Everything, both favorable and unfavorable, that a person receives in an exchange.
u Tangible Good
What Is a Product?
Product is the starting point of Marketing Mix
A product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other consumers.
A product bought to satisfy an
individual’s personal needs or wants
Types of Consumer Products
1. Business Products
2. Consumer Products
A relatively inexpensive item that merits little shopping effort
A product that requires comparison shopping, because it is usually more expensive and found in fewer stores
A particular item for which consumers search extensively and are reluctant to accept substitutes
A product unknown to the potential buyer or a known product that the buyer does not actively seek
A specific version of a product that can be designated as a distinct offering among an organization’s products.
A group of closely-related product items
All products that an organization sells.
Benefits of Product Lines
Efficient Sales andDistribution
Product Mix Width
The number of product lines an organization offers.
Capitalizes on established reputations
The number of product
Items in a product line.
Attracts buyers with different preferences
Increases sales/profits by further market segmentation
Capitalizes on economies of scale
Evens out seasonal sales patterns
Product Items,Lines, and Mixes
Extension or Contraction
Types of Product Modifications
The practice of modifying products so those that have already been sold become obsolete before they actually need replacement.
Why reposition established brands?
Changes in Social Environment
Product Line Extension
Adding additional products to an existing product line in order to compete more broadly in the industry.
Product Line Contraction
Symptoms of Product Line Overextension
§Some products have low sales or cannibalize sales of other items
§Resources are disproportionately allocated to slow-moving products
§Items have become obsolete because of new product entries
That part of a brand that can be spoken, including letters, words, and numbers
The elements of a brand that
cannot be spoken
The value of company and brand names
A brand where at least 20 percent of theproduct is sold outside its home country
Benefits of Branding
New Product Sales
A no-frills, no-brand-name, low-cost product that is simply identified by its product category.
Manufacturers’ Brands VersusPrivate Brands
-The brand name of a manufacturer.
-A brand name owned by a wholesaler or a retailer. Also known as a private label or store brand.
Advantages of Manufacturers’ Brands
-Heavy consumer ads by manufacturers -Attract new customers
-Enhance dealer’s prestige
-Rapid delivery, carry less inventory
-If dealer carries poor quality brand, customer may simply switch brands and remain loyal to dealer
Advantages of Private Brands
-Earn higher profits on own brand
-Less pressure to mark down price
-Manufacturer can become a direct competitor or drop a brand/reseller
-Ties customer to wholesaler or retailer
-Wholesalers and retailers have no control over the intensity of distribution of manufacturers’ brands
Individual Brands Versus Family Brands
-Using different brand names for different products.
-Marketing several different
products under the same
Trademark is the exclusive right to use a brand.
-Many parts of a brand and associated symbols qualify for trademark protection.
-Trademark right comes from use rather than registration.
-The mark has to be continuously protected.
-Rights continue for as long as the mark is used.
-Trademark law applies to the online world.
Functions of Packaging
Contain and Protect
Facilitate Storage, Use, and Convenience
100 Percent Recyclable
Coca-Cola is building the largest recycling plant in the world. The plant will produce 100 million pounds of food-grade recycled plastic for reuse each year. That’s enough plastic to produce two billion 20-ounce Coke bottles.
Coca-Cola’s goal is to recycle or reuse 100 percent of the company’s plastic bottles in the U.S. market. By meeting that goal over the next ten years, the Coca-Cola recycling plant will eliminate the production of one million metric tons of CO2 emissions—the equivalent of removing 215,000 cars from American highways.
§Focuses on promotional theme
§Consumer information is secondary
§Helps make proper selections
§Lowers cognitive dissonance
Universal Product Codes
A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products.
Global Issues in Branding
One Brand NameEverywhere
Adaptations & Modifications
Different Brand Names in Different Markets
Global Issues in Packaging
(Global Considerations for Packaging )
Global Issues in Branding and Packaging
Modify or adapt 1 name
Different names in different markets
A confirmation of the quality or performance of a good or service
A written guarantee.
An unwritten guarantee that the
good or service is fit for the purpose for which it was sold. (UCC)