MRKT 140 #9

Everything, both favorable and unfavorable, that a person receives in an exchange.

• u Tangible Good
• u Service
• u Idea

Product is the starting point of Marketing Mix

• A product bought to satisfy an
• individual’s personal needs or wants

1. Business Products

2. Consumer Products

• Convenience Products
• Shopping Products
• Specialty Products
• Unsought 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.

Advertising Economies


Package Uniformity

• Standardized
• Components

Efficient Sales andDistribution


Equivalent Quality

The number of product lines an organization offers.

• Diversifies risk
• 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 Modification
• ProductRepositioning
• Product Line
• Extension or Contraction

Quality Modification


Functional Modification



Style Modification

The practice of modifying products so those that have already been sold become obsolete before they actually need replacement.

Changing Demographics

Declining Sales

Changes in Social Environment

Adding additional products to an existing product line in order to compete more broadly in the industry.

§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

Brand Name

That part of a brand that can be spoken, including letters, words, and numbers

• Brand Mark
• The elements of a brand that
• cannot be spoken

• Brand Equity
• The value of company and brand names

GlobalBrand


A brand where at least 20 percent of theproduct is sold outside its home country

Product Identification


Repeat Sales


New Product Sales

• Manufacturer’s Brand
• -Individual brand
• -Family brand
• -Combination brand

• Private Brand
• -Individual brand
• -Family brand
• -Combination brand

A no-frills, no-brand-name, low-cost product that is simply identified by its product category.

• Manufacturers’ Brand
• -The brand name of a manufacturer.

• Private Brand
• -A brand name owned by a wholesaler or a retailer. Also known as a private label or store brand.

• -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

• -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

-Using different brand names for different products.

• Family Brands
• -Marketing several different
• products under the same
• brand name

IngredientBranding

Cooperative Branding


Complementary Branding

• -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.

Contain and Protect

Promote

Facilitate Storage, Use, and Convenience

Facilitate Recycling

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.

Persuasive

• §Focuses on promotional theme
• §Consumer information is secondary

Informational

• §Helps make proper selections
• §Lowers cognitive dissonance
• §Includes use/care

A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products.

One Brand NameEverywhere

Adaptations & Modifications


Different Brand Names in Different Markets

Labeling


Aesthetics


Climate Considerations

Branding Choices:

• 1 name
• Modify or adapt 1 name
• Different names in different markets

Packaging Considerations:

• Labeling
• Aesthetics
• Climate

Warranty

A confirmation of the quality or performance of a good or service



Express Warranty


A written guarantee.



Implied Warranty

• An unwritten guarantee that the
• good or service is fit for the purpose for which it was sold. (UCC)

Express warranty = written guarantee

Implied warranty = unwritten guarantee