letteringMILK
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Manufacturer and Distributor BrandsManufacturer brand: owned by the maker of
the productWorld (global) brand: distributed and
recognized around the worldPrivate label/Distributor brand: owned by a
retailer or wholesaler
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Family BrandsThe same brand name is used in different
categories of products
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Individual BrandExample: Mar’s
candiesExample:P & G’s
laundry detergents
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Co-BrandingUse of two brands on a single product
Kleenix Mentholatum
Mentholatum scentedKleenix
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Trademarks and Service MarksTrademark: legally protected brand name or
brand mark for goodsService mark: symbol that identifies services
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Functions of PackagingContain productProtects productFacilitates storage and use of productPromotes productRecycling issues
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LabelingLabel: Paper or plastic sticker attached to a
container to carry product informationUPC (universal product code): permits
computerization of checkout and compilation of sales and inventory information