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73 Cards in this Set
- Front
- Back
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Product
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Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
LasVegas is a product. |
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Service
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Any activity or benefit that one party can offer to another that is <b>essentially intangible</b> and does not result in the ownership of anything
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Product is a key element in the OVERALL market offering
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true
Marketing-mix planning begins with building an offering that brings value to target customers. |
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A market offering often includes both...
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goods AND services
marketers are striving to create and manage customer experiences. |
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Product Planners need to think about products and services on 3 levels
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Each level adds additional value and marketers must look at each in sequence
Core Customer Value (what is the customer really buying?) Actual Product (what should we make) Augmented Product (how can we make the experience better) |
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Review Fig. 8.1
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3 Levels of a product
Core customer value Actual Product Augmented Product |
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Product and Service Classifications
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Consumer Products (experiences organizations, people, places, ideas)
Industrial Products |
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Consumer Product
Review Table 8.1 |
A product brought by final consumer for personal consumption
-Convenience Products -Shopping Products -Specialty Products -Unsought Products |
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Convenience Product
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A consumer product that customer susually buy FREQUENTLY, immediately, and with a minimum of comparison and buying effort
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Shopping Product
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A consumer product that the customers in the process of selection and purhcase usually compares on such bases as suitability quality price and style
Used cars, furniture, clothing, major appliances, airline tickets |
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Specialty Product
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A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
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Unsought Product
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A consumer product that the consumer either does not know about or knows about but does not normally think of buying
life insurance, preplanned funeral services, blood donations |
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Industrial Product
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A product bought by individuals and organizations for further processing or for use in conducting a business
<b>3 Groups</b> Materials& Parts Capital Items Supplies & services |
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Materials & Parts
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raw materials, manufactured materials and parts
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Capital Items
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aid in the buyer's production or operations including installations and accessory equipment.
buildings, generators, |
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Supplies and services
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operating supplies, repair and maintenance items
convenience products of the industrial field--purchased with minimum effort |
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other types of marketing
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Organization marketing
corporate image advertising person marketing place marketing ideas social ideas |
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Social Marketing
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the use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve thier well-being and that of society
public health campaigns environmental campaigns |
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Fig. 8.2 Individual Product Decisions
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Product Attributes
Branding Packaging Labeling Product Support Services |
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Product Quality
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The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs
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Total Quality Management (TQM)
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apporach in which ALL the company's people are invovled in constantly improving the quality of products, services, and business processes
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Product Quality has 2 dimensions
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Level
Consistency |
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Design
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larger concept than style
style is simply the appearance. design is more than skin deep |
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Brand
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A name, term, sign, symbol, design, or a combination of these that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors
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Packaging
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The activities of designing and producing the container or wrapper for a product
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Product Line
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A group of products that are closely related bc they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
<b>can expand in 2 ways</b> Line filling: adding more items within the present range of the line Line Stretching: when a company lengthens its product line beyond its current range--downward, upward or both ways. |
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Product Line Length
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# of items in the product line
can increase profits by adding or removing products from the product line upselling cross selling protect against economic swings |
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Product Mix (product portfolio)
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The set of all product lines and items that a particular seller offers for sale.
<b>Has 4 important dimensions</b> Width: refers to the number of different product lines the company carries Length: total number of items the company carries within its product lines Depth: number of versions offered of each product in the line. <b>Consistency:</b> refers to how closely related teh various product lines are in end use, production requirements, distribution channels, or some other way |
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Brand Equity
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The differential effect that knowing the brand name has on customer response to the product or its marketing.
measure of a brands ability to capture and retain consumer preference and loyalty |
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Differentiation
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what makes the brand stand out
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Relevance
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how consumers feel it meets their needs
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Knowledge
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How much consumers know about the brand
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Esteem
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how highly consumers regard and respect the brand
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Brand strength measured by 4 things
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Differentiation
Relevance Knowledge Esteem |
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Brand Valuation
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the process of estimating the total financial value of a brand--its hard to do.
high brand equity provides a company with many competitive advantages |
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high brand equity provides a company with many competitive advantages
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Customer awareness & loyalty
leverage with resellers/bargains more easily launch brands/products defence against price competition forms the basis for building strong and profitable customer relataionships |
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Fig. 8.3
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Major Brand Strategy Decisions
Brand Positioning Brand Name Selection Brand Sponsorship Brand Development |
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Brand Positioning
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Atrributes
Benefits Beliefs & Values (strongest brands) not so much interested in attributes, but in WHAT the attributes can do for customers |
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When positioning a brand the marketer should establish a MISSION for the brand a vision of what the brand must be and do.
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a brand is the company's promise to deliver a specific set of features, benefits, services , and experiences consistently to the buyers
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Brand Name Selection
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Selection
Protection <b>Desirable Qualities for Brand Name:</b> Should suggest something about the product's benefits/qualities Should be easy to pronounce, recognize, and remember Brand name should be distinctive should be EXTENDABLE should translate easily into foreign languages capable of registration/legal protection |
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Brand Sponsorship
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<b>Manufacturer hs 4 SPONSORSHIP OPTIONS:</b>
Manufacturer's Brand Private Brand Licensing Co-Branding |
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National Brands vs. Store Brands
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National brands have long dominated the retail scene.
<b>Store Brands</b> are a brand created and OWNED by a reseller (distributor) of a product or service--sales are soaring Although store brands can be hard to establish and costly to stock and promote, they also yield HIGHER profit margins for resellers--and they provide resellers with exclusive products that cannot be bought from competitors, resulting in greater store traffic and loyalty |
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Licensing
review pg. 241 |
Some companies license names or symbols previously created by other mfgs, names of well known celebritied, or characters from popular movies and books.
for a fee any of these can provide an instant and proven brand name. |
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Co-Branding
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The practice of using the established brand names of two different companies on the same product.
occurs when 2 established brand names are used on the same product. one company will usually licenese another company's well-known brand to use in combo with its own. creates broader consumer appeal and greater brand equity, also allows a company to expand its existing brand into a category it might otherwise have difficulty entering alone. Also has its limitations--usually involve complex legal contracts and licenses, partners must carefully coordinate their advertising, sales promos, and other marketing efforts. |
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Brand development
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<b>4 choices when developing a brand</b>:
Line extensions Brand Extensions Multibrands new brands |
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Line Extension
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Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category
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Lecture
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Review
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the marketing cheer
who can we do business with who should we do business with how will we do business with them |
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Product
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anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want
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Experiences
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Represent what buying the product or service will DO for the customer
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From Product to Experience
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American Girl Doll
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Product Target
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Core (heart)--Bullseye
Tangible (mind) Augmented (credibility) Examples: -Encyclopedias -VW Beetle |
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What's the heart/core of your product or service?
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figure it out and capitalize on it.
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What is a product?
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<b>Core Customer Value</b>
<b>Actual Product</b> -Brand Name -Quality Level -Packaging -Features <b>Augmented Product</b> -Delivery & Credit (buying furniture) -Product Support -Warranty -After Sale Service |
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Never Disappoint
Yugo Volvo Rolls |
Product Quality includes LEVEL and CONSISTENCY
Under promise OVER deliver |
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Quality Level
SETTING THE LEVEL OF EXPECTATION |
the level of quality that supports the product's positioning
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Conformance Quality
DOES THE PRODUCT CONFORM TO THE EXPECTATION? |
the product's freedom from defects and consistency in delivering a targeted level of performance
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Product & Services Decisions
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Product Attributes-->Branding-->Packaging-->Labeling-->
"The First Moment of Truth" |
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Packaging & Labeling
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<b>Functional</b>
-Protect -Inform <b>Strategic</b> -influence in store decisons -Reinforce brand image -Differentiate the brand -Advertise |
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Packaging Cues
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Background Cues:
Colors Design Elements Copy |
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Can Packaging Drive Strategy?
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Examples:
Method Package Updates: Pepsi |
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Branding
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Branding = Positioning = Marketing
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Brand
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your brand is NOT your brand symbols. Your brand is a PERCEPTION that exists in teh MINDS of your CONSTITUENTS about your RELEVANCE and PROMISE of value.
Your brand is the SUM total of the impressions formed through exposure to your TOUCHPOINTS |
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Are you developing your personal brand
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What are my functional benefits (skills) Emotional benefits |
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Brand Decisions
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<b>Brand Positioning</b>
Brand Name Selection Brand Sponsorship Brand Development |
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Know who you are in the mind of your core consumer
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Brand Pyramid-"Brand Essence"
Example: Snickers ``````Personality ````Values of User ```Emotional benefits ``functional beneifts `Attributes <b>The hardest to figure out</b>--Where iconic brands are madeat Personality Values of users Emotional |
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Six Attributes of Good Brand Names
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Suggestive of benefits
Simple easy to remember Distinct Extendable Translatable Defensible (legal protection) |
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Branding How do you get there?
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<b>Branding Strategies</b>
National Brand Private Label Brand Licensing Co-branding |
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Private Label
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owned by a retailer/distributor
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Brand Development
**Fig. 8.4 |
Brand Development Strategies
Line extension Multibrands Brand Extension New Brands |
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Multibranding
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Multiple brands in the same category owned by the same organization
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Brand Architecture
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<b>House of Brands:</b>
-Conagra foods -P&G <b>Endorsed Brands</b> -Courtyard Marriott <b>Subbrands</b> -not SONY walkman, just "Walkman" <b>Branded House</b> -Virgin -Kraft |
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Every business needs to remember...
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know who you are and what you stand for!
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